Employer not paying withholding and benefits.

[Buzz123]

Georgia

My employer is getting behind in payments and I wanted to know what the law requires and what options I may have:

• 401k contributions, how long after the money is deducted from my paycheck does the employer legally have to deposit the money into my account? It looks to me like they are as much as 6 months behind. I am asking about my contributions, not the employer match.
• Income tax withholding and social security, same basic questions.
• Travel expenses, same questions.

I know my employer is having cash flow problems, but I am not comfortable with them doing this. What are they required to do legally and what are my options?

What happens if the company goes under? Do I lose the uncontributed, but withheld 401k money? Am I still liable for the taxes and social security even though I paid but the employer kept them?What is the name of your state (only U.S. law)?

 

[pattytx]

1. "As soon as it can be reasonably segregated". Generally speaking, at the outside, 15 days following the end of the month in which the deductions were made. As cbg says, run, do not walk, to the phone and call the federal DOL, which enforces ERISA laws; this is a critical violation and responsible parties have been jailed for it. If employer goes into bankruptcy, I don't know what happens, but another responder will.

2. It's a little complicated, but suffice it to say, this is not really the problem of the employee, you are not responsible for the payments being made; it's between the IRS, the state Dept. of Revenue, and the state Unemployment agency. How do you know the taxes have not been deposited?

3. No wage and hour laws in Georgia (nor 47 other states) require reimbursement of business expenses. If you have a contract, agreement, or other "promise to pay", and the employer has breached that agreement, it would be a civil claim.

 

[commentator]

If the company is anywhere near going bankrupt, it is very important you get in your claim with the DOL/Wage and Hour in your state immediately. Many times I've seen employers go bankrupt quickly, trying to avoid paying, but in this situation, if Wage and Hour is aware, this money for wages and withholdings comes right off the top of the pile, even before any other creditors are paid. Vacation, travel....not sure about this.