Who Needs to File?

While cafeteria plans themselves are not typically subject to Form 5500 filing requirements, component benefit plans that are considered Employee Welfare Benefit Plans (EWBPs) may require filing.

What is an EWB?

An Employee Welfare Benefit Plan (EWB), as defined by ERISA, generally refers to any plan maintained by an employer to provide medical, surgical, or hospital care or benefits in the event of sickness, accident, disability, death, or unemployment. 1

Common Examples of EWBs:

• Medical insurance

• Dental insurance

• Vision insurance

• Life insurance

• Disability insurance

• Long-term care insurance

Filing Requirements:

• Plan Size: Plans with 100 or more participants at the beginning of the plan year are generally required to file Form 5500.

• Plan Funding: Self-funded plans (where the employer directly assumes the financial risk for employee healthcare costs) are also typically required to file.

One 5500 or Several?

Employers may choose to file a single Form 5500 for multiple component EWBs, such as medical, dental, and vision insurance, if these plans are considered a single plan under the governing plan documents.

Short Plan Years and Final Returns:

• Short Plan Years: For plan years shorter than 12 months, the Form 5500 filing deadline is typically the last day of the seventh month following the end of the short plan year.

• Final Returns: A final Form 5500 must be filed when a plan terminates. This form is due within seven months of the plan's termination date.

Consequences of Non-Compliance:

Failure to file Form 5500 may result in significant penalties, including:

• Civil Penalties: Up to $2,097 per day for each day the Form 5500 is late.

• Criminal Penalties: In cases of willful violations, penalties may include fines and imprisonment.

Contact your APA Benefits account manager today to learn more about our cafeteria plan administration services and ensure your plan remains compliant with all applicable regulations.