As the year comes to a close, employers face more than just renewals and open enrollment. Compliance requirements are often overlooked until deadlines are looming, which can expose your organization to penalties and unnecessary stress. A year-end compliance check is the best way to protect your business and ensure your team is ready for the year ahead.
Here are the key compliance items every employer should review before the year ends.
ACA Affordability and Reporting
Confirm that your contribution strategy meets the IRS affordability threshold and that you are prepared to issue Forms 1094-C and 1095-C. Employers with 50 or more full-time equivalent employees must track eligibility and coverage offers throughout the year.
COBRA Administration
Make sure your COBRA notices and procedures are accurate and timely. Even a small oversight in notification can lead to steep fines. Review your current administration process to confirm it is well-documented and reliable.
ERISA Wrap Documents and SPD Requirements
Employers sponsoring health and welfare plans must provide employees with a Summary Plan Description and maintain ERISA wrap documents. Verify that your plan documents are current and that required disclosures have been distributed.
Plan Notices
Check that all annual notices have been provided, including Medicare Part D creditable coverage, CHIPRA, WHCRA, and SBCs. These notices must be distributed at specific times each year, and missing them can result in penalties.
Nondiscrimination Testing
Plans that include pre-tax contributions, FSAs, or self-funded medical coverage may be subject to nondiscrimination testing. This ensures that highly compensated employees are not disproportionately benefiting from the plan.
File Form 5500 if Required
Employers with 100 or more participants in health and welfare plans may need to file Form 5500 with the Department of Labor. Confirm your filing obligations and deadlines.
Final Thoughts
A structured compliance review now can prevent costly surprises later. Employers who take time to complete a year-end checklist position themselves for a smoother, more confident start to the new year. At Cypress Benefit Solutions, we help employers stay ahead of compliance requirements so they can focus on their business with peace of mind. If you are unsure where you stand, we would be glad to review your compliance readiness with you.
