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Tax Filing Season Begins January 23
The Internal Revenue Service (IRS) has announced that tax season will begin Monday, January 23, 2017. The filing deadline to submit 2016 tax returns is Tuesday, April 18, 2017.
The IRS will begin accepting electronic tax returns on January 23, 2017. Many software companies and tax professionals will be accepting tax returns before January 23 and then will submit the returns when IRS systems open. The IRS will begin processing paper tax returns at the same time. According to the IRS, there is no advantage to filing tax returns on paper in early January instead of waiting for the IRS to begin accepting e-filed returns.
April 18 Filing Deadline
The filing deadline to submit 2016 tax returns is Tuesday, April 18, 2017, rather than the traditional April 15 date, as a result of a weekend and a District of Columbia holiday.
Certain Small Employer HRAs Exempt From ACA Market Reforms
A new law allows certain small employers–those with fewer than 50 full-time equivalent employees who do not offer a group health plan–to offer new “qualified small employer health reimbursement arrangements” to reimburse employees for qualified medical expenses, including individual health insurance premiums, for years after December 31, 2016. The law also includes a notice requirement for these new HRAs.
Qualified Small Employer HRAs
Qualified small employer health reimbursement arrangements (HRAs) are exempt from the ACA’s market reforms. To be considered a qualified small employer HRA, the arrangement generally must:
•Be funded solely by an eligible small employer without salary reduction contributions;
•Provide, after an eligible employee provides proof of coverage, for the payment or reimbursement of qualified medical expenses (which generally includes individual health insurance premiums) incurred by the employee or his or her family members;
•Limit annual payments and reimbursements to $4,950 per employee or $10,000 per family (these amounts are prorated when coverage is for less than the entire year); and
•Be provided on the same terms to all eligible employees.
Note: Large employers and employers who offer a group health plan are not eligible to offer qualified small employer HRAs.
Notice Requirement
An employer funding a qualified small employer HRA for any year must provide a written notice to each eligible employee that includes the following information:
•A statement regarding the maximum dollar amount of payments and reimbursements that may be made for the year with respect to the employee (the “permitted benefit”);
•A statement that the employee should provide information regarding his or her permitted benefit to any Health Insurance Marketplace to which the employee applies for advance payment of the premium tax credit; and
•A statement that if the employee is not covered under minimum essential coverage for any month, the employee may be subject to the individual mandate penalty for such month and reimbursements under the HRA may be includible in gross income.
Effective for years beginning after December 31, 2016, the notice generally must be provided no later than 90 days before the beginning of the year in which the HRA is funded–or, if an employee is not eligible to participate in the arrangement as of the beginning of such year, the date on which the employee is first eligible.
Check out our section on Health Reimbursement Arrangements (HRAs) for more.
IRS: Opt-Out Arrangement Rules To Be Finalized ‘At A Later Time’
In July 2016, the IRS released a proposed rule addressing how opt-out arrangements–arrangements whereby an employer offers its employees a cash payment in exchange for declining coverage under an employer-sponsored plan–are to be taken into account for purposes of determining whether the coverage is affordable under certain provisions of the Affordable Care Act. While the IRS anticipated finalizing this rule prior to the end of 2016, the IRS has announced that it expects to finalize such guidance “at a later time.”
Latest Opt-Out Arrangement Guidance
Until final regulations are applicable, employers can rely on the opt-out arrangement guidance provided in IRS Notice 2015-87 and the proposed rule. That guidance generally provides that, for purposes of “pay or play” and the corresponding information reporting provisions, employers are not required to increase an employee’s required contribution by the amount of an opt-out payment as long as payment was not made as part of a “non-relief-eligible opt-out arrangement.” In general, a non-relief-eligible opt-out arrangement is an unconditional opt-out arrangement (an arrangement providing payments conditioned solely on an employee declining coverage under employer-sponsored coverage and not on an employee satisfying any other meaningful requirement related to the provision of health care to employees, such as a requirement to provide proof of coverage through a plan of a spouse’s employer) adopted after December 16, 2015.
