Refresher on Penalties & Enforcement

Each year in mid January, the Department of Labor (DOL) adjusts ERISA penalty amounts to account for inflation. This year’s increases are modest and amount to approximately 3%. Below summarizes a few of the penalty amounts that plan sponsors could see imposed on them for various federal law violations. The adjusted amounts apply to ERISA violations that occurred after November 2, 2015, if penalties are assessed after January 15, 2024, and before January 16, 2025.

_{*Notes: figures in bold are subject to annual adjustment}

Below are the current inflation adjusted penalty amounts for failure to file forms 1094 and 1095 with the IRS and failure to provide form 1095 to applicable employees. Both penalties increase to $630 per form if failure is due to “intentional disregard” (criminal penalties may also apply).

• Failure to Furnish 1094/1095 –
  • $60 per form if provided up to 30 days late
  • $120 per form if provided from 31 days late through August 1
  • $310 per form if not provided by August 1
• Failure to File 1094/1095-
  • $60 per form if filed up to 30 days late
  • $120 per form if filed from 31 days late through August 1
  • $310 per form if not filed by August 1