Understanding and Completing the Form 5500

Form 5500, Annual Return/Report of Employee Benefit Plan, is the form used to file an employee benefit plan’s annual information return with the Department of Labor (DOL).  

Being prepared to electronically sign the Form 5500 will ease stress and help avoid costly penalties that can be incurred if not filed in a timely manner. Here are a few tips to ease the pain of filing yet another form with the regulatory agencies.

Who has to file? 

The sponsor of the plan or arrangement subject to the Employee Retirement Income Security Act (ERISA) must file the Form 5500. Plans subject to ERISA can include, but are not limited to, the following:

• Profit sharing plans, 401(k) plans, money purchase plans, stock bonus plans
• Certain annuity arrangements
• Individual retirement arrangements established by employers
• Church pension plans that elect to be covered by ERISA
• Certain welfare benefit plans

When is the deadline?

The Form 5500 must be filed no later than the last day of the seventh month after the Plan Year End. For calendar year plans, this means July 31 (or the next business day if it falls on a weekend). However, a Form 5558 can be filed for an automatic 2 ½ month extension (for a calendar year plan, this deadline is October 15^th). 

Who signs?

All plan sponsors and plan administrators who sign the Form 5500 must have his or her DOL credentials. As long as the signer remains the same, the User ID and PIN received from the DOL will remain the same. If there is a new signer, the DOL credentials can be obtained by going to www.efast.dol.gov, and click “Register” on the Welcome screen. Ensuring that the correct credentials are in place will begin the signing process with ease.

How is the Form 5500 filed?

All Form 5500 Annual Returns/Reports of Employee Benefit Plan and all Form 5500-Short Form Annual Returns/Reports of Small Employee Benefit Plan and any required schedules and attachments, must be completed and filed electronically. It’s important to understand how to login to electronically sign the forms. There are hundreds, if not thousands, of signers trying to get on the website to meet the deadline so waiting until the last week is not advised. Avoid undue stress and sign as soon as possible. 

If you have questions about signing, contact your Account Manager with Alliance Benefit Group at 1-800-898-9344 and they will be happy to assist you!

The Author: Lisa Bjelland

Audit Analyst

abgncs.com/retirementadministration

LBjelland@abg-mn.com

Disclaimer: This blog is of an informative nature and should not be taken as advice. Please work with the appropriate parties for those services.

How to Ease the Burden of Multi-State Withholding.

Many employers have multi-state withholding and unemployment taxes. As workplace dynamics continue to develop and change, more employers will be faced with managing withholding for several states. Here are a few tips from our payroll team to help you navigate the addition of multiple states. 

There are several items to consider when thinking about whether you may need to add another state. The most common reasons include:

·         Base of operations

·         Employees working from home

·         Employees who are residents of a neighboring state

Adding States Can be a Challenge

Adding a new state requires research into the laws governing state withholding and unemployment, as well as additional taxes such as local, county, and school district. This can be difficult and time consuming. There is no one size fits all for adding new states. The laws can vary a great deal.

Employers must apply for tax accounts in order to be assigned an account number, deposit schedule, unemployment rate. These accounts should be set up prior to the first withholding and/or accrual of any taxes.

We're Here to Help

As part of our commitment to take the worry away, we are here to do the research and assist you by getting the right information. 

Employers should communicate with their payroll account manager to make sure that set up is accurate and timely for both the taxation and affected employees.  This communication allows your account manager to carefully review the changes to assure accuracy. It also reduces the chance for errors on quarterly reports.

Any Other Questions? 

I am also available to answer any questions that you may have regarding payroll taxation items. I won’t always have the answer, but I am always willing to find it for you. I appreciate the opportunity to serve you.

The Author: Kathy Krebsbach, FPC

Payroll Tax Compliance Specialist

abgncs.com/payroll

KKrebsbach@abg-mn.com

Disclaimer: This blog is of an informative nature and should not be taken as advice. Please work with the appropriate parties for those services.