Things to Think About When Starting a Small Business

| May 1, 2025
Portrait Of A Successful Small Business Owner Holding Flowers And Standing At Bakery Entrance

One way to ensure that your business thrives is to stay ahead of the risks. Check out this list of key concerns to keep in mind as your business grows and evolves.

Many businesses are born from a single brilliant idea. As that idea is put into motion, the company grows. But along with that growth comes risk.

There are over 33 million small businesses in the United States, according to the Small Business Administration. The owners of these businesses face many risks. Would you be prepared if a disaster struck?

You may initially think you are, but there’s a good chance your business isn’t fully protected from loss. Regularly assessing your risks and modifying your plans can help you safeguard your business and stay nimble in the face of evolving threats.

Select a business entity carefully

Maybe you started your business with a specific business entity in mind, such as a sole proprietorship. But as your business expands, this structure may no longer fit your needs. Ask yourself periodically if your business entity setup is still relevant, and whether you need to evolve. Thinking through this question will help minimize your risk.

Many business structure options exist, such as limited liability corporations, limited liability partnerships, general partnerships, S-corporations and C-corporations. Every option has its pros and cons, and whether an option is relevant for your business will depend largely on your circumstances.

Selecting the right structure allows you to create a wall between your personal assets and your business. This is critical when considering your exposure. Speak with an attorney to discuss the details of your business and which business entity is the best fit.

Hold your personal assets carefully

Hold your personal assets strategically to keep them safe. Most business owners hope they’ll never face a lawsuit or another situation that could threaten their assets, but it’s important to consider this risk.

For example, you might decide to invest in a trust or keep some assets in the name of a spouse or child. For smaller businesses, it’s best to keep separate bank accounts for business and personal expenses.

Keep track of your credit

Your personal credit may intersect with your business credit, depending on your business structure. This is a good reason to carefully consider the various entity structures and which one is right for your situation.

For example, operating your business through a specific type of entity may help keep losses and liabilities away from your personal balance sheet and off your credit report. At times, business loans, including business credit cards, may require a personal guarantee. This means you’re personally liable for any debt incurred on the account.

Consider a business owners policy

A business owners policy combines three essential insurance coverages for your small business:

  • Business property insurance for the location you rent or own and any property like tools, equipment or inventory
  • General liability insurance for the cost of property damage, bodily injury or advertising claims
  • Business income (interruption) insurance for lost income if you can’t operate due to a covered event, such as a fire or theft
Think outside the box in terms of professional liability

Doctors, lawyers, accountants and other professionals aren’t the only ones who need professional liability insurance. Anyone who has a special skill or knowledge is considered a professional and could be at risk for a lawsuit alleging malpractice or negligence. For example, wedding planners and hairstylists have faced lawsuits even though most of these businesses don’t think they need professional liability insurance.

Additionally, if you expand your business to cover a new industry, check with your insurance professional. They can help make sure your existing policy extends to the new business.

Plan for business interruptions

A fire, a hurricane or another event can bring your business to a halt. For these and other unexpected events, business interruption insurance is essential. If you suffer a covered event, it will step in to assist with expenses. 

Without business interruption insurance, such an event could put your business in jeopardy. For small businesses, this could mean tapping into your personal savings to keep operations flowing and pay employee wages.

Since business interruption insurance only kicks in for a covered event, talk to your insurance professional about adding flood, earthquake and sewer backup coverage to your policy. Just a few inches of water can cause tens of thousands of dollars in damage. (And you won’t be covered if you don’t have flood or sewer backup insurance.)

When estimating your business income coverage limits, use the annual gross earnings listed on your business financial records.

The bottom line

You’re passionate about your company’s future. One way to ensure it continues to thrive is to stay ahead of the risks. If you need help understanding your business’s risks, arrange a meeting with our team for sound advice.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2024 Applied Systems, Inc. All rights reserved.

New Version of the I-9 Form for 2025

| April 24, 2025
Woman Applying For Visa At Table

U.S. Citizenship and Immigration Services (USCIS) has released a new version of Form I-9, which reintroduces the term “alien” as an option for categorizing an employee’s citizenship or immigration status.

This change aligns the form with statutory language. Previously, in 2023, the Biden administration had replaced “alien” with “noncitizen” in Form I-9 and other official documents, considering “alien” to be dehumanizing.

The updated Form I-9, dated January 20, 2025, and expiring on May 31, 2027, includes several changes:

  • Restored the term “alien”
  • Revised descriptions for two List B documents in the Lists of Acceptable Documents
  • Updated statutory language and a revised DHS Privacy Notice in the instructions

Employers can continue using the Form I-9 with the August 1, 2023, edition date until it expires on May 31, 2027. However, electronic versions must be updated by July 31, 2026 with the new form dated January 20, 2025. 

Starting April 3, 2025, E-Verify and E-Verify+ will update the Citizenship Status selection to reflect the new language. Depending on the form edition used, employees and employers might still see “noncitizen authorized to work” instead of “alien authorized to work” in some E-Verify cases.  

