How Changes to Form 5500 Rules May Affect Audit Requirements

June 2024 Employers that sponsor employee benefit plans (EBPs) must ensure that they comply with federal laws enforced by the IRS and the U.S. Department of Labor (DOL). The government uses Form 5500 to collect information about EBPs and monitor employers’ legal and regulatory compliance. Revisions to the form may alter some employers’ obligations. When the number of participants in an EBP reaches a certain benchmark, the employer must hire an independent auditor to review the plan and prepare audited financial statements. Some employers who have had to conduct audits in past years may find that the new procedure for counting participants in an EBP relieves them of that obligation. This article will review the filing requirements for Form 5500 and the changes to mandatory EBP audits. View the full article here.