“The Department of Labor, Health & Human Services and Treasury recently issued proposed regulations that would eliminate the “small plan” exemption currently in place for small employers sponsoring a group health plan with fewer than 100 participants.
If adopted, small employers would be required to furnish the same Form 5500 information to the Department of Labor as large employers.” [emphasis in original]
Now why would this be a big deal?
Well, the estimated cost “will add 2.2 million work hours and $241.6 million in reporting costs for small employers (both self-insured and fully-insured).“
Think this won’t affect you?
Well remember, all of these additional costs will be passed on to consumers. Not to mention, employers, particularly small employers, have limited funds, so this could very well cost someone(s) their job, or potential job.
What can you do about it?
Well, the DOL is taking comments about it through December 5th, and the folks at Cornerstone have helpfully provided us with an example:
“I am requesting that the Department of Labor reconsider the proposed Annual Reporting and Disclosure rules relating to Form 5500 and Schedule J.
The proposed rules that would eliminate the small group exemption on Form 5500 filings plus the additional data collection requirements on Schedule J will add 2.2 million work hours and would cost small employers $241.6 million.
Small employers are already challenged to stay current and compliant with excessive federal, state and local rules and regulations. The proposed changes place yet another unnecessary burden on small employers.
I urge the Department of Labor to reconsider this proposal.”