DOL Releases Inflation Adjustments for 2023 Penalties

The Department of Labor (DOL) recently announced the inflation adjustments for monetary penalties for certain benefit-related violations. The 2023 inflation-adjusted penalty amounts are effective for any civil penalties assessed after January 15, 2023. Notably, plan sponsors who miss the deadline for filing their annual Form 5500s will be subject to a penalty of $2,586 per day, beginning on the date of the failure. Failure to timely provide a compliant Summary of Benefits and Coverage (SBC) under the Affordable Care Act (ACA) subjects a plan sponsor to a penalty of $1,362 per failure. It's important to note that the DOL has discretion to impose lower penalty amounts or waive penalties if the plan sponsor makes good faith correction efforts. The EBSA also sponsors an amnesty program (the Delinquent Filer Voluntary Compliance Program) under which. late filers can voluntarily submit missing Forms 5500. Penalties may be significantly reduced to as little as $10 per day, but the late filer must initiate the filing under the amnesty program. For more information on Form 5500 filing requirements, visit Tax Facts Online. : Q 353.