FAQ - HR, Benefits Compliance and Administration Explained


What is TPA Administration?

TPA Administration is where an employer outsources the administration of various benefits such as Health Savings Accounts (HSAs), Health Reimbursement Accounts (HRAs), Flexible Spending Accounts (FSAs), 401(k) retirement plans and COBRA administration. HR Service can be your benefit plan administrator with our sister company, B3PA, for HSAs, HRAs, FSA, and COBRA.

What is ERISA Law?

ERISA stood for Employee Retirement Income Security Act and initially passed to protect employees from employer practices that might hinder their retirement income and protect them against acts of fraud and dishonesty. This law has extended to include group health and welfare benefit plans such as medical insurance, dental insurance, vision plans, life insurance, disability insurance, FSAs, HRAs, HSAs, and other allowable employer benefit plans. The law further makes sure that participants’ rights and best interests are protected, requiring various employee notices such as a Summary Plan Description (SPD) or SPD Wrap document. It further requires organizations with 100 or more participants in a plan at the beginning of the plan year to submit form 5500 and provide participating employees with a Summary Annual Report (SAR).

HR Service helps organizations comply with ERISA providing the needed SPD Wrap, Summary of Material Modifications, and other applicable notices to participants. We provide you with a simplified tool that allows you or your broker to create the SPD Wrap and all-in-one annual employee notices quickly. We further offer you with a mechanism to store, deliver, and ensure participants receive these requirements. In essence, we give you peace of mind to not receive huge fines, and to be audit-ready with the DOL comes knocking at your door.

What is ERISA Insurance?
Some organizations that can access or impact funds related to retirement or health and welfare benefit plans are required to have a fidelity bond to insure against acts of fraud and dishonesty and is sometimes called ERISA Insurance.

Who is supposed to file the 5500 form?

Organizations that have 100 or more participants in a given health and welfare benefit plan at the beginning of the plan year or that offers a 401(k) retirement plan.

Who files form 5500?

Organizations that have 100 or more participants in a given health and welfare benefit plan at the beginning of the plan year or that offers a 401(k) retirement plan.

When is form 5500 due?
Form 5500 annual return or report filing is due on the last day of the seventh month after the plan year ends, with an optional two-and-a-half-month extension. For plans that follow a calendar year, Form 5500 for the prior year is due on July 31, with an extension available to Oct. 15.

A premium only plan contains limited language of the Section 125 Plan that only allows for eligible benefit premiums and HSA (health savings account) contributions to be withdrawn from payroll on a pre-tax basis.

A full Section 125 Cafeteria Plan allows for FSA (Flexible Spending Accounts) and dependent child care to be deducted from payroll on a pre-tax basis for eligible out of pocket expenses, but also most commonly includes the Premium Only Plan language with the eligible benefit premiums.

Why HR outsourcing?
Many organizations are too small to warrant having their HR Professional, yet experience many of the same challenges as larger organizations. Many organizations with less than 150 employees find outsourcing their HR Manager duties or various HR tasks helps keep them compliant with the many employment laws and provide them with experienced HR professional help, without the high cost of hiring your HR professional. Other organizations look to outsource HR tasks or functions such as FMLA administration, handbook design, or supervisor training.

HR Service is the premier HR outsourcing organization across the country, providing various HR Support Packages to fit anyone’s budget. We provide you with the needed HR Solutions to help attract and retain talent, engage and motivate employees, improve employee productivity, and hence grow sales and profitability.

What is HR outsourcing?

HR Outsourcing sought outside assistance with all or some of your human resource functions such as recruiting, performance management, employee relations, employment law compliance, supervisor training, employee training, employee handbook design, compensation, benefits, and more.

How much does HR outsourcing cost?

You know what they say, you tend to get what you pay. HR Service creates various package options that allow you to select a program that best meets your needs and fits within your budget. If you want something simple like an employee help desk and some other online do-it-yourself options, these are very affordable. If you wish to one of our HR professionals to act as your HR Manager, it is a more significant investment, but also provides a higher impact on your organization. In most instances, it is still more cost-effective than hiring your HR Professional with base wage, bonus, benefits, taxes, and office.

How does it benefit me?

You benefit from HR Outsourcing by receiving high quality, professional HR Solutions, and help without having to hire your full-time person. You can obtain just the right amount of HR and compliance help needed to based on the size of your organization. We allow you to select from HR Support packages with targeted times, such as 6 to 40 hours per month, for us to accomplish your highest HR priorities. We manage your targeted time over an entire quarter allowing for some months to be higher and some lower. You can change your support levels anytime with a 30-day notice or terminate our agreement with a 60-day notice. You benefit from getting a high return on investment through hiving the right person when needed, attracting and retaining talent, engaging and motivating employees, improving employee productivity, and increase sales and profitability. Keep in mind, most problems at organizations are people’s problems. We help you prevent and eliminate the people’s issues that can bring you down.

How to develop a leader training program

Perhaps a better question is, should I develop a supervisor training program? Unless you are a large organization with the resources and talent to do this, maybe you should consider finding an organization that already has the supervisor training programs you need. HR Service provides training in person, via webinars, and through web-based training videos. Our highly skilled trainers help supervisors learn the critical supervisor skills required to manage employees, build effective teams, improve communications, and make them into a leader that employees want to follow. We help the supervisor take new training and apply it in the workplace, so you get a return on every training dollar invested.

What is a leadership compliance training department?

What supervisors say and do either creates a risk to the organization or positively impact it. All supervisors need training in critical people practices and duties like conducting interviews, making employment decisions, engaging employee performance, managing performance, and employment law 101.

Compliance training for supervisors guides them in the does and don’ts of how to make employment decisions such as hiring, firing, promotions, pay, and discipline. It further helps them conduct daily people management without violating employee rights or creating a discrimination lawsuit or harassing work environment, both of which could cost employers millions of dollars, if not handled correctly. HR Service trains supervisors on how to respond to any risky situation, how to make employment decisions, and to conduct all people management duties to engage an employee best and create a great place to work.

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