Pub. 4 Issue 4

21 Issue 4 2018 Q: What are several factors that increase or indicate your dealership’s likelihood of being audited? A: Audits can be random, however, a couple common trig- gers for a DOL audit include these preventable causes: • Participant complaints. If any of your plans’ participants complain to the DOL about potential ERISA violations, your planwill likely be subjected to an audit. For example, according to a DOL audit summary, 775 new investiga- tions in 2013 resulted from participant complaints. • Incomplete or inconsistent information. The DOL is more likely to investigate a plan that has incomplete answers on the plan’s Form 5500, or if information you report is inconsistent from year to year. On Jan. 2, 2018, the Department of Labor (DOL) issued a final rule that increases the civil penalty amounts that may be imposed on employers under various federal laws. Here are some of the new penalty amounts: • Up to $2,140 per day: Failure to file an annual report (form 5500) with the DOL (unless a filing exemption applies). • Up to $152 per day, but not to exceed $1,527 per request: Failure to furnish plan related information requested by the DOL. (Under ERISA, administrators of employee benefit plans must furnish to the DOL, upon request, any documents relating to employee benefits) • Up to $1,128 per failure: Failure to provide SBC’s (Sum- mary of Benefits and Coverage). Q: How can my Dealership learn if we are in compliance or if we are in risk of fines and not in compliance? A: If your dealership would like a compliance audit, EPIC will perform one for you at no cost. EPIC ranks among the top 15 retail insurance brokers in the United States and is the largest insurer of auto dealers in the state.  “Ask Alison” is a regular feature to our quarterly newsletter. Alison McCallum has been in the employee benefits industry for over 20 years. She is a Principal with EPIC insurance Brokers and Consultants, the only CNCDA-licensed broker. With this partnership EPIC offers unique services available to GLANCDA dealer members at nocost. If you havequestions or would like further informationplease feel free to contact me at (949)417-9136 or alison.mccallum@epicbrokers.com. CONCERNED WITH THE COST, COMPLIANCE AND SERVICING OF YOUR DEALERSHIPS’ INSURANCE? EPIC CAN HELP WITH YOUR BENEFIT AND BUSINESS INSURANCE NEEDS • CNCDA's only licensed broker for Health and Business insurance • The largest insurer of auto dealers in the state • The only broker with proprietary products specific to dealerships • 15TH largest brokerage firm in the nation We know dealerships have specific needs and issues, we are here to help. Please contact us for a free evaluation of your insurance and HR/compliance packages. EPIC IS © EDGEWOOD PARTNERS INSURANCE CENTER | CA LICENSE 0B29370 EPICBROKERS.COM Alison McCallum 949.417.9136 alison.mccallum@epicbrokers.com Ron Joy 949.417.9134 ron.joy@epicbrokers.com