Form 5500 Software, Pros and Cons

[Ken_BenefitScape]

I am trying to get a handle on whether to use the DOL EFAST2 web-based filing system in its native format or use one of the many integrations available on their website.

I would like to hear from any BenAdmin familiar users to see which products they prefer. Our staff is very knowledgeable in the employee benefit and ERISA arena but I would like them to have access to a tool that could facilitate and guide their work. Any comments are appreciated.

[Bird]

I find this a strange request.  My guess is that 100% of third party administrators are using some type of integrated software for filings.  I don't think we could use the system "in its native format" if we wanted to.  What is your role and how are you handling this now?

[Bill Presson]

Not sure this is exactly what you mean, but I'll relate a story. Back when eFast first came out, the 5500 provider we used wanted the process to be:

1. TPA prepares 5500

2. TPA uploads the file to TPA website provided by 5500 software company

3. Client signs on to TPA website and signs 5500 with DOL credentials

4. TPA processes 5500 and sends to DOL

We decided not to do that because it would require many clients to obtain DOL credentials AND get logins to the TPA website that they hadn't had to do before. So, instead we did this:

1. TPA prepares 5500 and exports file.

2. TPA uploads the file to DOL eFast site

3. Client signs on to DOL eFast website and signs 5500 with DOL credentials

4. Done

Worked like a charm and when lots of the 5500 providers were struggling with the web integration, we had 0 issues.

I think it's been quite awhile and i haven't seen the providers have those issues recently, so I'm not sure it's worth doing differently. But it can work.

Maybe that helps some?

[RatherBeGolfing]

45 minutes ago, Bill Presson said:

Worked like a charm and when lots of the 5500 providers were struggling with the web integration, we had 0 issues.

That first year had major issues with transmitting returns from provider software, but it has pretty much problem free since then.  

 

47 minutes ago, Bill Presson said:

We decided not to do that because it would require many clients to obtain DOL credentials AND get logins to the TPA website that they hadn't had to do before. So, instead we did this:

1. TPA prepares 5500 and exports file.

2. TPA uploads the file to DOL eFast site

3. Client signs on to DOL eFast website and signs 5500 with DOL credentials

4. Done

We went the third way  which was for the TPA to file on behalf of the client.

1. TPA prepares 5500

2. TPA gets signed 5500 from client with an authorization to file on the clients behalf

3. TPA electronically files the return using their EFAST transmitter credentials

4. Done

[Bill Presson]

RBG, that third way is the way we do the vast majority now. Wasn't an option early on, but is quite convenient now.

[RatherBeGolfing]

There is also a fourth way, known as the Larry way ? @Larry Starr 

[Larry Starr]

3 hours ago, RatherBeGolfing said:

There is also a fourth way, known as the Larry way ? @Larry Starr 

In fact, the THIRD way was added because of my pointing out at the "rollout" meeting that their rules were unrealistic in many ways and that there was nothing to prevent me from getting the credentials for each client and actually filing their returns. They were clearly NOT happy with me and my pointing out the holes in their carefully designed system. They actually believed that requiring unique web addresses to get the credentials would prevent people like us getting the credentials.  It took all of about 3 seconds to explain that, since I have my own domain name, I have an unlimited number of email addresses, all of which coud be aliased back to just the one person who handles our process of getting the credentials and storing them in our database.

When they later checked with me via Craig Hoffman (before announcing the "third way") to see if that would satisfy me, I explained that I appreciated their efforts and that probably a lot of folks might adopt that and  it was a definite improvement, but I would NOT adopt it because it requires attaching an actual signed copy of the 55500, and as a public document, I had no desire making my client's legal signature available to anyone who wanted to copy it for any nefarious purposes.  So we still do  it the "Larry Starr" way, and so do a whole lot of other people.  FWIW.

[Ken_BenefitScape]

Bill P., RBJ and Larry.. Thank you for the thoughtful replies. My firm is a software company that specializes in ACA compliance activity and other employee benefit topics. We are also an authorized e-filer and transmitter of the ACA data to the IRS air system.We also partner with a number of HCM companies to assist in their BenAdmin effort. As the founder of a company called WorkScape I'm intimately familiar with health and welfare admin. We are looking to expand our services to offer 5500 filing of the health and welfare area and I was questioning whether we handle it like we do ACA filing or two would look for a software SAAS provider to partner with. Any comments are always appreciated

[Larry Starr]

2 hours ago, Ken_BenefitScape said:

Bill P., RBJ and Larry.. Thank you for the thoughtful replies. My firm is a software company that specializes in ACA compliance activity and other employee benefit topics. We are also an authorized e-filer and transmitter of the ACA data to the IRS air system.We also partner with a number of HCM companies to assist in their BenAdmin effort. As the founder of a company called WorkScape I'm intimately familiar with health and welfare admin. We are looking to expand our services to offer 5500 filing of the health and welfare area and I was questioning whether we handle it like we do ACA filing or two would look for a software SAAS provider to partner with. Any comments are always appreciated

I'm not sure I understand the question; can you restate that next to last sentence to clarify what you mean by "... like we do ACA filing or two...."?

[Ken_BenefitScape]

Hi Larry,

it looks like we're neighbors. I am in Natick Mass. As an ACA e-filer we have developed software to e-file to the IRS AIR system using the application to applicatione channel.

So essentially we consume data from our database and conform it to the XML schema required.  From looking at Efast requirements, it seems that this is the same process, while the data is different, what I was considering was building something out to perform this task.

On the other hand I realize there are software vendors that have a front end that may be easier to use than one we would develop. I see you in a qualified plan area and my interest is primarily health and welfare. I don't suspect we'll get involved with qualified plan activity although that was my background.

What I was hoping to get was folks who use vendor software to tell me what they like didn't like and possibly recommend.

 

 

[Larry Starr]

20 hours ago, Ken_BenefitScape said:

Hi Larry,

it looks like we're neighbors. I am in Natick Mass. As an ACA e-filer we have developed software to e-file to the IRS AIR system using the application to applicatione channel.

So essentially we consume data from our database and conform it to the XML schema required.  From looking at Efast requirements, it seems that this is the same process, while the data is different, what I was considering was building something out to perform this task.

On the other hand I realize there are software vendors that have a front end that may be easier to use than one we would develop. I see you in a qualified plan area and my interest is primarily health and welfare. I don't suspect we'll get involved with qualified plan activity although that was my background.

What I was hoping to get was folks who use vendor software to tell me what they like didn't like and possibly recommend.

 

 

I can't say I necessarily understand anything you are saying about your in house developed software; no one I know in our business uses anything other than commercially provided software. In our case, we use Relius Government Forms because we use the Relius software for administration and it only makes sense to use their 5500 software as well.  You might want to check with them. There are quite a few who use FT Williams, which might be an alternative for you. As a start, I would suggest you discuss your needs with their respective sales departments to see if what they do fits your needs.