How do I reconcile my health insurance or retirement plan invoice to what I actually deducted from employees' pay?

The three populations you are tying together: who the carrier is billing, who you deducted from, and what the business is paying

The article offers, as a useful technique, checking the payroll deductions recorded in the sponsor's payroll provider against the participant's deferral rate in Guideline, to confirm both that the proper deductions were withheld and that they were allocated to the intended contribution type (pre-tax versus Roth) - naming the payroll deduction record and the Guideline deferral rate as the two records compared. (jurisdiction: United States, entity_scope: plan sponsors (employers) of 401(k) plans recordkept by Guideline / Gusto Retirement, platform: Guideline 401(k) platform (Gusto Retirement Help Center), platform_edition: Gusto Retirement Help Center article, last updated February 5, 2025)

“Check payroll deductions in your payroll provider against a participant’s deferral rate in Guideline to ensure the proper deductions were withheld and correctly allocated to the intended contribution type (pre-tax versus Roth)”

UHA states that its premium statement includes a summary page showing the prior balance, payments, current charges and the amount due, and also a detailed statement list of current eligible members, type of coverage and type of benefit plan. The verb is 'includes', so the items listed are ones the statement contains and the list is not stated to be exhaustive; the page does not state that the statement shows a coverage period, retroactive adjustments, or per-member premium amounts. (jurisdiction: United States — State of Hawaii (UHA Health Insurance / University Health Alliance group business; the page's own text addresses Hawaii employers and gives (808) contact numbers), entity_scope: Employer groups with UHA Health Insurance group coverage — the employer / group administrator who receives a UHA premium billing statement)

“The premium statement includes a summary page showing the prior balance, payments, current charges, the amount due, and a detailed statement list of current eligible members, type of coverage and type of benefit plan.”

The article covers recording and tracking company-paid contributions to an employee's retirement or health insurance plan (medical, dental, or vision) in Intuit QuickBooks Workforce and QuickBooks Desktop Payroll. (jurisdiction: United States, entity_scope: Employers using Intuit QuickBooks Workforce or QuickBooks Desktop Payroll, platform: Intuit QuickBooks Workforce; QuickBooks Desktop Payroll, platform_edition: US (en_US) QuickBooks Support help article, updated 8/3/2026, conditions: company-paid contributions only, as distinct from employee deductions)

“Learn how to record and track company-paid contributions to an employee’s retirement or health insurance plan (medical, dental, or vision) in Intuit QuickBooks Workforce and QuickBooks Desktop Payroll.”

Company contribution totals can be monitored at any time, and a payroll summary report created in the QuickBooks account shows these specific amounts. (jurisdiction: United States, entity_scope: Employers using Intuit QuickBooks Workforce or QuickBooks Desktop Payroll, platform: Intuit QuickBooks Workforce; QuickBooks Desktop Payroll, platform_edition: US (en_US) QuickBooks Support help article, updated 8/3/2026)

“You can monitor your company contribution totals at any time. Create a payroll summary report in your QuickBooks account to view these specific amounts.”

Not established from an authoritative source.

Line the periods up first: what the invoice covers against the pay dates that funded it

A Providence Health Plan employer invoice carries an invoice date, printed in the upper right corner of the invoice. (jurisdiction: United States — Providence Health Plan employer group accounts (page gives Pacific Time service hours and Oregon 503 numbers; footer states Providence Health Plan offers commercial group, individual and ASO coverage and that Providence Health Assurance holds Medicare and Oregon Health Plan contracts), entity_scope: Employer groups/employer accounts administering a Providence Health Plan health benefits program and billed by Providence Health Plan)

“There is an invoice date in the upper right corner of your invoice.”

Payments and/or enrollment changes made after the invoice date are reflected on the next invoice rather than on the current one. (jurisdiction: United States — Providence Health Plan employer group accounts (page gives Pacific Time service hours and Oregon 503 numbers; footer states Providence Health Plan offers commercial group, individual and ASO coverage and that Providence Health Assurance holds Medicare and Oregon Health Plan contracts), entity_scope: Employer groups/employer accounts administering a Providence Health Plan health benefits program and billed by Providence Health Plan)

“Payments and/or enrollment changes made after the invoice date will be reflected on the next invoice.”

