A well-designed retirement plan can help attract and retain talented employees while giving an employer tax deductions for their contributions to employees’ accounts. A retirement plan can benefit both rank-and-file employees and owner/managers. Money contributed can grow through investments in stocks, mutual funds, money
market funds, savings accounts and other investment vehicles. But, retirement plans can be expensive, difficult to administer and a fiduciary risk is not managed properly.
As an employer, you have decided to take on that risk and provide a benefit to one of your most valuable assets; your employees. So, you offer them a 401(k) or 403(b), or maybe you become a member of a multi-employer or multiple employer plan. What’s next?
Does Your Employee Benefit Plan Require An Audit?
Generally, a plan with 100 or more eligible* employees requires an audit.
*All of the following are considered in determining the number of eligible participants: individuals currently participating; those who are eligible to participate, but have elected not to; inactive participants with account balances; and beneficiaries with account balances.
Your Plan Needs An Audit, But How Do You Select An Auditor?
Experience! In a complex and highly regulated area such as employee benefit plans, selecting an experienced auditor is crucial.
A recent review by the U.S. Department of Labor of employee benefit plan audits revealed the following:
75% of deficient audits were performed by audit firms that only audit 1 or 2 employee benefit plans.
Audit firms that were members of the American Institute of Certified Public Accountants’ (AICPA) Employee Benefit Plan Audit Quality Center performed higher quality work than non-members.
Why Choose Marvin and Company As Your Employee Benefit Plan’s Auditor?
Marvin and Company, P.C. is the trusted auditor for approximately 50 employee benefit plans including 401(k), 403(b), Defined Benefit, Health and Welfare and multiemployer plans whose combined assets are greater than $750,000,000.
Marvin and Company, P.C. is currently an active member of the AICPA’s Employee Benefit Plan Audit Quality Center and has been since the inception of the Center.
All of Marvin and Company, P.C.’s audit staff are trained in performing employee benefit audits and are well versed in the latest requirements of ERISA, the DOL and generally accepted accounting principles.
Top Ten Plan Errors
Failure to amend the plan for tax law changes by required date
Failure to follow the plan’s definition of compensation for purposes of determining contributions
Failure to include eligible employees in the plan or to exclude ineligible employees from the plan
Failure to satisfy plan loan provisions
Impermissible in-service withdrawals
Failure to satisfy required minimum distribution rules
Employer eligibility failure
Failure to pass annual nondiscrimination testing
Failure to properly provide the minimum top-heavy benefit or contribution to non-key employees
Failure to observe limits on maximum annual contributions participants receive (in a defined contribution plan) or benefit amount partcipants accrue (in a defined benefit plan)
What Can You Expect From Us?
A team of highly qualified individuals that will include a director or senior manager from the firm with a minimum of 10 years’ experience auditing employee benefit plans.
A planned audit approach that provides a high quality final work product with the least amount of disruptions to you and your staff as possible.
A resource throughout the year regarding changes in regulations as well as generally accepted accounting standards.
In addition to our independent audit services, our Employee Benefit Plan Administration services include:
Form 5500 Preparation
When we meet with you, we will look at your financial goals to design, install and administer a qualified plan or flexible benefit plan that is custom-designed to fit your needs.
Let us put our history of shaping the future of employee benefit plans to work for your organization. If you would like to learn more about our employee benefit plan services, please contact Alan Clink, CPA, Principal at 518-785-0134 or by using the contact form below.