Remittance Testing
Agree pre-tax, Roth, and employer-match contributions from the trust statement to the payroll register and test remittance timeliness against the plan's standard.
Agrees pre-tax, Roth, and employer-match contributions from the trust statement to the payroll register and tests remittance timeliness against the plan's standard.
Purpose
To verify the accuracy, completeness, and timeliness of contribution remittances from the plan sponsor to the plan's trust, and to confirm that all amounts withheld from employee compensation and employer-funded contributions are properly deposited into the trust in accordance with the plan document and applicable Department of Labor (DOL) regulations.
Procedures
- Agree the pre-tax employee contributions reflected on the Trust Statement to the Payroll Register, supporting the completeness and accuracy of pre-tax deferrals remitted to the trust.
- Agree the Roth employee contributions reflected on the Trust Statement to the Payroll Register, supporting the completeness and accuracy of Roth deferrals remitted to the trust.
- Agree the employer match contributions reflected on the Trust Statement to the Payroll Register, supporting the completeness and accuracy of employer-funded contributions remitted to the trust in accordance with the plan's matching formula.
- Confirm timely remittance by comparing the date funds were withheld from employee compensation (per the Payroll Register pay date) to the date funds were deposited into the trust (per the Trust Statement).
Engagement Variables
These are set by EBP Plan Analysis and referenced automatically when this procedure runs.
| Engagement Variable | What it provides this procedure |
|---|---|
| Contributions Overview | The plan's contribution remittance policy: the required remittance timing standard (for example, DOL safe harbor of 7 business days for small plans, or as soon as administratively feasible for large plans), the match formula, and any plan-specific requirements for when employer contributions must be deposited. Drives the Contribution Timeliness test. |
| Compensation Overview | The plan's definition of eligible compensation. Used to calculate plan-eligible compensation by excluding ineligible pay types from gross wages, providing context for evaluating whether the correct compensation base was used for withheld amounts. |
Your selections
| Selection | What to enter | Why it matters |
|---|---|---|
| Pay Date Selected | The pay date for the payroll run being tested. The date the check or direct deposit was issued to employees. | All extractions from both the Annual Payroll Report and the Trust Statement are scoped to this pay date. Agentive uses it to locate the correct pay period in the payroll register and the corresponding remittance entry in the trust statement. Use the check or deposit date, not the pay period end date. |
Documents to provide
| Document | What to provide | Key data extracted |
|---|---|---|
| Annual Payroll Report | The employer's payroll register for the plan year. The same payroll detail report used in contribution testing, showing pay period breakdowns for each contribution type. | Plan-eligible compensation for the pay period; pre-tax deferrals withheld; Roth deferrals withheld; employer match allocated. All scoped to the selected pay date. Total remittance amount is calculated as the sum of pre-tax and Roth contributions. |
| Trust Statement | The trustee or recordkeeper's statement of deposits received for the plan, showing contribution receipts by type and the date funds were received into the trust. | Pre-tax contributions received; Roth contributions received; employer contributions received; remittance date. Remittance lag (days between pay date and deposit date) is calculated automatically. Agreement to payroll and timeliness are both tested from this document. |
Don't have these exact documents?
Use Co-Audit to change which documents this request asks for, and to adjust the procedures and calculations that read them, so the workflow matches what your client actually provides.
Testing attributes
- Agree Pre-Tax Contributions: Trust Statement to Payroll Register
- Agree Roth Contributions: Trust Statement to Payroll Register
- Agree Employer Match: Trust Statement to Payroll Register
- Confirm timely remittance
Update with Co-Audit
Real client data rarely matches a template exactly. When the trust documents you receive, the plan's remittance standard, or the labels on the payroll report differ from what this template assumes, use Co-Audit to retool the request. Describe what is different and it rewrites the document groups, AI Prompt Columns, and calculations to fit.
Situations where Co-Audit helps with Remittance Testing:
- The plan's timeliness standard differs from the default. Small plans get the DOL safe-harbor of 7 business days; large plans must remit as soon as administratively feasible. Have Co-Audit set the timeliness test to the standard that applies to this plan so the remittance-lag flag is measured against the right window.
- The trust statement is provided as monthly PDFs that have to be summed to compare against per-payroll deposits. Have Co-Audit aggregate the trust contributions for the month containing the selected pay date before the agreement runs.
- The employer match is deposited annually rather than per payroll. Have Co-Audit adjust the timeliness logic so an annual match deposit is not flagged late against a per-payroll pay date.
- The payroll report uses non-standard contribution labels (for example,
401K PRE-TAX,ROTH EE) the default extraction misses. Tell Co-Audit the exact labels this client uses so the pre-tax, Roth, and match amounts are picked up correctly.
Describe the difference in the Co-Audit panel
For example: "the trust statement is a monthly PDF; sum trust contributions for the month containing the selected pay date before agreeing to the payroll register."
Let Co-Audit update the workflow
It revises the document groups, AI Prompt Columns, and calculations.
Review the changes
Watch the columns for red text (a broken reference) and re-check any cell that involves math, where the AI tends to copy a number forward instead of recalculating.
For broader detail on tailoring requests and fixing broken column links, see Tailor a request with Co-Audit in the EBP hub.
Continue your journey
← Contribution Testing
Calculate contributions before testing remittance.
Investment Allocation Testing →
Confirm each fund's contribution matches the participant's election within tolerance.
How is this guide?
Contribution Testing
Recalculate deferrals against the election, apply contribution and catch-up limits, and tie pre-tax and Roth amounts across the payroll report, W-2, pay stub, and trust statement.
Investment Allocation Testing
Confirm each fund's contribution matches the participant's election within a 1% tolerance and trace fund-level amounts from the payroll journal to the participant statement and trust.