The article states that payroll reports should include per-pay-period data plus the listed items - participant names, pay date(s), gross pay for each participant for each pay date, and deductions if applicable - giving a participant-level, per-pay-period detail expectation for the report used to fix contribution errors; the deductions item is qualified as applicable only where relevant. (jurisdiction: United States, entity_scope: plan sponsors (employers) of 401(k) plans recordkept by Guideline / Gusto Retirement, platform: Guideline 401(k) platform (Gusto Retirement Help Center), platform_edition: Gusto Retirement Help Center article, last updated February 5, 2025)

“Payroll reports should include per-pay-period data and the following: Participant names Pay date(s) Gross pay for each participant for each pay date Deductions (if applicable)”

Not established from an authoritative source.

Compare person by person, not total to total

See The article offers, as a useful technique, checking the payroll deductions recorded in the sponsor's payroll provider against the participant's deferral rate in Guideline, to confirm both that the proper deductions were withheld and that they were allocated to the intended contribution type (pre-tax versus Roth) - naming the payroll deduction record and the Guideline deferral rate as the two records compared.

See UHA states that its premium statement includes a summary page showing the prior balance, payments, current charges and the amount due, and also a detailed statement list of current eligible members, type of coverage and type of benefit plan. The verb is 'includes', so the items listed are ones the statement contains and the list is not stated to be exhaustive; the page does not state that the statement shows a coverage period, retroactive adjustments, or per-member premium amounts.

A person will often appear on an invoice where there is a retro adjustment for that person — the page states this as a frequent occurrence, not as an invariable rule. (jurisdiction: United States — Providence Health Plan employer group accounts (page gives Pacific Time service hours and Oregon 503 numbers; footer states Providence Health Plan offers commercial group, individual and ASO coverage and that Providence Health Assurance holds Medicare and Oregon Health Plan contracts), entity_scope: Employer groups/employer accounts administering a Providence Health Plan health benefits program and billed by Providence Health Plan)

“Often times a person will appear on an invoice if there is a retro adjustment.”

The article gives an open list ('include') of useful techniques for identifying contribution errors: identifying whether a participant was over- or underpaid; checking payroll deductions in the payroll provider against the participant's deferral rate in Guideline for both amount withheld and contribution type; identifying whether a participant was eligible and whether their withholdings were entered into payroll; confirming participant loan repayments were entered in payroll; and ensuring re-hired participants were re-entered into the plan according to the Plan Document. The list is presented as useful techniques, not as a required or complete procedure. (jurisdiction: United States, entity_scope: plan sponsors (employers) of 401(k) plans recordkept by Guideline / Gusto Retirement, platform: Guideline 401(k) platform (Gusto Retirement Help Center), platform_edition: Gusto Retirement Help Center article, last updated February 5, 2025)

“Useful techniques for identifying contribution errors include: Identify if a participant was over or underpaid Check payroll deductions in your payroll provider against a participant’s deferral rate in Guideline to ensure the proper deductions were withheld and correctly allocated to the intended contribution type (pre-tax versus Roth) Identify if a participant was eligible to participate and if their withholdings were entered into payroll Confirm that participant loan repayments were entered in payroll Ensure that re-hired participants were re-entered into the plan according to the Plan Document”

Not established from an authoritative source.

What the invoice itself gives you to work from

See UHA states that its premium statement includes a summary page showing the prior balance, payments, current charges and the amount due, and also a detailed statement list of current eligible members, type of coverage and type of benefit plan. The verb is 'includes', so the items listed are ones the statement contains and the list is not stated to be exhaustive; the page does not state that the statement shows a coverage period, retroactive adjustments, or per-member premium amounts.

See A Providence Health Plan employer invoice carries an invoice date, printed in the upper right corner of the invoice.

See Payments and/or enrollment changes made after the invoice date are reflected on the next invoice rather than on the current one.

See The article states that payroll reports should include per-pay-period data plus the listed items - participant names, pay date(s), gross pay for each participant for each pay date, and deductions if applicable - giving a participant-level, per-pay-period detail expectation for the report used to fix contribution errors; the deductions item is qualified as applicable only where relevant.

The invoice has an account summary section in which the employer sees the billed amount from the previous month, payments received since the last invoice, and enrollment adjustments since the last invoice; the page does not state that these are the only items shown. (jurisdiction: United States — Providence Health Plan employer group accounts (page gives Pacific Time service hours and Oregon 503 numbers; footer states Providence Health Plan offers commercial group, individual and ASO coverage and that Providence Health Assurance holds Medicare and Oregon Health Plan contracts), entity_scope: Employer groups/employer accounts administering a Providence Health Plan health benefits program and billed by Providence Health Plan)

“Under the account summary section, you’ll see the billed amount from the previous month, payments received since the last invoice, and enrollment adjustments since your last invoice.”

