Form 5500 Filing: What to Know
Employers with 100+ participants in their welfare benefits plans must complete form 5500 filing. This form is meant to report benefit plan operations and financial conditions to the Department of Labor (DOL) and the IRS.
These 5500 forms must be filed within seven months after the plan year ends. Employers must report on areas such as:
- Plan Sponsor
- Administrators
- Demographics
- Financial Statements
- Plan Compliance
Filing 5500 forms may also require an audit of plan statements by an outside agent. Organizations are also required to provide a Summary Annual Report (SAR) to disclose details to all wellness plan participants.
Filing Penalties for Form 5500
It’s important to know whether your organization meets the requirements for filing Form 5500, as failure to file or late filing can lead to costly penalties. Organizations must make sure they complete all filing requirements to avoid these penalties.
Late filing can lead to penalties of up to $2,400 per day, depending on the plan size and other factors.
Failure to file will cost $2,400 per day after the filing deadline. Determining your organization’s filing requirements is essential to avoid these fines.
Form 5500 Q & A
If a health and welfare benefit plan has fewer than 100 participants, is Form 5500 required?
Self-funded or fully insured plans with FEWER than 100 employees do no require Form 5500. However, the 5500 must be filed if the plan is funded, regardless of size. Self-funded or fully insured with 100+ participants must also file.
When is the filing deadline for Form 5500?
According to the IRS website, filing should be completed by the last day of the seventh month after the plan year ends. For most plans, this means July 31st.
What if I'm unable to meet the deadline?
If for whatever reason you are unable to file in a timely manner, you must file Form 5558 ON OR BEFORE the regular due date. Form 5558 extends the due date 2-1/2 months. Filing this extension helps avoid penalties.
How do I ensure I file correctly and on time?
Make sure you check all filing requirements to make sure you understand when, how, and what to file.
HR Service, Inc. can help you determine your Form 5500 filing needs and assist you with all filing requirements for the health and wellness filing. Contact HR Service for pricing and service details at: 833.685.8400 x 1.
What are the most common mistakes when filing Form 5500?
The most common mistakes when filing any 5500 Form are:
- Not fully completing the required information
- Filing the wrong forms
- Missing important deadlines
- Not including the Proper EIN And Plan Number
- time period entered in Part I of Form 5500 is greater than twelve months
- Missing necessary schedules and attachments
- Improper business codes
- Incorrectly identifying the proper funding and benefit arrangements
- Not filing the correct Financial Information Schedule
- Not validating your filing
When in doubt, it’s best not to do anything on your own when it comes to filing form 5500. You want to make sure that you have people who can help you with this instead.
This is why HR Service, Inc. provides 5500 filing services. We can help with all your compliance paperwork needs and make sure everything is filed correctly. Find out more today by calling or emailing us at solutions@hrserviceinc.com with any questions.
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