Employee benefit plans with 100 or more participants are required by law to have an audit. A “participant” is defined by the Department of Labor (DOL) as any employee who is eligible for the plan regardless of whether they choose to contribute to the plan or not. The auditors’ report and audited financial statement must be remitted with the filing of the plans Form 5500 on an annual basis. The DOL continues to be increasingly stringent with its regulation of and oversight over employee benefit plans. If the plan is not operating in compliance with Employment Retirement Income Security Act (ERISA) and Internal Revenue Code (IRC) requirements, the plan could be subject to significant fines and penalties. It is important to understand what your fiduciary responsibilities are and ensure that they are being met. When choosing an auditor for your employee benefit plan, it is important to choose one that is very knowledgeable in this area, especially because of its intricacies.
Christopher R. Bacchioni, CPA, has extensive experience auditing employee benefit plans including 401(k), 403(b), ESOP, Defined Benefit, and Health & Welfare Plans. Christopher has audited numerous employee benefit plans throughout his career and is very well versed in this practice area. Christopher is a member of the New York State Society of Certified Public Accountants (NYSSCPA) Employee Benefits Committee. The committee consists of top industry professionals who discuss the current trends and latest developments in the industry.