Employers – don’t forget your mid plan-year checkup!
The middle of the plan year is a great time for employers to review the status of their benefits and make sure everything is still in order for the current plan year.
An employer completing a mid-year audit may want to check the following items:
- Payroll Deductions – are correct deductions taken each pay? Are any participants having too much or too little withheld based on their election? If the employer uses a third party administrator (TPA), are the TPA records accurate?
- Enrollments – are new enrollments which may have occurred since open enrollment entered appropriately?
- Terminations – are all terminated participant accounts updated? if the plan offers a flex card, terminations should be processed in a timely manner to prevent payment of claims incurred after the termination date.
- Leave of Absence (LOA) – have accounts been updated for employees going on, or returning from LOA? Do any deductions need to be made up?
Remembering to audit employee benefits throughout the year can help to reduce or limit the amount of work needed to close out a plan. Discrepancies can be caught and corrected in a timely manner before the end of year rush.
BusinessPlans, Inc. – myCafeteriaPlan does not intend to provide legal or tax advice and information contained in this article should not be interpreted as such. Regulations governing pretax plans are often open to interpretation and should be reviewed with your legal or tax advisor before making any decisions regarding your plan.