Audit requirements for a single employer plan where more than one empl

[Guest Pat Metallic]

Per instructions to Box A(2) of the 1999 Form 5500, a single employer plan is defined as a plan in which several employers contribute to a plan and funds are pooled for investment purposes, but only the funds contributed by each employer are used to pay benefits to employees of each respective employer. Then each employer is a single employer and must file a separate 5500.

If one of these employers has over 100 participants and is required to have an audit, does the entire plan get audited or just that employer's part of the plan?

[Guest RBeck]

Are the employers in your situation related in any way? If they are part of a controlled group, the audit requirement extends to all members of the group.

[Guest Pat Metallic]

The employers involved are NOT a part of a controlled group.

[Guest RBeck]

so, what you have are two unrelated employers who participate in a pooled investment arrangement. Only the employer with over 100 employees is subject to the audit requirement, assuming the 80/120 rule doesn't apply.