When it comes to employee benefits, offering competitive health insurance is only part of the equation. Employers also have critical compliance responsibilities that, if overlooked, can lead to costly penalties and legal exposure. The question is: Is your benefits broker helping you stay compliant? If not, who is?
Key Compliance Items Employers Must Address
- Wrap Documents
A Wrap Document combines various benefit plan documents into one consolidated ERISA-compliant plan document. Employers who don’t have one in place risk fines from the Department of Labor for failing to meet summary plan description (SPD) requirements.
- Premium Only Plan (POP)
A POP allows employees to pay their portion of health insurance premiums on a pre-tax basis. However, this plan must be formally adopted, updated regularly, and properly administered. Failure to maintain a POP can jeopardize the tax-advantaged status of your benefits.
- ACA Reporting & Filing
Applicable Large Employers (ALEs) must file 1094-C and 1095-C forms with the IRS annually and provide employees with copies. Missing or incorrect filings can result in steep fines. Is your broker guiding you through the ACA reporting process or leaving you to figure it out alone?
- COBRA Administration
COBRA compliance is complex and time-sensitive. Notices must be sent on time, and continuation coverage must be properly offered. If you’re not working with a broker or vendor that manages COBRA correctly, your company is at significant risk.
Why It Matters
Non-compliance isn’t just a paperwork issue—it can result in real financial consequences. From ERISA violations to ACA penalties, employers face thousands of dollars in fines for each infraction. The right benefits broker doesn’t just quote insurance—they provide full-service support to keep you protected.
How BRNC Insurance Services Can Help
At BRNC Insurance Services, we specialize in helping employers go beyond basic coverage. Our team ensures your:
- Wrap Docs and SPDs are in place and up to date
- Premium Only Plan is IRS-compliant
- ACA reporting is accurate and timely
- COBRA administration is managed through trusted third-party partners
Final Thought
Your broker should be a strategic partner, not just a middleman. If your current benefits advisor isn’t taking ownership of your compliance needs, it might be time for a change. Let BRNC Insurance Services ensure nothing falls through the cracks.
Contact us today to schedule a compliance review and protect your business from avoidable risk.