Note: Opt-out arrangements conditioned on an employee obtaining individual market coverage could operate as an impermissible employer payment plan that may be subject to a $100 per day excise tax per applicable employee ($36,500 per year, per employee) under the federal tax code.
Follow our Health Care Reform section for the latest Affordable Care Act updates.
5 HR Compliance Resolutions for 2017
The new year is a great time to take stock of your company’s compliance with important federal, state, and local labor law requirements. Keep these resolutions in mind to help start your company off right in 2017:
1Give your poster wall a thorough check-up. Make sure all of your workplace posters are up-to-date and the correct size. Check with your state labor department for any industry-specific poster requirements that may apply to your business. Note that certain localities may also have posting requirements.
2Stay on top of notice requirements. From summary plan descriptions (SPDs), to COBRA- and FMLA-related notices, employers are required under various laws to provide employees with certain information about their benefits and responsibilities. Confirm that your employee communications are accurate, consistent, and in compliance with applicable law.
3Keep up with record keeping. In addition to being a good business practice, employers are required to maintain certain types of employee records in order to comply with applicable law. Verify that your record keeping procedures address any requirements related to confidentiality and how long to keep records.
4Review policies and procedures. Be sure your company policies and procedures comply with applicable labor laws related to employee leave, equal employment opportunity, sexual harassment, worker safety, and other requirements.
5Confirm that your workers are classified properly. Misclassifying employees as independent contractors can result in costly legal consequences. Also remember that an employee’s exempt or nonexempt status is based on his or her compensation and specific job duties. It’s a good idea to review job descriptions on a regular basis (at least annually) as well, as tasks and requirements may change. However, neither job titles nor job descriptions determine the exempt or nonexempt status of an employee.
Our HR Compliance Quick-Check includes more tips for staying on track with compliance this year.
State Minimum Wage Rates Set to Increase
The minimum wage will rise in a number of states in 2017. Unless otherwise noted, the following minimum wage rates (per hour) are scheduled to become effective on January 1, 2017:
•Alaska: $9.80
•Arizona: $10.00
•Arkansas: $8.50 for employers with 4 or more employees
•California: $10.50 for employers with 26 or more employees (for smaller employers, the rate remains $10.00)
•Colorado: $9.30 ($6.28 for tipped employees)
•Connecticut: $10.10
•District of Columbia: $12.50, beginning July 1, 2017 ($3.33 for tipped employees)
•Florida: $8.10 ($5.08 for tipped employees)
•Hawaii: $9.25
•Maine: $9.00, beginning January 7, 2017
•Maryland: $9.25, beginning July 1, 2017
•Massachusetts: $11.00 ($3.75 for tipped employees)
•Michigan: $8.90 ($3.38 for tipped employees)
•Missouri: $7.70 ($3.85 for tipped employees)
•Montana: $8.15
•New Jersey: $8.44
•New York: $9.70, beginning December 31, 2016 ($11.00 for employers in NYC with 11 or more employees; $10.50 for employers in NYC with 10 or fewer employees; $10.00 for Long Island & Westchester; $10.75 for fast food employees outside of NYC; $12.00 for fast food employees within NYC)
•Ohio: $8.15 ($7.25 for employees at certain smaller companies, and for 14- and 15-year-olds; the wage rises to $4.08 for tipped employees)
•Oregon: $10.25, beginning July 1, 2017 ($11.25 for employees working within the urban growth boundary of a metropolitan service district; $10.00 in non-urban counties)
•Rhode Island: $3.89 for tipped employees (for non-tipped employees, the $9.60 minimum wage rate remains unchanged)
•South Dakota: $8.65 ($4.325 for tipped employees)
•Vermont: $10.00 ($5.00 for certain service or tipped employees)
•Washington: $11.00
Be sure to comply with any city or other local wage requirements (which may be higher than the state or federal minimum wage) that may apply to your business.
For more information on state minimum wage laws, please visit our State Laws section, click on your state, and select “Minimum Wage” in the left-hand navigation menu.
Newsletter provided by:
Summit Insurance Advisors
11350 McCormick Road, Executive Plaza III
Hunt Valley, MD 21031
(410) 584-9600
jb@sumfi.com
www.summitinsurnceadvisors.com
Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose.
