US Department of Labor expands self-correction program to encourage compliance with Form M-1 annual reporting rules

A Multiple Employer Welfare Arrangement (MEWA) is any arrangement (for example, a trust or association health plan) that offers health or other welfare benefits to employees of two or more different employers, other than just a single employer’s plan or a plan that the Labor Department has officially recognized as collectively bargained. MEWAs are subject to special ERISA rules and, if they provide medical benefits, must generally file Form M‑1 with the Department of Labor.

Form M‑1 is an electronic report that collects detailed information about MEWAs and certain related entities so the Department of Labor can monitor them.

Information required (simplified):

• Identifying details: name, employer identification number (EIN), plan number, contact info, type of filer.
• Filing type: annual report, registration (before beginning or expanding operations in a state), origination, or special event filing.
• Operations: when the MEWA/ECE began, the states where it operates, number of employers, and counts of employees/participants covered.
• Benefits and funding: what medical benefits are offered (e.g., medical, hospital, prescription), whether coverage is insured or self‑funded, and information on insurers and any stop‑loss coverage.
• Compliance questions: whether the arrangement complies with federal health laws (ERISA health mandates, Affordable Care Act, Mental Health Parity, No Surprises Act, etc.).

Who must file beyond MEWAs:

• Entities Claiming Exception (ECEs) – arrangements that claim they are collectively bargained and therefore not MEWAs must file Form M‑1 for three years after an "origination event" (such as starting up or expanding), unless the Department of Labor has already determined they qualify for the exception.
• Association Health Plans (AHPs) described in DOL’s 2018 final rule are treated as MEWAs and therefore also must file Form M‑1 if they provide medical benefits.

The Delinquent Filer Voluntary Compliance (DFVC) Program is a standing DOL/EBSA amnesty‑type program. It lets plan administrators who missed required filings come forward voluntarily, file the missing reports, and pay a much lower, standardized penalty instead of the much higher statutory civil penalties.

Form 5500 filings (most retirement/health plans):

• Administrator files each late Form 5500/5500‑SF electronically through EFAST2 and checks the DFVC box.
• Then they use EBSA’s online DFVC calculator to compute and pay the reduced penalty.
• Statutory ERISA penalties can be far higher, but under DFVC they are capped at:
  • Small plans: $10/day, capped at $750 per filing and $1,500 per plan (or $750 per plan for certain 501(c)(3) sponsors).
  • Large plans: $10/day, capped at $2,000 per filing and $4,000 per plan.

Form M‑1 (MEWAs and ECEs):

• Under the expanded DFVC, a MEWA/ECE administrator who missed a required Form M‑1 files one complete, current Form M‑1 through the Form M‑1 Online Filing System, following the special DFVC instructions (e.g., indicating the years for which relief is sought).
• In the DFVC online payment system, they choose the late Form M‑1 option and pay a flat $750 per MEWA/ECE, regardless of how many years of M‑1 filings are delinquent for that entity.
• EBSA’s FAQ states that for MEWAs/ECEs using DFVC, the administrator "will not be subject to additional civil penalties for failure to file previously required Forms M‑1," although IRS or PBGC penalties, if any, are separate.

Civil penalties for failing to file Form M‑1 on time can be very large because they are assessed per day:

• Under ERISA section 502(c)(2) and DOL regulations, the Department of Labor may impose a civil penalty of up to a specified amount per day for each day a required Form M‑1 is late. EBSA’s current DFVC FAQ for MEWA/ECE filers states that "the Department may charge penalties of up to $1,942 per day for each day the filing is overdue" (2024 level, adjusted periodically for inflation).
• External compliance summaries reflecting DOL’s annual inflation adjustments show similar per‑day amounts (e.g., $1,942/day for 2024 and $1,992/day for 2025) for failure to file Form M‑1.
• Because this is a per‑day penalty with no explicit statutory dollar cap, the potential liability can quickly grow into six‑ or seven‑figure amounts for long‑delinquent filings, which is why EBSA created the DFVC Program’s flat $750 alternative for late Form M‑1 filings by MEWAs/ECEs.

For MEWA/ECE Form M‑1 filers there is no special one‑time "window"; the DFVC Program is open‑ended, but timing still matters:

• EBSA’s DFVC FAQ for MEWAs and ECEs says that if you miss the Form M‑1 deadline you should "submit your Form M‑1 as soon as possible" because daily penalties keep accruing until the filing is made.
• To use DFVC, the MEWA/ECE administrator files the late Form M‑1 and then uses the DFVC online payment system to pay the flat $750 reduced penalty per MEWA.
• Under the general DFVC eligibility rules (for Form 5500), plan administrators cannot use DFVC for a filing after the Department of Labor has already notified them in writing of a failure to file and its intent to assess a penalty. While the M‑1 FAQ does not restate this explicitly, DFVC is designed for truly voluntary corrections made before full enforcement is underway.

Practically, delinquent MEWAs should apply as soon as they identify the problem and before DOL issues a formal penalty notice; there is no fixed number of years after which DFVC categorically stops being available, but waiting increases both accrued penalties and the risk of disqualification once enforcement begins.

Administration:

• The Delinquent Filer Voluntary Compliance (DFVC) Program is administered by the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), which enforces ERISA’s reporting rules for employee benefit plans, including MEWAs.

Submission process for MEWA/ECE Form M‑1 under DFVC:

1. Prepare and file Form M‑1 electronically using EBSA’s Form M‑1 Online Filing System (Ask EBSA MEWA site), selecting the correct filing type (annual, registration, origination, or special) and following the special DFVC instructions (e.g., indicating calendar or fiscal year and the MEWA’s start date).
2. Ensure the MEWA/ECE has an EIN and plan number, consistent with any Form 5500 filings.
3. In the DFVC online payment system, choose the late Form M‑1 option, identify the MEWA/ECE and the years for which you are seeking relief, and pay the flat $750 penalty per MEWA/ECE.
4. All submissions and payments are electronic; EBSA states that it "no longer accept[s] paper submissions or payments" for DFVC.

For late Form 5500 filings, the same EBSA DFVC portal is used: administrators file delinquent Form 5500s via EFAST2 (checking the DFVC box) and then calculate and pay DFVC penalties online.

Yes. EBSA’s DFVC guidance for MEWA and ECE Form M‑1 filers indicates that the program can cover multiple prior missed filings for a given MEWA/ECE, not just a single recent year:

• The DFVC FAQ instructs MEWA administrators to "indicate which MEWA years you are seeking relief for" in the DFVC input screens.
• It sets a single "flat $750" DFVC penalty for late Form M‑1 filings and clarifies that "the MEWA administrator will not be subject to additional civil penalties for failure to file previously required Forms (M‑1)."
• EBSA also notes that the $750 flat penalty applies separately to each MEWA, but not per year; if an organization sponsors multiple MEWAs, each MEWA needs its own DFVC submission and $750 payment.

So, for one MEWA/ECE, a DFVC submission can cover all earlier delinquent Form M‑1 obligations that are listed in the DFVC system for that entity, in exchange for the single $750 payment, provided a complete Form M‑1 with all required information for the delinquent period(s) is filed. Future Form M‑1 annual reports still must be filed on time.