Employers do not control IRA accounts. IRA = Individual Retirement Arrangement.

Employers control retirement accounts, under a retirement plan. Even if that is a SIMPLE IRA plan, the employee still keeps and controls the SIMPLE IRA account. So, look at the 1099-R to see if the "type of account" box is checkmarked.

"$840 or $672?"

You are confusing gross and net. The gross is the full amount. The net is what they got in hand.

There are different rollover windows depending on the plan type or account, the reason this was disbursed, the age of your taxpayer, etc. Right now, it didn't meet the typical 60-day rollover, so everything else about this is moot. Other than, your taxpayer would only be able to make that $840 deposit as a current/tax year contribution, not a rollover, and only as long as there is at least $840 in earnings, and barring other restrictions. In other words, it needs to be a qualified new contribution or it should be removed as a corrective distribution.

Also, get a copy of the Form 5498, and/or account statement to see exactly what this is: type of account, what they identified the deposit as, etc.

Remember: 1099-R is for money Out. The issuer doesn't necessarily know what happened next, what applies, and you have code 2, which implies there is some sort of exception to the early distribution penalty.

Until you know more details, nothing here makes sense.