For more information

For more details, you can visit the USCIS website: USCIS Form I-9 Changes

Reach out to OneGroup’s Human Resources Consulting team for an I-9 toolkit to help you prepare in case Immigration and Customs Enforcement (ICE) visits your organization. This toolkit will ensure you have all the necessary documentation and procedures in place to remain compliant with immigration laws.

Source: Cardman, M. (2025, April 7). Minor changes to Form I-9 and E-Verify updates. Brightmine.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Enhancing Return to Work and Timely Claims Reporting in Public Sector Organizations

| April 21, 2025
Coworkers greets their colleague who return to work.

In the public sector, ensuring a smooth and efficient return to work (RTW) process and timely claims reporting is crucial for maintaining workforce productivity and minimizing costs.

At OneGroup, we understand the unique challenges faced by public sector organizations and are committed to providing insights and solutions to enhance these processes.

The Importance of a Robust Return to Work Program

A well-structured RTW program is essential for several reasons:

  1. Employee Well-being: Facilitating a quick and safe return to work helps employees recover faster and reduces the psychological impact of being away from work.
  2. Cost Reduction: Effective RTW programs can significantly reduce the costs associated with long-term disability and workers’ compensation claims.
  3. Productivity: Keeping employees engaged and productive, even in a limited capacity, helps maintain organizational efficiency.
Key Components of an Effective RTW Program
  1. Early Intervention: The sooner an injured employee receives support, the better their chances of a successful return. This includes immediate medical attention and a clear RTW plan.
  2. Communication: Maintain open lines of communication between the injured employee, their healthcare provider, and the organization. This ensures everyone is on the same page regarding the employee’s progress and capabilities.
  3. Modified Duties: Offer temporary or modified duties that accommodate the employee’s current abilities. This helps them stay connected to the workplace while they recover.
  4. Training and Support: Provide training for supervisors and managers on how to support returning employees effectively. This includes understanding the legal requirements and best practices for RTW.
The Role of Timely Claims Reporting

Timely claims reporting is another critical aspect of managing workplace injuries and illnesses. Here’s why it matters:

  1. Legal Compliance: Public sector organizations must adhere to strict reporting timelines to comply with state and federal regulations.
  2. Accurate Documentation: Prompt reporting ensures that all details of the incident are accurately documented, which is crucial for processing claims and preventing disputes.
  3. Cost Management: Delays in reporting can lead to increased claim costs due to prolonged treatment and potential legal complications.
  4. Employee Trust: Demonstrating a commitment to timely and efficient claims handling builds trust with employees, showing that their well-being is a priority.
Strategies for Improving Timely Claims Reporting
  1. Training and Education: Regularly train employees and supervisors on the importance of timely claims reporting and the steps involved.
  2. Streamlined Processes: Implement clear and straightforward reporting procedures to make it easy for employees to report incidents promptly.
  3. Use of Technology: Leverage technology to automate and track the reporting process, ensuring no steps are missed and deadlines are met.
  4. Regular Audits: Conduct regular audits of your claims reporting process to identify and address any bottlenecks or areas for improvement.

At OneGroup, we believe that a proactive approach to return to work and timely claims reporting can significantly benefit public sector organizations. By prioritizing these areas, you can enhance employee well-being, reduce costs, and maintain a productive workforce. For more information on how we can support your organization, please contact us today.

Contact Us

To learn more about unique public sector risks and how to address them, contact OneGroup’s team.

Matt Maguire, Regional President, North Country at [email protected].

Todd Goodman, Risk Management Consultant at [email protected].

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

4 Strategies to Streamline Your Hiring Process

| April 18, 2025
Waiting for a job interview!

A slow hiring process could mean losing top talent.

According to Robert Half International, 62% of job candidates will drop out of consideration if they don’t hear about their application within 10 to 14 days.

The hiring process can easily become bogged down. Steps include posting a job, accepting applications, sorting through candidates, communicating with potential hires and scheduling interviews. Today’s hiring practices often include multiple rounds of interviews. And then you have to select a finalist and negotiate your job offer.

But when the hiring process takes longer than it needs to, you may miss out on qualified candidates who get frustrated or find work elsewhere. Learning strategies to speed up your hiring method can benefit your candidates and your organization.

The challenge

The time it takes to hire candidates varies by organization and industry. Separate data from the talent acquisition platform TalentLyft and the jobs site Indeed show the process often takes 30 days or more.

TalentLyft notes that the time-to-hire metric typically starts when a candidate applies and ends when they accept an offer. When that time reaches a month or more, it’s common for in-demand talent to drop out or accept other offers.

On the other hand, you don’t want to rush and make the wrong hire. According to the HR solutions firm TriNet, the wrong hire costs an average of $17,000 in wasted resources.

These figures make it critical to speed up the hiring process without compromising on the quality of your candidates.

