If you are an employer offering group-sponsored benefits to 1 or more employees , you need to ensure that you are in compliance with ERISA (Employee Retirement Income Security Act) laws or potentially be subjected to fines of $110 per day. Notwithstanding the required mandates with which employers must be in compliance, you are also required to disclose Plan information to all eligible employees on a timely basis.
THE REASON:
- Healthcare reform needs to raise money to pay for the program. Department of Labor Audits of small employer plans (under 100 participants) are increasing to generate the fine/tax dollars to offset the rising costs of healthcare reform.
- Most employer provided benefits lack the proper language and provisions that are required by ERISA and that are needed to protect the plan sponsor and plan administrator, which in most cases is the employer.
- The next issue to consider is the distribution of the Summary Plan Description (SPD) and Summary Annual Report (SAR) (for groups over 100 participants). ERISA requires each employee be provided with an SPD for each benefit offered within a required period of time and the SAR after the filing of the annual 5500 (for groups over 100 participants). Failure to provide the SPD to an employee or within the required period of time can result in fines of $110 per day per employee for each day past the required deadline.
Kennedy, Michener Benefits, LLC has the solutions to keep you in compliance! Contact Us for help.