The information provided herein is intended solely for the use of our clients and members. You may not display, reproduce, copy, modify, license, sell or disseminate in any manner any information included herein, without the express permission of the Publisher. Kindly read our Terms of Use and respect our
Copyright. © 2017 HR 360, Inc. – All rights reserved
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by Jim Naylor
New Form I-9 Released
U.S. Citizenship and Immigration Services (USCIS) has released a new version of Form I-9, Employment Eligibility Verification.
Background
Federal law requires employers to hire only individuals who may legally work in the United States–either U.S. citizens or foreign citizens who have the necessary authorization. To comply with the law, employers must verify the identity and employment authorization of each person they hire by completing and retaining Form I-9.
New Form I-9 Dates
The new Form I-9 is dated November 14, 2016 and has an expiration date of August 31, 2019. Employers may continue using a Form I-9 with a revision date of March 8, 2013 (or may use the new version) through January 21, 2017. Beginning January 22, 2017, however, employers must use only the new version.
Employers should also continue to follow existing storage and retention rules for all of their previously completed Forms I-9.
Note: The instructions for completing Form I-9 are now separate from the form.
For more information on complying with employment eligibility verification requirements, please visit our section on Form I-9.
Deadlines Extended for Furnishing Forms 1095-B and 1095-C in Early 2017
The Internal Revenue Service (IRS) has extended the deadlines for furnishing 2016 Forms 1095-B and 1095-C to covered individuals and full-time employees, respectively, from January 31, 2017, to March 2, 2017.
Background
Applicable large employers (generally those with 50 or more full-time employees, including full-time equivalents or FTEs), must use Forms 1094-C and 1095-C to report information to the IRS and to their full-time employees about their compliance with the employer shared responsibility provisions (“pay or play”) and the health care coverage they have (or have not) offered in a calendar year. Forms 1094-B and 1095-B are used by insurers, self-insuring employers, and other parties that provide minimum essential health coverage (regardless of size, except for large self-insuring employers) to report information on this coverage to the IRS and to covered individuals.
Reporting entities are require to report in early 2017 for coverage offered (or not offered) in calendar year 2016.
Furnishing Deadline Extension
The IRS has extended the deadline for furnishing 2016 Forms 1095-B and 1095-C to covered individuals and full-time employees, respectively, from January 31, 2017, to March 2, 2017. However, the deadline to file 2016 Forms 1094-B, 1095-B, 1094-C, and 1095-C with the IRS was not extended, and remains February 28, 2017 (or March 31, 2017, if filing electronically).
Check out our Information Reporting section for more on the information reporting requirements.
New ADA Wellness Program Notice Requirement Effective January 1
Employers subject to the Americans with Disabilities Act (ADA)–generally those with 15 or more employees–that offer a wellness program that collects employee health information must provide a new notice to employees as of the first day of the plan year that begins on or after January 1, 2017.
New Notice Requirement
A recent final rule requires employers offering wellness programs that collect employee health information to provide a notice to employees informing them of what information will be collected, how it will be used, who will receive it, and what will be done to keep the information confidential. The requirement to provide the notice takes effect as of the first day of the plan year that begins on or after January 1, 2017 for the health plan an employer uses to calculate any incentives it offers as part of the wellness program. The rule does not require that employees get the notice at a particular time–once the notice requirement becomes effective, employees must receive the notice before providing any health information, and with enough time to decide whether to participate in the program.
Click here for a sample notice from the Equal Employment Opportunity Commission (EEOC). To help employers comply with the new notice requirement, the EEOC has also released a set of Q&As.
To learn more about the ADA, please visit our Disability Discrimination section.
Dollar Amount Used to Determine PCORI Fee Rises to $2.26
The Internal Revenue Service (IRS) recently issued guidance that increases the applicable dollar amount used to determine the Patient-Centered Outcomes Research Institute (PCORI) fee for plan years that end on or after October 1, 2016 and before October 1, 2017.
