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BlumShapiro Helps College Meet Deadlines, Avoid Penalties & Fees

The Challenge:

A highly respected mid-sized institution of higher education with approximately 200 employees was required by new federal regulations to conduct an extensive audit of its retirement program, which dictates that the college enroll all full-time employees who reach one year of service.

The college had attempted to comply with the plan provisions by distributing enrollment forms to all eligible employees and completing the enrollment process as the forms were returned. But early into the audit it was revealed that about 20 percent of the eligible employees had not returned enrollment forms, and thus were not participating in the plan.

Due to the complexity of the new regulations, the college was not aware of the requirement to enroll employees who had not taken a deferral from the program, even if they didn't fill out and return the enrollment forms. This lapse exposed the college to significant penalties and fees.

The hard deadline imposed by the federal government for submitting the audit report, and the complexity of achieving compliance, prompted the college to immediately contact BlumShapiro, which has a well known Educational Institutions practice, plus a large and highly proficient employee benefit group. BlumShapiro's industry standing made it the natural selection when the college realized it needed assistance.

The Solution:

It was already September when the college contacted BlumShapiro, and the filing deadline was
October 15. There was much to do to correct the situation, but very little time.

BlumShapiro drew on internal staff as well as its extensive contacts with external specialists, to assemble a team possessing in-depth knowledge of the government's requirements, including the current audit regulations and those which had previously been in effect. This combination of internal experts who worked seamlessly with third-party administrators provided a speedy and efficient review of the college's entire retirement plan and its implementation.

The Benefits:

The deficiencies were immediately corrected and the audit was completed ahead of the federal deadline, avoiding all penalties and fees. The success of this venture was possible largely due to BlumShapiro's passion to achieve the best solutions for its clients. BlumShapiro is now engaged with the college on a regular basis providing an extensive review of its retirement plan and keeping the client abreast of government regulations, deadlines and industry best practices.

Learn more about our Educational Institutions Group >>

 

Advisors | Auditors | Consultants | CPAs - Blum Shapiro is one of the premier public accounting firms in the northeast and a Top 100 CPA Firm in the U.S. Our professionals serve businesses, individuals and organizations in Boston (MA), Hartford (CT), Cranston (RI), Shelton (CT) ,Quincy (MA) and Newton (MA) with audit, tax and business consulting services. Our firm has developed practice areas in automotive, construction, education, government, healthcare, hospitality, manufacturing, nonprofit organizations and professional service firms. New Haven CT, Fairfield CT, Norwalk CT, Waterbury CT.