Employee Benefit Plans | Business Consulting Firms

A quality audit performed by an independent public accounting firm helps ensure the financial integrity of an employee benefit plan and helps with regulatory compliance. A sound audit helps the plan sponsor carry out its fiduciary responsibility to file a complete and accurate annual Form 5500 return for the plan.

415 Group offers a dedicated team of audit and assurance professionals with the technical expertise and years of experience needed for an employee benefit plan.

Request a consultation with our team to learn more about our employee benefit plan compliance services.

What Is a Qualified Employee Benefit Plan?

Employee benefit plans can include medical, dental and vision insurance, retirement plans, life insurance and disability insurance.

Many businesses offer what is called a qualified employee benefit plan, which has tax-deferred contributions from employees. A non-qualified employee benefit plan uses after-tax dollars.

An employee benefit plan audit (EBP audit) also considers whether your current benefit plan is in compliance with various laws and regulations.

Who Needs an Employee Benefit Plan Audit?

The United States Department of Labor (DOL) requires that companies with 100 or more participants with account balances must complete an EBP plan audit. As part of these benefit plans, EBP requirements also include having a Certified Public Accounting (CPA) firm perform the audit due to the complexity and special training that is needed.

To determine if an employee benefit plan will require an audit for 2024, first determine the number of participants, including beneficiaries, who have a balance in the plan as of January 1, 2024 (or the first day of the plan year for non-calendar year plans). If this number is 100 participants or more, your plan will generally be considered a large plan. You will need to file Form 5500, and an audit will be required. If this number is fewer than 100 participants, your plan will generally be considered a small plan. You will file Form 5500-SF, and an audit will not be required.

Our team at 415 Group is thoroughly trained, experienced and up-to-date on the legislative and regulatory developments affecting these plans. We stay abreast of the latest developments from governing agencies, including the Internal Revenue Service, the Department of Labor and the Pension Benefit Guaranty Corporation. We are also well-versed in the regulatory and reporting requirements established by the American Institute of Certified Public Accountants and Financial Accounting Standards Board.

What is New for 2025?

Changes to Extension Process

For the first time, beginning on January 1, 2025, Plan Sponsors will have the option to request an extension for filing 5500 with the Department of Labor electronically, using EFAST2. Paper extensions are permissible as well.

SECURE 2.0 ACT Changes

The SECURE 2.0 Act of 2022 (SECURE 2.0) results in multiple changes that are effective over the next few years. The most significant changes taking place in 2025 include higher catch-up limits; reduction in service requirement for long-term, part-time employees; and required auto enrollment for new plans.

Higher Catch-up Limits
SECURE 2.0 allows for a voluntary increase in catch-up contributions. Plans are permitted to offer participants, who are aged 60 to 63, the opportunity to make higher catch-up contributions for that year. Catch-up contributions are allowed up to the greater of $10,000 or 150% of the standard catch-up contribution. Therefore, for 2025, the higher catch-up contribution limit is $11,250.
One Year Reduction in Service Requirement for Long-Term, Part-Time Employees
Historically, employers were able to exclude employees who worked less than 1,000 hours. SECURE Act of 2019 generally changed this requirement to allow employees who are 21 years old to contribute to the plan if they have worked at least 500 hours for 3 consecutive years. SECURE 2.0 reduces the 3-year service requirement to 2.
Required Auto Enrollment for New Plans
New plans (plans established after December 29, 2022) will be required to automatically enroll eligible employees utilizing an automatic contribution arrangement. These provisions require a default enrollment rate between 3% and 10% of compensation, with an annual escalation provision. Employees can opt out. There are some exceptions for small businesses, new businesses and churches.

Additional Information

What’s referred to as the “80-120” rule is still effective. Therefore, if your participant count falls between 80 and 120 participants, you have the option to file the same form (5500-SF or 5500) as you filed for 2022.
Per AICPA EBPAQC Alert No. 499, “Annual Audits for group plans. The Act clarifies that each plan filing under a group of plans (added by the SECURE Act) is required to submit audited financial statements if it has 100 participants or more. Plans with fewer than 100 participants that are included in a group of plans are not required to submit audited financial statements.”

Coming in 2026

Beginning January 1, 2026, all SECURE 2.0 Act 401(k) catch-up contributions by eligible participants with income in excess of $145,000 must be made to a designated Roth contribution account. These catch-up contributions cannot be made on a pretax basis.

How Can 415 Group Help?

We bring specialized expertise and broad experience with audits of employee benefit plans of all sizes sponsored by private companies throughout Stark County, including:

Defined contribution plans
- 401(k) plans
- 403(b) plans
- Profit sharing plans
- Employee stock ownership plans
Defined benefit plans
Health and welfare plans

In addition to the audit itself, our team has an in-depth knowledge of plan operations, including the expansive qualification requirements of the IRS and the reporting and fiduciary requirements set forth under ERISA. Plan sponsors have a fiduciary responsibility to select qualified and competent benefits professionals.

You can be confident that our technical knowledge and experience with audits of employee benefits, corporate 401(k)s and benefit plans are at the highest level.

To learn more about how our team can help, request a consultation below.

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With 415 Group, you get a customized, risk-based audit process that provides the objective analysis you need to make business decisions. Our in-depth data helps you to be transparent and thorough for creditors and partners.

EMPLOYEE BENEFIT PLAN