Providence Health Plan defines retro activity as any eligibility change that happens after the most recent invoice generates. (jurisdiction: United States — Providence Health Plan employer group accounts (page gives Pacific Time service hours and Oregon 503 numbers; footer states Providence Health Plan offers commercial group, individual and ASO coverage and that Providence Health Assurance holds Medicare and Oregon Health Plan contracts), entity_scope: Employer groups/employer accounts administering a Providence Health Plan health benefits program and billed by Providence Health Plan)

“Retro activity refers to any eligibility changes that happen after the most recent invoice generates.”

Retro activity can include new enrollments, terminations, changes in family (additions/subtractions), and class/plan/subgroup changes; the page gives these as examples of what it can include, not as a closed list. (jurisdiction: United States — Providence Health Plan employer group accounts (page gives Pacific Time service hours and Oregon 503 numbers; footer states Providence Health Plan offers commercial group, individual and ASO coverage and that Providence Health Assurance holds Medicare and Oregon Health Plan contracts), entity_scope: Employer groups/employer accounts administering a Providence Health Plan health benefits program and billed by Providence Health Plan)

“This can include new enrollments, terminations, changes in family (additions/subtractions), and class/plan/subgroup changes.”

Partly established. Established: the basis on which the carrier issues a retroactive credit or rebill (S14). Missing: participant-level detail expected in a benefit carrier or plan administrator invoice; the coverage period expected in the invoice; separately identified retroactive adjustments expected in the invoice; the period an invoice covers relative to the period in which it is issued; how the plan's own terms for a waiting period determine what is billed for a participant; how the plan's own terms for a tier change determine what is billed for a participant; how the plan's own terms for a mid-period termination determine what is billed for a participant; how the plan's own terms for unpaid leave determine what is billed for a participant.

Working through the causes of a difference, one record at a time

See The article gives an open list ('include') of useful techniques for identifying contribution errors: identifying whether a participant was over- or underpaid; checking payroll deductions in the payroll provider against the participant's deferral rate in Guideline for both amount withheld and contribution type; identifying whether a participant was eligible and whether their withholdings were entered into payroll; confirming participant loan repayments were entered in payroll; and ensuring re-hired participants were re-entered into the plan according to the Plan Document. The list is presented as useful techniques, not as a required or complete procedure.

See Retro activity can include new enrollments, terminations, changes in family (additions/subtractions), and class/plan/subgroup changes; the page gives these as examples of what it can include, not as a closed list.

A retro adjustment arises when an eligibility change is made after the most current invoice has generated. (jurisdiction: United States — Providence Health Plan employer group accounts (page gives Pacific Time service hours and Oregon 503 numbers; footer states Providence Health Plan offers commercial group, individual and ASO coverage and that Providence Health Assurance holds Medicare and Oregon Health Plan contracts), entity_scope: Employer groups/employer accounts administering a Providence Health Plan health benefits program and billed by Providence Health Plan)

“The retro adjustment occurs when an eligibility change is made after the most current invoice generates.”

The article states that the most common contribution errors arise from data issues in either payroll or the sponsor's Guideline platform, and gives an open list of such data items - incorrect birth dates, dates of hire, dates of termination, compensation, ownership percentages, family relationships, 'or other details'. (jurisdiction: United States, entity_scope: plan sponsors (employers) of 401(k) plans recordkept by Guideline / Gusto Retirement, platform: Guideline 401(k) platform (Gusto Retirement Help Center), platform_edition: Gusto Retirement Help Center article, last updated February 5, 2025)

“The most common errors occur from data issues in either payroll or your Guideline platform due to incorrect birth dates, dates of hire, dates of termination, compensation, ownership percentages, family relationships, or other details.”

Partly established. Established: enrolment change that never reached payroll as a cause to test (S10); an extra or missed deduction as a cause to test (S10). Missing: tier change as a cause to test; waiting period as a cause to test; mid-period termination as a cause to test; retroactive carrier adjustment as a cause to test; unpaid leave as a cause to test; how each cause is confirmed from a specific record rather than inferred.

