A Case Study on Accounting Procedure Recordkeeping for Retirement Plan at Data-Path Ltd.

Abstract

Datapath is an outsourcing company operating in Bangladesh. This report shows what Datapath company operates and how the USA retirement plan (401k plan) works. Datapath is a BPO company, and it is working for July Service business limited, located in the USA. July Service business has lots of TPA companies; we are one of them. It made a "retirement plan" and do all the necessary calculations and records of the retirement plan. One of the top retirements plans in the USA is the 401k plan. Datapath prepares 401k plans for their clients. In this report, I have shown as an intern what my role is in the DataPath. In Datapath, an intern has to work as if it is a real job. In this report, I have also discussed the difference between the USA and Bangladesh retirement plans. In the USA, companies offer 401k Retirement Plan to their employees to attract them and keep them. The USA job market is very competitive retain a good, skillful employee in the company is very challenging; because of this reason, they adopt a "401k Retirement Plan". 401k Retirement Plan is an owner (employer) sponsored retirement account. In this plan, employees can contribute to their account as a "Deferral," but it has a limit (IRS sets limit), for 2020 deferral limit is $19,500. Employer (Owner) contribute to each employee's account as a "Profit Sharing," "Non-Elective," "Match." 401k plans one of the great advantages is "tax-advantage." Money is contributed to 401k directly from an employee's paycheck before federal income taxes. As the contribution made in 401k is mostly pre-tax, it lowers total taxable income. In this report, I have discussed my internship experience at Data-path limited, and I also t rie d to explain the difference in retirement policies between the USA and Bangladesh.