In order to properly protect your employees and shield your business from possible financial issues, you absolutely need to make choices that allow your establishment to remain compliant with current employment standards. For example, the Employment Retirement Income Security Act came about as a way of guaranteeing businesses provided a set minimum to compete with private sector companies. If you aren’t compliant with ERISA, you could be putting your business in a difficult position.
What Is ERISA Compliance?
Essentially, ERISA compliance is all about focusing on your retirement plan and making sure it meets the specifications. For example, all those actively participating in the plan must be able to access written documentation surrounding their plans. This includes regularly sending information to employees via mail and providing materials in the workplace. The plan must also be structured in a way that allows it to minimize the risk of loss. Participants should also be educated on all matters of their retirement plan and its inclusions. Forms required for ERISA plans include:
- Proper forms from the Internal Revenues Service
- Documentation of filing with Department of Labor
Understand the Basics
By gaining more perspective on how to remain compliant with federal regulations, you greatly reduce the odds of a problem causing major financial setbacks for your company. Review the basics of ERISA and learn how to adhere to the standards.