Compliance & Testing

Concerned your plans don't meet federal requirements?
BAI can review your plans, testing procedures and written documents. We will tell you what you need to do to get and stay compliant throughout the year.

Employer plans that are subject to ERISA and have at least 100 participants are required to file Form 5500 annually. Both the IRS and the Department of Labor may impose costly penalties for failure to file. Those employers who have never filed can take advantage of the Delinquent Filers Voluntary Compliance Program, reducing fees and bringing plans into compliance.

Our team of experts can help your organization navigate through the complexities of filing, allowing you to concentrate on your core business functions. From our initial analysis to our preparation of signature-ready returns and electronic filing capabilities, you can rest assured your filings will be timely and accurate.

A qualified plan must not discriminate in favor of highly compensated and/or key employees with respect to eligibility, contributions and benefits in order to qualify for tax-favored status. A plan that is found to be discriminatory can be disqualified and an employer may face substantial penalties and fines.

As the laws change and the demand on plan sponsors for accountability and transparency increase, employers are faced with more and more challenges. Upon engagement of our compliance testing services, we will provide the tools to compile the data necessary to complete the testing process. Should a review of the test results, reveal that the plan is discriminatory, we will recommend remedial action steps to bring the plan into compliance.
In order to be considered a qualified plan, every cafeteria plan must be in writing. This is referred to as the plan document. ERISA also requires a summary plan description (SPD) that provides information about the plan to the participants in an easy to understand manner. ERISA and the Department of Labor have provided guidelines that include nearly two dozen pieces of information which must be included in every SPD. In addition, each qualified plan that an employer sponsors requires these documents which must be prepared in a manner that coincides with an employer’s IRS filings. BAI will prepare any plan documents and SPDs that are required for FSA and HRA plans as part of those administrative services.

Often vendors and insurance carriers provide booklets or other materials that look like SPDs and plan documents but do not contain all of the required language. Careful attention must be paid to documents and Form 5500 filings to ensure the documents are written correctly. BAI can offer a valuable review service that will analyze a client’s current plan documents and close any gaps in the reporting requirements. We can assist in aligning the documents into one “wrap” document or facilitate changes to existing documents as necessary to bring them into compliance.

One call to BAI can initiate this comprehensive review process. We can set up a consultation with the benefits team and review the plan offerings, IRS filings and any other data. After this evaluation, we will recommend any steps necessary for compliance and provide a quote for these services.

CALL OR EMAIL TODAY TO DISCUSS YOUR NEEDS.