While the business community, small and large, is focused on trying to prepare for the final implementation of the Patient Protection and Affordable Care Act, a much more immediate and equally dangerous threat is largely unnoticed.

Will You Get an ERISA Audit?

The Department of Labor (D.O.L.) launched a very aggressive program to conduct complete ERISA audits of any firm with a group medical plan. In the past such ERISA audits were generally limited to larger employers. The D.O.L. has made it a goal to audit all plans, regardless of size. Firms down to four employees have recently been subjected to these audits, and the fees and penalties for failure can be very, very high.

Read two actual letters issued by the D.O.L. to employers. The first is a notice of intent to audit, with a detailed list of the documents and compliance actions to be verified. The second is a copy of a letter received by an employer notifying them of their failure to pass their ERISA audit, with the corrective action to be taken and the deadline to do so.

The most cost-effective way to protect your firm from potential audit failure, and the resulting fees & penalties, is to outsource these compliance duties. An experienced benefits consultant like Timberline Benefits Insurance Services, Inc. can help. Contact us to discuss effective solutions for your company.