As Plan Administrator, you will have sole responsibility for many administrative duties. During enrollment and throughout the plan year, you will be your employee's resource for information about the plan. That means you will need to respond to all routine questions about the enrollment process as well as the terms, conditions and day-to-day operation of the plan.
The Employer's Responsibilities
As Plan Administrator, you will also be responsible for: -
Complying with the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), including notifying eligible employees and beneficiaries about qualifying events that make them eligible for continued coverage under COBRA. Section 7 provides more information about COBRA. -
Complying with IRS requirements regarding nondiscrimination in eligibility for and participation in your plan. Section 6 provides more information about nondiscrimination requirements of a cafeteria plan. -
Amending the plan to comply with future changes in IRS or other important regulations. -
Determining if and when a valid change in family status occurs, approving the corresponding change in election, and notifying AFLAC of the change, if appropriate. -
Preparing and distributing a Summary Plan Description (SPD) or Summary of Material Modification description (SMM) to each employee and submitting it to the U.S. Department of Labor. (The appendix provides a sample SPD for your use). -
Reviewing any contested unpaid Flexible Spending Account (FSA) reimbursement requests and notifying the employee in writing whether or not the requests are eligible for reimbursement under an FSA. -
Preparing and submitting a Summary Annual Report to each participant. -
Preparing and submitting a Form 5500 Annual Report to the IRS within 7 months after the end of the plan year. -
Maintaining and operating this plan so it complies with all provisions of the plan, ERISA, the Internal Revenue Code, and any other state and federal laws that apply. To enroll employees in the plan, you must have employees complete a Salary Redirection Agreement. Once employees complete the agreement, your company's payroll department must be informed of the amount to be redirected from each participant's pay.
Money redirected from participants' pay may be held within the general assets of the company, as long as the money is forwarded to the appropriate carriers for premium payment within a reasonable amount of time.
Special Reporting Rule for Dependent Care Reimbursement Accounts
The IRS requires special tax reporting for employees using a Dependent Care Reimbursement Account. These rules state: - You (the employer) must report on the employee's W-2 statement all pre-tax amounts that were redirected from the employee's salary, and
- The employee must provide the name, address, and taxpayer identification or Social Security number of the dependent care provider when filing federal income taxes or when filing a claim
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