IRS Releases New Income Tax Withholding Tables The Internal Revenue Service (IRS) has released IRS Notice 1036, Early Release Copies of the 2018 Percentage Method Tables for Income Tax Withholding. The notice updates the income tax withholding tables for 2018, reflecting changes made by the Tax Cuts and Jobs Act. Employers should begin using the 2018 withholding tables as soon as possible, but not later than February 15, 2018. The new withholding tables are designed to work with the Forms W-4 that workers have already filed with their employers. Click here to read IRS Notice 1036. For additional tax information, please visit our section on Employer Tax Laws. Reminder: Post OSHA Form 300A Starting Feb. 1 Employers subject to the recordkeeping requirements of the federal Occupational Safety and Health Act (OSH Act) are reminded to post their 2017 OSHA Form 300A, Summary of Work-Related Injuries and Illnesses, from February 1–April 30, 2018. OSHA Form 300A lists the total number of job-related injuries and illnesses that occurred during the previous year, and must be posted even if no work-related injuries or illnesses occurred during the year. It should be displayed in a common area where notices to employees are usually posted so that employees are aware of the injuries and illnesses occurring in the workplace. In addition, a company executive must certify that he or she has examined the employer’s OSHA Form 300, Log of Work-Related Injuries and Illnesses, and that he or she reasonably believes—based on his or her knowledge of the process by which the information was recorded—that the OSHA Form 300A is correct and complete. For more information on the OSHA Form 300A requirement, please click here. To read more about worker safety and health, please visit our Safety & Wellness section. What Employers Need to Know About ACA Reporting in 2018 Under the Affordable Care Act, applicable large employers (ALEs)—generally those with at least 50 full-time employees, including full-time equivalent employees, in the preceding calendar year—must report certain information to their full-time employees and the Internal Revenue Service (IRS) about the health care coverage they have offered (if any). With deadlines for 2017 reporting just a few weeks away, ALEs should begin thinking about these five information reporting facts: ALEs are required to furnish a Form 1095-C to each of their full-time employees by March 2, 2018. ALEs must file Forms 1095-C, accompanied by the transmittal Form 1094-C, with the IRS no later than February 28, 2018 (or April 2, 2018, if filing electronically). Self-insured ALEs must also report via Forms 1094-C and 1095-C. ALEs that file 250 or more Forms 1095-C must file them electronically. ALEs can find a complete list of information reporting resources at the IRS’s Information Center for Applicable Large Employers. Check out our Information Reporting section for more on the information reporting requirements. DOL Adopts New Test for FLSA Applicability to Interns The U.S. Department of Labor (DOL) has adopted the primary beneficiary test for determining whether interns of for-profit employers count as employees under the federal Fair Labor Standards Act (FLSA). The FLSA requires for-profit employers to pay employees for their work. Interns and students, however, may not be “employees” under the FLSA—in which case the FLSA does not require compensation for their work. In ruling on FLSA cases, courts have previously used the primary beneficiary test to examine the “economic reality” of the intern-employer relationship to determine which party is the “primary beneficiary of the relationship.” On January 5, 2018, the DOL announced its adoption of the primary beneficiary test for purposes of its enforcement of the FLSA. The primary beneficiary test includes the following seven factors: The extent to which the intern and the employer clearly understand that there is no expectation of compensation. Any promise of compensation, express or implied, suggests that the intern is an employee—and vice versa. The extent to which the internship provides training that would be similar to that which would be given in an educational environment, including the clinical and other hands-on training provided by educational institutions. The extent to which the internship is tied to the intern’s formal education program by integrated coursework or the receipt of academic credit. The extent to which the internship accommodates the intern’s academic commitments by corresponding to the academic calendar. The extent to which the internship’s duration is limited to the period in which the internship provides the intern with beneficial learning. The extent to which the intern’s work complements, rather than displaces, the work of paid employees while providing significant educational benefits to the intern. The extent to which the intern and the employer understand that the internship is conducted without entitlement to a paid job at the conclusion of the internship. If analysis of these circumstances reveals that an intern is an employee, then he or she is entitled to both minimum wage and overtime pay under the FLSA. Click here for more on the primary beneficiary test. To learn more about employee compensation, please visit our section on Employee Pay. 5 Must-Do’s for Employee Orientation Employee orientation is an important piece of HR and employee management. A formal orientation is essential to setting a new hire up for success and helping your company maintain the corporate image and values you portrayed during the interview process. Employee orientation can also be designed for current staffers who are being promoted to a new position within the company and need a similar type of program. Learn the must-do’s for employee orientation in the video below. For more on employee orientation, check out our Onboarding section.

