1. Employee Benefit Plan Returns HoganTaylor LLP NOARK Legislative Workshop June 13, 2013 B IG ENOUGH TO KNOW. S MALL ENOUGH TO CARE. ®

2. Jill is a manager at HoganTaylor. She is a member of HoganTaylor’s Employee Benefit Plan leadership team and devotes 100% of her professional efforts to serving Employee Benefit Plan clients with audits, Form 5500 preparation, and assistance with late filings through the DOL Delinquent Filer Voluntary Compliance Program (DVCP). She also assisted in the development of HoganTaylor’s methodology throughout the firm. Jill monitors industry developments and maintains relationships with regulatory personnel and industry leaders on a year-round basis. Jill has over eight years of experience serving employee benefit plan clients. She graduated from the University of Arkansas in 2004 with a B.S. degree in accounting and finance.

3.  Employee Benefit Plan Return Filing Requirements

5.  Form 5500  Form 8955 SSA  Form 720  All returns due 7 months after year-end  Form 5500 and 8955 SSA may be extended for additional 2 ½ months  For example, plan year-end December 31, 2012 - due date July 31 st or extended to October 15 th

6.  Who must file the Form 5500?  401(k) Plans  Pension Plan  ESOP Plans  Welfare Plans  403(b) Plans

7.  Who must file the Form 5500?  Welfare Plans health, life, dental, vision, prescription drug, temporary disability, prepaid legal, long-term disability, AD&D, cancer, death, PPO, HMO, etc.

8.  Who must file the Form 5500?  Benefits funded or paid through a trust require a Form 5500 filing regardless of the number of eligible participants  Funded is defined as a separate account in the name of the Plan  401(k) Plans, Pension and ESOP Plans are required to have a Trust  403(b) Plans that are subject to ERISA  Welfare Plans have the option to be funded, paid through a trust, or paid through the general assets of the plan sponsor

9.  Who is exempt from filing the Form 5500?

10.  Welfare Plans paid through general assets of the plan sponsor with less than 100 participants in the Plan at the beginning of the year are not required to file a Form 5500  An annuity or custodial account arrangement under sections 403(b)(1) or (7) not established or maintained by an employer  Church Plans not electing coverage under section 410(d)

11.  Who is exempt from filing the Form 5500?  Government Plans  Simplified employee pension (SEP)  IRA or annuity not considered a pension plan

12.  How to count participants for Welfare Plan for Form 5500 filings?  Includes only individuals participating in the Plan on the first day of the plan year  Does not include dependents  Does not include those that are eligible but elected not to participate

13.  How to count participants for Retirement Plans for Form 5500 filings?  Includes the following on the first day of the plan year: Individuals participating in the Plan Eligible participants who elected not to participate Former employees that maintain an account balance in the Plan

14.  What if the Form 5500(s) was not filed?

15.  Penalties accumulate at $10 per day  DOL Delinquent Filer Voluntary Compliance Program (DVCP)  Eligible until correspondence from the DOL is received regarding the failure to file

16.  How much are the penalties reduced if filed through the DVCP?  Small Plan = <100 participants: the penalties will not exceed $750 for one Plan’s filing  Small Plan: will not exceed $1,500 for multiple filings per plan  Large Plan = >100 participants: the penalties will not exceed $2,000 for one Plan’s filing  Large Plan: will not exceed $4,000 for multiple filings per plan

17.  Form 8955 SSA  Plans subject to the vesting standards of Section 203 of ERISA must file Form 8955 SSA.  The Form was part of the 2008 Form 5500 filing and prior  Once the Form 5500 was required to be filed electronic on the DOL’s website, EFAST2 the SSA schedule became its own filing  The 2009 and 2010 filing of the Form 8955 SSA was due on the final due date of January 17, 2012

18.  Form 720  The Affordable Care Act created a new Patient- Centered Outcomes Research Institute (PCORI)  This program will be funded through fees paid by health plans and health insurance issuers  Plan sponsors of self-insured health plans will pay the fee through the Form 720 for seven years starting with plan years ending between with October 1, 2012 and September 30, 2013

19.  Form 720  The first year the fee will be based on a $1 per covered life  The second year the fee will be based on a $2 per covered life

21. DOL Audit Triggers:  Random selection  Correspondence received from other government agencies  Late filings  Participant complaints  Deferrals not made timely to Trust  Failure to make distributions timely  Filing a Form 5500 for 401(k) but not filing a Form 5500 for a Welfare Plan

23.  Contact Information: Jill Pierce Direct: 479.856.6908 jpierce@hogantaylor.com 688 E. Millsap, Suite 203 Fayetteville, Arkansas 72703-4095 Main: 479.521.9191