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

Full text of Utah Utah Code § 49-11-604 — Office audits of participating employers -- Penalties for failure to comply., with citation guidance and answers to common questions.

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

Effective 5/1/2024
49-11-604.  Office audits of participating employers -- Penalties for failure to comply.
(1)
(a)The office may perform an on-site compliance audit of a participating employer to determine compliance with reporting, contribution, and certification requirements under this title.
(b)The office or its independent auditor may perform an on-site compliance audit of a participating employer or request records to be provided by the participating employer, including records required to complete:
(i)audited financial statements;
(ii)schedules of employer allocations and pension reporting in accordance with Governmental Accounting Standards Board statements; and
(iii)service organizational controls reports.
(c)The office may request records to be provided by the participating employer at the time of the audit.
(d)Audits shall be conducted at the sole discretion of the office after reasonable notice to the participating employer of at least five working days.
(e)The participating employer shall extract and provide records as requested by the office in an appropriate, organized, and usable format.
(f)Failure of a participating employer to allow access, provide records, or comply in any way 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 as required under Section 49-11-601, a failure to maintain records as required under Section 49-11-602, or a failure to correctly report or certify eligibility as required under Section 49-11-603, the participating employer shall be liable to the office for:
(a)any liability or expense, including an administrative expense or the cost of increased benefits to members, resulting from the participating employer's failure to fully comply with the participating employer's reporting, contribution, certification, or record keeping requirements under this title; and
(b)a penalty, not to exceed 50% of the participating employer's total contributions for the time period of the error.
(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 comply with the requirements of Section 49-11-601, 49-11-602, or 49-11-603, in addition to the liabilities contained in Subsection (2), the participating employer shall be liable to the office for the 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 the participating employer's failure to comply with this section.


Amended by Chapter 421, 2024 General Session

Source: official Utah text · Last verified 2026-08-27

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Frequently Asked Questions About Utah § 49-11-604

What does Utah Code § 49-11-604 cover?

Section 49-11-604 ("Office audits of participating employers -- Penalties for failure to comply.") is part of the Utah Code, the codified statutory law of Utah. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite Utah § 49-11-604?

A common citation format is "Utah Code § 49-11-604" (Utah). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.

Is this the official text of Utah law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.

How does Utah § 49-11-604 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Utah can advise on how this section applies to you. Contact your state or local bar association for a referral.

Sources & Verification

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