ERISA Wrap Plan Provider, Clarity Benefit Solutions, Gives Six Tips for Preparing for Department of Labor Audits

Wednesday, December 18, 2019 Health Insurance News
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NEW YORK, Dec. 18, 2019 /PRNewswire/ -- ERISA wrap plan provider, Clarity Benefit Solutions, gives six tips for preparing for department of labor audits.

The U.S. Department of Labor (DOL) is responsible for enforcing ERISA compliance, and as such, has the authority to conduct audits as well as assess penalties and other remedies against employers. Companies that do not comply with wage and hour regulations can get hit with back pay fines and other penalties—which can be costly for employers. The DOL possesses the ability to perform an audit on companies at any time. Often, the DOL looks first at employers in low-wage industries to uncover any potential violations. Thus, it is vital that employers take measures to prepare for these audits. The following are six tips for preparing for a DOL audit.

  1. Maintain current policies.Organizational structure should be such that internal controls and processes ensure compliance. Post required labor law posters and notices in plain sight and confirm that they are up to date.
  2. Ensure consistency and accuracy.Make sure wage policies are consistent and evaluate all payroll records within the past six years. Payroll records should be accurate and current.
  3. Perform ongoing review and analysis of records. Review personnel records annually and perform self-audits. If any violations are detected, make sure they are quickly fixed—and document the action that was taken to remedy the situation.
  4. Research and fully understand the Fair Labor Standards Act.Confirm accuracy of all Fair Labor Standards Act (FLSA) classifications. Define which job categories are exempt from overtime pay and detail the reasons why.
  5. Familiarize with wage calculations.Be familiar with how employee-wage garnishments are calculated, how new hires are paid for orientation/training, and how work time is logged in and overtime is paid.
  6. Determine the intention of the investigation.If the DOL provides notice about an audit, contact the auditor to discover the investigation's focus. Once that is determined, gather the appropriate records (compensation policies and procedures for example) for the DOL auditor to examine. Inquire about the specific time period that the DOL wants to review to ensure no records are missing. Be sure to keep copies of the records provided to the auditor.
Utilizing these six steps tips will ensure you're fully prepared for a DOL audit should it occur with your organization.

About Clarity Benefit Solutions: Clarity Benefit Solutions provides technology that makes the health insurance plan selection process fast, easy, and straightforward. For over two decades, we have provided clients with industry-leading technology, compliance, and exceptional customer service. Our offering is designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.

Cision View original content:http://www.prnewswire.com/news-releases/erisa-wrap-plan-provider-clarity-benefit-solutions-gives-six-tips-for-preparing-for-department-of-labor-audits-300968345.html

SOURCE Clarity Benefit Solutions



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