When providing benefits, employers cannot legally favor Key or Highly Compensated employees over other employees. Discrimination Testing is required on an annual basis to assure that plans have been implemented to the benefit of all employees and not just a select few.
Employers must satisfy an Eligibility Test and a Contribution and Benefit Test to establish compliance. The employer is then required to a file Form 5500 with the Internal Revenue Service no later than seven months after the conclusion of its plan year. Oversight is necessary and it is vital that employers remain compliant. Cimplx will make sure that such plans comply with the law and the proper IRS forms are timely filed.