A Form 5500 is an annual Return/Report of Employee Benefit Plans. The Form 5500 is used to file an employee benefit plans annual information with the Department of Labor(‘DOL”). The Form 5500 consists of the main form, as well as different schedules and attachments. Generally, the Form 5500 must show the characteristics of the plan, as well as the operations.
Purpose: The primary reason for the Health and Welfare Form 5500 is to meet the ERISA Title I compliance provisions on reporting. It is intended to assure that employee benefit plans are operated and managed in accordance with certain prescribed standards. These standards exist to ensure the participants and beneficiaries have access to sufficient information to protect their rights and benefits under employee benefit plans. Additionally, the DOL, IRS, and other governmental agencies, including Congress use the data for research in assessing employee benefit, tax, and economic trends and policies.
Health and Welfare Form 5500 Annual Report
Under ERISA Title I, there are various reporting and disclosure provisions needing to be met. One of those requirements is satisfied by the Health and Welfare (H&W) Form 5500 Annual Report. It is used to report information concerning employee benefit plans. More specifically, it is comprised of various schedules with information on the financial condition and operation of the Plan.
Filing the Form 5500
Per the Department of Labor (DOL) and IRS, this report is required to be e-filed annually using the EFAST system at www.efast.dol.gov website.
Filing Deadline
The following two points provide the due dates for the Form 5500:
- Form 5500s are due the last day of the 7th month after the end of the plan year
- Form 5500s can be extended for an additional 2 ½ months, if the extension (Form 5558) is filed prior to the original due date. (Please note, there are no adverse repercussions to filing an extension.)
Health and Welfare Plans that must file a Form 5500
The following Plans must file a Form 5500:
- Small funded plans -Trust plans (unless deemed unfunded Technical Release 92-01)
- A welfare benefit plan that covers 100+ participants* as of the first day of ERISA Plan year such as:
- Large unfunded plans (or deemed unfunded by Technical Release 92-01)
- Large insured plans
- Large combination unfunded/insured plans
- Large funded Trust Plan
* Participants are the Enrolled Employees +enrolled former employees enrolled in COBRA + enrolled Retirees employees (if applicable)
Who is a Participant?
An employee becomes a participant covered under an employee welfare benefit plan on the earliest of:
- The date designated by the plan as the date on which the employee begins participation in the plan;
- The date on which the employee becomes eligible under the plan for a benefit subject only to occurrence of the contingency for which the benefit is provided; or
- The date on which the employee makes a contribution to the plan, whether voluntary or mandatory.
See 29 CFR 2510.3-3(d)(1). This includes former employees who are receiving group health continuation coverage benefits pursuant to Part 6 of ERISA and who are covered by the employee welfare benefit plan. Covered dependents are not counted as participants.