For small plan filers, the general rule is that retirement contributions withheld from employees' paychecks must be remitted to the employee's retirement plan within seven (7) business days from the payroll check date.  However, for those instances when an organization misses the 7-day mark, they must calculate any lost earnings that the employees experienced due to the late remittance and include that amount in the remittance.

To help assist in this calculation, the Department of Labor (DOL) publishes, through their Voluntary Fiduciary Correction Program (VFCP), a calculator to determine any lost earnings. 

Keep in mind that the late deposit/lost earnings rule only applies to employee contributions and loan repayments. Organizations should exclude any employer match in the calculation. 

Organizations should work with their retirement plan administrator to ensure the calculation is completed correctly and to assist in filing the proper forms to the Department of Labor showing that the proper steps were taken through the Voluntary Correction procedure.