Vital Information Regarding Employee Benefits Plan Audit
It is required by the law for all the company that offer employee benefits to more than 100 employees to hire a certified CPA firm for employee benefits plan audit. The audit is meant to ensure that the company complies and meet the fiduciary responsibilities. Even so, you should not settle for the first CPA firm that comes your way since it is a complex problem and there are many guidelines that should be followed. For an EBP audit report to be recognized, the CPA firm should comply with the Internal Revenue Code (IRC) standards. Through the audit, a business can identify the areas that it can improve the performance regarding employee benefits. Some of the vital aspects that the CPA firm will look into when carrying out the employee benefit plan audit include 401(k)s, pension plans, savings plans, and union representation among others.
Most companies fail to conduct an employee benefit plan audit in as much as it is required by the law since they do not understand the benefits. Since it is a legal requirement, you should ensure that you carry out the audit if you want to avoid the possible penalties. Therefore, one of the reasons why you should consider an EBP audit is to avoid penalties and sanctions that can be imposed by the Department of Labor. Additionally, an EBP audit will help protect your business from fraud. The business assets will be safeguarded from both internal errors and employee deception.
The EBP audit is a credible source of information regarding the areas that you can change in your plans to save on money. In as much as you will spend by hiring an independent accounting firm, you will get to save a lot of money in the long run in your employee benefits plans. An accurate and properly organized audit report can provide a manager with useful data in making better decisions. After the audit, you will become a better human resource manager and financial resource manager to your business.
Following the numerous benefits, businesses should consider EBP audit as an opportunity to improve on financial management. Ensure that you hire a CPA firm that has a team that is familiar with the IRC guidelines so that you can realize the associated benefits. Here is a guide to use when looking for a suitable CPA firm for an EBP audit.
Before you hire an independent firm to carry out the audit, you should learn some of the vital areas that it will cover. From the above discussion, you now understand the means of an EBP audit and how it is beneficial to both the employer and employees hence you should consider it.
The Best Advice on I’ve found
A Simple Plan: