My employer withheld $100 from my paycheck for 401(k) contribution, however they remitted only $40?

Question

to the brokerage company they use, which code section of the federal law did they violate?
Did my employer commit felony? Did they violate federal anti-trust law? I believe my employer have to remit $100 to the trustee if they withhold $100 from my paycheck for 401k cont.

I quit my job over a month ago and have tried to call the office manager to asked why and explain that she might be violating labor law. Unfortunately, the office manager just hanged up the phone and seems not to care that she is exposing the company to possible law suit.

Answer 1

Write them a letter explaining the problem and put a cc on the bottom of the letter to a well known attorney in your area. If you don't get a prompt answer sue them in small claims court.

Answer 2

You may be making an issue out of a non-issues. This could be an accounting error, or just the normal course of remitting 401k withholding.

401k deposits are supposed to be made in the same time frame as federal payroll taxes. Those taxes are either due & payable, weekly, monthly, or quarterly, totally contingent on the amount of the companies average withholding taxes the previous year.

For a lot of small companies, their taxes and 401k submissions are not due until the 15th of the month following the month you are paid. So, July withholding would not be paid until the 15th of the August.

And, for a really small company, they may not have to send it in until the last day of the month following the last day of the quarter. July's (along with August & September) withholding would not have to be in to the 401k company or IRS until October 31.

Odds are, this is what is happening with your money. The statement you receive at home only shows the actual money that has been received by the 401k company prior to the statement date and odds are it would not directly correspond to your paycheck stubs.

Go ask payroll, they will explain it to you.

Answer 3

Have you asked them why this was done? Would seem like a good place to start.