Thursday, August 17, 2017
 

Department of Labor Audit Triggers

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Department of Labor Audit Triggers

Nobody wants to be audited--especially by the Department of Labor. Audits usually either arise from a complaint (which leads to an investigation) or are totally random. However, there are seven ways as an employer that you can expose yourself to unnecessary audit risk.

  1. Not submitting Form 5500 reports on time if you have 100 or more participants.
  2. Not having Summary Plan Descriptions (SPDs) for each Employee Retirement Income Security Act (ERISA) covered benefit or not using an SPD wrap document.
  3. Not completing all the various annual employee notifications such as Medicare Part D, Children's Health Insurance Program (CHIP), Mental Health Parity Act (MHPA), Newborns' and Mothers' Health Protection Act (NMHPA), Women's Health and Cancer Rights Act (WHCRA), Patient Protection and Affordable Care Act (ACA), Health Insurance Portability and Accountability Act (HIPAA), Health Exchange, etc.
  4. Not generating Summary of Material Modification (SMM) whenever there are material changes to benefits and then not saving these SMMs for future reference.
  5. Not keeping Section 125 Premium Only Plan (POP) and flexible spending account (FSA) documents current and accurate.
  6. Not filing Form 1095/1094 reports in a timely fashion, or having conflicting information on these reports.
  7. Not properly following the controlled group rules for owners of multiple organizations.

Audit-proof your company by downloading our white paper, "Don't Roll the Dice on Department of Labor Audits."

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