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business advisory
Abstract:
Does your company sponsor a defined contribution plan such as a 401(k) plan? If so, when do you remit the contributions that your employees have elected to defer from their paychecks? Is it the same day you pay your employees? Is it a couple days after or even a couple days before?
Maybe you stick to the tried and true practice of the 15th business day of the following month. Or do you remit the contributions a couple days after the pay date one payroll, a week after the pay date another payroll, and then a few days before the next payroll. If any or all of these scenarios appear reasonable, and you are unsure of which is correct, you aren’t alone. Many employers have a difficult time determining what is considered a late contribution remittance.
If you're not sure when your company should remit its 401(k) contributions, then you're not alone. Many employers don't know what's considered a late contribution.
So when should you remit your 401(k) contributions? Download the full article below to learn that information, as well as what guidelines that Department of Labor has set up about remitting 401(k) contributions.