Share this story

Forms 1095 Due to Employees by March 2nd Employers subject to the Affordable Care Act’s (ACA) information reporting requirements are reminded that the deadline to furnish Forms 1095-B and 1095-C are quickly approaching. The reporting deadlines in 2018 are for reporting information on the 2017 calendar year, and are as follows: Applicable large employers (ALEs)—generally those with 50 or more full-time employees, including full-time equivalents—must furnish a Form 1095-C to all full-time employees by March 2, 2018. Self-insuring employers that are not considered ALEs, and other parties that provide minimum essential coverage, must furnish a Form 1095-B to responsible individuals (which may be the primary insured, employee, former employee, or other related person named on the application) by March 2, 2018. For more on employer information reporting requirements, check out our comprehensive section on Information Reporting. EEOC Releases Guidance on Workplace Harassment Prevention The U.S. Equal Employment Opportunity Commission recently issued Promising Practices for Preventing Harassment, a guidance document that contains harassment prevention recommendations for employers in four broad categories: Leadership and accountability; Harassment policies; Harassment complaint systems; and Harassment training. For each category, the guidance lists numerous actions employers can take. Recommended actions include, for example: Allocating sufficient resources for effective harassment prevention strategies; Crafting an unequivocal statement that harassment based on, at a minimum, any legally protected characteristic, is prohibited; and Conducting regular, interactive, and comprehensive harassment prevention training for all employees. The document states that while the practices it discusses are not legal requirements under federal employment discrimination laws, they may enhance compliance efforts. To read the guidance document, click here. For more information on compliance issues concerning discrimination in the workplace, please visit our Discrimination section. IRS Announces 2018 Standard Mileage Rates The Internal Revenue Service (IRS) has issued the 2018 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, or medical purposes. 2018 Standard Mileage Rates Beginning on January 1, 2018, the standard mileage rates for the use of a car, van, pickup, or panel truck will be: 54.5 cents per mile for all business miles driven (up 1 cent from 2017) 18 cents per mile driven for medical purposes (up 1 cent from 2017) 14 cents per mile driven in service of charitable organizations (unchanged from 2017) Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. IRS Notice 2018-03 contains additional information about mileage rates. For more on employer-provided transportation benefits, please see our section on Fringe Benefits. Small Business Health Care Tax Credit Form Released The IRS has released Form 8941, Credit for Small Employer Health Insurance Premiums, and related instructions, for tax year 2017. Eligible small employers use this form to figure the credit for health insurance premiums under the Small Business Health Care Tax Credit. The Small Business Health Care Tax Credit is designed to encourage small businesses and tax-exempt employers to offer health insurance coverage to their employees. Among other requirements, an employer may be eligible for the credit for tax year 2017 if: It had fewer than 25 full-time equivalent employees for the tax year; It paid at least 50% of the premium cost for single health care coverage for each employee; The average annual wages of its employees for the year were less than $53,000; and It paid premiums on behalf of employees enrolled in a qualified health plan offered through a Small Business Health Options Program (SHOP) Marketplace (or qualifies for an exception to this requirement). Note: Employers in Hawaii cannot claim this credit for insurance premiums paid for health plan years beginning after 2016. Click here to review Form 8941 and its instructions. Our Small Business Health Care Tax Credit section provides additional details regarding the credit. 10 Employee Retention Resolutions for 2018 With a new year upon us, your attention is likely focused on setting financial and productivity goals for your business. As you plan, make sure to look at one area you may have overlooked: employee retention. Employee retention has a huge impact on your bottom line, and now is a great time to make some employee retention resolutions that will pay off all year long. Watch the video below to learn 10 key employee retention resolutions for 2018. For more on employee retention, check out our Human Resources section.

