What are the ERISA 5500 Fines & Penalties by the DOL and IRS 2021?
Violation Possible Fine Department
Failure to provide written requested ERISA plan documents, Summary Plan Descriptions,
Summary of material modifications, etc.
$119 per day up to $594,129
Late 5500 Report
$25 per day up to $15,000 – IRS
$1,100 per day, no cap – DOL
Failure to File annual 5500 Report
$2,259 per day
Failure to furnish statement of benefits or to
$31 per employee
Failure to notify plan participants of benefit
restrictions and/or limitations
$1,788 per day
Failure to furnish automatic contribution
$1,788 per day
Failure to furnish employee benefit plan
documents to DOL upon request
$161 per day up to $1,613 per
Failure to inform employees of Medicaid/CHIP
$120 per day per employee
$120 per day per participant
Failure to provide Summary of Benefits Coverage
Up to $1,190 per failure
FMLA posting & notice violation
$176 for each offence
Allowing premiums to be paid on a pre-tax basis for covered benefits without having either a Premium Only Plan (POP) document or Flexible
Spending Account (FSA) document.
Penalty: Employer can lose the ability to allow premiums on a
$119 to $59,522 per violation up to
DOL or HHS
MEWA – failure or refusal to file a complete or
accurate Form M-1
$1,644 a day
Other – This is only a partial list of possible fines
Each of the enforcing organizations, DOL, IRS and HHS, have increased the number of auditors and enforcers. Audits have increased across the county.
We recommend you take steps now to be fully compliant to avoid fines and penalties. See instructions on how to file the 5500 Form.
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