Participation Agreement Interpretation

Posting by Phil Vivirito

Situation: The participation agreement between the employer and the plan called for contributions to be made on behalf of each covered employee “up to 12 % of the employee’s yearly gross wages.” The employer considers zero percent to be part of the “up to 12%.” The plan’s payroll auditor is looking at it as if the employer is failing to make contributions and is prepared to assess the full 12% per employee. Who is correct?

Both interpretations […]

Considering the Family Medical Leave Act When Conducting Health & Welfare Fund Audits

Posting by Ron Chandler, CPA

The Family Medical Leave Act (FMLA) has been in existence since 1993. The Act affected health and welfare benefits and, therefore, how contributions were to be made to Health and Welfare Funds.

Our firm assisted and provided input to our Health and Welfare payroll audit clients in 1993 to show how contributions should be made in compliance with the FMLA, and thus the effect on payroll audits. We found that most of the new payroll audit […]