Flex Plan-Open Enrollment
jmcaa
224 Posts
Do you request a signed election form for EVERY employee even if they are not electing to participate?
Is there are reason why this is done - or can you put in the instructions that NOT turning in an Election Form means you elect NOT to participate?
I usually request one back for every employee but then I have to contact other offices to try to get forms for about 2 weeks after the deadline. Very time consuming!
Thanks for your help!
Is there are reason why this is done - or can you put in the instructions that NOT turning in an Election Form means you elect NOT to participate?
I usually request one back for every employee but then I have to contact other offices to try to get forms for about 2 weeks after the deadline. Very time consuming!
Thanks for your help!
Comments
Check your plan's SPD and see what your company allows. If there is a provision to allow a no response to equal a declination, you would be OK in not requiring a signature from everyone. You would have the burden, however, of ensuring that you made a reasonable effort to get the message out and ensure that every employee knows about the provision.
Because it is nearly impossible to get every single employee to sign when and where you need for them to, it is common to have a provision in the SPD to allow for a no response.
If your SPD doesn't allow for the no-signature provision, consider developing an electronic verification and work through e-mail, or consider the fax. If all else fails, put a letter together advising the workers of a drop-dead date and mail the letter and required forms to their home addresses via certificate of mailing (about $2 per package) with 2 to 4 weeks to respond. The certificate of mailing will require that the packages be personally delivered to a post office for hand stamping, but in case you are challenged by a worker who claims ignorance of the process, the courts will accept the certificate of mailing as a valid reasonable attempt to get the information to the worker.
Best wishes.
While I don't outright *lie*, I do strongly imply, that the forms are required by the IRS- even if waiving participation- because our auditors always request them.