When it comes to Benefit Plan Audits and Form 5500 Filing Experience Matters

As members of the American Institute of Certified Public Accountants (AICPA) and the Employee Benefit Audit Quality Center, LSL CPAs offers ERISA employee benefit plan audit services. Led by Maria T. Arriola, CPA for over 15 years, our audit team can help you avoid plan viability problems and potential fines.

Did you know the federal government mandates ERISA employee benefit plan audits? Under the requirements of ERISA (Employment Retirement Income Security Act) Section 103, employee benefit plans with 100 or more participants are considered ‘large’ plans. These large plans must have an employee benefit plan audit performed by an independent certified public accountant. They also must file a Form 5500 annual report, a government form jointly developed by the Department of Labor (DOL) and the Internal Revenue Service (IRS).

Plans with fewer than 100 participants at the beginning of the year are considered ‘small’ plans and are eligible for the Small Pension Plan Audit Waiver. The Department of Labor (DOL) however has identified the range of 80 – 120 participants (this number is determined at the start of the plan year) as a grey area. In this grey area, a company has the option to continue as a ‘small’ plan or elect ‘large’ plan status. The choices for a plan falling into the 80 – 120 participant range are as follows:

Number of Participants at Beginning of Current Year Requirements Followed for the Previous Year Form 5500 Requirements to Be Followed for the Current Year Form 5500
80 – 99 (inclusive) Small plan Small plan
80 – 99 (inclusive) Large plan May elect to file Form 5500 again as a large plan or switch to a small plan
100 – 120 (inclusive) Small plan May elect to file Form 5500 again as a small plan or switch to a large plan
100 – 120 (inclusive) Large plan Large plan
More than 120 Large plan Large plan
More than 120 Small plan Large plan

Employee Benefit Plan Audit from LSL = An Informed Decision

Our goal is to give you access to the resources you need to make an informed decision. LSL has a dedicated team of experienced auditors to perform your next employee benefit plan audit in an efficient, timely manner, making the experience as stress free as possible.

If you need an ERISA Employee Benefit Plan Audit, please feel free to contact the LSL employee benefit plan audit team leader, Maria T. Arriola at (714) 569-1000.

See: Obtaining Quality Employee Benefit Plan Audit Services: The Request for Proposal and Auditor Evaluation Process (read article in .pdf form)

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