Form 5500 is part the of Employee Retirement Income Security Act (ERISA) reporting. It is required by the Department of Labor (DOL), Internal Revenue Service (IRS), and Pension Benefit Guaranty Corporation (PBGC). The form provides details about an employer’s health and welfare plans, including financial information, plan details, and compliance with ERISA.
For ICHRA, filing Form 5500 depends on whether the plan is considered ERISA-covered and the number of participants in the plan.
Large ICHRA plans:
Employers with an ICHRA plan that covers 100 or more participants at the beginning of the plan year are generally required to file Form 5500.
Small ICHRA plans:
If the ICHRA plan covers fewer than 100 participants, a Form 5500 is generally not required, provided the plan is unfunded (meaning that the benefits are paid from the employer’s general assets rather than a trust or other funding vehicle).
Funded ICHRA plans:
If the ICHRA is funded (where assets are held in a trust or separately), even if fewer than 100 participants are covered, Form 5500 must be filed. However, most ICHRAs are considered unfunded, so this scenario is less common.
The following information is reported in Form 5000:
Plan financial information:
If applicable, the form may require reporting of plan assets, income, and expenses. For most unfunded ICHRAs, this section may not apply.
Plan participants:
Information about the number of employees and dependents participating in the ICHRA.
Plan characteristics:
Descriptions of the type of benefits offered through the ICHRA, including how the reimbursements for individual health insurance premiums are structured.
Compliance information:
Demonstrates that the ICHRA is complying with ERISA regulations, including requirements for plan documents, participant disclosures, and filing of necessary reports.
Form 5500 must be filed by the last day of the seventh month following the end of the plan year. For example, if the plan year ends on December 31, the filing deadline would be July 31 of the following year.
The form is filed electronically through the ERISA Filing Acceptance System (EFAST2).
You will have access to the data necessary to file for employees in the Zorro platform.
Zorro will provide the following information required by the 5500 Form:
Number of participants at the start of the plan year: This includes all employees eligible for the ICHRA.
Number of active participants: The total number of employees currently enrolled in the ICHRA at the start and end of the plan year.
Plan name: The official name of the ICHRA plan.