Insurance One Management, Inc.

USDOL has increased enforcement against employers that delay or fail to forward employee contributions to benefit plans:

In Employee Benefits on February 3, 2011 at 6:29 pm

The U.S. Department of Labor has increased enforcement against employers that delay or fail to forward employee contributions to benefit plans. ERISA requires employers to remit employees’ contributions to pension and health plans “in a timely manner” and gives the Labor Department authority to conduct civil and criminal investigations against employers that fail to do so.

“In a timely manner” means as soon as possible, subject to defined maximums. For pension benefit plans, employers must remit employees’ funds: “[no]…later than the 15th business day of the month following the month in which the participant contribution amounts are received by the employer…, or the 15th business day of the month following the month in which such amounts would otherwise have been payable to the participant in cash (in the case of amounts withheld by an employer from a participant’s wages).”

For welfare benefit plans, employers have “…90 days from the date on which the participant contribution amounts are received by the employer (in the case of amounts that a participant or beneficiary pays to an employer) or the date on which such amounts would otherwise have been payable to the participant in cash…”

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The information presented and conclusions within are based solely upon our best judgment and analysis.  It is not guaranteed information, but is intended to provide accurate and authoritative information in regard to the subject matter covered.  It does not necessarily reflect all available data, and is provided with the understanding that we are not rendering legal, accounting, or tax advice.  Any web links/addresses are current at time of publication but subject to change.  This material is being reproduced with the permission of the publisher via a paid subscription by Insurance One Management, Inc. dba Don Crawford & Associates, Midland, TX.

©2011 Smart’s Publishing – Employee Benefits Report – Volume 9, Number 2 – All Rights Reserved. – Website: http://www.smartspublishing.com

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