Share this story

DOL Releases Updated Model CHIP Notice An updated model notice for employers to provide information on eligibility for premium assistance under Medicaid or the Children’s Health Insurance Program (CHIP) is now available for download from the U.S. Department of Labor (DOL). Click here to download the latest employer CHIP notice in PDF format. A Microsoft Word version is also available. Annual Notice Requirement The employer CHIP notice must be provided annually before the start of each plan year to inform each employee (regardless of enrollment status) of potential opportunities for premium assistance in the state in which the employee resides. This may or may not be the same as the state in which the employer or its principal place of business is located. An employer can choose to provide the notice on its own or concurrently with the furnishing of: Materials notifying the employee of health plan eligibility; Materials provided to the employee in connection with an open season or election process conducted under the plan; or The summary plan description (SPD). The updated model notice includes information on how employees can contact their state for additional information and how to apply for premium assistance, with information current as of August 10, 2017. Our section on CHIPRA (the Children’s Health Insurance Program Reauthorization Act) contains additional information on employer responsibilities related to the state Children’s Health Insurance Program. IRS: Health FSAs Cannot be Used for Insurance Premiums A recently released IRS letter reaffirms the agency’s view that funds from a health flexible spending arrangement (health FSA) may not be used to reimburse health insurance premium payments or Medicare premium expenses. Certain Premiums May be Deducted The IRS letter points out that health insurance premium payments, including those for Medicare, may qualify for purposes of the itemized deduction for medical expenses. However, only premiums for which the taxpayer is not claiming a separate credit or deduction can be included as part of a medical expenses deduction. Additional restrictions apply to this deduction. For more information, please see IRS Publication 502, Medical and Dental Expenses. Click here to read the IRS letter in its entirety. For additional information on health FSAs, visit our HSAs, FSAs, and Other Tax-Favored Accounts section. Taming the Productivity Killers From water cooler gossip, to interminable meetings, to hours wasted scrolling through social media, the modern workplace is teeming with threats to employee productivity. These distractions are taking a toll: several recent surveys show that U.S. employees are spending a mere 40-50% of their workdays engaged in job-related tasks. Fortunately, there are simple steps you can take to help employees avoid common productivity pitfalls. Properly Train Employees: Whether it is on-the-job training, formal courses, or online learning, any investment you make in employee training is an investment in productivity. Properly trained employees are more effective, more likely to stay at their jobs, and less likely to expose your organization to unnecessary risks and liabilities. Avoid Burdensome Meetings: Before scheduling a meeting, consider whether it is necessary to accomplish your goals. Invite only essential personnel, and always draw up an agenda of items to be covered and distribute it in advance. Finally, communicate start and end times for the meeting as a whole and each agenda item, and stick to the agenda to the best of your ability. Be Proactive in Reducing Gossip: An office subject to constant gossip will ultimately suffer from poor morale and lower productivity. To stem the chatter, managers should communicate with employees regularly about issues that affect the company, their departments, and their individual positions. This will foster an environment of trust and transparency, and diminish the appeal of the rumor mill. Digital Distractions: While electronic communication has revolutionized how we work, it also has the capacity to impair our efficiency. For instance, computers help us work faster, but also make it easy for employees to “check out” during the workday with online shopping, entertainment, or social media. To ensure that technology does not become an impediment to productivity, employers should establish email, internet, and social media use policies, and train employees on each of these. For more employee management tips, check out our Human Resources section. Maximum Individual Mandate Payment for 2017 Announced The IRS has released the 2017 monthly national average premium for a bronze-level health plan offered through the Health Insurance Marketplace, which is used to determine the maximum individual mandate penalty. New Guidance According to the new IRS guidance, the monthly national average premium for qualified health plans that have a bronze level of coverage and are offered through the Health Insurance Marketplace in 2017 is: $272 per individual (up from $223); and $1,360 for a family with five or more members (up from $1,115). The guidance is effective for taxable years ending after December 31, 2016. Calculating the Payment 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. The annual penalty amount is either a percentage of an individual’s household income in excess of the tax return filing threshold or a flat dollar amount, whichever is greater. The maximum penalty amount is capped at the cost of the national average premium for a bronze level health plan available through the Marketplace. At this time, the 2017 inflation adjustment for the flat dollar amount penalty has not been announced. Visit our section on the Individual Mandate (Individual Shared Responsibility) for more information on the individual mandate. How to Make Your Job Posting Stand Out Filling a job vacancy is a big task. Unfortunately, you get only one chance to make a first impression, and the job posting is often your very first contact with a potential employee. But how do you make your job posting stand out above the rest? Watch the video below to learn five fast tips to make your job posting stand out. For more helpful recruitment tips, check out our Recruitment & Hiring section.

