HRGuru
11-16-2006, 01:07 PM
Under FMLA, an employees contributions to a 401k plan will cease until they return from leave. Here is my dilemia:
My company is currently using a PEO (professional employer organizaion) :mad: to process payroll. While reviewing my last payroll submission to them, I realized that a 401k contribution for an ee on FMLA was being deducted from her check. I brought this to the attention of my "payroll specialist" and she said, sorry nothing I can do about it - just give her the money back from your AP department. WHAT?? Not only is that illegal, duh, but that would result in her pre-tax dollars being technically wrong, and would throw off my reporting to my 401k administrator. So, I of course dismissed the idea, and moved on to my "Ancilliary Benefits specialist" - who's job it is to make sure the 401k deduction doesn't come out. He told me that I am going to have to instruct the employee ( you know, the one who JUST had a baby) to complete a revised deduction form to indicate that her contribution to 401k is zero dollars. WHAT??
SO>>> To my question!
Obviously, it was a violation to allow this employee to contribute to the 401k plan. Should I just let it go? Cave in, and make the employee fill out a new deduction form? OR, make this PEO do their job, and remove the deduction on their end like they are supposed to do in the first place?
Thanks!
My company is currently using a PEO (professional employer organizaion) :mad: to process payroll. While reviewing my last payroll submission to them, I realized that a 401k contribution for an ee on FMLA was being deducted from her check. I brought this to the attention of my "payroll specialist" and she said, sorry nothing I can do about it - just give her the money back from your AP department. WHAT?? Not only is that illegal, duh, but that would result in her pre-tax dollars being technically wrong, and would throw off my reporting to my 401k administrator. So, I of course dismissed the idea, and moved on to my "Ancilliary Benefits specialist" - who's job it is to make sure the 401k deduction doesn't come out. He told me that I am going to have to instruct the employee ( you know, the one who JUST had a baby) to complete a revised deduction form to indicate that her contribution to 401k is zero dollars. WHAT??
SO>>> To my question!
Obviously, it was a violation to allow this employee to contribute to the 401k plan. Should I just let it go? Cave in, and make the employee fill out a new deduction form? OR, make this PEO do their job, and remove the deduction on their end like they are supposed to do in the first place?
Thanks!
