TetrisPensionNerd

I’ve encountered a similar situation. A Form 5500-EZ was filed for one participant plan. However, we discovered months later that they hired an employee who is paid via W-2 wages and became immediately eligible on their hire date. Consequently, a Form 5500-SF should have been filed. Could you please explain the correction method and any applicable fines or penalties for correcting this error for a PYE on December 31, 2024? The 5500-EZ that was filed should have been a 5500-SF.

What if the client has a 360 or 180 payroll integration between their payroll company and the recordkeeper? I would think that the indicator could be placed in the file layout so when it goes to the record keeper it is updated. They could also include prior year FICA wages in the file layout if the recordkeeper has the capability to track that somewhere. also, how are fiscal year end plans being handled (for instance a 9/30/2025 PYE)??