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February 5, 2014
Increasing Number of DOL Audits Threaten Employers with Large Fines – Are You Ready?
By: Gregory S. Kennerly, CHRS
The Department of Labor (DOL) has made it clear that the honeymoon is over and full compliance with the Affordable Care Act and ERISA are expected. As your benefits advisors, ABS wants you to know about the risk of audit and how to be better prepared.
It is a fact that the DOL has hired thousands of new auditors to ensure compliance with the Affordable Care Act. It is clear is that many employers aren’t prepared for the possibility of an audit. Although many audits are triggered by an employee complaint, most are random, or triggered by a failure to file.
Recently released statistics show that employer health and welfare plans are being audited at a higher rate than ever before with more than 37% of the audits resulting in fines greater than $10,000, with 5% of the fines exceeding $50,000. What are the auditors looking for? Below is just a small sample of the documents and requirements reviewed in the audit process:
1. A formal plan document and Summary Plan Description required by ERISA are the most common missing documents that are triggering fines from the DOL!
2. Newly required ACA filing of IRS form 6055 for 2015 plan year
3. Form 5500 information
4. HIPAA compliance documents
5. COBRA compliance proof
6. Documented compliance with mandated notices such as Women’s Heath and Cancer Rights Act, and CHIP
7. ACA required Summary of Benefits and Coverage
8. Exchange Notice/SHOP Notice
How Advanced Benefit Strategies (ABS) is Helping Clients
The effort to comply with this increasing burden of regulation is a time-consuming task that has been delayed in favor of more pressing issues facing employers. The need to comply is now urgent. ABS wants to help you be ready for a DOL audit:
Preparation of mandated ERISA plan documents and Summary Plan Descriptions (SPDs) at a fraction of the price charged by other professionals.
Free access to our 40-page DOL Audit Guide that is a wealth of information on how to prevent and be ready for a DOL audit of your company.
In person complimentary meetings with our HR-savvy and Certified Healthcare Reform Specialist credentialed staff.
ABS clients get free help with filing newly-required ACA reports for calendar year 2015.
Many employers mistakenly believe that the ACA Summary of Benefits of Coverage (SBC) is all that is required to be in compliance. This is NOT TRUE. A formal Summary Plan Description (SPD) is required for compliance with ERISA. Again, we are your lowest cost source for these mandated documents.
Call or email me to learn more. ABS is dedicated to keeping our clients ahead of the pack with our innovative strategies and compliance services.
Gregg Kennerly, CHRS
Certified Healthcare Reform Specialist
Phone: Cell: 757-536-4554 * Fax: 757-257-0447
One Columbus Center, Suite 600, Virginia Beach, VA, 23462
www.absofva.com * firstname.lastname@example.org