I have a friend who works for a very large international company that will not be named. She has been with them for several years, and is on a special contract. The employees on this contact receive 401K benefits. At some point in 2005, she volunteered to go work a natural disaster for several months. Apparently since she was not working his original job during this time she was not eligible for the 401K but the company paid it to her anyway.
Now-- when she returned to his original post several months later (after working for the same company the whole while)-- they had an accounting error and neglected to pay the 401K the first couple of months. After complaining for months about this $500 she filed a grievance.
Now-- the company has realized she wasn't supposed to get the initial $2500 he got while she was away, and they are taking THAT money back, along with everyone else's who was in the same situation. Can they do this? This money was from between 8-12 months ago.
2006-12-29 05:36:41 · 5 answers · asked by rosepetals220 2 in Business & Finance ➔ Careers & Employment
Sorry but I cant understand any of your figures,( not that it really matters what the actual amounts are).
Similar thing happened to me, I was overpaid a couple of months salary in error while on a contract, paid direct to my account after I had finished my contract, the difference is I knew I had been overpaid, but no way was I going to ask why. The company made no mention of it and I was eventually asked to start another job with them, they got their money back from my salary, I was in the wrong and paid for it.
All I can think of in your friends case is that maybe a condition of this bonus was working for a limited time with the contract, if.she and others cleared off (for whatever reason) before the contract was fulfilled they wouldn't be entitled, why doesn't she just ask the company for reasons? If the reasons seem invalid she can sue.
2006-12-29 05:59:20 · answer #1 · answered by budding author 7 · 1⤊ 0⤋
No they may not take the money back. He should call the IRS they monitor these thing and there are strick guidlines on how they can be used, distributed, and given. As a matter of fact, the CEOs can only give a certian potion of what the employees give (CEO use 401k to avoid taxes). If they take back the money (which they are not allowed to do) the CEOs would have to ajust what they have given and pay the taxes on it.
2006-12-29 05:42:13 · answer #2 · answered by Mel 4 · 1⤊ 0⤋
First, it isn't the former business employer. in case you acquire the 401K notification linked including your termination, then they did their area. If may be the difficulty of the employer it somewhat is administering the 401K software. Secondly, in case you predicted this to be achieved 1yr1mn in the past and not in any respect checked on it nor never puzzled why you have been getting quarterly statements from the previous employer extremely of the hot employer, that would desire to be quite lots your fault and lost funds.
2016-10-19 04:18:32 · answer #3 · answered by ? 4 · 0⤊ 0⤋
If the money was given in error they can certainly take it back.
2006-12-29 05:53:48 · answer #4 · answered by bestbet77 3 · 1⤊ 0⤋
sure they can. all plans have rules set in them and if she was not in-titled then pay back time.
2006-12-29 05:44:53 · answer #5 · answered by golferwhoworks 7 · 1⤊ 0⤋