Pub. 4 Issue 4

20 Ask Alison Q: What authority does the DOL have with audits? A: The Department of Labor (DOL) has broad authority to investigate or audit an employee benefit plan’s compliance with the Employee Retirement Income Security Act (ERISA). The DOL uses its investigative authority to enforce compliance with the health care reform law, or the Affordable Care Act (ACA). Q: What plans does an audit typically involve? A: Traditionally, DOL audits of employee benefit plans have focused pri- marily on retirement plans, such as 401(k) plans. However, now that the DOL is enforcing compliance with the ACA, health plan audits are more common. Q: What are the consequences for my dealership if we are audited? A: Being selected for a DOL audit can have serious consequences for an employer. Penalties for noncompliance and other errors found during an audit can be steep. For example, during the 2013 fiscal year, more than 70 percent of audits resulted in monetary fines or other corrective action. The best time for an employer to analyze whether it is ready for a DOL audit is before the DOL comes knocking. DOL (DEPARTMENT OF LABOR) AUDITS ON THE RISE…. AGAIN. WOULD YOUR DEALERSHIP PASS AN AUDIT OR WOULD YOU INCUR SUBSTANTIAL FINES FOR BEING OUT OF COMPLIANCE?