We provide Employee Benefits Plan (EPB) financial statements Audits to help you comply with ERISA, DOL and IRS regulations, special reporting, and audit requirements
According to Thomson Reuters/Tax & Accounting, Employee benefit plans are significant economic entities in the United States today. In March 2019, the United States Bureau of Labor Statistics published its report on employee benefits, noting that approximately 77% of full-time employees in the private sector had access to retirement benefits and 87% had access to employer provided medical benefits. The Department of Labor's (DOL) Employee Benefits Security Administration (EBSA) oversees approximately 710,000 retirement plans, 2.4 million health plans, and a similar number of welfare plans. According to the AICPA Audit and Accounting Guide, Employee Benefit Plans (AEBP), the Employee Retirement Income Security Act of 1974 (ERISA) covers approximately 149 million workers, retirees, and dependents of private sector pension and welfare plans.
Employee benefit plans own significant amounts of investments. According to AEBP, ERISA pension and welfare plans have estimated assets of $9.8 trillion. Plans that meet numerous and complex tax qualification requirements do not pay federal income taxes on the income their investments generate; neither do the plan participants pay taxes until they receive income in the form of distributions from the plan. Participants in qualified health and welfare benefit plans are not taxed on the value of the benefits provided by the plan. In addition, some types of employee benefit plans offer participants tax exclusions for portions of their earnings they contribute to the plan.
Employee benefit plans may be broadly classified as either retirement plans or health and welfare plans. Each of these two categories may include either defined benefit or defined contribution plans. For example, a retirement plan may be either a defined benefit retirement plan (typically called a pension plan) or a defined contribution plan. There are several specific types of defined contribution plans, such as profit-sharing plans, employee stock ownership plans (ESOPs), and 401(k) plans. Health and welfare plans may also be defined benefit or defined contribution plans and may include specific types such as medical, disability, or life insurance plans.
Under Federal law, most employee benefit plans with 100 or more participants must submit audited plan financial statements when they file an annual return/report (commonly called the “Form 5500”). It is in your best interest and that of your plan's participants to maximize the value of the audit process.
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