How the withholding and the employer share sit in your books

See The article covers recording and tracking company-paid contributions to an employee's retirement or health insurance plan (medical, dental, or vision) in Intuit QuickBooks Workforce and QuickBooks Desktop Payroll.

Employee-paid payroll deduction items in QuickBooks — used for payments such as health insurance, retirement plans, or paycheck advances — are set up, edited, or removed inside the payroll service itself, which is what makes them deduct automatically every payday. (jurisdiction: United States (US edition of the QuickBooks help site, en-us; article lists only US QuickBooks payroll products), entity_scope: Employers running payroll for employees on an Intuit QuickBooks payroll subscription, platform: Intuit QuickBooks Workforce and QuickBooks Desktop Payroll, platform_edition: QuickBooks Online Payroll Core/Premium/Elite; QuickBooks Desktop Payroll Basic/Enhanced/Assisted, conditions: Applies to deduction items administered through the QuickBooks payroll service)

“Employers use payroll deductions to manage employee payments for benefits like health insurance, retirement plans, or paycheck advances. Set up, edit or remove these items in your payroll service to ensure they are automatically deducted every payday.”

QuickBooks Desktop Payroll has a distinct payroll item type called Company Contribution, chosen during custom setup of the item. (jurisdiction: United States, entity_scope: Employers using QuickBooks Desktop Payroll, platform: QuickBooks Desktop Payroll, platform_edition: US (en_US) QuickBooks Support help article, updated 8/3/2026, conditions: reached via Lists > Payroll Item List > Payroll Item > New > Custom Setup)

“Select Company Contribution , then Next .”

Setting up a company contribution item in QuickBooks Desktop Payroll includes selecting the agency name to which the liability is paid. (jurisdiction: United States, entity_scope: Employers using QuickBooks Desktop Payroll, platform: QuickBooks Desktop Payroll, platform_edition: US (en_US) QuickBooks Support help article, updated 8/3/2026, conditions: during Custom Setup of a Company Contribution payroll item)

“Select the agency name to which the liability is paid.”

A company contribution item in QuickBooks Desktop Payroll is tracked to both a liability account and an expense account, selected during setup of the item. (jurisdiction: United States, entity_scope: Employers using QuickBooks Desktop Payroll, platform: QuickBooks Desktop Payroll, platform_edition: US (en_US) QuickBooks Support help article, updated 8/3/2026, conditions: during Custom Setup of a Company Contribution payroll item)

“Select the liability and expense accounts to track the item, then select Next .”

Not established from an authoritative source.

Required authority: authoritative professional or accounting standard. Highest achieved: official platform documentation.

Withholding is money you owe onward; the employer share is your own cost

Not established from an authoritative source.

Required authority: authoritative professional or accounting standard. Highest achieved: official platform documentation.

Reading and ageing what is left in the benefit liability account

Not established from an authoritative source.

Fixing it once you know the cause: payroll, the employee, or the carrier

Where an employer has overwithheld a deduction such as a retirement plan, health insurance or garnishment deduction on an employee's paycheck, the article says the employer will need to reimburse the employee. (jurisdiction: United States (QuickBooks en-US support edition), entity_scope: Employers running payroll for employees in QuickBooks payroll products, platform: Intuit QuickBooks payroll, platform_edition: US (en-US) help article covering Intuit QuickBooks Workforce and QuickBooks Desktop Payroll, updated 8/4/2026, conditions: a deduction was overwithheld on the employee's paycheck; deduction types named as examples: retirement plan, health insurance, garnishment)

“If you overwithheld a retirement plan, health insurance, or garnishment deduction on your employee’s paycheck, you’ll need to reimburse them.”

If the withheld payment has already been sent to the agency, either the employer or the employee needs to request a refund from that agency. (jurisdiction: United States (QuickBooks en-US support edition), entity_scope: Employers using QuickBooks Desktop Payroll, platform: QuickBooks Desktop Payroll, platform_edition: US (en-US) help article, updated 8/4/2026, conditions: the payment was already sent to the agency)

“Note : If you already sent the payment to the agency, you or your employee need to request a refund from the agency.”

