All large plan filers and certain small plan filers are required to include an accountant's audit report with their annual Form 5500 filing.  The size of the plan (large vs. small) is determined by the number of participants in the plan at the beginning of the plan year.  A participant includes any employee that is eligible for the plan whether or not they are actually participating. 

Generally, a large plan filer is a plan that covers 100+ participants; therefore, a small plan filer is a plan that covers less than 100 participants.  Like many rules, there is an exception.  

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Test your fraud IQ with the following question from the Journal of Accountancy's October 2014 issue

XYZ Corp's management suspects that a vendor, Green Inc., is intentionally billing the company for the same product order multiple times. Which of the following tests would be most helpful in uncovering such a scheme?

A.      Comparing XYZ Corp's vendor master list to its employee master list for matching information.

B.      Selecting a sample of invoices from Green Inc. and recalculating the totals for each line item.

C.      Sorting invoices form Green Inc. by amounts, purchase dates and deliver dates.

D.      Reviewing all purchases from green Inc. that fall just under internal authorization thresholds.

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Now that we have experienced the first year of the new 3.8% "Obamacare" tax, talk to your tax professional at SDK about ways to reduce or eliminate the impact of the tax.  One option would be investing in growth stocks that pay little or no dividends. Another - if you have net rental income subject to the extra tax, find a new passive investment that throws off losses to shelter that net rental income. 

Those are two ways to help minimize the impact of this new tax. SDK Tax Team