Hearing that you have an audit coming can really raise your blood pressure. For many plans, it’s become a routine part of their annual operations. Audits, by their nature, should include some element of surprise, but nothing akin to your nightmares about an auditor showing up unannounced at your office and demanding all of your plan’s documents and company’s financial statements. For Plan Sponsors who have just broke the 100 employee audit requirement, or those that may expect to do so within the year, we will be talking about a few things you can do to reduce your stress and make the process go a little bit more smoothly.
Your Plan’s TPA and You
Thankfully, most of the administrative paperwork, filing, and compliance testing, are done by your Third Party Administrator (TPA). They typically work behind the scenes to take care of things like your company’s Census documents and Discrimination testing. They’re the people you go to when it’s time to get monthly, quarterly, or annual forms to distribute to employees (or upload into Plancheckr). Knowing how to get to these forms, or where they are located, is going to be an essential element to a smooth audit process.
Having an organized and up-to-date fiduciary file is a powerful tool to combat the stress associated with Department of Labor audits. Plancheckr’s software allows you to build and maintain your fiduciary file so when the Feds come knocking, you can say: “Let me click this button and you will have everything you need.”
Not Everything Will Be Done For You
As a plan sponsor there is still a level of responsibility held in your hands. You will still need to file your plan’s Form 5500 every year and make sure that prior year’s forms are kept. Insuring your plan is also in your hands. Your ERISA Fidelity Bond should always be handy in Plancheckr, and making sure it’s coverage is current and updated for your growing retirement plan is something you will have to handle yourself. Thankfully those things are easy to manage and won’t take much away from your day.
Organization and Documentation are the Keys
There is nothing you can to do better to prepare for an audit then simply keeping everything clear, concise, and current. Making sure participant forms are up-to-date, knowing where your plan’s documents are, and filing government-required forms in a timely manner are the keys to success. Plancheckr allows you to take everything as you gather it and keep it organized, secure and ready to present at a moment’s notice.
We’re offering a free trial right now, so do what is in the best interest of your plan and give Plancheckr a try!