Share this story

Monthly Newsletter by Summit Insurance Advisors

August 2017

USCIS Releases New Form I-9 U.S. Citizenship and Immigration Services (USCIS) has released a new version of Form I-9, Employment Eligibility Verification. By September 18, 2017, employers must use only the new version. Compliance Dates for New Form I-9 The new Form I-9 features a revision date of July 17, 2017. While employers may continue using a Form I-9 with a revision date of November 14, 2016 through September 17, 2017, as of September 18, 2017, employers must use only the new version. Changes to Form I-9 The following revisions have been made to the List of Acceptable Documents section of the new Form I-9: The Consular Report of Birth Abroad (Form FS-240) has been added to List C. Employers completing Form I-9 on a computer are now able to select Form FS-240 from the drop-down menus available in List C of Section 2 and Section 3. All the certifications of report of birth issued by the U.S. Department of State (Form FS-545, Form DS-1350, and Form FS-240) are now combined into selection C#2 in List C. All List C documents have been renumbered except the Social Security card. For example, the employment authorization document issued by the U.S. Department of Homeland Security on List C has changed from List C #8 to List C #7. The new Form I-9 can be downloaded here. For more information on complying with the employment eligibility verification requirements, please visit our Form I-9 section. Summer’s Here and So is Spear Phishing Cyber attacks and resulting data breaches often begin with a spear-phishing email. Spear phishing differs from regular email phishing in its use of extensive research to target a specific audience, which allows the spear phisher to pose as a familiar and trusted entity in its email to a mark. Spear phishers seek a company’s valuable information—such as credentials providing access to customer lists, trade secrets, and confidential employee information—and some of their methods include: Directing email recipients to fake (but authentic-looking) websites that ask for information like account numbers, passwords, or other credentials; and Inducing recipients to click on links or attachments that download malware onto the recipient’s computer. The malware often allows the phisher to steal passwords and sensitive data by, for example, tracking keystrokes. The IRS offers the following tips to protect against spear phishing: Educate all employees about phishing in general and spear phishing in particular. Use strong, unique passwords with a mix of letters, numbers, and special characters. Also, remember to use different passwords for each account. Never take an email from a familiar source at face value, especially if it asks you to open a link or attachment, or includes a threat about a dire consequence that will result if you fail to take action. If an email contains a link, hover your cursor over the link to see the web address (URL) destination. If it’s not a URL you recognize, or if it’s an abbreviated URL, don’t open it. Poor grammar and odd wording are warning signs of a spear-phishing email. Consider calling the sender to confirm the authenticity of an email you’re unsure of, but don’t use the phone number in the email. Use security software that updates automatically to help defend against malware, viruses, and known phishing sites. Check out our Employee Records and Files section for more on how to protect confidential employee information. 5 Guidelines for Protecting Employees from Heat Stress With the dog days of summer under way, it is critical that employers recognize the hazards of working in hot environments and take steps to reduce the risk to workers. Consider taking the following actions that can help protect employees: Provide heat stress training.Topics you may wish to address include worker risk, prevention, symptoms, treatment, and personal protective equipment. Schedule hot jobs for the cooler part of the day. The best way to prevent heat illness is to make the work environment cooler. Monitor weather reports daily and reschedule jobs with high heat exposure to cooler times of the day. When possible, routine maintenance and repair projects should be scheduled for the cooler seasons of the year. Provide rest periods with water breaks. Provide workers with plenty of cool water in convenient, visible locations in shade or air conditioning that are close to the work area. Avoid alcohol and drinks with large amounts of caffeine or sugar. Monitor workers who are at risk of heat stress. Workers are at an increased risk of heat stress when wearing personal protective equipment, when the outside temperature exceeds 70°F, or while working at high energy levels. Establish a routine to periodically check workers for signs and symptoms of overexposure. Acclimatize workers by exposing them for progressively longer periods to hot work environments. Allow workers to get used to hot environments by gradually increasing exposure over at least a 5-day work period. The U.S. Occupational Safety and Health Administration (OSHA) suggests beginning with 50% of the normal workload and time spent in the hot environment, and then gradually building up to 100% by the fifth day. Our section on Safety & Wellness includes additional tips for maintaining a safe and healthy workplace. MLR Rebates Due to Plan Sponsors by September 30 The Medical Loss Ratio (MLR) rules under Health Care Reform require an issuer to provide rebates if its medical loss ratio (the amount of health insurance premiums spent on health care and activities to improve health care quality) falls short of the applicable standard during a reporting year. Each year’s rebates must be provided by issuers to policyholders (typically the employer that sponsors the plan) by September 30 of the following year. Employer Distribution The MLR rules provide that issuers must pay any rebates owed to persons covered under a group health plan to the policyholder, who is then responsible for distributing the rebate to eligible plan enrollees. In general, there are several ways rebates may be distributed to plan enrollees, including: A rebate check in the mail; A lump-sum reimbursement to the same account that was used to pay the premium if it was paid by credit card or debit card; or A direct reduction in future premiums. In addition to the above methods, employers may also apply the rebate in a way that benefits employees. Check out our section on Medical Loss Ratio (MLR) Rebates & Employer Responsibilities to learn more. Distracted Driving is Risky Business We’ve all heard the messages: Distracted driving is dangerous, and sadly, responsible for thousands of deaths a year. With motor vehicle accidents being one of the leading causes of workplace fatalities, distracted driving can also be risky business. Learn what you can do as an employer to discourage distracted driving by your employees in the video below. For more safety tips, please visit our Safety & Wellness section.

