As a business owner, you likely wear many hats – from managing employees and finances to ensuring your products or services meet your customers’ needs. With so many responsibilities on your plate, it can be easy to overlook some of the more administrative tasks. But when it comes to employee benefits, it’s important to prioritize staying on top of your filing requirements.

One key filing requirement that often gets overlooked is Form 5500. This report is required by both the Department of Labor and the Internal Revenue Service to ensure that employee benefit plans are meeting the regulations outlined in ERISA. Not only is this a legal requirement, but it also provides valuable insights into the financial health and operations of your plan.

If your employee benefit plan is fully funded and covers 100 or more employees, or if it is a self-insured plan, then you are required to file Form 5500 annually. The deadline for filing is the last day of the seventh calendar month after the end of the plan year, which for calendar year plans is July 31. This is not a deadline to take lightly – failure to file can result in significant penalties and legal issues.

While the filing deadline may seem far off, it’s important to take the necessary steps now to ensure you meet it on time. This includes making sure you have all the necessary information to file, which can take time to gather. It’s also important to note that the form must be submitted electronically, so you’ll need to ensure you have the appropriate technology in place to do so.

If for some reason you are unable to file by the July 31 deadline, you may be able to file for an extension. This will push the filing deadline back two and a half months, to October 15 for calendar year plans. However, it’s important to keep in mind that filing for an extension doesn’t necessarily mean you’re off the hook. You’ll still need to file by the extension deadline, and there may be penalties and fees associated with filing late.

To make the filing process easier, the Department of Labor provides a Form 5500 portal that includes instructions and assistance. It’s easy to access and use, even if you’re not a tech-savvy individual. So, there’s no excuse not to get started on the filing process early!

In conclusion, as a business owner, it’s crucial to stay on top of your filing requirements for employee benefit plans. This includes filing Form 5500 on time, well before the July 31 deadline, to avoid penalties and legal issues. Don’t hesitate to take advantage of the resources available, including the Form 5500 portal, to make the process as smooth and stress-free as possible. Your employees – and your business – will thank you.
Schedule time on CEO Mark Herschlag’s calendar HERE! to discuss compliance and more!
