Delinquent Filer Voluntary Compliance Program Penalty Calculator And Online Payment Printer Friendly Version DFVCP Penalty Calculator and Online Payment With Instructions, Examples & Manual Calculations Overview EBSA is providing two web-based options that make participating in the Delinquent Filer Voluntary Compliance Program (DFVCP) easy, quick, and error-free. An online DFVCP penalty calculator is available to help you accurately calculate the payment needed to participate in the DFVCP. You may also conveniently make the payment electronically over the internet. You are not required to use the online calculator or make payments electronically to participate in the DFVCP. However, by using these options, you will avoid making errors that would unnecessarily delay your participation in the program. How the Calculator Works The calculator is designed to calculate the penalty for each plan’s filings submitted under the DFVCP. After you enter the required fields, the calculator determines the amount you owe for each individual plan filing. It then provides a final amount due for all the filings being submitted for that plan. The calculator can be used for only one plan at a time. You must make separate penalty calculations if you are filing under the DFVCP for more than one plan. Filings for multiple years must be included in a single submission for a plan. Penalties are capped at $1,500 per submission for “small plans” (generally, fewer than 100 participants at the beginning of the plan year) and $4,000 per submission for “large plans” (generally, 100 participants or more at the beginning of the plan year). Further reduced penalty caps are applicable to submissions for certain 501(c)(3) organizations and for Top Hat and Apprenticeship programs. For additional details on DFVCP, please review our DFVCP FAQs. How Online Payment Works After you use the calculator to determine the amount owed to participate in the program, you have the option of paying the penalty online. Should you choose to pay the penalty online, select the "Pay Online" button and follow the instructions. You are not required to pay the penalty online. If you would like to make your DFVCP submission through the mail, please review our DFVCP FAQs. The amount due is the same whether your submission is made electronically or by mail. Remember, if you pay online, you need to follow up and send in the original filings to EFAST to participate in the DFVCP. Acceptance of the online payment does not constitute acceptance to the DFVCP. The U.S. Department of Labor is not responsible for any loss of calculations and data. The Department does not monitor or save data you enter online into the DFVCP calculator until the penalty is paid using the online payment function. You cannot save calculations online. You may save your results by printing a copy or copying/pasting a copy into a text document on your computer before terminating your session. For more information on the collection, use and disclosure of personally-identifying information, see the Department's Privacy and Security Statement. Calculator Instructions
The calculator will determine the number of days late and the penalty for each filing. The total penalty for all the filings entered on the calculator will be displayed below the chart. This penalty is only for the filings entered on the calculator. If you have questions about the calculator or the DFVCP, our DFVCP FAQs provide answers to the most commonly asked questions that we receive, or visit the EFAST Web site or call 202.693.8360. Online Payment Instructions Below the penalty amount, you may select the "Continue" button to file electronically. You will be transferred to the DFVCP E-Payment Data Collection page. On this page, enter identifying information about the plan for which you are filing. It is important that this information is accurate and matches the Form 5500s being submitted to EFAST. This information will be part of your DFVCP submission.
Your submission will be reviewed in the near future. Should problems with the submission be discovered, you will be contacted either through your email address or your phone number. If you have questions, you may contact us at 202.693.8360. Example One Facts - The ABC Company is a small company of 47 employees that makes widgets. During some routine housekeeping, it was discovered that the 2002 through 2005 Form 5500s for their 401(k) plan, number 001, were not filed. The plan is on a fiscal year that runs from April 1 through March 30 and had 43 participants in 2002, 48 in 2003, 47 in 2004 and 2005. They have prepared all the forms and will be submitting the forms on June 15, 2007. Using The DFVCP Penalty Calculator The applicant enters the following data into the Penalty Calculator and Online Payment:
The penalty due is limited to $1,500, the per-plan cap for small plans. Example Two Facts - The XYZ Company is a growing company that makes soccer supplies. Over the course of the last five years, the company has grown from 55 employees to nearly 150. During this time the company did not file a Form 5500 for their profit sharing plan, plan number 002. They were recently informed that filings were required and they have since been prepared. XYZ will be submitting the Form 5500s for the plan years 2002 through 2006 on July 10, 2007. Using The DFVCP Penalty Calculator The applicant enters the following data into the Penalty Calculator and Online Payment:
The penalty due is limited to $4,000, the per-plan cap for large plans, assuming that all years are submitted together. The 2006 filing was not late, so there is no penalty for that filing. The 2005 and 2004 filings are large plans, so the penalty is capped at the large plan amount although two filings were small plans. Example Three Facts - The LMNOP Organization is a small literacy group that is teaching adults to read. They are a 501(c)(3) organization and they have a 403(b) plan that has a filing requirement. They were not aware of the need to file the Form 5500 and will be filing on July 11, 2007 for all five years they have had the plan. Using The DFVCP Penalty Calculator The applicant enters the following data into the Penalty Calculator and Online Payment:
The penalty for this plan is $750 assuming that all years are submitted together. Since the plan is sponsored by a 501(c)(3) organization and the plan never exceeded 99 participants, the plan qualifies for the special rule pertaining to small 501(c)(3) organizations. |
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