Share this story

OSHA Not Currently Accepting Electronic Submissions of Form 300A Information The federal Occupational Safety and Health Administration (OSHA) has announced that it is not accepting electronic submissions of information from 2016 Forms 300A at this time. As a result, OSHA has proposed extending the July 1, 2017 date by which certain employers are required to electronically submit these forms pursuant to its recent “Electronic Recordkeeping Rule” toDecember 1, 2017. ‘Electronic Recordkeeping Rule’ Explained The Electronic Recordkeeping Rule, generally effective as of January 1, 2017, requires certain employers to electronically submit injury and illness data to OSHA that they are already required to record on their OSHA Forms 300A. Under the rule, the following entities were required to make these submissions by July 1, 2017: Establishments with 250 or more employees in industries covered by OSHA’s recordkeeping requirements. Establishments with 20-249 employees in certain high-risk industries. Click here to read OSHA’s announcement. Note: Establishments located in OSHA “State Plan” states should check with their state plans for the implementation date of the new requirements in their state. To read more about OSHA’s recordkeeping requirements, please visit our Safety & Wellness section.

How to Keep Your Employees Motivated This Summer The warm weather and eagerly anticipated outdoor activities of summer may take a toll on your workers’ concentration. If you’re noticing a lack of focus among your employees during this time of year, consider the following ideas to help keep them motivated: Encourage your employees to step outside for at least 15 minutes each day. Exposure to natural sunlight can prevent workers from feeling confined to the office during the warm summer months. Holding business meetings outside may also help to boost workers’ morale. Change things up! Employees may become more motivated when their jobs are more challenging and interesting. Consider lateral moves to build your workers’ skill levels and knowledge base. Create opportunities for casual interaction. A company sports team, a family day, or an outdoor after-hours social event can keep your employees engaged and build camaraderie in the workplace. Consider flexible working arrangements. Arrangements such as flextime or staggered work hours may allow employees to enjoy summer activities and attend to family obligations, while coming to work refreshed. It’s a good idea for employers to work with a knowledgeable employment law attorney when creating policies on flexible working arrangements, to ensure policies and practices are in compliance with the law and do not unlawfully discriminate against certain employees. Our section on Motivating Employees features additional strategies to help you motivate your employees during any time of year.

HHS Releases HIPAA Cyber-Attack Checklist The Department of Health and Human Services (HHS) Office of Civil Rights (OCR) has released a quick-response checklist briefly describing the steps that HIPAA-covered entities (including medical and dental offices) and their business associates should take in response to a cyber-related security incident. Steps include: Executing the entity’s response and mitigation procedures and contingency plans,such as immediately fixing any technical or other problems to stop the incident; Reporting the crime to other law enforcement agencies, which may include state or local law enforcement, the Federal Bureau of Investigation (FBI), and/or the Secret Service; Reporting all cyber-threat indicators to federal and information-sharing and analysis organizations (ISAOs), including the Department of Homeland Security and the HHS Assistant Secretary for Preparedness and Response (any reports should not include protected health information); and Reporting the breach to the OCR as soon as possible, but no later than 60 days after the discovery of a breach affecting 500 or more individuals, and notifying affected individuals and the media unless a law enforcement official has requested a delay in the reporting. Note: OCR considers all mitigation efforts taken by the entity during any particular breach investigation. Such efforts include the voluntary sharing of breach-related information with law enforcement agencies and other federal and analysis organizations. Click here to read the entire cyber-attack checklist. Please visit our HIPAA section for more on the law’s requirements.

