The Idea and Process Behind Benefits Compliance

The benefits compliance process is well documented and is a much needed part of a US based business.

Before starting a business, you must know the government’s rules first. A company’s laws depend on a few things like its size, number of employees and property type.

Labor laws exist to ensure people’s satisfaction with their professional lives. An employer must always know how to form good relationships with their employees. To do so, they must understand the needs of their people, and cater to those specific needs.

In a work setting, employees often look for ways to improve their lives. One way they do this is by taking advantage of certain benefits. Benefit plans in business exist for this very purpose. A good employer must know the importance of following benefits compliance.

In general, employees usually avail of health plans, welfare plans, retirement arrangements, profit sharing plans, life insurance, disability insurance and medical coverage. Most of these benefit plans are under the Employee Retirement Income Security Act, as of 1974. ERISA’s main aim is to protect the employees’ rights to a good well-being.

Compliance of benefit plans follows a certain process. First, most companies must do the Form 5500 preparation. The Form 5500 is the annual report of employee information. It contains and collects the major details about a person’s benefit plans. Companies with 100 or more employees who have benefit plans must file the Form 5500 every year. Participants don’t cover dependents. They only include employees, retirees and primary COBRA beneficiaries. For companies with fewer than 100 participants, a different form is otherwise used.

Attached to the Form 5500 are schedules. The schedule attached depends on certain categories, like the type of filer. Usually considered when filling out the Form 5500 are financial transactions, retirement pension, insurance contracts, defined benefit plan information, and service providers. All requested information must be filled out as indicated in the Form 5500.

As of 2010, all variations of Form 5500, along with the schedules, must be submitted online. In this case, one uses the EFAST2 system. DOL allows the use of EFAST2-approved third-party software. Another alternative is its online filing system IFILE . The due date of filing the form is within seven months following the end of the plan year. Another option, though, is submitting a Form 5558 to extend the due date by two and a half months. The Form 5500 series is bound to all guidelines set by the DOL, IRS and PBGC. One receives penalties when they fail to submit the requirements on time. The Form 5500 is used to measure economic and psychological trends in industry. The form acts a disclosure tool and protects the rights of the participating people.

An employer is always encouraged to provide welfare benefit plans to their employees. For organization purposes, ERISA also mandates the use of wrap plan document. This document records the terms and conditions of each benefit plan. Its design makes it so that it includes all information required by ERISA. A well-drafted plan document consists of eligibility requirements, plan procedures, and coverage length. In short, it must provide an accurate summary of the plan’s information. It should encourage strict compliance to ERISA’s requirements. Its purpose also is to help the company easily keep track of many documents all at once. This assists in wide-scope auditing and decision-making.

Meeting the requirements for benefits compliance is a necessity in every company. It’s a task that requires an ability to keep up with new updates and changes in the industry. Hence, businesses usually hire experts to handle the processing of benefit plans. Additionally, there must be a smooth delivery of information between the people involved. In this case, it’s between the regulators and the clients. It’s important that everyone is aware of the different principles they should follow. On the other hand, a good management team must be capable of abiding by the rules. They must watch over the entire process of benefits compliance. This is so they can identify any possible issues as soon as they rise up. Making informed decisions is a must in business.


Benefits Compliance Consultants Inc.

Phone: (515) 244-2424

Our company specializes in benefits compliance services for delinquent filer voluntary compliance program, Form 5500, wrap plan document, 401k preparation filings and much more.

 

 

Cost Of Benefits Compliance 2019 For American Business

Looking at the cost of benefits compliance 2019 in business.

Have you taken a closer look at the cost of benefits compliance 2019? If you haven’t looked at this yet, you’ll want to do that sooner rather than later. Being fully aware of the cost of compliance can save you a lot of hassle. These are a few things you should consider.

Be Aware Of What Your Benefits Are

It will be difficult for you to accurately evaluate the cost of benefits compliance if you’re not familiar with your benefits. You’ll want to take a close look at the benefits that are available to you. The more information you have, the better.

If you’re familiar with your benefits, it will be easier for you to defend certain costs. It will also be simpler for you to spot areas in which you can make cutbacks. Devote some time to look at the benefits you have. Do some research so that you can evaluate your current costs more effectively.

Look At The Return On Investment

When you’re spending money on benefits, you’re getting something back in return. You shouldn’t focus your attention on the costs alone. You should also think about the ROI. Are you getting a lot for the money that you’re putting in?

If you don’t feel like you’re getting a good ROI, you may want to make a few changes. That said, a lot of people are more comfortable with their benefits costs when they look at their benefits with ROI in mind. Pay attention to what you’re getting for the money you’re spending.

Make Sure You’re Aware Of All The Costs You’ll Be Covering

It’s easy to forget expenses when you’re looking at the cost of benefits compliance 2019. For example, you might forget to take things like financial restatements or FCPA penalties into account. You should look at all of the expenses that you’ll have to cover, and you’ll want to look at the money you’ll be saving as well.

