Calculation results
Results appear here after successful validation and calculation.
How the calculation works
The calculator estimates earnings unavailable to an employee benefit plan. Each transaction begins with a principal amount. The loss date starts the calculation period. The recovery date marks principal restoration. A later payment date adds interest on unpaid lost earnings.
Quarterly rates can change during one transaction. The engine divides each period by quarter. It also separates leap-year periods. Each segment uses daily compounding. The new balance continues into the next segment. This method follows published factor mathematics without storing thousands of factor values.
Large-loss recomputation
The ordinary calculation runs first. Total earnings above the program threshold trigger another calculation. Every transaction then uses large-corporate underpayment rates. Both summaries remain available for review. The final result clearly identifies the selected method.
Principal and earnings
The displayed earnings total excludes principal. Unpaid principal must be considered separately. The summary therefore shows both totals. This separation prevents users from mistaking earnings for the complete correction amount.
Restoration of profits
Some breaches create a determinable profit. Enter that profit and its realization date. The engine calculates interest through payment. It then compares profits against lost earnings. The greater amount is highlighted for review.
How to use this calculator
- Enter optional plan information for reporting.
- Add one row for every affected transaction.
- Confirm principal and all relevant dates.
- Enable profit calculations only when applicable.
- Complete SCC questions when considering self-correction.
- Review quarterly rates and custom overrides carefully.
- Calculate and inspect every warning.
- Export supporting schedules for professional review.
Formula used
Documentation practices
Keep payroll records, deposit evidence, and date support together. Retain calculation schedules and rate sources. Record who reviewed transaction classifications. Protect participant information during sharing. Use anonymous identifiers whenever names are unnecessary.
Professional review remains important for unusual transactions. Valuation issues may require qualified appraisals. Plan documents may affect participant allocations. Tax relief may require separate conditions. Official filing steps remain outside this calculator.
Careful records support faster reviews and stronger correction decisions.
Frequently asked questions
Does this tool submit a VFCP application?
No. It only prepares estimates and supporting schedules. Submission, notices, proof, signatures, and other official requirements remain separate.
Does the result include unpaid principal?
The earnings result excludes principal. A separate total adds principal for planning. Confirm which principal amounts were already restored.
Why must payroll periods stay separate?
Each period may have different principal and dates. Separate rows preserve accurate compounding and create clearer audit support.
What does the final payment date do?
It calculates additional interest after principal recovery. Leave it blank when earnings are paid on the recovery date.
Can I add future quarterly rates?
Yes. Add a reviewed custom quarter and source note. Custom entries override matching embedded rates.
Is SCC eligibility guaranteed?
No. The checklist provides screening only. Current official conditions, notices, records, and calculator requirements still apply.
How are leap years handled?
Leap-year segments use 366 daily periods. Other years use 365. The schedule displays the applied denominator.
Where is project data stored?
Local saves use browser storage. Exported project files stay where you save them. Server-side database storage is not used.