It’s that time of year again when schools are dismissing and summer vacation is on the brain. It would be nice if benefits compliance could take a break for the summer too, but unfortunately, that isn’t the case. One of the biggest mistakes we see clients make is missing important filing deadlines.
These deadlines are missed for all sorts of reasons: not knowing that the deadlines exist, forgetting to complete the task, or assuming the filing doesn’t apply to their organization. In some cases, a missed deadline won’t cause any problems for the organization, but others may result in large financial penalties.
Before you start packing that beach bag or getting ready for early office closings on Fridays, make sure your organization is positioned to meet your upcoming summer deadlines. Below is a quick recap of a couple important filings due this summer:
The Department of Labor requires organizations to file a Form 5500 for any welfare benefit plan with 100 or more employees enrolled as of the first day of the plan year. The first plan that usually crosses the 100-employee threshold is group life, since this is often an employer-paid benefit in which most, or all, employees are enrolled. Here are some important highlights to know about Form 5500:
- Due on the last day of the seventh month following the plan ending
- Calendar-year plans are due by July 31, 2017
- Penalties for not filing can be up to $2,063 per day
- Most plans can reduce their penalty to only $10 per day by filing under the Delinquent Filer Voluntary Compliance Program
Form 720/PCOR Fee
The Patient-Centered Outcomes Research (PCOR) Fee is required to be paid by self-funded medical plans on Form 720. If your medical plan is fully insured this fee is filed and paid by your insurance carrier. Don’t miss these important highlights for your Form 720/PCOR Fee:
- Form 720 is due by July 31, 2017
- Penalties of up to 25% for late filings beyond five months may be assessed by the IRS
- Interest can be added on top of penalties assessed by the IRS
Does this sound like old news to you and your organization? If not, bookmark this blog post now, or set a reminder, so you can tackle these filings before they’re past due. But don’t panic. You still have plenty of time to work on them and avoid any potential penalties. Stay on top of these filings and knock them out soon so you can enjoy the summer without looming deadlines.