A faster process benefits more than applicants, notes the recruitment software company Occupop. Your organization also stands to gain. Faster hiring:

  • Saves time for HR and recruiting teams
  • Results in fewer candidates dropping out of consideration
  • Reduces the work current employees perform for unfilled positions
  • Improves productivity and profitability by getting candidates in roles and up to speed
Four strategies to speed up your hiring process

These steps can help your organization move forward more quickly with quality candidates:

  • Write accurate job descriptions.
  • Embrace technology.
  • Be transparent.
  • Remove interview redundancies.
Write accurate job descriptions

A detailed job description can increase the quality of your candidates while reducing their quantity. This effort saves time during the review process. You can get to phone and in-person interviews with the most qualified applicants more quickly.

Job descriptions should be concise and easy to understand. Ask current employees to help define the role’s necessary technical and soft skills. TriNet recommends incorporating your organization’s mission, values and business needs.

Focus on required skills and experience, performance goals and attributes for success. According to DeVry University, less than 20% of hiring managers say most candidates have the required skills. Being clear about this aspect can save valuable time on both sides.

Embrace technology

HR administration software and generative AI tools can save time by automating administrative tasks and processes.

For example, you can sync calendars through automated scheduling tools. This scheduling process allows candidates to pick dates and times that work for them and the interviewers. Occupop reports that one-click applications keep more candidates active and engaged. These applications typically pull candidates’ relevant information from job sites and allow them to apply online with a single click. An applicant tracking system lets you post jobs to multiple sources, centralizes resumes and encourages collaboration between hiring managers.

More than half of recruiters say screening applicants takes the most time. Generative AI can quickly review candidates based on your parameters. According to the talent marketplace Ideal, AI tools can reduce hiring time by up to 25 days.

Be transparent

The term “breadcrumbing” means providing candidates with small pieces of information while you expand your search or talk to other applicants. You’ll lose good talent this way, notes Inc. magazine. When applicants drop out, it often lengthens the hiring process. Sometimes you have to start your search all over again.

Instead, communicate early and often about your hiring process and timeline. Create clear steps for candidates, and then stick to your word. If delays occur, be transparent. Communicate about application status, interview types (e.g., phone, video, in person), the number of interview rounds, and when candidates can expect to hear back after each step.

Remove interview redundancies

It’s common for candidates to go through multiple rounds of interviews. Phone and video interviews with qualified recruiters can evaluate and eliminate candidates earlier in the process. This step reduces the number of in-person interviews, which take more time and resources.

Once in-person interviews have been scheduled, work with your teams to find out what’s most important for them to learn from the candidates. Avoid asking the same questions or having applicants complete unnecessary tasks to get the job. Candidates want to see that your teams are efficient and cohesive.

Use group interviews to reduce the number of interview rounds. Group interviews also allow for different perspectives on the same candidate. They can help you more quickly select the right candidate.

Scoring candidates on a numerical system can decrease the time it takes to reflect on candidates and debate which ones stood out. A numerical rating system evaluates candidates based on desired traits, skills and experiences. It’s essential to ensure your system is consistent for all candidates. Ask the same sets of questions and train interviewers on how to use your rating process.

Examine your hiring process

Efficient hiring strategies can speed up your process without compromising on quality. A faster, effective hiring process attracts talent, improves the candidate experience, and saves your organization time and resources.

For more ideas, talk to your benefits adviser. They can review your hiring practices, explore technology solutions and tailor your recruiting processes to fit your needs.

Need more information?

For support on this topic, contact our HR Consulting team.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2024 Applied Systems, Inc. All rights reserved.

Maximizing Medicare Savings

| April 17, 2025
Beautiful retired female using portable computer for remote work. Cheerful elderly woman enjoying online communication, talking to son via virtual chat on laptop. Aged people and electronic devices

A Guide to Cost-Saving Programs

At OneGroup, we understand that navigating the complexities of Medicare can be overwhelming. That’s why we’re here to help you make informed decisions about your healthcare coverage and maximize your savings. In this blog post, we’ll explore various cost savings programs available to Medicare beneficiaries, including Medicare Savings Programs (MSPs), the Elderly Pharmaceutical Insurance Coverage (EPIC) program, the Low-Income Subsidy (LIS), and Pharmaceutical Patient Assistance Programs.

Medicare Savings Programs: FBDE vs. QMB vs. QI1

Medicare Savings Programs (MSPs) are designed to help individuals with limited income and resources pay for Medicare premiums, deductibles, and other out-of-pocket expenses. There are three main types of MSPs:

  1. Full Benefit Dual Eligible (FBDE): This program provides comprehensive coverage for individuals who qualify for both Medicare and Medicaid. FBDE beneficiaries receive assistance with Medicare Part A and Part B premiums, as well as cost-sharing for services covered by both programs.
  2. Qualified Medicare Beneficiary (QMB): The QMB program helps pay for Medicare Part A and Part B premiums, deductibles, coinsurance, and copayments. To qualify, individuals must meet specific income and resource limits. For 2025, the income threshold for QMB is $1,753 per month for an individual and $2,371 per month for a couple.
  3. Qualified Individual (QI1): The QI1 program assists with Medicare Part B premiums for individuals with slightly higher incomes than those eligible for QMB. The income limit for QI1 in 2025 is $2,355 per month for an individual and $3,189 per month for a couple. Unlike QMB, QI1 is a limited program, and applications are approved on a first-come, first-served basis.
EPIC and LIS: Additional Support for Prescription Costs

