Why San Diego Businesses Can’t Overlook Employee Benefit Plan Audits

Are You Prepared for a DOL Investigation?

When it comes to protecting your business and your employees’ futures, overlooking an employee benefit plan audit simply isn’t an option. For many organizations, the Department of Labor (DOL) is paying closer attention than ever, especially to those operating in competitive markets like San Diego.

If the DOL were to investigate tomorrow, could your business withstand that level of scrutiny?

Many accounting firms in San Diego offer a range of business accounting and audit services, but not all understand the unique compliance challenges facing employee benefit plans. As a certified public accountant in San Diego, I have seen firsthand how a single oversight can lead to penalties, lawsuits, or even loss of employee trust. If your organization offers retirement, health, or other benefit plans, it’s time to make sure your financial auditor is as vigilant as you are about compliance.

Learn more about Geri’s Employee Benefit Plan Audits.

What Triggers a Department of Labor Investigation?

The Department of Labor (DOL) plays a critical role in overseeing employee benefit plans and ensuring plan sponsors meet all regulatory requirements. Even unintentional errors in plan administration or reporting can prompt a closer look from government agencies.

The Dangers of Non-Compliance

A DOL investigation can be triggered by a late or inaccurate Form 5500 filing, participant complaints, or irregularities found during an employee benefit plan audit. Once the DOL is involved, the process can be stressful and time-consuming for business owners, especially if weaknesses in your auditing services or recordkeeping are uncovered. Relying on a qualified financial auditor helps ensure your plan remains in compliance and your business is prepared for any official review.

Employee Benefit Plan Audit Requirements in 2025—and Beyond

Ensuring your employee benefit plan remains compliant isn’t a one-time task—it’s an ongoing responsibility that evolves with changing regulations. For 2025 and future years, stricter rules and enhanced scrutiny mean more businesses need to be proactive about their audit readiness.

What Is an Employee Benefit Plan Audit?

An employee benefit plan audit is a comprehensive review of your plan’s financial statements, operational processes, and participant data. It’s designed to confirm your plan’s assets are being appropriately managed, that contributions and distributions are accurate, and that you’re meeting requirements established by ERISA and other governing bodies. The audit helps you file a correct Form 5500, ensuring your plan stays off the DOL’s radar.

Why Certified Public Accountants Matter

Working with a certified public accountant in San Diego who specializes in employee benefit plan audits is crucial. A skilled financial auditor not only addresses the employee benefit plan audit requirements for 2023 but also provides insights to help you strengthen internal controls and stay compliant year-round.

The Costly Risks of Ignoring Employee Benefit Plan Audits

Failing to prioritize your employee benefit plans audit can expose your business to significant—and often avoidable—risks. Many business owners assume their existing business accounting and audit services are sufficient, only to discover critical oversights when it’s too late.

Business Accounting and Audit Services: Your First Line of Defense

Inaccurate participant data, missed contribution deadlines, and improper documentation are just a few errors that can go unnoticed without the guidance of a diligent San Diego financial auditor. These mistakes may seem minor, but they can add up quickly, drawing unwanted attention from the DOL and triggering further investigation.

Real-World Examples: Audit Errors That Hurt

Consider a scenario where a company relied on outdated audit processes and failed to detect a recurring reporting error. The resulting DOL investigation led to penalties, damaged employee trust, and a costly legal battle. Investing in comprehensive employee benefit plan audits, delivered by trusted auditing services, shields your business from these unnecessary dangers and protects both your reputation and your bottom line.

Employee Benefit Plan Audit Checklist: Are You Making These Mistakes?

Even well-intentioned plan sponsors can make mistakes that attract DOL scrutiny. A reliable employee benefit plan audit checklist is your best tool in preventing costly errors and staying compliant.

Top Audit Pitfalls for 2025

Some of the most common issues in 2025 include misclassifying plan participants, underreporting employer or employee contributions, and failing to update plan documents when regulations change. Gaps in documentation or incomplete records are frequent triggers for more intensive DOL reviews. Business owners in need of auditing services should work with a financial auditor who stays current with evolving requirements.

How Auditing Services Can Prevent Regulatory Issues

Regularly using a comprehensive audit checklist—and having it reviewed by a certified public accountant—can catch issues before they become problems. Partnering with experienced business accounting and audit services ensures your plan withstands any investigation or audit request.

Red Flags: Who Needs an Employee Benefit Plan Audit?

Not every organization realizes when an audit becomes mandatory. Recognizing the signals that you need an employee benefit plan audit is crucial—especially as regulations tighten in 2025 and beyond.

Employee Benefit Plan Audit Requirement 2025: Plan Size and Other Factors

If your business has 100 or more eligible participants with account balances at the start of the plan year, you’re typically required to undergo an employee benefit plan audit. Sudden growth, new plan features, or changes in employee demographics can all trigger the need for auditing services.

How San Diego Businesses Can Assess Their Risk

San Diego companies should consult with reputable accounting firms to regularly reassess their audit obligations. A certified public accountant can help you stay ahead of red flags so you’re always prepared for regulatory changes or a potential DOL investigation.

Proactive Steps: How Certified Public Accountants in San Diego Can Help

Preparation is the key to protecting your business from audit risks and DOL investigations. Working with a certified public accountant in San Diego who understands employee benefit plans is a wise investment for any company aiming to avoid costly errors.

Choosing the Right Auditing Services

Select auditing services with proven expertise in employee benefit plan audits, not just general accounting. The right financial auditor will help you keep detailed records, monitor compliance, and respond quickly to regulatory changes.

The Value of Experience in Business Accounting and Audit Services

Experienced business accounting and audit services can anticipate issues before they escalate. By relying on professionals who specialize in San Diego’s business landscape, you’ll feel confident your employee benefit plan meets every requirement and stands up to any outside review.

Don’t Wait—Protect Your Employee Benefit Plans (and Your Business)

A single oversight in your employee benefit plan audit can put your company at risk for expensive penalties and loss of trust.

Learn More About Geri’s Employee Benefit Plan Audits

Discover how careful, thorough auditing can bring you peace of mind.

Schedule a Consultation with Geri

Take the first step toward compliance—connect with a trusted financial auditor today.

Learn more about Employee Benefit Plan Audits here.