Employee Benefit Plan and Pension Audits
A quality audit performed by an independent public accounting firm helps ensure the financial integrity of an employee benefit plan and protects plan assets. A sound audit helps the plan sponsor carry out its fiduciary responsibility to file a complete and accurate annual Form 5500 return for the plan.
415 Group offers a dedicated team of audit and assurance professionals with the technical expertise and years of experience needed for an employee benefit plan audit, including corporate 401(k) plans and other defined contribution plans.
Request a consultation with our team to learn more about our employee benefit plan compliance services.
What is a Qualified Employee Benefit Plan?
Employee benefit plans can include medical, dental and vision insurance, retirement plans, life insurance and disability insurance.
Most businesses offer what is called a qualified employee benefit plan, which has tax-deferred contributions from employees. A non-qualified employee benefit plan uses after-tax dollars.
An employee benefit plan audit (EBP audit) assesses your current plan to determine if it covers your employees’ benefits and payments in compliance with all laws and regulations.
Who Needs an Employee Benefit Plan and Pension Audit?
The United States Department of Labor (DOL) requires that companies with 100 or more employees who participate in the EBP must complete an EBP or pension plan audit. As part of these benefit plans, EBP and pension audit requirements also include having a Certified Public Accounting (CPA) firm perform the audit due to the complexity and special training that is needed.
Our team at 415 Group is thoroughly trained, up-to-date and knowledgeable on the legislative and regulatory developments affecting these plans. We stay abreast of the latest developments from governing agencies, including the Internal Revenue Service, the Department of Labor and the Pension Benefit Guaranty Corporation. We are also well-versed on the regulatory and reporting requirements established by the American Institute of Certified Public Accountants and Financial Accounting Standards Board.
What is New for 2022?
Beginning in 2022, audit standards have been updated as follows for employee benefit and pension plans that require an audit:
- The concept of a ‘limited scope audit’ has been eliminated and additional requirements have been added for Plan sponsors and auditors to evaluate certifications of plan investment information.
- The independent auditor’s report will change for audits of benefit plans subject to ERISA.
- Enhanced communication requirements by auditors
How Can 415 Group Help?
We bring specialized expertise and broad experience with audits of employee benefit plans and pension plans of all sizes sponsored by private companies throughout Stark County, including:
- Defined Contribution Plans
- 401(k) plans
- 403(b) plans
- Profit sharing plans
- Employee stock ownership plans
- Defined benefit pension plans
- Health and welfare plans
In addition to the audit itself, our team has an in-depth knowledge of plan operations, including the expansive qualification requirements of the IRS and the reporting and fiduciary requirements set forth under ERISA. Plan sponsors have fiduciary responsibility to select qualified and competent benefits professionals.
You can be confident that our technical knowledge and experience with audits of employee benefit, corporate 401(k), and pension plans are at the highest level.
To learn more about how our team can help, request a consultation below.
