It is not a matter of if, but rather a matter of when. At some point in the life of your business the Department of Labor (DOL) will knock on your door to perform an audit. Being prepared for a DOL audit can save an employer a large amount of money, time, and stress.
So what is the best way to prepare for a DOL audit? It is simple: remain in compliance with the law and establish a record keeping system for your important documents relating to your employee benefits plan. Retaining complete and accurate records will move along the audit process and provide an accurate picture of your employee benefits to the DOL. These records should be retained for seven years.
In addition, because the DOL has increased the frequency of health plan audits, you should consider reviewing your heath plan before it is selected for an audit. Designate one location for maintaining records relating to your health plans. These documents include plan documents, insurance contracts, SPDs and notices required under the ACA and other federal laws. Even if it takes some time now, having all of the documents in one place and a documented process for maintaining your records will likely pay off in the future.
If you would like to learn more about how your business can prepare for a DOL audit, AUI would love to help you. AUI can also help you make sure your employee benefits plans are in compliance with federal standards. Please contact us today!
Disclaimer: The intent of this analysis is to provide general information regarding the provisions of current healthcare reform legislation and regulation. It does not necessarily fully address all your organization’s specific issues. It should not be construed as, nor is it intended to provide, legal advice. Your organization’s general counsel or an attorney who specializes in this practice area should address questions regarding specific issues.