5500 required for only 1099 contractors?

[CaliBen]

Organization has no employees, only 1099 contractors. The contractors can purchase vision, dental and disability insurance through the organization. Is the organization required to file a 5500?

[jpod]

A plan that does not cover employees is not a plan subject to ERISA, but of course that is putting the rabbit in the hat and there is no need here for a dissertation on the potential adverse consequences of worker misclassification. 

[CaliBen]

Thank you. Yes, worker compensation is a separate issue that is being addressed.

[jpod]

Not "compensation." Worker "classification." 

[CaliBen]

Yes. Sorry I had workers’ comp on my mind while typing reply.

[Luke Bailey]

Is "the organization" an insurance company? If not, is this not a MEWA?

[CaliBen]

Not an insurance company. But the 1099ers happen to be independent insurance agents.

[Luke Bailey]

CaliBen, per your original post, they purchase the "insurance" through the "organization." But the vision, dental, and disability insurance that the purchase is actually provide by state-regulated insurance companies?

[CaliBen]

On 7/19/2019 at 7:24 PM, Luke Bailey said:

CaliBen, per your original post, they purchase the "insurance" through the "organization." But the vision, dental, and disability insurance that the purchase is actually provide by state-regulated insurance companies?

Correct. They are permitted to purchase these voluntary group benefits on the same terms as the organization offers to their w-2 employees. The insurance is provided by state-regulated insurance companies.