I am writing this post to give advice to a relative.
This relative is a waitress working for a hotel restaurant. They offer a 401k plan, with a company match (not sure how much at the moment). She has enrolled in the plan (Fidelity), and I am helping her to select funds. As a waitress she makes most of her money in tips, not in her weekly paycheck. The company match will be determined based on her gross pay (which includes the tips), not just her hourly rate. What will thr procedure be if some weeks her paychecks are not enough to cover the percentage (of her total gross amount) that she puts in? Will she need to write a check to the company to cover it? Will they just put in less that week?
For the record, she asked HR and they told her that no one in the restaurant had ever signed up for the 401K before, so they have no idea how to handle it. (sigh.) The finance department is looking into it for her, but I was wondering if anyone else had ever heard of this, or run into a similar situation?