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Why Do We Need a Lawyer to Help with Our Company's Health and Welfare Benefits?

"Health and welfare benefits are an important part of attracting and retaining employees, as well as creating a positive and supportive workplace environment. There are many service providers who are eager to help you provide these benefits ... With so many resources, why is it necessary to get a lawyer involved?"

Penalties for Certain Employee Benefits Failures

Chart lists and describes penalties applicable to retirement and health plans.

The Hidden Pitfalls of Related Employer Status

"In the event multiple entities are in the picture, a Related Employer analysis must consider every possible pair of entities until all two-employer Groups are identified.... With little or no notice, a subsidiary employer may find itself outside of a Controlled Group ... This may create compliance hassles not only for affected retirement plans, which must re-structure formally to recognize the new arrangement, but also for health and welfare benefits ... Fortunately for retirement plans, the applicable regulations afford a little time to the affected employers to address the effects of a change in Group status, but there is no such transition period for health and welfare plans."

IRS Audits of Retirement Plans: What Employers Need to Know

"What triggers an IRS audit of a retirement plan? ... Initial steps when an audit notice is received.... What employers can expect during an IRS audit.... Preparing for an audit before it begins.... Common missteps employers should avoid.... Key takeaways for employers facing an IRS audit."

Dependent Care Flexible Spending Accounts Can Be an Awesome Benefit -- if You Know What You Are Doing

"If you were to make a 'pros and cons' list ... you might see that numerically, there are more cons that pros. But ... the quality of the overall benefit should be evaluated. Overall, when a participant is aware of the requirements and limitations, evaluates their individual situation, and carefully plans for the use of the DCFSA, the tax savings on a necessary expense makes it all worthwhile."

De Minimis Compensation: Don't Count It Out

"If an employee receives a benefit that is includible in taxable wages, then it needs to be included in compensation for plan purposes ... [W]here the benefit is an object or a gift card, or other tangible item ... the employer will need to impute (attribute) income to the employee and make deferrals from the liquid cash compensation in an amount that considers the non-liquid compensation imputed to the employee. Employers may want to review whether these items of compensation can be eliminated or restructured to meet the de minimis fringe benefit exclusion."

What Employers Should Know About Non-English Language Assistance Requirements Under ERISA and the ACA

"There is no requirement under ERISA that summary plan descriptions (SPDs) and summaries of material modifications be provided in any language other than English. However, where a plan covers a large enough population of participants who are only literate in the same non-English language, assistance in that non-English language must be offered.... The ACA requires that certain group health plan materials be provided in a 'culturally and linguistically appropriate manner.' The group health plan materials at issue include the summary of benefits and coverage (SBC) and appeal notices under the enhanced group health plan claims procedures."

DOL Investigations: The Whys and Hows

"While EBSA will never disclose the exact impetus for a particular investigation, certain ERISA violations are well known to make a plan a more likely target.... [T]he information and data reported in the Form 5500 may provide the EBSA a treasure trove of reasons to investigate a plan.... The issue of timeliness of deferral deposits is low hanging fruit for the EBSA investigator.... [A] general point of vulnerability for a plan may be the participants themselves."

Document Retention Is an Employer's Duty, Not the TPA's

"While most TPAs keep copies of documents they prepared, they do not always ... keep copies of signed versions, or older documents, or documents prepared by a prior TPA.... If the IRS or DOL comes in and initiates an audit/examination, [they] can ask to see documents all the way back to the beginning of the plan.... Benefit claims, including law suits, can come up years later, and the terms of the plan as provided in the plan document in effect at the time of the claim will govern[]"

Don't Overlook Health and Welfare Issues in a Merger or Acquisition

"The first step in determining what terms should be in the purchase agreement and what to review in the due diligence process is to identify what plans the seller maintains. While the seller is usually required to disclose all of its benefit plans, written or unwritten, as a part of the purchase agreement, it is a best practice to verify this through a review of documents ... Some benefits need more scrutiny to determine the absence of significant problems."