Welfare Benefit Plan ERISA News
April 2015

 
Errors on Your Form 5500 Can Lead to an IRS Audit
"Mistakes on your plan's Form 5500 create a nice target for the Internal Revenue Service's auditors. In its February 2, 2015 edition of Employee Plans News, the Internal Revenue Service explains that entering incorrect information or leaving a blank in a required field increases the likelihood your plan will be selected for a compliance check."
The IRS provides a list of helpful tips and common mistakes on the Form 5500. Read more at Benefits Bryan Cave.
IRS Seeks 9,000 New Employees to Enforce ACA
IRSIRS Logo The IRS has asked Congress for close to 2 billion additional dollars for operations in 2016. "The billions of dollars will help the agency bolster its staff by adding more than 9,280 full-time employees. The proposed jump in employment at the IRS is an 11 percent increase from 2015. To enforce the 46 new tax provisions of the Affordable Care Act specifically, the IRS asked for $67 million. That will cover 483 new employees related to Obamacare's implementation." Melissa Quinn, in The Daily Signal
"Retirement Plan's Form 5500 Is Done...
Now What About Your Welfare Benefit Plans?"
Department of Labor"With the advent of the required U.S. Department of Labor's ("DOL") DOL Seal EFAST2 electronic filing of the Form 5500 return, the DOL has a comprehensive database to compile information on companies' retirement plans, an exercise that the DOL is pursuing vigorously. DOL's focus is on scrutinizing companies that file a Form 5500 for a large retirement plan that requires a financial statement audit (generally those with more than 100 participants) to determine whether the company is also filing a Form(s) 5500 for its welfare benefits." Read more at "Trends & Developments" by Christine Faris, JD and Pauline Lau, QKA
"Be Careful What You Promise Employees
Who Leave Your Employment"
"Clients sometimes like to ease the transition for employees who are retiring or whom the client would like to encourage to leave. One strategy is to continue the employee on 'payroll' for a period of time with the expectation that all benefits will remain in place. ... Lesson to employers: Do not promise benefits beyond what your plan documents and insurance policies provide. If you do, you may find yourself paying those benefits without the insurance coverage you were expecting." Read the full article by Angela Bohmann, J.D. in ERISA Wonk.
Employer Can Force Employees into Health Plan
"Some workers are not pleased. One disgruntled reader wrote to Kaiser Health News: 'My employer is requiring me to purchase health insurance and is automatically taking the premium out of my paycheck even though I don't want to sign up for health insurance. Is this legal?' The short answer is yes." By Michelle Andrews, Kaiser Health News
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© 2017 ERISAPros, LLC, All rights reserved. Information on ERISAPros' website, its newsletter, “News & Views,” and its blog, “ERISA Wonk,” is published as a general informational source. Information and articles are general in nature and are not intended to constitute legal or tax advice in any particular matter. Blog posts and comments reflect the personal views of their respective authors - not those of ERISAPros. Transmission of this information does not create an attorney-client relationship. ERISAPros, LLC is not a law firm and is not giving legal or tax advice. It does not warrant and is not responsible for errors or omissions in the content on its website or in its newsletters. ERISA is a complicated and confusing law. Summary Plan Descriptions (SPDs), Wrap Plan Documents, and Form 5500s require review and updating by qualified ERISA compliance professionals.

 

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