VFCP Filing Question

[austin3515]

Plan auditor determined late/timely based on a time frame of 5 business days (apparently that was what the client told them).  All of the corrections were done based on 5 business days and now we are helping with a VFCP.  Would you file a VFCP application using 5 business days as the criteria for lateness?  [They ask right on the VFCP application essentially "when do you think your contributions are due?".  I'm concerned if I file it's going to open a whole other can of worms.  i.e., "Seriously, it takes you 5 days??  Please provide a 27 page memo describing why you are so slow! And let me see ALL of your deposits so I can use it as evidence to disprove your ridiculous assertion!"  I embellish of course, but probably the only question is to what degree I embellish.  There is a kernel of truth I am sure?

Beginning in 2019 by the way their new standard is 2 business days.

[RatherBeGolfing]

So 5 days this year because that is what the client told them, but next year its 2 days?  

Nope, not good enough for me... If you are gonna use 5 days in your audited financials you need a better explanation than the client told me so...

[austin3515]

That's a good point, maybe he was just rushing me off...  I'll push him a little harder...

[bzorc]

On another angle here, we had a large plan be subjected to a DOL audit for late remittance issues. At the close of the audit, the DOL indicated that, based on their review, the Sponsor should "be able to" remit within 7 business days, which is now the standard we hold this sponsor to.

[austin3515]

Well I mean that has to be one complicated process though, no?