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re: Question for tax experts/CPA's and the likes
Posted on 11/21/14 at 1:38 pm to LSUFanHouston
Posted on 11/21/14 at 1:38 pm to LSUFanHouston
One can only guess at the employer's motivation for accelerating the payroll. As an employee it could cause issues for anyone who has maxed out their 401(k) contributions. I know I would be pissed if I had already maxed my 401(k) contributions based on the expected number of pay periods, and then the employer arbitrarily added another and shorted me one for the next year.
1
Posted on 11/21/14 at 1:46 pm to Poodlebrain
quote:
shorted me one for the next year.
Couldn't the max just then be split over 25 paychecks over 2015? Sure, it will mean a bit more per paycheck, but you also didn't have any taken out of this "extra" check, so again, in the end, it does not really make a difference (unless there is a tax rate difference at play).
This post was edited on 11/21/14 at 1:47 pm
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