Employee Benefit Plan Audit Series #3 | Rules of Remittance
Published on by Dan Holthaus, Jessica Doremus, in Benefit Plan Audits, Video
Can’t watch the video? Get the transcript.
The Department of Labor doesn’t have a bright-line rule on remitting employee contributions to your plan – and that’s intentional. In part 3 of our employee benefit plan audit series, plan audit pros Dan Holthaus and Jessica Doremus unpack the rules of remittance, the deadlines, and why consistent remittance is critical. If you missed parts 1 and 2, you can watch the full series here.
Dan and Jessica discuss timely remittance contributions and the rules set by the Department of Labor (DOL). The DOL wants plan sponsors to contribute money to the plan as soon as possible, but they also want to prevent the use of employee-withheld money for other purposes, like funding operations. The rules differ for large plans (100 participants or more) and small plans (fewer than 100 participants). If a plan fails to adhere to the rules, lost earnings are contributed to the plan and allocated to affected participants. There are different reporting requirements depending on the status of corrections.
You may also be interested in the most recent edition of our 401(k) Plan Management benchmarking survey, or in compensation and benefit trends in construction, manufacturing, wholesale/distribution, and non-profits. You can also explore our extensive library of employee benefit plan audit resources, or contact us to set up a free consultation with one of our employee benefit plan audit pros. As always, we’re here to help.