The article directs sponsors not to adjust future payroll files to 'make up' for any prior issues, stating that this is to avoid creating additional errors that will need to be corrected or only partially correcting errors. (jurisdiction: United States, entity_scope: plan sponsors (employers) of 401(k) plans recordkept by Guideline / Gusto Retirement, platform: Guideline 401(k) platform (Gusto Retirement Help Center), platform_edition: Gusto Retirement Help Center article, last updated February 5, 2025)

“To avoid creating additional errors that will need to be corrected or only partially correcting errors, please do not adjust future payroll files to “make up” for any prior issues.”

The article states that funds moved to the plan cash account, which sits within the sponsor's Guideline plan, will be used to offset the sponsor's next plan contribution - so a credit of this kind is applied against the next contribution rather than refunded. (jurisdiction: United States, entity_scope: plan sponsors (employers) of 401(k) plans recordkept by Guideline / Gusto Retirement, platform: Guideline 401(k) platform (Gusto Retirement Help Center), platform_edition: Gusto Retirement Help Center article, last updated February 5, 2025, conditions: funds have been moved to the plan cash account)

“When funds are moved to the plan cash account, which sits within your Guideline plan, such funds will be used to offset your next plan contribution.”

UHA directs the employer, if any discrepancies are found on its premium billing statement, to contact Employer Services (Billing) at (808) 532-2017 or toll-free at 1-800-458-4600, extension 248. The page states a contact route for raising discrepancies; it does not state any deadline for doing so, nor any basis on which UHA issues a correction, credit or rebill. (jurisdiction: United States — State of Hawaii (UHA Health Insurance / University Health Alliance group business; the page's own text addresses Hawaii employers and gives (808) contact numbers), entity_scope: Employer groups with UHA Health Insurance group coverage — the employer / group administrator who receives a UHA premium billing statement)

“If any discrepancies are found on your premium billing statement, please contact Employer Services (Billing) at (808) 532-2017 , or toll-free at  1-800-458-4600 , extension 248.”

The page cites CSEA v. State of California (1988) 198 Cal.App.3d 374 for the proposition that it is unlawful to deduct from current payroll for past salary advances that were in error. (jurisdiction: California, United States, entity_scope: Employers and employees subject to the California Labor Code and the Industrial Welfare Commission Wage Orders, conditions: Concerns deduction from current payroll for past salary advances that were in error)

“CSEA v. State of California (1988) 198 Cal.App.3d 374 (Unlawful to deduct from current payroll for past salary advances that were in error)”

Whenever there is a substantial change in the terms or conditions of the payment - a category the section says includes, but is not limited to, any change in the amount of the deduction - the employer must notify the employee before the change is implemented, as soon as practicable and in every case before any increased deduction is made on the employee's behalf. (jurisdiction: New York State, United States, entity_scope: employers taking employee-authorized wage deductions under New York State Labor Law Section 193(1)(b), conditions: there is a substantial change in the terms or conditions of the payment, including any change in the amount of the deduction)

“Whenever there is a substantial change in the terms or conditions of the payment, including but not limited to, any change in the amount of the deduction, or a substantial change in the benefits of the deduction or the details in the manner in which deductions shall be made, the employer shall, as soon as practicable, but in each case before any increased deduction is made on the employee's behalf, notify the employee prior to the implementation of the change.”

Partly established. Established: a catch-up deduction from future pay as a corrective path once a cause is known (S24); a refund to the employee as a corrective path (S20). Missing: an employee arrears balance as a corrective path; a carrier credit or rebill as a corrective path; which corrections must be made in payroll rather than by a ledger entry.

What you are allowed to take back from - or give back to - an employee's pay

See The page cites CSEA v. State of California (1988) 198 Cal.App.3d 374 for the proposition that it is unlawful to deduct from current payroll for past salary advances that were in error.

See Whenever there is a substantial change in the terms or conditions of the payment - a category the section says includes, but is not limited to, any change in the amount of the deduction - the employer must notify the employee before the change is implemented, as soon as practicable and in every case before any increased deduction is made on the employee's behalf.

An employer must not make any deduction from an employee's wages unless the deduction falls within the exceptions that follow in subdivision 1. (jurisdiction: New York State, United States, entity_scope: employers making deductions from the wages of employees under New York State Labor Law)

“No employer shall make any deduction from the wages of an employee, except deductions which:”

For a deduction to qualify under paragraph b it must be expressly authorized in writing by the employee and be for the employee's benefit, and that authorization must be voluntary and given only after the employee has received written notice of all terms and conditions of the payment and/or its benefits and of the details of the manner in which deductions will be made. (jurisdiction: New York State, United States, entity_scope: employers taking employee-authorized wage deductions under New York State Labor Law Section 193(1)(b), conditions: deduction is relied on as an employee-authorized deduction under paragraph b)

“b) are expressly authorized in writing by the employee and are for the benefit of the employee, provided that such authorization is voluntary and only given following receipt by the employee of written notice of all terms and conditions of the payment and/or its benefits and the details of the manner in which deductions will be made.”

