2021 Potential Compliance Fines & Penalties

VIOLATION

POSSIBLE FINE

DEPT

Failure to provide written requested ERISA plan documents, Summary Plan Descriptions, Summary of material modifications, etc.

$119 per day up to $594,129

DOL

Late 5500 Report

$25 per day up to $15,000 - IRS

$1,100 per day, no cap - DOL

IRS or DOL

Failure to File annual 5500 Report

$2,259 per day

DOL

Failure to furnish automatic contribution arrangement notice

$1,788 per day

DOL

Failure to furnish employee benefit plan documents to DOL upon request

$161 per day up to $1,613 per request

DOL

Failure to inform employees of Medicaid/CHIP coverage opportunities

$120 per day per employee

DOL

GINA violation

Failure to provide Summary of Benefits Coverage (SBC)

Up to $1,190 per failure

DOL

FMLA posting & notice violation

$176 for each offence

DOL

Allowing premiums to be paid on a pre-tax basis for covered benefits without having either a Premium Only Plan (POP) document or Flexible Spending Account (FSA) document.

Penalty: Employer can lose the ability to allow premiums on a pre-tax basis.

IRS

HIPAA violations

$119 to $59,522 per violation up to $1,785,651.

DOL or HHS

MEWA - failure or refusal to file a complete or accurate Form M-1