Depending on the compliance violation the Department of Labor (DOL), Internal Revenue Service (IRS) or Department of Health & Human Services (HHS) may impose fines or penalties. Below are a few possible examples.
Failure to provide written requested ERISA plan documents, Summary Plan Descriptions, Summary of material modifications, etc. |
$119 per day up to $594,129 |
DOL |
Late 5500 Report | $25 per day up to $15,000 – IRS $1,100 per day, no cap – DOL | IRS DOL |
Failure to File annual 5500 Report | $2,259 per day | DOL |
Failure to furnish statement of benefits or to maintain records |
$31 per employee |
DOL |
Failure to notify plan participants of benefit restrictions and/or limitations |
$1,788 per day |
DOL |
Failure to furnish automatic contribution arrangement notice |
$1,788 per day |
DOL |
Failure to furnish employee benefit plan documents to DOL upon request | $161 per day up to $1,613 per request |
DOL |
Failure to inform employees of Medicaid/CHIP coverage opportunities |
$120 per day per employee |
DOL |
GINA violation |
$120 per day per participant |
DOL |
Failure to provide Summary of Benefits Coverage (SBC) |
Up to $1,190 per failure |
DOL |
FMLA posting & notice violation | $176 for each offence | DOL |
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 pre-tax basis. |
IRS |
HIPAA violations | $119 to $59,522 per violation up to $1,785,651. |
DOL or HHS |
MEWA – failure or refusal to file a complete or accurate Form M-1 |
$1,644 a day |
DOL |
Other – This is only a partial list of possible fines and penalties |
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