HighDrive NetworkHighDrive NetworkHighDrive NetworkHighDrive Network
  • Programs
    • The BusinessMakers
    • The EnergyMakers
    • HXTV
    • HealthMakers
    • BusinessMakers USA
    • Entrepreneur’s Playbook
    • Business Builders
    • Brandonomics
    • Women Mean Business
    • Biz Moments
  • About HighDrive
  • Contact

Avoiding Pitfalls in Compensation Definitions for Your 401(k) Plan

Entrepreneur's Playbook | Episode: 737 | Guests: Michael Veuleman | 0
Has there been a change in your company’s Employee Benefit Plan and how does this affect the definition of compensation? Jen is back to discuss 401(k) plans with Michael Veuleman, audit practice leader and one of the faces of PKF Texas’ Employee Benefit Plan team.

Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski and I am back again with Michael Veuleman, Audit Practice Leader and one of the faces of PKF Texas’ Employee Benefit Plan team. Michael, welcome back to the Playbook.

Michael: Thanks Jen. It’s good to be back.

Jen: So with 401(k) plans, also known as employee benefit plans, we hear a lot about the importance of using proper definitions for compensation within the 401(k) plan. Are there some pitfalls in this area that you’ve seen because you’ve been in the space for quite a long time?

Michael: Jen we hear a lot about definition of compensation for good reason. It’s very critical to the proper administration of 401(k) plan. The definition of compensation is located in the plan document and many times it’s very simple and straightforward but there are times where it’s very complex. If your plan is being audited, your auditor should be reviewing for proper application of eligible compensation. If your plan is not being audited, at least on an annual basis you should be reviewing your definition of compensation and comparing that to what is actually happening in your payroll system.

If new systems are implemented or there’s a change in provider, the administrator should carefully review that all of these components are applied properly. If for instance new bonus plans, fringe benefits or per diems are added to the system, you should really be careful that those are applied properly because if you don’t apply them properly then your definition of compensation is not correct.

Jen: And that seems like a pretty big deal. I think everybody wants their comp to be correct.

Michael: Absolutely.

Jen: All right we’ll get you back to talk a little bit more about some more employee benefit plan topics, sounds good?

Michael: Sounds good.

Jen: All right thank you. For more information about this topic visit www.pkftexas.com/benefitplanaudits. This has been another Thought Leader production brought to you by PKF Texas the Entrepreneurs Playbook. Tune in next week for another chapter.

brought to you by

Recent Entrepreneur's Playbook Episodes

Getting the Due Diligence Process Started

Getting the Due Diligence Process Started

In this episode of PKF Texas – The Entrepreneur’s Playbook®, Audit Senior Manager Kimberly ...
Entrepreneur's Playbook
The Advantages of Sell-Side Due Diligence

The Advantages of Sell-Side Due Diligence

In this episode of PKF Texas – The Entrepreneur’s Playbook®, Jen Lemanski is joined ...
Entrepreneur's Playbook
Start Thinking About Selling Your Business Now

Start Thinking About Selling Your Business No...

In this episode of PKF Texas – The Entrepreneur’s Playbook®, Chris Hatten discusses how ...
Entrepreneur's Playbook
The Current State of M&A Markets

The Current State of M&A Markets

M&A Markets are “hot” right now! What’s contributing to this current trend? Jen Lemanski ...
Entrepreneur's Playbook
How JV Solutions Can Help

How JV Solutions Can Help

JV Solutions is a division of Joint Venture Strategic Advisors (JVSA), offering the energy ...
Entrepreneur's Playbook
The History and Beginnings of JVSA

The History and Beginnings of JVSA

Now that you’ve learned about Joint Venture Strategic Advisors (JVSA) and its service offerings, ...
Entrepreneur's Playbook
Load More Episodes Loading...
© HighDrive 2018-2019 | All Rights Reserved
  • About HighDrive
  • Charlotte, NC
  • Columbus Ohio
  • Contact HighDrive
  • Fort Lauderdale
  • HighDrive Network
  • HighDrive Programs
    • Biz Moments
    • Brandonomics
    • Business Builders
    • BusinessMakers USA
    • Entrepreneur’s Playbook
    • HealthMakers
    • HXTV
    • The BusinessMakers
    • The EnergyMakers
    • Women Mean Business
  • HighDrive Weekly
  • Indianapolis Indiana
  • Kansas City
  • Milwaukee
  • Nashville
  • Oklahoma City
  • Raleigh NC
  • San Antonio
  • Seattle
HighDrive Network