Form 5500 Filing Tip: Be Sure to Use the Correct Principal Business Activity Code

If your company is required to complete a Form 5500 (Annual Return/Report of Employee Benefit Plan), be aware that the list of principal business activity codes has changed since last year. You may experience filing issues if you do not use the correct code.

These codes classify companies by their primary activities, and help the IRS determine, for auditing purposes, the right comparison group for a business. The IRS can more easily identify if your company is reporting incorrect information by benchmarking it with industry standards.

You must include the correct code for your company in box 2d of Form 5500, as well as on your company’s federal tax return. Common codes used by the restaurant industry include:
  • 722300 – Special Food Services (including food service contractors and caterers)
  • 722410 – Drinking Places (alcoholic beverages)
  • 722511 – Full-Service Restaurants
  • 722513 – Limited-Service Restaurants
  • 722514 – Cafeterias and Buffets
  • 722515 – Snack and Non-Alcoholic Beverage Bars
The entire list can be found in the Form 5500 instructions, starting on page 78.

Questions? BDO can help you with Form 5500 questions or concerns. Contact us.

Blog-subscribe-ad_Rest.jpg