Pension or health and welfare benefits are one of the payment purposes for which an employee-authorized deduction under paragraph b may be taken. (jurisdiction: New York State, United States, entity_scope: employers taking employee-authorized wage deductions under New York State Labor Law Section 193(1)(b), conditions: the deduction otherwise meets the written-authorization and notice requirements of paragraph b)

“pension or health and welfare benefits;”

Deductions related to recovery of an overpayment of wages are within the exception in paragraph c where the overpayment is due to a mathematical or other clerical error by the employer. (jurisdiction: New York State, United States, entity_scope: employers recovering wage overpayments from employees under New York State Labor Law Section 193, conditions: the overpayment is due to a mathematical or other clerical error by the employer)

“c) are related to recovery of an overpayment of wages where such overpayment is due to a mathematical or other clerical error by the employer.”

When recovering a wage overpayment by deduction the employer must comply with regulations promulgated by the commissioner, and those regulations must include - among other things - provisions governing the size of overpayments covered, the timing, frequency, duration and method of recovery, limitations on the periodic amount recovered, notice to the employee before recovery commences, and a dispute-or-delay procedure of which the employee must be notified before recovery commences. (jurisdiction: New York State, United States, entity_scope: employers recovering wage overpayments from employees under New York State Labor Law Section 193, conditions: the recovery is a deduction to recover an overpayment of wages under paragraph c)

“In making such recoveries, the employer shall comply with regulations promulgated by the commissioner for this purpose, which regulations shall include, but not be limited to, provisions governing: the size of overpayments that may be covered by this section; the timing, frequency, duration, and method of such recovery; limitations on the periodic amount of such recovery; a requirement that notice be provided to the employee prior to the commencement of such recovery; a requirement that the employer implement a procedure for disputing the amount of such overpayment or seeking to delay commencement of such recovery; the terms and content of such a procedure and a requirement that notice of the procedure for disputing the overpayment or seeking to delay commencement of such recovery be provided to the employee prior to the commencement of such recovery.”

The Labor Commissioner's Office states that an employer can lawfully withhold amounts from an employee's wages only in three situations: when required or empowered to do so by state or federal law; when the deduction is expressly authorized in writing by the employee to cover insurance premiums, benefit plan contributions or other deductions not amounting to a rebate on the employee's wages; or when a deduction to cover health, welfare or pension contributions is expressly authorized by a wage or collective bargaining agreement. The page attributes this to Labor Code Sections 221 and 224. (jurisdiction: California, United States, entity_scope: Employers and employees subject to the California Labor Code and the Industrial Welfare Commission Wage Orders, conditions: Express written authorization by the employee, for the second ground; Express authorization by a wage or collective bargaining agreement, for the third ground)

“An employer can lawfully withhold amounts from an employee's wages only: (1) when required or empowered to do so by state or federal law, or (2) when a deduction is expressly authorized in writing by the employee to cover insurance premiums, benefit plan contributions or other deductions not amounting to a rebate on the employee's wages, or (3) when a deduction to cover health, welfare, or pension contributions is expressly authorized by a wage or collective bargaining agreement . Labor Code Sections 221 and 224 .”

The page states that Labor Code Section 224 prohibits any deduction from an employee's wages that is not either authorized by the employee in writing or permitted by law, and that an employer who resorts to self-help does so at its own risk, because an objective test is applied to determine whether the loss was due to dishonesty, willfulness or a grossly negligent act. (jurisdiction: California, United States, entity_scope: Employers and employees subject to the California Labor Code and the Industrial Welfare Commission Wage Orders, conditions: A deduction is lawful only if authorized by the employee in writing or permitted by law; The objective-test statement is made in the context of deductions for a cash shortage, breakage or loss of equipment)

“Labor Code Section 224 clearly prohibits any deduction from an employee's wages which is not either authorized by the employee in writing or permitted by law, and any employer who resorts to self-help does so at its own risk as an objective test is applied to determine whether the loss was due to dishonesty, willfulness, or a grossly negligent act.”

