Most employers - and you may be one of them - don't completely understand Employee Retirement Income Securtity Act (ERISA), how it impacts business and employees, and the possible risks it presents. Ask yourself the following questions:
- If you have over 100 enrolled participants in any benefit, have you ever filed a Form 5500 with applicable schedules?
ERISA imposes an $1100 day penalty for each day this filing is late up to amximum penalty for large employer (over 100) of $30,000 annually. - If yes, have you ever completed and distributed a SAR (Summary Annual Report)?
- Have you ever been subject to a DOL audit?
Audits can be triggered through a DOL investigation reproted through other agencies (IRS), through review of form 5500 filings and most often through Employee reporting or lawsuits. - Do you have other ERISA plans such as a 125 plan with FSAs (flexible spending accounts) or HRAs (helaht reimbursement accounts)?
Health FSAs and HRAs are also ERISA plans and must meet the same documentation and filing requirements.
Did you answer No to questions 1 or 2? Did you answer yes to questions 3 or 4? If so, you may be in violation of Title I of ERISA that governs health and Welfare Benefit plans.
If you have any questions regarding your ERISA compliance, obligations or anything regarding your health insurance or benefits packages; R&R knowledge broker Jane Shevey can help!
