ARTICLE
The civil penalties associated with non-compliance on federal issues are increasing as a result of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The increased penalties became effective August 1, 2016. Federal agencies are required to adjust their civil monetary penalties based on the Consumer Price Index for all Urban Consumers (CPI-U). In some cases, this could mean a 250% increase in the penalty amount for a late filing. Furthermore, the penalties will be automatically adjusted annually in January to reflect changes in the CPI-U. Penalties under the Occupational Safety and Health Act (OSHA) and Social Security Act, that were previously exempt, are now subject to the initial increase and annual inflation increases. For example, failure to timely submit Form 5500 (required annually on the financial and operational condition of health and welfare plans), carried a penalty from the US Department of Labor of up to $1,100 per day. The new fine could be more than $2,000 per day. The best way to avoid these increases is by staying in compliance with the filing and other associated requirements. The Toledo Regional Chamber of Commerce works on your behalf to advocate, provide resources and access to experts to help you remain in compliance. To learn more about the available resources, contact the Advocacy & Public Policy Department at 419-243-8191 or brian.dicken@toledochamber.com.