Employee benefits are an essential part of any organization. These benefits provide employees with financial security, support their health, and promote work-life balance. However, managing employee benefits can be complicated, and failure to comply with regulations can result in costly consequences for both employers and employees.
Compliance refers to the adherence of an organization to laws, regulations, and policies. In employee benefits administration, compliance means following laws and regulations regarding employee benefits. These regulations are designed to protect employees and ensure that they receive the benefits they are entitled to. Compliance includes, but is not limited to, regulations related to:
- ERISA (Employee Retirement Income Security Act)
- COBRA (Consolidated Omnibus Budget Reconciliation Act)
- HIPAA (Health Insurance Portability and Accountability Act)
- ACA (Affordable Care Act)
- FMLA (Family and Medical Leave Act)
- Compliance Calendar – Click Here
- Compliance Checklist– Click Here
- ACA’s Reporting Requirements Overview – Click Here
- ACA Affordability Thresholds – Click Here
- Compliance Guide Small Employer– Click Here
- Compliance Guide Large Employer– Click Here
What are the Consequences of Non-Compliance ?
Non-compliance with employee benefits regulations can result in significant consequences for both employers and employees. These consequences can include fines and penalties and legal action.
Seek Professional Assistance
Seeking professional assistance from legal or HR experts is an important practice for employers to ensure compliance with regulations related to employee benefits administration. Here are some ways in which employers can seek professional assistance:
Consult with Legal Experts: Employers can consult with legal experts to ensure that their benefit plans are in compliance with applicable laws and regulations. Legal experts can also provide guidance on how to address any issues related to non-compliance or legal risk.
Compliance or Payroll Administrators: Employers can work with third-party administrators to manage their compliance requirements. Third-party administrators can provide expertise and resources to ensure compliance with regulations, as well as manage day-to-day plan administration.
An employer’s entire benefits program should be regularly evaluated to identify and remedy any areas of non-compliance or exposure. If you currently do not have a vendor providing compliance service, Avoid Penalties – Don’t wait until the IRS or an auditor knocks on your door!
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Any statements made by JMG Insurance concerning tax, accounting, or legal matters are not to be relied upon as accounting, tax or legal advice. We recommend that you seek the advice of your own tax, accounting and legal advisers as to whether you are compliant with all applicable laws and regulations, including any applicable state laws.