Are Summer Interns Subject to Minimum Wage and Overtime Pay? Employers who have hired summer interns should keep in mind that the U.S. Department of Labor (DOL) has stated that private sector internships are most often considered “employment” subject to the federal Fair Labor Standards Act’s (FLSA) minimum wage and overtime rules. The Test for Unpaid Interns There are some circumstances under which individuals who participate in for-profit private sector internships or training programs may do so without compensation. The determination of whether an internship or training program meets this exclusion depends upon all of the facts and circumstances. The DOL uses the following six criteria that must be applied when making this determination: The internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment; The internship experience is for the benefit of the intern; The intern does not displace regular employees, but works under close supervision of existing staff; The employer that provides the training derives no immediate advantage from the activities of the intern, and on occasion its operations may actually be impeded; The intern is not necessarily entitled to a job at the conclusion of the internship; and The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship. If all of the factors listed above are met, an employment relationship likely does not exist under federal law, and the FLSA’s minimum wage and overtime provisions do not apply to the intern. This exclusion is narrow, because the FLSA’s definition of “employ” is very broad. Note: Be sure to check your state wage and hour laws for applicable requirements. When both the FLSA and a state law apply, the employee is entitled to the most favorable provisions of each law. Our Employee Pay section features information on other common federal wage issues.

How to Write a Good Job Description Job descriptions are an essential part of hiring and managing employees. In addition to helping you recruit and hire the right candidates, these written summaries serve as a key basis for outlining performance expectations, job training, job evaluation, and career advancement. Learn how to write a good description by watching the video below. For more recruitment tips, check out our Recruitment & Hiring section.

Share this story

 

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

Share this story

 

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

Share this story

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:

• HSAs: The annual limitation on deductions for an individual with self-only coverage under a high deductible health plan (HDHP) is $3,400 (up from $3,350 for 2016). The annual limitation on HSA deductions for an individual with family coverage under an HDHP is $6,750 (unchanged from 2016). For 2017, an HDHP is defined as a health plan with an annual deductible that is not less than $1,300 for self-only coverage or $2,600 for family coverage (unchanged from 2016), and annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) that do not exceed $6,550 for self-only coverage or $13,100 for family coverage (unchanged from 2016).
• Health FSAs: The annual dollar limitation on employee contributions to employer-sponsored health FSAs rises to $2,600 (up from $2,550 for 2016).

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:

• The entire 2016 benefit year contribution in one payment, no later than January 17, 2017 reflecting $27.00 per covered life; or
• In two separate payments for the 2016 benefit year, with the first remittance due by January 17, 2017 reflecting $21.60 per covered life, and the second remittance due by November 15, 2017 reflecting $5.40 per covered life.

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:

• Form 1094-C (transmittal)
• Form 1095-C
  • 2016 Instructions for Forms 1094-C and 1095-C
• Form 1094-B (transmittal)
• Form 1095-B
  • 2016 Instructions for Forms 1094-B and 1095-B

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

Share this story

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:

• Medicare-eligible active working individuals and their dependents (including a Medicare-eligible individual when he or she joins the group health plan);
• Medicare-eligible COBRA individuals and their dependents;
• Medicare-eligible disabled individuals covered under an employer’s prescription drug plan; and
• Any retirees and their dependents.

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:

• Materials notifying the employee of health plan eligibility;
• Materials provided to the employee in connection with an open season or election process conducted under the plan; or
• The summary plan description (SPD).

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:

• 2.5% of the individual’s yearly household income above his or her applicable filing threshold; or
• $695 per person for the year ($347.50 per child under age 18).

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:

• $223 per individual; and
• $1,115 for a family with five or more members.