In addition to MSPs, there are other programs available to help with prescription drug costs:

  1. Elderly Pharmaceutical Insurance Coverage (EPIC): EPIC is a New York State program that provides seniors with additional coverage for prescription drugs. It works alongside Medicare Part D to lower out-of-pocket costs for medications. To qualify, individuals must be 65 or older, reside in New York State, and have an annual income below $75,000 for individuals or $100,000 for couples.
  2. Low-Income Subsidy (LIS): Also known as “Extra Help,” LIS is a federal program that helps low-income individuals pay for Medicare Part D premiums, deductibles, and copayments. Eligibility is based on income and resource limits, and those who qualify can receive significant savings on their prescription drug costs.
Pharmaceutical Patient Assistance Programs

Many pharmaceutical companies offer Patient Assistance Programs (PAPs) to provide free or low-cost medications to individuals who cannot afford them. These programs typically have specific eligibility criteria based on income and insurance status. By enrolling in a PAP, you can access the medications you need at a reduced cost or even for free.

Maximizing Your Savings with OneGroup

At OneGroup, we’re committed to helping you navigate the various cost savings programs available to Medicare beneficiaries. Our team of experts is here to provide personalized guidance and support, ensuring you make the most of your healthcare coverage. If you have any questions or need assistance with enrollment, don’t hesitate to reach out to us.

Stay informed, stay healthy, and let OneGroup be your trusted partner in navigating Medicare. Click here to get in touch OneGroup’s Medicare team for more information.

We are not a government agency. We are licensed insurance agents who discuss insurance programs such as Medicare Advantage, Medigap, and Medicare Part D Prescription Drug Coverage. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-Medicare to get information on all of your options.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

The Future Outlook of Surety Bonding in New York & Pennsylvania

| April 15, 2025
Explore the vibrant skyline of Chicago with its illuminated skyscrapers and bustling urban life captured at dusk.

As we move further into 2025, the surety bonding market in New York and Pennsylvania is poised for significant growth and transformation.

Driven by economic, legislative, and technological factors, the future of surety bonding in these states presents both opportunities and challenges for contractors, surety companies, and stakeholders.

Economic and Legislative Drivers

In New York, the surety bonding market is being influenced by substantial infrastructure investments. The Infrastructure Investment and Jobs Act (IIJA) continues to inject funds into various projects, including roads, bridges, and public transit systems

Additionally, recent state legislation, such as the CHIPS Act and New York Senate Bill S4840, mandates surety bonds for contractors and subcontractors on public improvement projects where no public fund has been established.

This legislative push is expected to increase the demand for surety bonds, ensuring that contractors meet their obligations and that public projects are completed efficiently.

Similarly, Pennsylvania is experiencing a surge in infrastructure projects fueled by federal funding and state initiatives. The state’s focus on modernizing its transportation and energy infrastructure is driving the need for surety bonds

The Inflation Reduction Act (IRA) and the CHIPS Act are also contributing to this demand by promoting renewable energy and technology projects

Technological Advancements and Cybersecurity

The adoption of digital platforms and technological innovations is transforming the surety bonding process in both states. Digital tools are streamlining the application, approval, and issuance of bonds, reducing paperwork and improving efficiency

However, this digital shift also brings increased cybersecurity risks. Surety companies are now adapting their products to address these risks, ensuring that bonds cover potential cyber incidents and data breaches

Environmental and Sustainability Concerns

Environmental consciousness is becoming a significant factor in the surety bonding market. Both New York and Pennsylvania are emphasizing sustainability in their construction projects. Surety bonds are increasingly being used to ensure compliance with environmental regulations and sustainability standards

This trend reflects a broader shift towards responsible and eco-friendly business practices.

Market Challenges and Opportunities

While the future looks promising, the construction industry and its surety industry partners in Pennsylvania and New York are facing several challenges. Rising construction costs and the availability of skilled labor continue to be problems. There is also a growing trend in construction contract language that is unbalanced and passes more risk to the bonded contractor and its surety. While material and equipment supply issues have eased since the pandemic years, availability, long lead times, and short price guarantees from suppliers and manufacturers are still ongoing challenges for the construction industry.

Despite these challenges, there are significant opportunities for growth. The ongoing need for infrastructure development, coupled with legislative support and technological advancements, will sustain the demand for surety bonds. Surety companies that can navigate these challenges and adapt to the evolving landscape will be well-positioned for success.

The future of surety bonding in New York and Pennsylvania is shaped by a combination of economic, legislative, and technological factors. By staying informed about current trends and adapting to the changing environment, industry stakeholders can capitalize on the opportunities and overcome the challenges ahead. The surety bonding market in these states is set to thrive, ensuring the successful completion of public projects and the financial stability of contractors and subcontractors.

For more information, reach out to our Surety Team Here.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Avoid These Common Form 5500 Errors

| April 14, 2025
Working hard to grow his business

An accurate and thorough Form 5500 is essential to protect employee benefits plans and participants. Review these mistakes before filing Form 5500 to ensure compliance and avoid penalties.