You won’t want to be hit with any unexpected expenses down the road. If you look at all of your expenses now, you’ll be able to make sure you can budget appropriately.

See How Your Costs Will Be Changing In 2019

How do you expect your expenses to change in 2019? Is there anything that is going to cost you more money? Are there any opportunities for you to save? You shouldn’t just look at what your expenses were that year. You should see if your expenses are going to change in any way.

There is a good chance that the cost of benefits will change in 2019. Of course, this means that the costs of compliance will change as well. If you take a closer look at all of these changes, you’ll be able to make smart decisions going forward.

Decide Whether Or Not You’d Like To Make Significant Changes

Once you’ve evaluated everything, you can think about the changes you might want to make. If you’re comfortable with your current costs, you may not want to make any changes. If you want to cut back your expenses, you should definitely try to find the best changes to make.

It can be hard to decide whether or not to make changes. However, if you look closely at your costs and how they will be changing, you should be able to figure out what your next step should be.

Keep all of these suggestions in mind when you are looking at the cost of benefits compliance 2019. Make sure that you properly evaluate the costs that you are facing. Having the right information can make a world of difference.


Benefits Compliance Consultants Inc. can assist your ERISA compliance needs including Form 5500, 401K Form 5500, wrap plan form management and DOL audit.

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Or contact us by phone: (515) 244-2424

Compliance Issues: What to Consider When Updating Benefit Plans

Benefits Compliance: What a company should consider when it decides to update its benefit plans?

The government annually checks whether companies and firms remain compliant with the law when it comes to how they implement their insurance policies. Agencies such as the IRS require employees and firms to submit forms that prove compliance with government guidelines. This is done not only to keep standards, but also to ensure that employee benefits are given proper attention and care.

With changes in guidelines every year, it can easily be assumed that your firm should reshape its benefit plan in order to meet those guidelines. Therefore, whether you are going to be designing a new benefit plan for a new plan year, or if you are simply going to be updating an existing plan you have, you need to know the factors that your firm must consider in order to make your benefits compliance easy. The Affordable Care Act includes specific requirements that must be met before the government deems your plan compliant with the law. Here are some of the things you need to keep in mind.

  • Fair Labor Standards Act overtime rules. The changes in the entitlement to overtime compensation can affect the benefits that an employee can receive. Therefore, as part of your benefits compliance agenda, you must ensure that your firm is ready to keep the staffing costs neutral in consideration of the changes you will make regarding the benefits your employees receive.
  • HIPAA security and electronic transactions. Double check whether you need to make any upgrades on how you safeguard the personal health information of your employees by checking the latest requirements set under the Health Insurance Portability and Accountability Act guidelines. Ensure that the vendors you coordinate with are also following the guidelines imposed by HIPAA and other related government agencies.
  • Mental health. As part of the benefits compliance process, the Department of Labor will also be checking if you comply with the requirements for mental health benefits. Your firm needs to confirm that the plan you offer meets the guidance on substance use disorders and mental health benefit coverage. When you are selecting vendors, ensure that you consider their compliance with the Addiction Equity Act and the Mental Health Parity.
  • Nondiscrimination rules and health benefits. The size of the benefits you provide your workers are monitored by government agencies such as the Department of Health and Human Services. Federal agencies continue to issue regulations which will greatly affect how you design your benefit programs. With the ACA in place, you need to make sure that your plan includes all the required health benefits prescribed by the ACA, and that it has nondiscrimination rules in place as well.
  • Strategy and reporting. You also need to double check the design of your health plan and the requirements you impose that your employees will need to comply to. Your firm must check whether the medical coverage and options you provide meet the minimum necessity. You should also check whether the price of your health benefits match standards for affordability. Make the necessary adjustments for your firm to be compliant with the ACA.
  • Wellness programs. To ensure benefits compliance, if your wellness program includes biometric screening, health risk assessment, or collects information from the employee’s spouse, you need to make sure that your program meets the regulations set up by the Equal Employment Opportunity Commission. Your program also needs to be compliant with the Genetic Information Nondiscrimination act and the Americans with Disabilities Act. You should speak to vendors to ensure that your wellness program meets the expectations of the law.

Read more about what benefits are subject to ERISA.

The earlier you start planning your benefit plan, the better it would be. Effective planning is key in passing checks and audits made by government agencies. Compliance will, aside from keeping your firm’s reputation, attract more employees and will generally improve business. Companies that offer good benefit packages are sought after by applicants due to the high costs of insurance policies, medical treatments, and medicines.


Are you seeking a US national benefits compliance consultants group? We specializes in form 5500 prep, plan document preparation, DOL audit and many other compliance issues your company may be dealing with at the moment or in the future.

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