Introduction
Employers with a health and welfare benefit plan with 100 or more participants on the first day of the ERISA plan year are required to file an annual Form 5500 and related schedules
Additionally, governmental and true church plans [as defined under ERISA section 3(33)] are exempt from the filing requirements. Note that participant counts for a health and welfare Form 5500 include enrolled employees, former employees enrolled under COBRA, retirees (if applicable) and those eligible for COBRA but have not yet elected coverage.
Mega Wrap plan document can simplify Form 5500 Filing
Employers have up to seven calendar months after their ERISA Plan Year renewal date to file
If the PEO noted itself as a single employer, then there is no information in the Form 5500 to state who is a part of the PEO
If a U.S.-based company hires a foreign national working on U.S. soil, the foreign national would be counted if he/she is enrolled in the benefits as a participant of the ERISA Plan
Please note: There is very little information under ERISA on international plans, foreign nationals, etc. The best practice to determine status is to seek the advice from an ERISA attorney.
Self-insured plans such as a healthcare flexible spending account still would require a Form 5500 if the reporting threshold has been met
Voluntary benefits may still be reportable even if the employee pays for the entire premium. If the plan sponsor endorses the benefit it would more than likely be under ERISA
Employers who have delinquent welfare benefit Form 5500s can enroll in the DOL Delinquent Filer Voluntary Compliance Program (DFVC) and cap the amount of assessed penalties.
In FY 2015, EBSA determined that 67% of the ERISA Health and Welfare as well as Pension Plans that were audited had an ERISA violation
Effective August 1, the DOL issued a new penalty amount for a refusal or failure to file a Form 5500
Disclaimer: Wrangle, LLC as well as its employees and affiliates do not offer legal and accounting consultation and services. Information relayed through Wrangle-produced materials serves to provide general information only; whether expressed or implied it is not intended to constitute legal or other advice or opinions on any specific matters and is not intended to replace the advice of a qualified attorney, accountant, or other professional advisor. Wrangle applies its best effort to provide accurate and complete results and provides its service in accordance with the ERISA rules that govern Form 5500 completion.