Background
PCORI fees are imposed on plan sponsors of applicable self-insured health plans for each plan year ending on or after October 1, 2012 and before October 1, 2019. The fees support research to evaluate and compare health outcomes and the clinical effectiveness of certain medical treatments, services, procedures, and drugs.
Fee Increase
Under IRS Notice 2016-64, for plan years ending on or after October 1, 2016 and before October 1, 2017, the fee is $2.26 multiplied by the average number of lives covered under the plan (up from $2.17). Click here for details on how to determine the average number of lives covered under a plan.
Check out our PCORI Fees for Self-Insured Plans section for more on PCORI fees.
Alcohol and Office Holiday Parties: 7 Ways to Reduce Your Liability
Office holiday parties can build morale, offer opportunities for more casual interactions among workers, and reward employees for a productive year–but did you know they can also be a source of liability for your company? If you choose to have alcohol at your holiday party, consider the following tips to help keep you and your employees safe:
1 Review your insurance coverage before the party.
◦If the party will be hosted onsite, determine whether you are covered for injuries or damage to property if you serve alcohol on your premises. You may need to purchase separate special event coverage or an additional liquor liability policy.
◦For gatherings held offsite, such as in a restaurant, request a copy of the venue’s certificate of insurance and determine if you need additional coverage.
2 Don’t make attendance at the party mandatory. Employees should understand that no work will be conducted at the party.
3 Make it clear before the party that overindulgence and other offensive behavior are not acceptable.
◦Remind employees that alcohol is no excuse for illegal or inappropriate behavior, such as sexual harassment.
◦Consult your employee handbook and make sure that any company-sponsored festivities are not in violation of the policies in your handbook (such as those relating to an alcohol-free workplace).
4 Avoid open bars.
◦Approve the types of drinks that will be served in advance and consider the effects. According to the Centers for Disease Control and Prevention, one 12-ounce beer has about the same amount of alcohol as one 5-ounce glass of wine, or a 1.5-ounce shot of liquor.
◦Consider a cash bar or provide a limited number of “free drink” tickets to each employee.
◦Be sure there are a variety of non-alcoholic drinks available as well.
5 Stop offering alcohol at least 1 hour before the party ends. Serve coffee, desserts, and plenty of bottled water during this time.
6 Make arrangements for employees to get home safely. Offer free cabs and enlist designated drivers. Remember–you could be on the hook if employees leave a company-sponsored party drunk.
7 Make it a daytime event or family party. Consider serving non-alcoholic beverages only and make it a family-oriented party instead.
For more information on serving alcohol during company-sponsored holiday parties, please read the U.S. Small Business Administration’s Tips to Avoid Company-Sponsored Holiday Party Liability blog.
Nationwide Preliminary Injunction Granted Against New Federal Overtime Rule
The U.S. District Court for the Eastern District of Texas has granted a nationwide preliminary injunction against the U.S. Department of Labor’s (DOL) new federal overtime rule, which was set to become effective on December 1, 2016. The injunction prevents implementation and enforcement of the final rule on a nationwide basis. Please monitor this DOL webpage for the latest legal developments.
Our Fair Labor Standards Act section features information on exemptions from the FLSA’s minimum wage and overtime requirements.
Newsletter provided by:
Summit Insurance Advisors
11350 McCormick Road, Executive Plaza III
Hunt Valley, MD 21031
(410) 584-9600
jb@sumfi.com
www.summitinsurnceadvisors.com
Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose.
The information provided herein is intended solely for the use of our clients and members. You may not display, reproduce, copy, modify, license, sell or disseminate in any manner any information included herein, without the express permission of the Publisher. Kindly read our Terms of Use and respect our Copyright.
© 2016 HR 360, Inc. – All rights reserved
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by Jim Naylor
2017 HSA and Health FSA Contribution Limits Announced
The Internal Revenue Service (IRS) has announced the inflation-adjusted contribution limits for health savings accounts (HSAs) and health flexible spending arrangements (health FSAs) for tax year 2017.
2017 Contribution Limits
The tax year 2017 contribution limits for HSAs and health FSAs are as follows:
For more information, please see IRS Revenue Procedures 2016-28 and 2016-55.