The page states that a California court has held that deductions for the periodic installment payments on a loan made to an employee by the employer are permissible when authorized in writing by the employee, and that the same court concluded that a balloon (lump sum) payment of the outstanding balance made at the time the employment relationship ends is not allowed even where the employee has given written consent to that payment. (jurisdiction: California, United States, entity_scope: Employers and employees subject to the California Labor Code and the Industrial Welfare Commission Wage Orders, conditions: Loan made to the employee by the employer; Periodic installment deductions authorized in writing by the employee)

“Although a California court has held that deductions for the periodic installment payments on a loan made to an employee by the employer are permissible when authorized in writing by the employee, the court also concluded that the balloon (lump sum) payment of the outstanding balance to be made at the time the employment relationship ends is not allowed notwithstanding the fact the employee has given his or her written consent to such a payment.”

Partly established. Established: whether a catch-up deduction from later pay is permitted to recover an under-deducted employee benefit contribution (S24); what authorisation or notice a catch-up deduction requires (S28, S30, S34, S35); how state wage rules constrain a catch-up deduction (S29, S34, S35). Missing: what governs returning an over-deducted contribution to the employee; what governs carrying an amount the employee still owes as an arrears balance rather than deducting it at once.

Retirement plan remittances: deferrals are not the same as your match

For a plan with fewer than 100 participants at the beginning of the plan year, an amount deposited with the plan not later than the 7th business day following the day the amount is received by the employer (participant-paid amounts), or the 7th business day following the day the amount would otherwise have been payable to the participant in cash (wage-withheld amounts), is deemed contributed or repaid on the earliest date on which it could reasonably be segregated from the employer's general assets. (jurisdiction: United States (federal), entity_scope: Plans with fewer than 100 participants at the beginning of the plan year, conditions: fewer than 100 participants at the beginning of the plan year; deposit with the plan not later than the 7th business day after receipt (participant-paid) or after the day the amount would otherwise have been payable in cash (wage-withheld))

“For purposes of paragraph (a)(1) of this section, in the case of a plan with fewer than 100 participants at the beginning of the plan year, any amount deposited with such plan not later than the 7th business day following the day on which such amount is received by the employer (in the case of amounts that a participant or beneficiary pays to an employer), or the 7th business day following the day on which such amount would otherwise have been payable to the participant in cash (in the case of amounts withheld by an employer from a participant's wages), shall be deemed to be contributed or repaid to such plan on the earliest date on which such contributions or participant loan repayments can reasonably be segregated from the employer's general assets.”

For an employee pension benefit plan as defined in ERISA section 3(2), and except as provided in paragraph (b)(2), the date determined under paragraph (a)(1) must in no event occur later than the 15th business day of the month following the month in which the amounts are received by the employer (participant-paid amounts) or the month in which the amounts would otherwise have been payable to the participant in cash (wage-withheld amounts). (jurisdiction: United States (federal), entity_scope: Employee pension benefit plans as defined in section 3(2) of ERISA, conditions: outer limit, not the general rule date, which remains the earliest reasonably segregable date under paragraph (a)(1); subject to the exception in paragraph (b)(2) for SIMPLE plans involving SIMPLE IRAs; subject to the extension in paragraph (d) and the applicability provisions in paragraphs (h) and (i))

“Except as provided in paragraph (b)(2) of this section, with respect to an employee pension benefit plan as defined in section 3(2) of ERISA, in no event shall the date determined pursuant to paragraph (a)(1) of this section occur later than the 15th business day of the month following the month in which the participant contribution or participant loan repayment amounts are received by the employer (in the case of amounts that a participant or beneficiary pays to an employer) or the 15th business day of the month following the month in which such amounts would otherwise have been payable to the participant in cash (in the case of amounts withheld by an employer from a participant's wages).”

To avoid the mistake the guide directs the employer to coordinate with its payroll provider to determine the earliest date it can reasonably segregate deferral deposits from general assets, and to set up procedures ensuring deposits are made by that date. (jurisdiction: United States (federal), entity_scope: Employers/plan sponsors of 401(k) plans that withhold employee elective deferrals)

“Coordinate with your payroll provider to determine the earliest date you can reasonably segregate the deferral deposits from general assets. Set up procedures to ensure that you make deposits by that date.”

