USA 401K

[Sharing Smiles]

An employee had 401k taken out of his paycheck and he didn't want to contribute but was automatically enrolled. An ineligible contribution form was submitted to ADP and they returned the contribution. What do we need to do in the 401k GL to correct it?

 

[kirby]

If you use a payroll service, easiest thing to do is to tell them the situation and have them figure out the adjustments. If you do payroll all yourself (yikes!) figure out what employees check should have looked like if no 401k deduction and compare to what happened and make the adjustments. In that case might be easier to void original check and reissue.

 

[Sharing Smiles]

Thank you Kirby. I truly appreciate your feedback.