Does Your Business Need to Comply with ERISA?
The Employee Retirement Income Security Act of 1974 (ERISA) will have an impact on the plans that you have arranged for your employees. A law with very wide-ranging coverage, ERISA provides the foundation for the legalities behind benefit plans of private employers in the United States. If your company fails to follow ERISA, your company is taking a legal risk.
ERISA’s impact on employee benefit plans is so widespread that every business that complies with it must understand:
• What it is
• Whether their benefit plans are covered by the law
• How it works
ERISA enforces the requirements of employee benefit plans, including:
• Employee retirement plans – which provide retirement income for employees.
• Employee welfare benefit plans – which provides employee income for any benefit other than retirement pensions.
If an employer provides the above benefits to employees, it must comply with ERISA.