You receive a letter in the mail notifying you that your company is being audited by the Department of Labor. Once the shock wears off you immediately start thinking back, is my benefit plan in compliance, did that last notice about the ACA go into effect, did I make the update, what about fines and penalties, am I subject to those? Why was my company selected to be audited? Instead of staying up at night worrying about whether your organization is in compliance, why not put in to place a system to measure, remedy and remind you of what needs to done all throughout the year?
A DOL audit can be triggered for a variety of reasons. In most cases, the DOL investigator will not disclose to an employer why its health plan was selected for audit. However, there are some common audit triggers that an employer should keep in mind. Common triggers for a DOL audit include:
- Participant complaints to the DOL about potential ERISA violations. In 2013, according to a DOL audit summary, 775 new investigations were opened as a result of participant complaints.
- Answers on the plan’s Form 5500. For example, if a plan’s Form 5500 is incomplete, or if inconsistent information is reported from year to year, the DOL may investigate the issue further.
- The DOL’s national enforcement priorities or projects, which target the DOL’s resources on certain issues. For example, the DOL’s Health Benefits Security Project focuses on making sure health plans and health insurance issuers comply with the ACA’s mandates.
With all of the updates, compliance changes, countless rules and regulations… it’s enough to make your head spin! How can you possibly stay up-to-date and remain compliant? It’s an overwhelming job for almost anyone, unless it’s what you live and breathe every day.
Broad Reach Benefits acts as an extension of your HR Department and our dedicated Team Members focus on one thing, staying-up-to date on compliance changes and making clients aware. We’re here to ensure your health plans comply with the applicable federal laws. We provide a steady stream of educational information to our clients in the form of webinars, blogs and posted legal alerts.
A Compliance System- Not just checklists!
To make sure our clients are really in compliance we provide a web-based solution that uses a 3-step process designed to measure, remedy and remind them of on-going compliance requirements. Nothing slips through the cracks. The system provides a compliance dashboard clearly indicating steps that need to be taken. Our clients always know where they are so they are prepared, and ready should the DOL coming knocking on their door.
We make sure that our clients are compliant so they can focus on making their businesses successful so they won’t have to worry about stress and inconvenience of a DOL audit.
Download your free DOL Audit Guide – How to Prepare and Respond