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:

1. Adopt a Written Policy: Employers should adopt a written time-off policy, detailing the amount of sick, personal, and vacation time allotted to employees and procedures for taking that time off. This policy should clarify how far in advance employees must notify their supervisors of their intention to take time off, and whether those requests will be approved based on corporate or departmental needs.
2. Communicate the Time-off Policy to Employees: Communicate this time-off policy in both the employee handbook as well as on the company’s internal web site, or intranet, if one exists. Employers should also communicate in writing any variances to the time-off policy that apply to specific departments or positions. When hired, an employee should sign a written acknowledgement that he or she has received and read the handbook. This acknowledgement should be placed in the employee’s personnel file.
3. Comply with Applicable Law: When considering whether to grant an employee’s time-off request, it is necessary to comply with applicable federal, state, and local laws regarding time off and nondiscrimination. For example, employers covered by the federal Family and Medical Leave Act (FMLA) must provide eligible employees with leave for specified family or medical reasons. In addition, many laws contain specific procedures and notice requirements for both employers and employees regarding requests for time off.
4. Consider Flexible Work Options: In managing employees’ requests for time off, an employer should also consider whether a flexible work option is a good fit for their company. Flexible work hours can minimize inconvenient time-off requests and help managers plan for extra coverage during busy times.
5. Be Fair: Time-off requests must still on occasion be denied. Remember to follow all applicable laws, and apply those laws and company policies consistently and fairly among all employees. If appropriate, the employer should explain why the request was denied and attempt to find a resolution that works for both the employee and the company.

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:

1. Show the required documents, including proof of identity. See Learn What Documents You Need for more information. (Under the heading “Type of Card,” select “Corrected” for a list of the documents needed);
2. Fill out and print an Application for a Social Security Card; and
3. Take or mail the application and documents to a local Social Security office.

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

Share this story

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 entire 2016 benefit year contribution in one lump sum payment, no later than January 17, 2017, reflecting $27.00 per covered life; or
• In two separate payments for the 2016 benefit year, with the first remittance due by January 17, 2017 reflecting $21.60 per covered life, and the second remittance due by November 15, 2017 reflecting $5.40 per covered life.

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:

• Raises the salary threshold from $455 a week to $913 per week (or $47,476 annually) for a full-year worker;
• Sets the highly-compensated employee (HCE) total annual compensation level equal to $134,004 annually; and
• Amends the regulations to allow employers to use nondiscretionary bonuses, incentives, and commissions to satisfy up to 10% of the new standard salary level, so long as employers pay those amounts on a quarterly or more frequent basis.

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:

• Providing pay raises that increase workers’ salaries to the new threshold;
• Spreading employment by reducing or eliminating work hours of individual employees working over 40 hours per week for which no overtime is being paid; or
• Paying overtime.

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:

• Draft Form 1094-C (transmittal)
• Draft Form 1095-C

The 2016 Draft Instructions for Forms 1094-C and 1095-C are also now available. Among other items, the draft instructions clarify:

• The reporting rules which require employers who are Members of an “Aggregated ALE Group”–a group of ALE Members treated as a single employer under the Internal Revenue Code–to file Forms 1094-C and 1095-C, even if the ALE Member has fewer than 50 full-time employees of its own;
• The indicator codes that should be used to report offers of COBRA continuation coverage on lines 14 and 16 of Form 1095-C; and
• The definitions of “full-time employee” and “Employee Required Contribution” for purposes of Forms 1094-C and 1095-C reporting.

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.

1. Confirm your insurance: Make sure you are aware of the details of your flood insurance and other hazard insurance policies, specifically which items and contents are covered and under what conditions. Check with your insurance agent if you have questions.
2. Back up essential files: Regularly back up vital electronic files (such as billing and payroll records and customer lists) and keep backup copies in a secure off-site location. Important papers (plans, legal documents, etc.) should also be stored securely off-site.
3. Consider the location of equipment susceptible to damage: Raise computers above flood level, move heavy objects to low shelves, and secure any equipment that could move or fall during a natural disaster.
4. Take inventory: For both insurance and tax purposes, you should maintain written and photographic inventories of all important materials and equipment. Estimate the cost of repairing or replacing each essential piece of equipment in your business.
5. Perform regular building maintenance and repairs: Periodically evaluate the building envelope to make sure that wind and water are not able to penetrate the building.

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.

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

Share this story