Clarity Benefit Solutions Discusses Five Ways ERISA Wrap Documents Can Save Employers Time and Money
NEW YORK, Feb. 8, 2019
NEW YORK, Feb. 8, 2019 /PRNewswire/ -- Clarity Benefit Solutions discusses five ways that ERISA wrap documents can save employers time and money, while remaining compliant with a number of regulatory laws.
The Department of Labor periodically conducts ERISA audits on companies, so it is important for employers to make sure that they are in compliance at all times. Otherwise, they can face penalties of $110 per day. However, industry research shows that as many as 75% of employers are out of compliance with ERISA requirements. It is extremely important that employers are keeping up with compliance requirements at all times. This can be a daunting task, especially for smaller companies that do not have the resources to dedicate human resource staff solely to ERISA compliance.
ERISA wrap documents simplify the process by combining all ERISA-required documents into one umbrella document that help employers stay in compliance while saving time and money on the process. Here are a few ways ERISA documents are beneficial:
They consolidate documentation. The wrap document consolidates all welfare benefit plans into a single plan, so the one wrap document takes the place of needing several summary plan descriptions. This reduces administrative burden and reduces the amount of required reports.
The amount of Department of Labor paperwork decreases. By combining all benefits into a single document, employers only need to file a single 5500 form, rather than a separate one for each benefit, which can quickly add up to an overwhelming amount of documents.
The wrap document also explains medical benefit eligibility terms. This means, it satisfies the Internal Revenue Code Section 4980H which requires a document explaining eligibility. This is helpful in the case of an IRS audit. Although it is not the only document needed for IRS audits, it does help avoid penalties.
Wrap documents area good way for employers to show regulatory bodies that they are attentive to requirements and other laws about health and welfare benefits. They help satisfy a number of requirements and avoid a number of penalties.
About Clarity Benefit Solutions: Clarity Benefit Solutions provides technology that makes the health insurance plan selection process fast, easy, and straightforward. For over two decades, we have provided clients with industry-leading technology, compliance, and exceptional customer service. Our offering is designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.
SOURCE Clarity Benefit Solutions