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Tax & Assurance Guidance

Preparing for Your Employee Benefit Plan Audit

Posted on February 28, 2011 by

Dave Van Damme

Dave Van Damme

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As we head into spring, the audit of your employee benefit plan is likely nearing if you sponsor a plan with over 120 eligible participants. We’ve provided a short list of things you can do as a plan sponsor to help ensure a hassle-free and efficient audit of your employee benefit plan.

Provide your auditor with any new documents pertaining to the plan. This should include:

  • New Plan document (if applicable)
  • Plan amendments
  • Meeting minutes pertaining to the Plan
  • Updated Determination Letter
  • Updated loan policy
  • Changes to funds offered by the Plan
  • Copy of the Plan sponsor’s year end financial statements or tax return
  • Fraud occurrences against the Plan

Prepare the census

Include: Name, SSN, hours worked, date of hire and date of birth, compensation, employee contributions and employer contributions, if applicable. The census should include ALL employees (not just those which are deemed eligible)

Reconcile the census to payroll records

This will help ensure your census is complete and no one has been mistakenly left off

Compile a list of new hires to provide your auditor

Review distributions and make sure all paperwork is readily available

Analysis of forfeiture account

Include amounts used to offset employer contributions

The above is a brief overview of things you can do to make sure you have an efficient audit. If you need assistance or have any questions, please contact us.

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Dave Van Damme

Shareholder, Advisory & Assurance

Leading the firm's advisory & assurance group, Dave supports closely held businesses with audits, financial reporting and fraud analysis.

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