Audits Ensure the Integrity of Your Employee Benefit Plan
Employee benefits plans such as retirement plans, cafeteria plans and welfare benefit plans can be a great way to recruit and retain high level talent while maximizing business tax savings. The main challenges with employee benefit plans usually stem from administration and compliance, which can be overwhelming and cost prohibitive if not managed properly. Further, failure to keep a plan in compliance can carry hefty penalties and legal risks.
Employee benefit plans are generally required by law to be audited by an independent, experienced, licensed CPA firm once the plan has 100 eligible participants (as part of its annual Form 5500 filing obligation). This audit requirement for large plans is mainly intended to help ensure that plan rules are followed and applied consistently, that they are not discriminatory towards business owners and highly-compensated employees, that any required separate participant accounts under the plan are properly maintained, and that the plan is in compliance with applicable laws and DOL regulations.
Value-Added Approach to Employee Benefit Plan Audits:
- Proficiency – Dedicated professionals with up-to-date technical knowledge of Department of Labor and tax reporting requirements as well as generally accepted accounting principles work to meet compliance needs completely, accurately and on time.
- Efficiency – Auditors work closely with the client’s administrative staff and third-party service providers for an efficient and seamless audit designed to minimize cost and disruption.
- Improvement – Recommendations are provided to increase oversight and control over the plan and correct any weaknesses or problem areas.
- Business Optimization – Strategies are provided for increasing employee participation, satisfaction, retention, and cost reduction.
If your employee benefit plan requires an audit or if you have questions on whether your plan is optimized and best suited for your business, please contact one of our specialists.