As we approach the end of 2024, businesses must be aware of upcoming Department of Labor (DOL) audits and compliance mandates that could impact their benefits plans. Ensuring your benefits plan complies with these new regulations is critical for avoiding penalties and maintaining your employees’ trust.

Protect your business from costly penalties and stay compliant. Explore our comprehensive compliance services to safeguard your benefits plan and stay ahead of DOL audits.

What Are DOL Audits?

The DOL regularly audits companies to ensure they follow employee benefits laws, including health and retirement plans. These audits can become more frequent and intense toward the end of the year as companies prepare for the new fiscal year. A DOL audit typically involves a detailed review of your company’s benefits plan documents, financial records, and compliance with regulations such as ERISA (Employee Retirement Income Security Act).

A DOL audit thoroughly examines a company’s benefits plans to ensure compliance with federal regulations. To learn more in-depth details about what a DOL audit involves and how to prepare, visit our service page on DOL audits.

Why Compliance Matters More Than Ever

New compliance mandates are being introduced in 2024, making it more critical than ever to ensure your benefits plan is up to date. Failure to comply with these regulations can lead to significant fines, employee dissatisfaction, and even potential lawsuits. Staying on top of changes like reporting requirements or fiduciary duties is key to preventing disruptions during a DOL audit.

Key Compliance Mandates to Watch in 2024

Some of the most impactful mandates you should be aware of include:

  1. New Reporting Requirements: Employers must provide more detailed reporting on employee benefits plans, ensuring transparency about costs and plan details.
  2. Fiduciary Responsibilities: In 2024, companies will face stricter rules regarding their fiduciary duties. This means your business must act in the best interest of plan participants when managing benefits.
  3. Health Plan Reforms: With healthcare costs rising, new reforms will require more oversight of how benefits plans manage these costs while offering coverage that meets minimum standards.

Steps to Prepare for a DOL Audit

The best way to ensure you’re prepared for a DOL audit is to perform an internal audit of your benefits plan. Here are some steps to take:

  1. Review Plan Documents: Ensure your benefits plan documents are complete and accurate. Update them to reflect any changes made in 2024.
  2. Check Compliance with ERISA: ERISA compliance is crucial, so review your plan to ensure it meets the latest standards.
  3. Prepare Financial Records: Gather all relevant financial documents related to your benefits plan. These should be organized and easy to access during an audit.
  4. Employee Communication: Ensure your employees are informed about their benefits. Clear communication helps prevent misunderstandings and complaints during an audit.

The Cost of Non-Compliance

The consequences of non-compliance with DOL regulations can be severe. Companies that fail to meet the new mandates may face hefty fines, legal action, and damage to their reputation. Additionally, non-compliance can harm employee relations, as employees rely on these benefits for their well-being.

Ensure Compliance Now to Avoid Costly Penalties Later

Preparing for year-end compliance is more critical than ever as new DOL audits and mandates come into play in 2024. By staying proactive and ensuring your benefits plan is compliant, you can avoid costly penalties and ensure your employees’ benefits are well-protected. Don’t wait until it’s too late—start preparing now with us.