401(k) plans don’t have to allow employees to borrow from their vested account balances. But if they do, the news is grim. According to a recent survey, about 10% of employees who borrow from their 401(k) plans default. The default percentage skyrockets to 80% if employees terminate with outstanding loans.
Ineffective payroll management and shoddy payroll systems can result in personal liability (including JAIL TIME) for non-compliance.
Business Management Daily helps our readers with information on payroll processing and tips on timesheets that will help you to implement payroll programs that pay off.
Q. We require direct deposit of employee paychecks. We have one employee who hasn’t set up an account despite frequent requests. We have to mail his check from headquarters, sometimes via courier. Can we charge him a fee?
Question: We verify employees’ names and Social Security numbers through the telephone number employer verification service (TNEV) and the paper option. Are these methods still available?
Question: Several employees want to participate in two multi-employer 401(k) plans, but their combined contributions would exceed the Section 415 limitations on overall contributions. Can the employees legally participate in both plans during the same year?
Question: If employees don’t have List A, B or C documents and must use replacement receipts to verify their identify and work eligibility, when can the employer create a case file in E-Verify?
It’s no secret that a large contributor to the tax gap—the difference between the taxes that are paid and the taxes that are owed—are independent contractors who don’t have taxes withheld from their payments. B Notices, properly called CP 2100/2100A notices, which require payers to backup withhold, are a key tax collection tool.