Terrifying True Tales of Start-up Terror

The $7,000 nightmare!

June 15, 2023

Mike Rose, CEO

Read the shocking tale of the start-up that did its own payroll!

A life science start-up CEO has a brainstorm — “Let’s manage our own payroll and 401k, instead of having Engine Room do it!”

Madness ensues! The start-up offers employees a 401k through a firm not affiliated with their PEO! They neglect to perform timely transfers of 401k withholdings! They improperly record the amounts withheld in the 401k portal!

Issues are found when reviewing the Form 5500 info. Engine Room is called in to do damage control. They correct the 401k withholding payments and Form 5500 supporting information. Then they compute penalties. Total added cost — $7,000!

This stuff really happens. Don’t let it happen to you! Hire Engine Room today!