Wednesday, October 26, 2016

Proposed Changes for Form 5500 for Small Employers

ACTION NEEDED: Proposed Changes for Form 5500 for Small Employers

The Department of Labor, Health & Human Services and Treasury recently issued proposed regulations that would eliminate the "small plan" exemption currently in place for small employers sponsoring a group health plan with fewer than 100 participants.

If adopted, small employers would be required to furnish the same Form 5500 information to the Department of Labor as large employers.

What is this going to cost employers?

The Department of Labor estimates that eliminating the “small plan” exemption will add 2.2 million work hours and $241.6 million in reporting costs for small employers (both self-insured and fully-insured).

What can you do?

The Department of Labor is requesting comments until December 5, 2016.
2.     Click on the “Comment Now!” button in the upper right hand corner of the web page
3.     Write your comments in the space provided (see below for suggested script)
4.     Follow all steps to complete your submission
Suggested script…

I am requesting that the Department of Labor reconsider the proposed Annual Reporting and Disclosure rules relating to Form 5500 and Schedule J.

The proposed rules that would eliminate the small group exemption on Form 5500 filings plus the additional data collection requirements on Schedule J will add 2.2 million work hours and would cost small employers $241.6 million.

Small employers are already challenged to stay current and compliant with excessive federal, state and local rules and regulations. The proposed changes place yet another unnecessary burden on small employers.


I urge the Department of Labor to reconsider this proposal.

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