Corporate Synergies Release Shocking Report on 5500 Non-Compliance.100-299 Employee Size Accounted for 70% of All Firms Out of Compliance MT. LAUREL Laurel, cities, United States Laurel. 1 Town (1990 pop. 19,438), Prince Georges co., central Md., about halfway between Washington, D.C., and Baltimore; patented in the late 1600s, inc. 1870. , N.J. -- Corporate Synergies recently released a new study, to be well publicized pub·li·cize tr.v. pub·li·cized, pub·li·ciz·ing, pub·li·ciz·es To give publicity to. Adj. 1. publicized - made known; especially made widely known publicised , based on data from the US Department of Labor. The study indicates that a shocking 49% of employers were improperly im·prop·er adj. 1. Not suited to circumstances or needs; unsuitable: improper shoes for a hike; improper medical treatment. 2. filing or failing to file their 5500 reports. This has stayed consistent in both of the years studied. Corporate Synergies' new study reveals the following data from research of over 74,710 employers. For those employers who were required to file 5500s, non-compliance ranges from 29 to 59 percent, depending on the employer's size. Based on a comparison between 2003 and 2005 form 5500 filling data, the total percentage of non-compliance increased from 47% to 49%; however, total number of firms in the analysis dropped. The decreased number of firms may be the result of merger and acquisition activity during the two year period. "If a company does not submit its 5500 form, it is vulnerable to costly fees," warns Eric Raymond, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Corporate Synergies. "Not only does the company face criminal penalties, but its plan administrator can be subject to daily fees of up to $1,100. It is imperative that employers take steps to submit this crucial form." About the Study Corporate Synergies used data from filing year 2003 and 2005, provided by the Department of Labor, in their study. When the data was purchased on June 2007, the Department attested at·test v. at·test·ed, at·test·ing, at·tests v.tr. 1. To affirm to be correct, true, or genuine: The date of the painting was attested by the appraiser. 2. that it was 99.9% complete. A firm's size was derived from the maximum value of active participants for a given plan for each Employer Identification Number Applicable to the United States, an Employer Identification Number or EIN (also known as Federal Employer Identification Number or (FEIN)) is the corporate equivalent to a Social Security Number, although it is issued to anyone, including individuals, who has to pay (EIN EIN Employer Identification Number EIN Employee Identification Number EIN European Ideas Network (think tank) EIN Environmental Information Network EIN Equivalent Input Noise EIN Elderhostel Institute Network ). A plan could be any of the following: * Medical Health Plan * Dental Plan * Vision Plan * Group Life Insurance Plan * Defined Benefit Plan Defined benefit plan A pension plan obliging the sponsor to make specified dollar payments to qualifying employees at retirement. The pension obligations are effectively the debt obligation of the plan sponsor. Related: Defined contribution plan * Defined Contribution Plan Defined contribution plan A pension plan whose sponsor is responsible only for making specified contributions into the plan on behalf of qualifying participants. Related: Defined benefit plan * Other similar plans Location of a firm's headquarters was determined by the state of the mailing address for each EIN. Each firm estimated to be larger than 99 employees was expected to file a Medical Health Schedule as part of its 5500 filing. Analysis was performed at the EIN level. Firms could possibly have filed via their parent company. To account for this, a percentage allowance should be made. Firms that are larger than 1000 employees may appear to be out of compliance but are likely filing via a parent company or are self funded. Also, for those firms that are around 100 employees may not have every employee participating. Some schools, churches and government agencies did not appear to file a 5500; they were excluded from the study. About Corporate Synergies Group, Inc. Corporate Synergies is a full-service healthcare benefit solutions' provider firm based in Mt. Laurel, NJ. The company a unique suite of services combined with innovative technology to deliver cost-effective benefit solutions to both employers and employees. Whether we're helping to create paperless workflows, contain healthcare costs, or eliminate compliance burdens, Corporate Synergies provides true value. For further information visit www.CorpSyn.com. |
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