Visit our HSAs, FSAs, and Other Tax-Favored Accounts section for more on HSAs and health FSAs.
2016 ACA Transitional Reinsurance Program Contributions Form Due by November 15
Employers sponsoring certain self-insured plans that use a third-party administrator in connection with claims processing, claims adjudication, and enrollment functions (“contributing entities”) must submit their 2016 Annual Enrollment and Contributions Submission Form and schedule a payment for the 2016 benefit year no later than November 15.
Reinsurance Contribution Process
To successfully complete the reinsurance contribution process, contributing entities (or third-party administrators or administrative services-only contractors on their behalf) must register on Pay.gov (or confirm a password if such entities registered for the previous benefit years of the program) and submit their annual enrollment counts of the number of covered lives of reinsurance contribution enrollees for the 2016 benefit year using the 2016 form.
2016 Contribution Amounts
The 2016 reinsurance contribution rate is $27.00 per covered life. For the 2016 benefit year, contributing entities have the option to pay:
Our Transitional Reinsurance Program section features additional information on the reinsurance contribution process.
IRS Releases Final 2016 Forms 1094 and 1095
The Internal Revenue Service (IRS) has released the final forms and instructions for Forms 1094 and 1095 for calendar year 2016 reporting. Employers are required to report in early 2017 for calendar year 2016.
2016 Forms and Instructions
The following calendar year 2016 reporting forms and instructions are now available:
Information Reporting Deadlines
Applicable large employers (ALEs)–generally those with 50 or more full-time employees, including full-time equivalents (FTEs)–must furnish a Form 1095-C to each of its full-time employees by January 31, 2017. Forms 1094-C and 1095-C are also required to be filed with the IRS by February 28, 2017 (or March 31, 2017, if filing electronically).
Insurers, self-insuring employers, and other parties that provide minimum essential health coverage (regardless of size, except for large self-insuring employers) must furnish a copy of Form 1095-B to the person identified as the “responsible individual” by January 31, 2017. The responsible individual is the person who, based on a relationship to the covered individual(s), the primary name on the coverage, or some other circumstances, should receive the statement. Forms 1094-B and 1095-B are also required to be filed with the IRS by February 28, 2017 (or March 31, 2017, if filing electronically).
Employers subject to both reporting provisions (generally self-insured employers with 50 or more full-time employees, including FTEs) will satisfy their reporting obligation.
Newsletter provided by:
Summit Insurance Advisors
11350 McCormick Road, Executive Plaza III,, Hunt Valley, MD 21031
(410) 584-9600
jb@sumfi.com
www.summitinsurnceadvisors.com
Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose.
The information provided herein is intended solely for the use of our clients and members. You may not display, reproduce, copy, modify, license, sell or disseminate in any manner any information included herein, without the express permission of the Publisher. Kindly read our Terms of Use and respect our Copyright.
© 2016 HR 360, Inc. – All rights reserved
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by Jim Naylor
Medicare Part D Disclosure to Individuals Due by October 14
In preparation for the Medicare fall open enrollment period, employers sponsoring group health plans that include prescription drug coverage are required to notify all Medicare-eligible individuals whether such coverage is “creditable” under the law. Creditable coverage means that the coverage is expected to pay, on average, as much as the standard Medicare prescription drug coverage.
Written Disclosure to Individuals
Employers can satisfy this notice requirement by providing a written disclosure notice annually by October 14, and at various other times as required under the law, to the following individuals:
Model notices are available from the Centers for Medicare & Medicaid Services (CMS).
Online Disclosure to CMS Also Required
Additionally, employers are required to complete an online disclosure to CMS to report the creditable coverage status of their prescription drug coverage. This disclosure must be completed annually no later than 60 days from the beginning of a plan year, and at certain other times.
Our section on Medicare further details how the program impacts group health plans.
Current Version of Employer CHIP Notice Set to Expire on October 31
With preparations for open enrollment underway, please be advised that the current version of the Employer Children’s Health Insurance Program (CHIP) Notice is set to expire on October 31, 2016.