The annual Form 5500 allows the IRS and Department of Labor (DOL) to monitor pension and welfare benefits plan compliance. Compliance is essential to ensure administrative best practices and financial protection of promised benefits. On an organizational level, filing thorough and accurate information in your Form 5500 is also necessary to avoid penalties. Reviewing common errors in Form 5500 can help you stay compliant and strengthen the standing of your employee benefits plans.

Common mistakes in Form 5500

Errors may be common, but they can still be costly. Forbes magazine reports that the IRS and DOL can fine companies for insufficient or inaccurate information on Form 5500. IRS penalties can reach $250 a day up to $150,000 for the plan year until your form is properly filed. The DOL penalty is $2,670 a day, and there is no maximum to this penalty.

Common errors involve:

  • Recordkeeping entries
  • Plan type
  • Plan participants
  • Excess or incorrect deferrals
  • Plan termination
  • Fraud declarations
  • Changing regulations
  • Signatures and validations
Recordkeeping entries

The need for accuracy isn’t a secret. Even still, simple entry errors are all too common. According to the payroll and HR solutions firm Paychex, organizations often input the wrong plan number or employer identification number (EIN).

Another common entry error is failing to update inputs from previous years. Form 5500 is an annual report. This makes it enticing to reuse information from previous years. However, this practice can also lead to accidentally using incorrect numbers or codes from past forms.

Plan administration provider Congruent Solutions also warns against leaving blank spaces in Form 5500. Fill out “N/A” to let regulators know you’ve read the information and it does not apply to your plan.

Double-check your form every year to ensure accuracy and guard against recordkeeping errors.

You also need to file a Form 5500 for all applicable plans. If you have multiple welfare benefits plans, you may want to consolidate them into a single plan with a wrap document. Doing so enables you to file one Form 5500 instead of multiple forms for each benefits plan. This strategy reduces the odds of not filing a required Form 5500.

Your insurance broker or benefits adviser can help you create a wrap document that is compliant with plan documentation, communication and deadline requirements.

Plan type

According to the advisory, tax and auditing services firm Withum, many organizations wrongly mark their 401(k) plan type because they confuse single-employer and multiemployer plans.

A multiemployer plan is created through collective bargaining. It covers two or more unrelated employers in the same or related industry.

It’s commonly assumed that a single-employer plan refers solely to a plan created and maintained by one company. However, a single-employer plan can also cover multiple companies when those businesses share common control. Examples include parent-subsidiary and brother-sister business relationships.

The IRS tracks controlled groups to ensure compliance with 401(k) nondiscrimination rules, notes the 401(k) provider Employee Fiduciary. Incorrectly inputting your plan type can lead to fines and put your plan at risk for disqualification. Work with your broker or benefits adviser to determine your plan status before filing Form 5500.

Plan participants

According to the legal writing site LexBlog, recent changes have corrected and created misunderstandings when counting plan participants. Before the 2023 plan year, “active participants” included anyone eligible for a plan. Beginning on Jan. 1, 2023, the plan count methodology changed. Now, the term “active participants” refers to individuals with an account balance in your plan.

Before 2023, organizations often incorrectly stated they had zero participants for new plans because eligible employees had yet to accumulate account balances. While that aspect is no longer a concern, the new distinction is still important for plans near the 100-participant threshold. Plans with 100 or more participants require an annual audit from an independent qualified public accountant.

An inaccurate understanding of plan participants could lead to noncompliance with Form 5500 requirements. Work with a trusted adviser to get an accurate count of your plan participants each year.

Excess or incorrect deferrals

Forbes recommends that plan sponsors closely review retirement plans for excess deferrals. This mistake occurs when plan participants exceed their annual contribution limit. It can result from participant or plan accounting errors, which are often unintentional.

Another common error is directing contributions intended for a 403(b) or 457 plan to a 401(k) plan.

Catching these errors before filing Form 5500 can benefit your plan and its participants. Plans must demonstrate sound administrative practices and safeguards to stay in good standing with regulators. In addition, you must return excess deferrals to participants by April 15 in the year following the excess contributions. This error may also require you to amend a participant’s W-2 form to include excess deferrals as taxable wages.

Plan termination

Some organizations mistakenly believe they don’t need to file Form 5500 when they terminate a plan, reports Paychex. However, Form 5500 requirements don’t end when a plan is terminated. Companies are still required to file Form 5500 until all plan assets have been distributed.

Paychex reports the following common errors regarding plan terminations:

  • Failing to file Form 5500 when the plan still has assets
  • Mistakenly identifying a plan as terminated when it is frozen or active
  • Not marking Form 5500 as a final return when a plan is terminated
Fraud declarations

Form 5500 asks organizations to declare whether a plan has lost funds due to fraud or dishonesty. If you have not suffered these losses, Congruent Solutions recommends entering “N/A” on your form rather than leaving this spot blank.

