Schedule J to be Added to IRS Form 5500

The already complex IRS Form 5500 could be getting a much more complex. Under proposed regulations from the DOL and IRS, Schedule J will be added to the Form 5500 for group health plans covered by Title I of ERISA – and the amount of information requested is astonishing.

The Form 5500 was originally created in the 1970’s to enable the DOL to provide an annual report to Congress regarding self-insured health plans. At this point in time, group health plans covering less than 100 participants are not required to file the Form 5500. However, the new proposed Form 5500 will require those plans with less than 100 plan participants to file Form 5500 in order to satisfy all reporting requirements of the DOL to Congress.

As of right now, the proposed Schedule J, adds requirement for plans with less than 100 participants will affect all plan years beginning on or after January 1, 2019.

What does this mean for employers?

Under Schedule J, employers will have to report more, in cases, new information regarding:

·         Coverage to groups such as: employees, spouse, children, retirees, etc.

·         Plan benefits and it’s design characteristics

·         Confirmation that Summary Plan Descriptions (SPD’s) have been distributed to plan participants

·         Employer and Participant contributions

·         Benefits paid from general assets and their associated amounts

·         Options of the benefit package – high deductible, grandfathered status, etc.

·         Persons offered COBRA

·         Rebates received by the plan

·         Delinquent contributions

·         Service Provider information

·         Stop loss insurance information

·         Pre and Post-serviced claims submitted

·         Claims that were appealed

·         Compliance with GINA, ACA, Mental Health Parity, etc.

What should I do as an employer (i.e. Plan Sponsor)?

·         Implement proper HCM systems for Plan Data collection

·         Seek legal and tax counsel to prepare ERISA documents (SPD’s) and Form 5500

myHRcounsel offers a complete solution to your current and future ERISA compliance needs for just $140 per month/$220 per month including Form 5500.  Most companies are not in compliance, and the DOL knows it – they have not been staffed to enforce the regulations in the past.  Even under the new administration, the DOL has increased its staff and is showing signs of stronger enforcement (evidenced by adding its requirement of all plan sponsors filing Form 5500.  Protect your company from steep DOL fines and sign up for myHRcounsel’s ERISA offering, or to find out more about our unlimited access to employment and corporate lawyers, simply click below and submit your company information: