So you set up this 401K plan as a benefit to your employees and now, because your business has successfully grown in size, can you believe you will have to pay for an audit?
It does come as a shock to some but truthfully, even though we get paid for our performance of these, they are worthwhile. To explain a bit, first understand that “audit” is a bit of a misnomer…in reality, it is a big compliance test, designed to make sure that you, in your fiduciary duty as sponsors of the plan, are living up to the commitments you have made to your employees in the plan…a commitment to manage “their” money. Yes, “their” money as their contributions and your match all become theirs once they enter “their” accounts.
So why is our work worthwhile. Honestly, on every first time audit and even some we do year after year, we find issues of noncompliance with the plan. And why is that a problem? Because the Department of Labor who oversees ERISA plans has the power to levy some serious fines on sponsors who do not perform their fiduciary duty in accordance with the plan.
And why Wegmann Dazet? Because after performing hundreds of plan audits and constantly staying abreast of changes in the law through continuing education, our professionals are well prepared to help you get it right and to keep it right on an ongoing basis. Do some of our audit clients slip up. Of course, they are human but we are there to get them back on track through the audit and when needed, throughout the year when questions arise.
Find out what scores of plan sponsors have already discovered about the difference in Wegmann Dazet. Contact us and let us know how we can help.