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Defined Contribution Plan
6 Months Ended
Mar. 31, 2020
Retirement Benefits [Abstract]  
Defined Contribution Plan

NOTE 8 – Defined Contribution Plan

 

The Company has a 401(k) defined contribution plan (the “401K Plan”) for all employees over age 21. Employees can defer up to 100% of their compensation through payroll withholdings into the 401K Plan subject to federal law limits. The Company matches 100% of deferrals up to 3% of one’s contributions. The Company’s matching contributions to employee deferrals are discretionary. The Company may also make discretionary profit sharing contributions under the 401K Plan in the future, but it has not done so through March 31, 2020.

 

Employee contributions and any employer matching contributions made to satisfy certain non-discrimination tests required by the Internal Revenue Code are 100% vested upon contribution. Discretionary employer matches to employee deferrals vest over a six year period beginning on the second anniversary of an employee’s date of hire. Discretionary profit sharing contributions vest over a five year period beginning on the first anniversary of an employee’s date of hire. No matching contributions were made during the three and six month periods ended March 31, 2020. During the six month period ended March 31, 2019, there was a benefit reduction adjustment of $(4,359) given an overpayment. There were no matching contributions during the three month period ended March 31, 2019.