A blank space or an incorrect response could lead regulators to think you are evading the question or your plan experienced fraudulent or dishonest losses. Providing an answer lets regulators know you have seen the question and your plan has not experienced these losses.

Changing regulations

Another common error is failing to adapt to new regulations. For example, LexBlog notes recent changes to required financial information on Schedule H of Form 5500.

Schedule H now requires a list of administrative expenses to ensure your plan is paying reasonable fees and receiving appropriate services in return. According to LexBlog, you must report the following administrative expenses:

  • Salaries and allowances for plan employees
  • Actuarial fees
  • Auditing fees
  • Legal fees
  • Recordkeeping fees
  • Trustee/custodial fees
  • Valuation/appraisal fees
  • Other expenses, such as office equipment, supplies, rent and similar costs related to the operation of your plan

Identify a point person or work with a trusted adviser to track new and changing regulations for employee benefits plans in general and Form 5500 in particular.

Signatures and validations

According to Withum, invalid signatures are a top reason organizations receive an error message on Form 5500. The signature must come from a registered and credentialed signer. You can acquire credentials through the DOL’s ERISA Filing Acceptance System (EFAST2).

EFAST2 also offers a prevalidation check to scan for errors, reports Withum. It checks to make sure your data is consistent with Form 5500 requirements. If you do not correct highlighted errors, regulators will receive an alert for your form.

Turn to trusted partners

It’s important to carefully review and submit your Form 5500 each year. Work with a trusted partner to complete and validate your form.

For more information on Form 5500 and evolving regulations, reach out to our Employee Benefits team and we’ll be happy to help. They can help you review and file your annual Form 5500 reports. 

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem.

Copyright © 2024 Applied Systems, Inc. All rights reserved.

Be Prepared for an OSHA Safety Audit

| April 11, 2025
Industry Inspector

Maintaining a safe workplace is the best way to pass an OSHA inspection, but good recordkeeping and efficient follow-up are gold star practices.

Whether it’s in response to a reported severe injury, a worker complaint or simply random selection, forward-thinking employers should plan for a visit from the Occupational Safety and Health Administration (OSHA). Those that are not compliant with OSHA rules are subject to citations and hefty fines.

OSHA warns that notice of an inspection is unlikely, so when it comes to preparation, there’s no time like the present.

Here are some tips when faced with an OSHA inspection.

  • Have a good attitude. An OSHA inspector’s report will include notes about the employer’s cooperativeness, so it’s key to assign an individual who will not act in an adversarial manner to meet with the inspector. An employee representative (such as a union labor leader) can also join the safety inspection.
  • Document training. Collect and organize by date all documentation relating to your safety and training programs. Records detailing meeting attendance, participation and agendas are essential.
  • Keep incident records. Ensure injury and illness records are up to date and go back at least five years.
  • Assess your risk. Be prepared to show documentation of any hazard assessments (such as those regarding personal protective equipment) for at least the past five years. You want to show good faith in correcting hazards and maintaining a safe workplace.
  • Have a disaster plan. Make available copies of current emergency action plans, injury and illness prevention programs, hazard communication programs, safety data sheets and chemical inventories. If you haven’t checked your written programs lately, now’s the time.
  • Keep qualifications up to date. Have copies of current licensing and certification documents for equipment operators.
  • Be an active participant. Any pictures or video taken by the inspector will not be shared with you, but you can (and should) document the inspection with your own pictures and ask questions of the inspector.
  • Take notes and follow up. During the walk-through, the inspector may point out hazards in plain sight (such as cluttered exit areas or a missing handrail) even if it’s not part of the initial scope of the inspection. Employers should document such hazards and take corrective measures right away. If it’s something you can fix immediately (such as having an employee clear a blocked exit), do it while the inspection is in progress. At the end of the inspection, you can show the inspector that you’ve corrected the issue. Document the before and after. This shows good faith and a real interest in maintaining a safe workplace.
  • Make employees available. Designate a place where the inspector can interview a random selection of employees. The interviews typically take only a few minutes and the employee may choose to have a supervisor or union representative present.
  • Correct delinquencies. After the inspection, expect OSHA to follow up within a few weeks with a detailed report of findings. You must correct any issues that were found in the inspection and do everything you can to correct the safety hazards listed. Before the OSHA follow-up, collect evidence of any corrective measures you’ve already taken (such as adding a handrail or locating paperwork previously missing) to share during the follow-up.
  • Look into free help from OSHA. Should action be required, you might want to ask about OSHA’s free consultation services during the follow-up. These services are normally offered to small and midsize businesses and can assist you with making corrections.
For more information

Your insurance professional is a good resource for information on additional risk management offerings (such as training or written program assistance) that may accompany your insurance policy. Contact OneGroup’s Risk Management team for more information on preparing for an OSHA safety audit.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2024 Applied Systems, Inc. All rights reserved.

Protect Your Subcontracting Business From Big Claims

| April 10, 2025
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Whether you own a small plumbing business or a large excavation company, make sure you’re adequately insured if you sign on as a subcontractor to a construction project.

While the general contractor (GC) is responsible for managing the project and ensuring the job is completed on time, you could still be liable if something goes wrong.