Annual Notice Requirement
Employers that provide coverage in states with premium assistance through Medicaid or CHIP must inform employees of potential opportunities for assistance in obtaining health coverage annually before the start of each plan year. An employer may provide the notice applicable to the state in which an employee resides concurrent with the furnishing of:
Current Model Notice Set to Expire on October 31
The current version of the Employer CHIP Notice is set to expire on October 31, 2016. A news alert will be sent out as soon as the new Employer CHIP Notice is available.
Our section on CHIPRA (the Children’s Health Insurance Program Reauthorization Act) contains additional information on employer responsibilities related to CHIP.
Maximum Individual Mandate Payment Amount for 2016 Released
The Affordable Care Act’s “individual mandate” provision requires every individual to have minimum essential health coverage for each month, qualify for an exemption, or make a penalty payment when filing his or her federal income tax return. Recently, the Internal Revenue Service (IRS) issued Revenue Procedure 2016-43, which provides information needed to determine the maximum penalty that may be due for 2016.
Calculating the Payment
For tax year 2016, individuals will generally pay whichever of the following penalty amounts is higher:
The maximum penalty is capped at the cost of the national average premium for a bronze-level health plan available through a Health Insurance Marketplace in 2016. According to the IRS, the monthly national average premium for qualified health plans that have a bronze level of coverage and are offered through a Health Insurance Marketplace in 2016 is:
Our section on the Individual Mandate (Individual Shared Responsibility) provides information on the statutory exemptions from the individual mandate requirement.
Top 5 Tips on Adopting and Enforcing a Time-Off Policy
Whether paid or unpaid, time-off is an important respite that allows employees to take vacations, attend to personal or family business, or simply rest and recharge. However, managers and employees alike must recognize that not every request for time off can be approved. The following are the top 5 tips on adopting and enforcing a time-off policy:
Our Federal Laws section details the federal laws which regulate employee leave.
Social Security Requirements for Employee Name Changes
With the summer wedding season now over, it is critical for employers to ensure that each employee’s name and Social Security Number (SSN)–as shown on his or her Social Security card–matches the employer’s payroll records and year-end Forms W-2.
Employers
If an employee legally changes his or her name because of marriage, employers should continue to use the old name and tell the employee to contact Social Security to obtain an updated card. Employers should change their payroll records only after the employee obtains an updated Social Security card with the new name. Using a new name before the employee updates Social Security’s records may prevent the posting of earnings to the employee’s Social Security earnings history.
Employers can use Social Security’s free Social Security Number Verification Service (SSNVS) to match employees’ names and SSNs at the time they are hired, or before the employer prepares and submits employees’ Forms W-2.
Employees
Employees must take the following three steps in order to obtain a corrected Social Security card:
There is no charge for a Social Security card–this service is free. For complete instructions, please click here.
Our section on Social Security includes helpful information regarding Social Security benefits.
Newsletter provided by:
Summit Insurance Advisors
11350 McCormick Road, Executive Plaza III,, Hunt Valley, MD 21031
(410) 584-9600
jb@sumfi.com
www.summitinsurnceadvisors.com
Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose.
The information provided herein is intended solely for the use of our clients and members. You may not display, reproduce, copy, modify, license, sell or disseminate in any manner any information included herein, without the express permission of the Publisher. Kindly read our Terms of Use and respect our Copyright.
© 2016 HR 360, Inc. – All rights reserved
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by Jim Naylor
New Federal Minimum Wage and Employee Polygraph Workplace Posters Must Be Posted
The U.S. Department of Labor (DOL) recently updated its Fair Labor Standards Act (FLSA) and Employee Polygraph Protection Act (EPPA) posters. The new versions are now available for download.
New Posters
Every employer of employees subject to the FLSA’s minimum wage provisions must post (and keep posted) a notice explaining the law in a conspicuous place in all of its establishments so as to permit employees to readily read it. An approved copy of the minimum wage poster is available for employers to post.
Additionally, an employer subject to the EPPA must post (and keep posted) on its premises a notice explaining the law. The notice must be posted in a prominent and conspicuous place in every establishment of the employer where it can readily be observed by employees and applicants.
