As the sponsor of a qualified retirement plan, you’re subject to certain fiduciary responsibilities. These include administration functions like maintaining the plan’s financial records and filing an annual report for the plan.
Topics: Audit & Assurance
Despite your best efforts to remain compliant, operational errors are sometimes made in the administration of employee retirement plans. When errors occur, you generally have two main options for correcting them:
Last spring, the U.S. House of Representatives passed legislation that would have made sweeping changes to the nation’s retirement system - but this legislation, known as the SECURE Act, failed to make it through the Senate.
At the end of last year, however, supporters of the SECURE Act added its provisions to a spending bill. This will result in a number of key changes to the rules for creating and maintaining employer-sponsored retirement plans, including the following:
1. Lower barriers to offering multiple employer plans (MEPs). MEPs are retirement plans created by two or more businesses that are unrelated to each other. Starting in 2021, the rules allowing unrelated businesses to form an MEP will be relaxed, making it easier for small businesses to offer these plans to employees.
Topics: Employee Benefit Plans
When they hear the term “employee compensation,” most business owners think about base salary. But there are also other types of compensation that businesses may use as employee payment, such as bonuses, commissions, tips, overtime, car allowances, and even non-cash wages like gift cards and company stock.
Topics: Retirement Reporter