Today’s cloud-based business systems simplify and streamline processes like never before. They can help teams around the world collaborate as if they were just around the corner.
But there’s a drawback: your technology can move faster than your compliance.
One Japanese company introduced a new chat system where employees could message HR any time to change retirement plan elections. The interface was a simple chat box.
The new system was fast, convenient, and efficient. Everyone was happy with it… until it came time to audit the retirement plan.
The company quickly realized there was no documentation of months’ worth of plan adjustments. No timestamps, no screenshots… nothing.
That oversight created huge liabilities that could take years to untangle.
When updating systems that touch your retirement plan, remember these key points:
The IRS and Department of Labor are light-years behind private business
In theory, the government encourages private enterprises to modernize. In practice, though, federal rules are decades behind current technology. Expect documentation requirements to be both strict and old-fashioned—especially concerning innovative technology like cryptocurrency.
If you’re operating across multiple jurisdictions, you need to know the ropes
Technology that would have been perfectly acceptable in Japan just didn’t mesh with standard U.S. reporting or accounting tools. It’s important that your systems “talk to each other,” but it’s even more vital they capture and handle data in fully compliant ways.
Always understand the audit trail your cloud-based systems produce
Integrated cloud systems are being designed for full compliance with today’s reporting rules—but you must choose the right systems, have stakeholders who understand them, and scout for edge-cases (like old messages being deleted automatically instead of retained.)
Don’t let a retirement withholding dispute turn into your word versus the employee’s. With a retirement plan audit, you’ll identify compliance gaps and stop future issues before they start.
Learn more or get started by calling Cassell Plan Audits today: (630) 886-7669.