If one of your employees is injured on the job, you could be subject to a workers’ compensation claim. If faulty workmanship on your part causes damages or injuries, you could be held liable. If you fall behind schedule or your expenses exceed the contracted amount, you could be sued by the GC. You could also be named in a lawsuit if the owner of the project has a dispute with the GC. The blame for an accident or delay could be shifted to you, even if it isn’t entirely your fault.

Since a big loss could potentially bankrupt your business, you’ll want to make sure you’re adequately protected. A good first step is to talk to an insurance professional who specializes in construction.

Checklist for subcontractors

Let’s review some of the basic protections you should have as a subcontractor.

  • Are you licensed and bonded? Most contractors who do work above a specified dollar amount or perform specialized work such as electrical, plumbing, or heating and air conditioning must be licensed and bonded in their state. In addition, you may need to obtain a performance bond. Performance bonds provide certain guarantees in the event you default on a job. If you’re a critical-path subcontractor, your GC may require you to have a bond or carry subcontractor default insurance.
  • Do you have a work contract with the GC? Make sure you have a contract that outlines the scope of your work, the length of the project, terms of your payment and how claims are to be handled. Most GCs have standard contracts.
  • Are you able to meet your GC’s insurance requirements? Your contract with the GC will likely stipulate what forms of insurance you need for the job. The GC’s insurer will want the limits of your commercial general liability (CGL) coverage to meet or exceed the GC’s policy (see CGL below). The GC’s insurer may also require you to hold the GC harmless if there is a claim on work you performed. This is usually accomplished through an indemnity clause.
  • Do you have certificates of insurance? Your GC may ask you to provide certificates of insurance proving that you carry CGL and workers’ comp insurance. Certificates of insurance can also be a competitive advantage when you bid on a job, since they indicate you already have coverage.
CGL coverage

CGL is a common coverage nearly every contractor carries and one that’s required on many construction projects. CGL covers injuries or damages caused by your company. Typical examples include injuries to individuals (other than your employees) on job sites, property damage and faulty work. CGL covers the cost of your legal defense and pays damages, up to the limits in your policy, if you are found liable.

It’s important to note that CGL doesn’t cover negligent professional acts. These would be covered by a separate professional liability policy.

Workers’ compensation insurance

Workers’ comp covers employees for injuries sustained on the job, and is required in nearly every state. Subcontractors in particular need this coverage because injuries are more frequent on construction sites.

Most GCs will require their subs to have workers’ comp coverage as a condition of the job. However, GCs are responsible for providing workers’ comp benefits if the subcontractor is uninsured.

An insurance professional who specializes in the workers’ comp market can review your experience rating (ex-mod) and recommend ways to lower your premium costs. Keep in mind that your premiums will be higher if you’d had previous claims or your employees are classified as working in a particularly dangerous occupation, such as roofing or excavation.

Wrap-up policies

For large construction projects, the owner or the GC may elect to use a controlled insurance program known as a wrap-up. Wrap-ups consolidate all of the coverage needed for the project, and they cover all of the contractors on the job. These policies typically include CGL and workers’ comp. In exchange for this coverage, you’ll be asked to reduce your bid by the amount you would normally include for insurance costs.

Other coverages you may need

CGL and workers’ comp are the two main policies you’ll need as a subcontractor, but there are other types of insurance you should consider, too. Here are a few to think about:

  • Commercial property insurance protects your company’s physical assets from fire, theft or other covered losses. These policies typically cover buildings, equipment, furniture, personal property, inventory and tools.
  • A business owners policy (BOP) is a bundled insurance policy that includes general liability and property insurance in one policy. It’s usually less expensive than buying the same coverage separately. You may also benefit from a commercial package policy, which is similar to a BOP but with more coverage options.
  • Inland marine insurance protects your tools, equipment and materials while in transit or on job sites. Some BOPs provide limited inland marine coverage, but additional insurance may be needed for high-value items. Keep in mind that property insurance protects items stored at the location named in the policy, so items being carried to or from a job site might not be covered.
  • Builders risk is a form of inland marine insurance that protects a construction project in progress. It insures against property losses and covers any materials, supplies or equipment that are on site or in transit. A form of builders risk called installation floater insurance can cover any materials, supplies or equipment used to install, fabricate or erect property on a job site.
  • Professional liability, or errors and omissions insurance, protects you against lawsuits if you provide professional services such as surveying, engineering or architectural services.

Working on a construction project can be exciting and profitable. It can mean steady work for an extended period of time and perhaps lead to additional projects. But keep in mind that, as a sub, you’re exposed to many risks. Take steps to protect yourself legally by securing a contract that details your work requirements and terms of payment. And talk to an insurance professional about CGL, workers’ comp and other coverages you’ll need to avoid big financial losses.

Need more information?

Looking for more information on these topics? Connect with our team today.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2024 Applied Systems, Inc. All rights reserved.

The Basics of Form 5500

| April 4, 2025
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Form 5500 ensures employee benefits plans meet annual reporting requirements and regulations. Explore vital details and deadlines for Form 5500 to ensure plan compliance. 

