What is the difference between Employer and Employee (Salary Reduction) contributions?
There are two primary types of accounts or contributions in the Retirement Plan. The first is Employer (ER) contributions. These are contributions that are made as a benefit to the employee and are not included in salary. Employee (EE) or Salary Reduction contributions are contributions that an employer deducts from an employee’s paycheck prior to taxes and then sends in on their behalf. These amounts must be included as part of the employee’s salary when calculating Social Security. For further information, please call our offices at 1 (800) 789-8765.
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- What is the difference between Employer and Employee (Salary Reduction) contributions?