The 15th-business-day rule is not a safe harbor for depositing deferrals; it sets the maximum deadline. (jurisdiction: United States (federal), entity_scope: Employers/plan sponsors of 401(k) plans that withhold employee elective deferrals)

“Remember that the rules about the 15th business day isn't a safe harbor for depositing deferrals; rather, that these rules set the maximum deadline.”

The rules about the timing of matching contributions or other employer contributions are different from the rules for elective deferrals. (jurisdiction: United States (federal), entity_scope: Employers/plan sponsors of 401(k) plans that withhold employee elective deferrals)

“Rules about the timing of matching contributions or other employer contributions are different from those for elective deferrals.”

Partly established. Established: the timeliness expectation that attaches to remitting amounts already withheld from employee pay (S39, S40, S41). Missing: separating employee deferrals from employer contributions or match on retirement plan invoices and remittances.

How fast withheld deferrals must reach the plan, and what happens if they do not

See For a plan with fewer than 100 participants at the beginning of the plan year, an amount deposited with the plan not later than the 7th business day following the day the amount is received by the employer (participant-paid amounts), or the 7th business day following the day the amount would otherwise have been payable to the participant in cash (wage-withheld amounts), is deemed contributed or repaid on the earliest date on which it could reasonably be segregated from the employer's general assets.

See For an employee pension benefit plan as defined in ERISA section 3(2), and except as provided in paragraph (b)(2), the date determined under paragraph (a)(1) must in no event occur later than the 15th business day of the month following the month in which the amounts are received by the employer (participant-paid amounts) or the month in which the amounts would otherwise have been payable to the participant in cash (wage-withheld amounts).

See The rules about the timing of matching contributions or other employer contributions are different from the rules for elective deferrals.

A disqualified person who participates in a prohibited transaction must correct it and pay an excise tax based on the amount involved in the transaction. (jurisdiction: United States (federal), entity_scope: Disqualified persons (including the employer) participating in a prohibited transaction with a 401(k) plan)

“A disqualified person who participates in a prohibited transaction must correct this and pay an excise tax based on the amount involved in the transaction.”

If the employer does not make the deposits timely, the failure may constitute both an operational mistake giving rise to plan disqualification (where the plan specifies a date by which the employer must deposit elective deferrals) and a prohibited transaction. (jurisdiction: United States (federal), entity_scope: Employers/plan sponsors of 401(k) plans that withhold employee elective deferrals, conditions: plan disqualification arises only if the plan specifies a date by which the employer must deposit elective deferrals)

“If the employer doesn't make the deposits timely, the failure may constitute both an operational mistake, giving rise to plan disqualification (if the plan specifies a date by which the employer must deposit elective deferrals) and a prohibited transaction.”

Partly established. Established: the timeliness requirement for remitting amounts withheld from employee pay as retirement plan deferrals (S39, S41); the class of consequence that follows a late remittance (S44); whether the same remittance requirement attaches to each (S42). Missing: how amounts withheld from employee pay as deferrals are distinguished from the employer's own contribution or match.

What you keep so the reconciliation can be re-performed

See The article states that payroll reports should include per-pay-period data plus the listed items - participant names, pay date(s), gross pay for each participant for each pay date, and deductions if applicable - giving a participant-level, per-pay-period detail expectation for the report used to fix contribution errors; the deductions item is qualified as applicable only where relevant.

Where deferral deposits are a week or two late because of vacations or other disruptions, the employer is directed to keep a record of why those deposits were late. (jurisdiction: United States (federal), entity_scope: Employers/plan sponsors of 401(k) plans that withhold employee elective deferrals, conditions: deposits late because of vacations or other disruptions)

“If deferral deposits are a week or two late because of vacations or other disruptions, keep a record of why those deposits were late.”

The employer must keep the employee's written deduction authorization on file on its premises for the whole period of the employee's employment and for six years after that employment ends. (jurisdiction: New York State, United States, entity_scope: employers holding employee authorizations for wage deductions under New York State Labor Law Section 193(1)(b))

“Such authorization shall be kept on file on the employer's premises for the period during which the employee is employed by the employer and for six years after such employment ends.”

Not established from an authoritative source.

Required authority: authoritative professional or accounting standard. Highest achieved: authoritative lender insurer or program documentation.

What a finished benefit liability reconciliation looks like

Not established from an authoritative source.