As of August 1, 2016, employers subject to these provisions must post the new versions of the FLSA and EPPA posters.
More information on federal posting requirements and links to downloadable posters are featured in our Federal Poster Requirements section.
2016 ACA Transitional Reinsurance Program Contribution Rate and Deadlines Announced
The Centers for Medicare & Medicaid Services (CMS) has announced the 2016 benefit year contribution rate and deadlines for the Affordable Care Act’s (ACA) Transitional Reinsurance Program.
Transitional Reinsurance Program Explained
The Transitional Reinsurance Program is a three-year program established by the ACA that requires employers sponsoring certain self-insured plans (“contributing entities“) to make contributions to support payments to individual market issuers that cover high-cost individuals.
2016 Contribution Rate and Deadlines
The 2016 Reinsurance Contribution Rate is $27.00 per covered life. For the 2016 benefit year, CMS will offer contributing entities the option to pay:
The annual enrollment count submission deadline for the 2016 benefit year is November 15, 2016. While not yet available, the 2016 ACA Transitional Reinsurance Program Annual Enrollment and Contributions form is expected to be available on www.pay.gov in time for the submission deadline.
More information on the reinsurance contribution process can be found in our section on the Transitional Reinsurance Program.
DOL Issues Guidance for Private Employers on Final Overtime Rule
The U.S. Department of Labor (DOL) has issued new guidance on its final overtime rule to help private sector employers evaluate current practices and transition to the rule’s requirements.
Final Overtime Rule
The DOL’s final overtime rule, effective December 1, 2016, updates the salary and compensation levels required for executive, administrative, and professional workers to be exempt from the minimum wage and overtime pay protections of the federal Fair Labor Standards Act (FLSA). In particular, the final rule:
Note: When both the FLSA and a state law apply, the employee is entitled to the most favorable provisions of each law.
New DOL Guidance
Among other things, the DOL’s new guidance details some of the options employers may exercise in determining how to comply with the final rule. Employers have certain options for responding to the changes to the salary level, and the DOL does not dictate or recommend any method. Such options include:
Note: The rule does not require employers to convert a salaried worker making less than the new salary threshold to hourly status; employers can pay non-exempt employees on a salary basis and pay overtime for hours worked beyond 40 in a week.
Our section on the Fair Labor Standards Act features additional information on DOL’s final overtime rule.
IRS Releases 2016 Draft Forms 1094-C and 1095-C and Instructions
The IRS has released draft versions of the Forms 1094-C and 1095-C and instructions that employers will use in early 2017 to report on health coverage offered in the 2016 calendar year.
Who is Required to Report
Under the Affordable Care Act, applicable large employers (“ALEs”)–generally those with 50 or more full-time employees, including full-time equivalent employees–use Forms 1094-C and 1095-C to report information to the IRS and to their employees about their compliance with the employer shared responsibility provisions (“pay or play”) and the health care coverage they have offered.
2016 Draft Forms and Instructions
The following draft forms are now available for 2016:
The 2016 Draft Instructions for Forms 1094-C and 1095-C are also now available. Among other items, the draft instructions clarify:
Visit our Information Reporting section for more on these requirements.
5 Tips to Prepare Your Business for a Natural Disaster
Natural disasters such as floods or hurricanes can happen suddenly at any time. The loss of essential records, files, and other materials during a disaster is commonplace and cannot only add to your damage costs, but may also delay your return to normal operations.
Securing Company Documents and Equipment
To reduce your vulnerability, determine which records, files, and materials are most important; consider their vulnerability to damage during different types of disasters (such as floods, hurricanes, and earthquakes) and take steps to protect them.
Our section on Planning for Workplace Emergencies includes additional guidelines on developing an emergency action plan to protect your employees and business during a disaster.
Newsletter provided by:
Summit Insurance Advisors
11350 McCormick Road, Executive Plaza III,, Hunt Valley, MD 21031
(410) 584-9600
Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose.
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At Summit Insurance, we partner with our clients to offer all available benefit options. We believe that every business owner, employee, and family is deserving of the benefits that a well-planned insurance program provides: safety, securing and peace of … Read More