DOL Issues 2022 Adjusted Penalty Amounts

The U.S. Department of Labor (DOL) has announced the 2022 annual adjustments to the maximum civil penalties employers face for various benefits-related violations. Penalties may be assessed on employers for violations of a wide range of laws, including ERISA and the Affordable Care Act (ACA). Employee benefit plans most commonly incur penalties related to failure to provide mandated disclosures and notices. The 2022 adjustments are effective for penalties assessed after January 15, 2022. 

• Summary of Benefits and Coverage (SBC). The maximum penalty for failing to provide the SBC increases from $1,190 to $1,264 per failure.
• Form 5500. The maximum penalty for failing to file Form 5500 increases from $2,259 to $2,400 per day that the filing is late.
• 401(k) Plan Disclosure, Recordkeeping, and Reporting. For plans with automatic contribution arrangements, penalties for failure to provide the required ERISA preemption notice to participants increase from $1,788 to $1,899 per day. Penalties for failing to provide blackout notices or notices of diversification rights increase from $143 to $152 per day. The maximum penalty for failure to comply with the ERISA recordkeeping and reporting requirements increases from $31 to $33 per employee.
• Multiple Employer Welfare Arrangement (MEWA) Filing. Penalties for failure to meet applicable filing requirements, which include annual Form M-1 filings and filings upon origination, increase from $1,644 to $1,746 per day.
• Children’s Health Insurance Program (CHIP). The maximum penalty for failing to inform employees of CHIP coverage opportunities increases from $120 to $127 per day that the filing is late.
• Genetic Information Nondiscrimination Act (GINA). The maximum penalty for failing to meet genetic information restrictions increases from $120 to $127 per day of non-compliance.

Please be advised that this content has been prepared for informational purposes only and should not be relied on for legal or tax advice