The best way to prepare for an audit is to AVOID having one altogether.
Rizor & Nolan Advisors created this informative email series to give you advice on how to manage your health and welfare benefit plans, and to tell you about the advantages of working with our expert team.
The Mistake Many Employers Make
One of the biggest mistakes we see is that many employers do nothing to ensure that their health and welfare benefit plans are compliant with ERISA requirements. However, ERISA governs the majority of these types of programs in the United States.
Some employers believe that ERISA only governs their retirement plans and they have proactively taken the proper steps to make sure these plans are compliant. The problem is that they have neglected to do the same for their health and welfare benefit programs.
How to Avoid an Audit
When you do not follow ERISA’s requirements for your health and welfare benefit programs, you run the risk of not only having an audit, but of having that audit cost you a significant amount of money in fines and penalties. You also open yourself and your business to civil liability as well.
So the best way to prepare for a DOL audit is to make sure that you do not have one at all.
Here are some of the key steps to take to avoid an audit:
- Establish a formal process that includes forming benefit committee.
- Make sure the committee meets on a regular basis.
- Carefully document all of the committee’s actions.
If these steps are properly executed, then you are well on your way to avoiding a DOL audit.
We specialize in giving small to mid-market employers a level of quality and expertise – with administration and protections usually only available to Fortune 500 companies.
Rizor & Nolan Advisors is the only firm that establishes, implements and administers a comprehensive benefit plan process designed to:
- improve plan quality,
- lower plan costs,
- protect you from governmental investigations and audits,
- protect you from penalties and fines, and
- protect you from civil actions.
Rizor & Nolan Advisors becomes a contractual operational fiduciary to your plan and is subject to the same liability as internal plan fiduciaries.