Companies with Employee Benefits Plans with year-end calendar dates had until July 31st to file Form 5500 and its required audit report. Those that requested an extension had an additional 2.5 months to file, making the new deadline October 15th. That date will be here before you know it. But there’s no need to worry.
Are you ready for your 2022 employee benefits plan audit? With a bit of preparation, you’ll be able to get everything done on time and without any stress. Here’s how.
Choose your auditor.
The first step is to select a CPA firm experienced in auditing employee benefit plans. A well-performed audit is a vital protection for your employee benefit plan, helping to ensure that the necessary funds will be available to pay retirement, health, and other promised benefits.
Gather your records.
Once you know what’s required, you can gather the necessary information.
This includes items such as:
- Participants’ personnel records: The more information you have about an employee, the better. At a minimum, you’ll need participants’ names, birthdates, hire dates, plan enrollment dates, termination dates, Social Security numbers, and employee classifications.
- Payroll files: Information regarding timecards, wage authorizations, and complete payroll information for specific pay periods and years are critical for auditing.
- Contributions: You will need to provide documentation for the initial contribution selections, as well as any rollover contributions. If your company offers a matching contribution, make sure you have records of the match policy, calculations, and contributions.
- Distribution: If a participant has taken money out, you need documentation of the request, the amount, and the reason for the distribution.
- Loans: Just like a distribution, you need to be able to provide loan authorization forms for all loans taken from a retirement account, as well as a list of all outstanding loans.
- List of the service providers: You should have up-to-date contact information for any service provider involved with your EBP, including trustees, custodians, third-party administrators, insurance companies, and investment advisors.
With the right partner, preparing for your employee benefit plan audit doesn’t have to be stressful or overwhelming. Boris Benic and Associates is always available to provide guidance and support and communicate our needs in a timely and organized fashion.
Still have questions?
Contact Boris Benic and Associates today. We can provide you with more information about how our audit process delivers expertise, service, and value. Anyone can commit. We will deliver!