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Majority of Employers Not in Compliance with ERISA
- A Marketing Opportunity for Agents and Brokers
The
majority of U.S. employers with 100 or more employees are not
in compliance with the ERISA requirement to file an annual Form 5500 for
their Health & Welfare Benefit Plans. U.S. Census Bureau
reports show that there are about 110,000 employers that employ 100 or
more people. However, according to public records available
through freeerisa.com, some 60,000 of these employers have not filed a Form 5500
for a Welfare Benefit Plan-a 55% rate of noncompliance*. These
employers could face onerous government penalties in the current
environment of increased regulatory oversight.
Beginning
in 2010, employers must file all Form 5500s electronically.
Electronic filing may make it easier and faster for some employers to
file, but for others, it will create confusion and complication.
It will also make it easier for the DOL to monitor compliance and
enforce penalties.
Fortunately, the DOL does have a Delinquent Filer Voluntary Compliance Program
that offers a reduced penalty, but this program cannot be used once the
DOL finds the employer's error through an audit or investigation.
The DOL is slated to hire 1,000 new employees, of which about 670 will
be investigators.
Offering
ERISA Pros' SPDs and Form 5500 preparation services is a unique way to
expand your client base and protect your existing clientele from
competition. Insurance brokers, H.R. Consultants, accountants,
attorneys, and other professional advisors should take steps now
to get their clients in compliance before the DOL knocks on their
door.
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Call Us: 678-443-4003 or 1-866-488-6582 toll free
Email: info@erisapros.com
Visit us: www.ERISAPros.com
*It is assumed that employers with 100 or more
employees offer at least one Welfare Benefit Plan and are subject to
ERISA Reporting and Disclosure requirements.
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