Can My Employer Charge Interest on Profit Sharing Monies?

Question

My employer choose all year to pay everyone profit sharing monies, even though profit sharing was in the negative. Now he says we must pay a monthly interest payment on the overdrawn profit sharing monies. He mentioned his CPA told him he could, so that he could avoid paying taxes on the money. I feel the CPA probably told him that he can charge interest on money loaned out to employees, and not have to pay taxes on loaned money. Does anyone know if this is legal?
If not what would you do?

Answer 1

I'm afraid I'm not following this. I would suggest that you contact the plan custodian to discuss the situation.

Answer 2

it rather is termed regulation. First the revenue which you communicate of comprise not actual. they're an accounting trick. 2d, they set the fees of pastime that they pay based on the Fed in one day fee. 0.33 the fees are because of the fact the government hit them with a batch of latest policies. no one tells you approximately those issues except you're taking the classes on Banking in college.