49-11-604 - Office audits of participating employers -- Penalties for failure to comply. - Utah Statutes

49-11-604. Office audits of participating employers -- Penalties for failure tocomply.
(1) (a) The office may perform on-site compliance audits of participating employers todetermine compliance with reporting, contribution, and certification requirements under this title.
(b) The office may request records to be provided by the participating employer at thetime of the audit.
(c) Audits shall be conducted at the sole discretion of the office after reasonable notice tothe participating employer of at least five working days.
(d) The participating employer shall extract and provide records as requested by theoffice in an appropriate, organized, and usable format.
(e) Failure of a participating employer to allow access, provide records, or comply in anyway with an office audit shall result in the participating employer being liable to the office for:
(i) any liabilities and expenses, including administrative expenses and travel expenses,resulting from the participating employer's failure to comply with the audit; and
(ii) a penalty equal to 1% of the participating employer's last month's contributions.
(2) If the audit reveals a participating employer's failure to make contributions asrequired under Section 49-11-601, a failure to maintain records as required under Section49-11-602, or a failure to correctly report or certify eligibility as required under Section49-11-603, the participating employer shall reimburse the office for the cost of the audit.
(3) If the audit reveals that an incorrect benefit has been paid by the office to a member,participant, alternate payee, or beneficiary due to a participating employer's failure to complywith the requirements of Section 49-11-601, 49-11-602, or 49-11-603, in addition to theliabilities contained in Subsection (2), the participating employer shall be liable to the office forthe following:
(a) the actuarial cost of correcting the incorrect benefit; and
(b) administrative expenses.
(4) The executive director may waive all or any part of the interest, penalties, expenses,and fees if the executive director finds there were extenuating circumstances surrounding theparticipating employer's failure to comply with this section.

Amended by Chapter 240, 2003 General Session