Delinquent Filer Voluntary Compliance Program Penalty Calculator And Online Payment
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Friendly Version DFVCP Penalty Calculator and Online Payment
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.
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.
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.
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Answer Yes or No to the four questions at the top of the
calculator:
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If filing a Form 5500-EZ you are not eligible to use the DFVCP.
You may contact the IRS at 877.829.5500 for further information.
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If filings are for a small plan sponsored by a Code section
501(c)(3) organization including a Code section 403(b) plan, the
per-submission cap is $750. See the DFVCP
FAQs for further
information.
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If you are a Top Hat or an Apprenticeship Training program your
penalty is $750 regardless of the number of plans maintained by the sponsor or the
degree of lateness. See the DFVCP
FAQs for further instructions.
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If this plan is eligible to use the “80-120” participant rule
(29 CFR §2520.103-5(d)), the plan may be able to use the small plan
penalty cap.
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Enter the plan number of the filing(s) being submitted. Note: One
plan per calculator submission.
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Enter the day the plan year ended, the number of Beginning of the
Year Participants (see line 6 of the applicable Form 5500), and the date the filing will be
submitted to EFAST. If the filing was already submitted, call
866.463.3278 to ascertain the receipt date and enter that date. If another filing for this plan is being submitted under the DFVCP,
select the “Add Another Year” button and follow instruction #3.
Continue until all filings that are being submitted for this plan have
been entered.
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Once all plan year filings are entered, select the
"Enter/Calculate"
button to get the penalty amount.
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.
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.
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Complete all line items:
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Sponsor Name – enter the name of the sponsor of the plan as it
appears on the most recent Form 5500.
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Sponsor EIN – enter the EIN of the sponsor of the plan as it
appears on the most recent Form 5500.
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Administrator Name – enter the name of the administrator as it
appears on the most recent Form 5500. If the administrator is the same
as the sponsor, enter same.
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Administrator EIN – enter the EIN of the administrator as it
appears on the most recent Form 5500. If left blank on the Form 5500,
leave blank. This is the only field that maybe left blank.
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Plan Name – enter the name of the plan as it appears on the most
recent Form 5500.
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Plan Number – this is automatically entered based on the plan
number entered on the calculator. It can not be changed.
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Contact Name – enter the name of a contact person who would be
able to answer questions about this filing. Enter both first and last
name.
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Contact Email – enter the email address of the contact person.
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Contact Phone Number – enter the phone number of the contact
person.
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Type of Plan – select the type of plan that you are filing for.
Please note that Form 5500-EZ filers are not eligible for the DFVCP.
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After entry of plan information, review the Summary of DFVCP
Calculator Results for completeness. The filings listed in this section
are the filings that are being submitted to the DFVCP. Should you wish
to submit additional filings for this plan, you must use the "Back" button
and enter those filings. (The plan information will be not be saved). After completing this transaction, you cannot add any
more filings to the submission just completed. You will need to make a
new submission and pay the applicable penalties.
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Review the five statements and check the confirmation box. In
order to continue with online payment, you must agree to these
statements.
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After agreeing to the statements, you will
go to the
Pay.Gov site, which is a Department of Treasury Web site. Pay.Gov is a 3
step process where you will enter your payment information then receive
confirmation of the transaction.
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Step 1: Enter Payment Information. You may pay using either your
Bank Account (Option 1) or using a Plastic Card (Option 2). Enter all
the required information and select the "Continue" button. You may not
change the payment amount. The only allowed payment amount is the amount
calculated by the DFVCP Calculator based on the information that you
entered.
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Step 2: Authorize Payment contains a summary of your information,
the account information, and the payment information. You may enter an
email address where a confirmation email will be sent. If all
information is correct, select the "Submit Payment" button.
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Step 3: Confirm Payment is a confirmation of the transaction, but
is not confirmation of payment or of acceptance into the DFVCP. If you
entered an email address, you should also receive an email confirmation.
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If you select "Return to Agency
Web site" at the bottom of
the page, you will be returned to the Department of Labor Web site and a
DFVCP E-Payment Confirmation. Once again, this confirmation is only that
the payment has been authorized and is not a confirmation of receipt of
payment.
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.
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.
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.
FactsThe
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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