Is your employee benefits plan subject to the Employee Retirement Income Security Act (ERISA)? If so, it’s essential to understand the Department of Labor’s (DOL’s) annual filing requirements for IRS Form 5500.

Applicable plans include health and welfare, retirement and self-funded plans. You must file Form 5500 if your benefits plan holds its assets in a trust or has 100 participants or more at the beginning of the plan year.

The Form 5500 series also includes forms for one-participant plans and nonexempt plans with fewer than 100 participants at the beginning of the plan year. Common exemptions include:

  • Church plans
  • Governmental plans
  • Welfare benefit plans with fewer than 100 participants at the beginning of the plan year and that are unfunded, fully insured, or a combination of unfunded and insured

Work with your benefits adviser to determine your exemption status and the forms you must file.

The IRS, DOL and Pension Benefit Guaranty Corporation jointly created the Form 5500 series to monitor pension and welfare benefits plan compliance. Form 5500 ensures that benefits plans meet annual reporting requirements and regulations under the Internal Revenue Code and ERISA.

Form 5500 requires information on the following aspects of your plan:

Operations and administration, including insurance and service provider details

Plan qualifications

Financial conditions

Investments

Plans that must file Form 5500

You file Form 5500 with the DOL to ensure compliance with all regulations. Plans include:

  • Medical
  • Dental
  • Life insurance
  • Disability
  • Health reimbursement arrangements
  • Flexible spending accounts
  • 401(k) plans
  • Profit-sharing plans
  • Stock bonus plans
  • Money purchase plans
  • Pension plans
  • Individual retirement accounts established under Internal Revenue Code Section 408(c)

You may want to consolidate multiple welfare benefits plans into a single plan with a wrap document. Doing so can simplify your reporting and compliance requirements. It can also reduce costs and administrative efforts. A wrap document enables you to file one Form 5500 instead of multiple forms for each benefits plan.

The insurance solutions firm Acrisure notes that a wrap document provides comprehensive, ERISA-required information. It can summarize all of your plans, coverages, benefits, eligibility requirements and other compliance information into a single, easy-to-understand document.

If you have multiple benefits plans, ask your broker or benefits adviser about creating a wrap document. They can ensure compliance with plan documentation, communication and deadline requirements. Note that you must issue your wrap document before filing Form 5500.

The Form 5500 series

The Form 5500 series consists of three forms:

  • Form 5500
  • Form 5500-SF
  • Form 5500-EZ

Forbes magazine reports that the form you need depends on your business size and structure. The following table outlines when each of the forms applies.

Company size/structure
Required form
Companies with 100 or more plan participantsForm 5500
Nonexempt organizations with less than 100 participants at the beginning of the plan yearForm 5500-SF (This is a simplified and shorter form.)
Businesses with one plan participant, e.g., a company owner or partner with a stand-alone retirement planForm 5500-EZ
Deadlines

You must file Form 5500 electronically by the last day of the seventh month following the end of your plan year. For calendar year plans, the Form 5500 deadline is July 31. If you use a wrap document, you must write it and make it effective before the Form 5500 deadline.

File your form using the ERISA Filing Acceptance System (EFAST2). You can access the EFAST2 website here.

If you need an extension, you must file Form 5558 before your plan’s deadline. The one-time extension provides an additional 2½ months to complete Form 5500.

Meeting deadlines is crucial to avoid penalties. The advisory and public accounting firm Withum reports that late filings can result in fines from the IRS and DOL. The IRS penalty is $250 each day that Form 5500 is late, up to $150,000 for the plan year. The DOL penalty is $2,586 a day, and there is no maximum to this penalty.

The DOL encourages employers to self-correct violations of ERISA reporting requirements. The Delinquent Filer Voluntary Compliance Program (DFVCP) can help you voluntarily correct violations if you file Form 5500 late or fail to file. The DFVCP allows you to satisfy DOL requirements and reduce civil penalties.

For more information about the DFVCP, visit the EBSA’s Correction Programs webpage.

Summary annual report

The payroll solutions company Justworks notes that you must also provide plan participants with a summary annual report outlining the information in Form 5500. This report includes information on your plan’s financial condition and highlights participants’ right to receive a copy of the full annual Form 5500. You must distribute the summary annual report to plan participants within two months of your Form 5500 deadline.

  • The summary annual report deadline for calendar year plans is Sept. 30.
  • If you receive a Form 5500 filing extension to Oct. 15, your summary annual report deadline is Dec. 15.
Additional resources

For more information on Form 5500, turn to IRS and DOL resources:

The IRS Form 5500 Corner links to official forms and guidance for completing the required information.

The DOL Form 5500 Series provides access to current tax forms and the electronic filing system for the forms.

For additional support, talk to your insurance broker or benefits adviser. They can help you complete and file the required forms. They can also refer you to vetted accountants or other tax professionals for further guidance and compliance.

Have questions?

For more information on form 5500, reach out to our Employee Benefits team and we’ll be happy to help.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem.

Copyright © 2024 Applied Systems, Inc. All rights reserved.