DOL Announces Increased ERISA Penalties 2021

DOL Announces Increased ERISA Penalties 2021

Compliance Fines & Penalties (2021)

 

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

  

Download Compliance Fines and Penalties Chart

 
 

Compliance & HR Articles you Might Find Interesting

Compliance Calendar 2023

  Compliance Calendar 2023 Important Dates   The following are important compliance due dates and reminders for 2023. The laws and due dates apply based on the number of employees,

Read More »

End-of-Year Compliance Updates

Need-to-Know End-of-Year Compliance Updates   As 2022 ends, there are several new benefits compliance updates for year-end that employers and insurers need to know.  This list of new benefits compliance

Read More »

Guide to Planning Office Parties

Complete Guide to Planning Office Parties With the upcoming holiday season comes the season of holiday office parties. These parties can be anything from informal gatherings to extravagant events. Holiday

Read More »
error: Content is protected !!
Scroll to Top