The last thing that you want right before the July 31st deadline for the Form 5500 is to discover that a benefit should have had a Schedule A in the filing. To help prevent any surprises, below are benefits to consider. And for those who need a refresher on the Schedule A rules, including knowing what policy period to list if the ERISA Plan year is different, click here for our blog on this subject.
Form 5500 Required Benefits:
- Teledoc or Telehealth
- Healthcare FSAs and HRAs*
- Employee Assistance Program (EAP) – including those imbedded in LTD or Life policies
- Business travel accident (BTA)
- Pre-paid legal
- Long-term care (LTC)
- Plans covering participants in the U.S. Territories: American Samoa, Marianas, Guam, Puerto Rico, and U.S. Virgin Islands
- Flu shots and smoking cessation*
- International policies for expats
- Formal severance plans
- Voluntary benefits (such as disability coverage, life, cancer, and hospitalization)
- If the employee pays 100% of the premium and is completely voluntary to join, the benefit may still be required to have a Schedule A. If the Plan Sponsor endorses the benefit, the benefit is under the employee welfare plan.
- To endorse, the Plan Sponsor:
- Allows the use of the Section 125 Benefit
- Helps to handle claims
- Provides materials to employees suggesting that it has endorsed the plan/benefit
- Notes the benefit is under ERISA
- Considers itself as the Plan Administrator and declares itself so to the participants
- Determines eligibility
- Negotiated the terms of the benefit
* These benefits are typically self-funded. A Schedule A is not required. Instead, list benefit code “4A” on page two to signal a health benefit and check “general assets” under 9a and 9b.
Generally Speaking, These Benefits Do Not Require a Schedule A:
- Most short-term state-mandated disability plans
- Dependent daycare
- Most HSAs
- Section 125-Premium Only Plans (POP)
- Virtually all educational assistance and vacation plans
- Pet insurance
- Identity theft
- Self-funded short-term disability benefit as a payroll practice
If you have any questions or need further details, please contact Ann McAdam at: email@example.com.