It should be the simplest thing to do, yet so many plan sponsor fails to do it. What I’m talking about is the late deposit of deferrals and it’s been the biggest reason I’ve seen why the Department of Labor (DOL) are auditing plans. It’s an easy target for them since it’s a question on Form 5500 and they compare that to the list of plans that have applied to their voluntary fiduciary compliance program. They’ll target plans who didn’t apply and they’ll target those who have failed to do that in multiple years.
Something as simple as being late by a couple of days on a payroll can lead to thousands of dollars of legal fees to pay for representation for a DOL audit.
Either avoid these silly mistakes or pay me a call when the DOL contacts you.