“I am pleased with the client/audit relationship we have with Shannon & Associates. They have audited our organization the last three years and kept the same lead auditors on our account; therefore every year the audit becomes more efficient and diligent with smaller interruption to the account’s function. Staff continuity fosters a consistent relationship, making it easier for me and my staff to prepare for the annual audit and for the audit itself.”
- Shekh Ali, CFO
Valley Cities Counseling & Consultation

Employee Benefit Plan Administration

Your employees deserve great benefits, but setting up and administering employee benefit plans can be a hassle. Whether a 401k or profit sharing, we’ll help you plan and administer your employee benefits plan and, more importantly, make sure it fits your long-term strategic business goals. We also offer cafeteria plans, including flexible spending accounts and premium-only plans.

To subscribe to or download issues of our “Employee Benefit Advisor” please check out our [Newsletter page]

Fiduciary checklist for plan sponsors

Our services for employee benefit plan design and implementation include:

  • Consulting on benefit plan design
  • Plan and trust document preparation
  • Summary Plan Description
  • Preparation of DOL and IRS forms
  • Employee communications
  • Training and administrator’s guide
  • Employee forms
  • Amendments
  • Compliance

Annual employee benefit plan administration includes:

  • Compliance testing
  • Trust reporting and accounting
  • Participant accounting and reporting
  • IRS and participant reporting
  • Presentation to employees and investment committees

As a certified public accounting firm, we provide services independent of any affiliation with investment, trust or insurance companies.

Client Spotlight: Nu Ray Metals

As an accounting firm that also offers TPA administration and plan design, we have the ability to offer our clients a broader spectrum of services. We are able to easily integrate our tax and financial consulting services with our retirement plan administration and design services. As an example we had a client for whom the new comparability plan worked very well for. We looked at the service period of his staff and found that many of them did not stay with the company for more than 3 or 4 years. The age of the client in comparison to that of his staff, however, still allowed us to maximize his contribution (after making the appropriate deferral amount allowable under ADP rules) without having to add the safe harbor component to the plan and thus exposing large percentages of the employer contribution to the immediate 100% vesting that goes along with the safe harbor contribution.

When our tax accountant was preparing the annual review we found that the client intended to bring his son into the company and groom him for succession. Due to the age of the son in comparison with the rest of the company we were unable to provide him with any level of profit sharing contribution under the existing comparability plan. However, by directing the client to cease making any 401(k) deferrals to the plan we were able to shift those deferrals to his son thereby ensuring that an appropriate level of benefits was earned by all of the ownership family.

While not a particularly difficult or complex solution to a problem it offers a unique view of the services that we offer that are different from many of our competitors. Since we are providing ongoing accounting services for this client, and maintain continual contact with him, we were able to anticipate that this would be an issue for the client. Further, we were able to come up with a workable solution prior to the end of the year which allowed the son to make the contribution. Many of our competitors who are in the TPA industry would likely have come up with the same solution, but not until the allocation was complete (as they typically would not be aware of the son’s hiring until AFTER the end of year). Thus making it only available for the following plan year and leaving the client’s son about $8,000 dollars short in his retirement account. The added benefit received by the son during the plan year was a direct result of the ability for the TPA and the accountant to discuss the impact that the son’s hiring would have on the retirement plan. This communication was made easy through the down the hall proximity of the two individuals.

Shannon & Associates is committed to your success.