requesting year end info

[richard]

We prepare a partially filled-in "fill in the blanks" format.

The ask for information on all employees as of end-of-year; we then determine eligibility.

For assets, in lieu of the client filing out a form, we also accept copies of monthly, quarterly or annual investment statements, and we then reconcile the assets.

The brick wall, as well as partially (or incorrectly) filled out forms is still a problem with some of our clients.

How often are fee surcharges used for poorly prepared data from clients?

[Guest tjmartens]

What have you found to be the best way to acquire year end census info (among other things) from the employer without overwhelming the employer or hitting a brick wall with the employer?

Is it best to use a preset format for them to "fill in the blanks", or a partially filled in report which only requires changes and updates, or whatever format the payroll department will download (which will undoubtedly require manual input from us).

This question also relates to ongoing information requests as well such as newly eligible employees. With newly eligible employees, are most TPA's determining eligibility for the client or requiring the client to determine eligibility?

[Cathy from Chicago]

Over the years we have streamlined our year-end census package so that it now only asks for copies of the W-2's and provides the employee census from the prior year's valuation, so any changes to an employee are simply written in on a blank line. For the majority of our cases we are able to get the year-end investment report from the investment firm so do not have to rely on the client providing such. The streamlining has improved our usual headache in trying to get accurate data. Unlike prior years, we've already received back about twelve packets of completed data! So, guess this means the busy season has begun...

[John A]

Cathy (and richard),

How do you request 5500 reporting and other important plan info. (for example, officer and ownership status for key employee determination, fidelity bond for plan, corportaion status - C, S, other, possible prohibited transactions during year, etc., etc.)?

[Guest tjmartens]

I don't know about Cathy and Richard, but we request most of that info up front when take on a new plan. We have a workbook that we send to the registered rep who is working with the client or directly to the client. Together they complete the workbook and send it back to us to prepare documents for the new plan. In the workbook, we request ownership info, corp status (c vs S), a copy of the fidelity bond, etc. I always request complete info before proceeding and I don't usually have trouble getting it. As for prohibited transactions, obviously those need to be monitored on an ongoing basis. We also request copies of last year's valuation, transactions, and 5500's for the last 3 years. With all this info, I am usually pretty set at year end with the exception of revised census and salary info...which prompted my original question.

As for Richard's question regarding fee surcharges, we do not charge a fee for incomplete information. However, I must say, it sure sounds like a good idea if you can get away with it. It can be frustrating asking for basic information and getting the runaround instead.

[This message has been edited by tjmartens (edited 01-18-2000).]

[richard]

In response to John A:

For a new or takeover client, we get the basic information via phone or an in-person meeting, or through their accountant (or other advisor).

For ongoing clients, we preprint the current information and ask them to make any corrections, as necessary.

We also ask yes/no questions as part of our census, similar to the 5500 questions. The asset review is an additional level of checking, so if we see something "funny" in the assets, we ask questions (like, we noticed $50,000 disappeared from the assets for a couple of months ... what happened to it?)

Per tjmartens' comment; we have found getting basic information on takeover plans to be fairly simple, as long as the existing documents and 5500s can be located.

[stephen]

We request annual census information along with officers, ownership %, 5500 questions, distributions, contributions, etc at each year end.

Basically it's a form letter and a fill in the blank questionaire.

For the most part the clients fill them out sufficiently, however, there are always clients who leave a lot of blanks...

[Guest RS Vatalaro]

We get the census from the payroll company wherever possible - I find ADP to be the most cooperative of them all. We get an electronic dump and do a direct import. Before I do the import, I print a hard copy, and attach a certification statement and mail to the client. They sign and date the certification statement that they have reviewed the dump and that it is correct (or they make changes to incorrect data). The certification statement clearly says that inaccurate data that causes us to re-do testing etc WILL BE BILLED AT OUR STANDARD HOURLY RATES - very effective especially when they've signed off! They can't (and don't) argue w/ us if we charge for re-do's because of bad data.

RE: 5500 questions, prohib trans, officer, owner, etc, we have a five page questionnaire that covers these issues. It's short enough I don't normally have any trouble getting it filled out.

For clients where I can't get the census thru payroll company, I prep an Excel disk w/ last year's data, and ask the client to fill in the rest on Excel and give me back the disk. Most clients are handy enough w/ Excel this is easier for them than handwriting or typing, and then all I have to do is import on my end.

Hope this helps.

[Cathy from Chicago]

Our fee schedule states that the basic fee includes two hours for trust accounting and if extra time is required, we will charge an hourly rate. Now, in reality, have we ever charged for it? No. However, one thing we did install two years ago was a surcharge for any census data received within 30 days of the Form 5500 preparation, including tax extensions...we tell them the charge will be either $250 or 10% of annual bill, whichever is greater. And, for those clients who are traditionally late, we've been charging them and...they've paid with no hesitation.