Comprehensive Nondiscrimination Testing
It isn’t just important to ensure that your employee benefits are fair for all of your employees; it is required by law. Are you meeting the government-mandated regulations at your company? Find out by taking advantage of nondiscrimination testing from our compliance strategy consulting firm. We are able to quickly assess your company’s situation and help you figure out any areas that need to be updated to become completely compliant with current laws.
EB Compliance Strategies is a consulting firm that takes great pride in our ability to help companies, just like yours, avoid major fines and other issues. With the help of our nondiscrimination testing, you are able to fix oversights before they become problems. Speak to our team today to learn more about the ways we can assist you.
Nondiscrimination Testing for Your Business
The nondiscrimination testing we use to determine if your benefit plans are meeting requirements begins with us creating and identifying the results of an employer-controlled group analysis. This analysis covers parent-subsidiary, brother-sister, affiliated service organizations, lease employees, and common law employees.
The next step in our nondiscrimination testing is to identify the prohibited group of employees. These employees include highly compensated individuals (HCI), highly compensated employees (HCE), and key employees (KEY). Finally, we identify the applicable employer-sponsored plans that are subject to the nondiscrimination tests.
Once all of the different subjects have been properly identified, our team will begin to collect data from each individual. The data we collect includes the employee’s spouse and dependent status, participant plan enrollments, and contribution data.
We Perform & Report Results for the Following Nondiscrimination Tests
- Cafeteria Plans (IRS Code 125) - Key Employee 25% Concentration Test
- Cafeteria Plans (IRS Code 125) - Eligibility Test
- Cafeteria Plans (IRS Code 125) - Contributions and Benefits Test
- Self-Insured Health Plans (IRS Code 105h) - Eligibility Test (Medical, Health Care FSA, HRA)
- Self-Insured Health Plans (IRS Code 105h) - Benefit Test (Medical, Health Care FSA, HRA)
- Dependent Care (IRS Code 129) - The Eligibility Test
- Dependent Care (Section 129) - The Contributions and Benefits Test
- Dependent Care (Section 129) - The More than 5% Owners Concentration Test
- Dependent Care (Section 129) - The 55% Average Benefits Test
- Group Term Life (IRS Code 79) - Group Term Life Test
Contact us to begin the nondiscrimination testing process. Our consulting firm performs these tests for clients located throughout Grand Rapids as well as across the state of Michigan.
