When does my company need an Employee Benefit Plan Audit?

Knowing when your organization needs to conduct an Employee Benefit Plan Audit can be difficult. Join Senior Manager Aaron O’Dell as he briefly discusses the criteria that indicate when it's time to conduct an audit for your Benefit Plan.

For more information about our Employee Benefit Plan Audit services call 574.289.4011 or visit klcpas.com/services/ebp-audits.

To learn more about Aaron O'Dell and his role at Kruggel Lawton, click here.

TRANSCRIPT

So, when does a plan sponsor need an audit? We get that question a lot, all the time really. The way that that’s figured out is, we’ll work with a calendar-year basis: January 1st to December 31st. If on January 1st, a plan sponsor has over 120 eligible participants, then they need an audit. That’s 121, not 120. 121, what’s counted in that number, is any eligible participant. So, anybody that has a balance in the plan, who may or may not still be there, they may be terminated, but if they still have a balance in the plan, they count towards that 121. Anybody who is eligible to participate, that means they could have declined enrollment, but if they were made eligible at any point in time and they are still at the company, whether they are in the plan or out of the plan, they count towards that 121. Those are the people that would need a plan audit.