Employers Must Use New Form I-9

U.S. Citizenship and Immigration Services (USCIS) has released a new version of Form I-9, Employment Eligibility Verification. As of January 22, 2017, employers must use the updated form.   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 and Dates  As of January 22, 2017, employers must use the “11/14/2016 N” version of Form I-9 to verify the identity and work eligibility of every new employee, or for the reverification of expiring employment authorization of current employees (if applicable). This date is found on the lower left-hand corner of the form.   Click here to access the latest Form I-9.   For more information on complying with employment eligibility verification requirements, please visit our section on Form I-9.

Revised Model CHIP Notice Now Available

A revised model notice is now available for all employers that provide group health coverage in states with premium assistance through the Children’s Health Insurance Program (CHIP), or Medicaid, to inform employees of potential opportunities for assistance in obtaining coverage. The employer CHIP notice must be furnished to all employees 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.

The revised 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 January 31, 2017.   Click here to access the revised model CHIP Notice.   Check out our Benefits Notices Calendar to learn about other federal notice requirements and to download additional model notices available for employers and group health plans.

IRS Updates Publication on Deducting Travel, Entertainment, and Car Expenses

The Internal Revenue Service (IRS) has updated Publication 463 (Travel, Entertainment, Gift, and Car Expenses) for use in preparing 2016 tax returns that are filed in 2017. This publication explains what travel, entertainment, and car expenses are deductible, how to report them on returns, what records are needed to prove expenses, and how to treat any expense reimbursements received.   Highlights of Updated Publication  Updated Publication 463 contains the following new information:

• Standard mileage rate. For 2016, the standard mileage rate for the cost of operating a taxpayer’s car for business use is 54 cents per mile.
• Depreciation limits on cars, trucks, and vans. For 2016, the first-year limit on the total depreciation deduction for cars remains at $11,160 ($3,160 if a taxpayer elects not to claim the special depreciation allowance). For trucks and vans, the first-year limit is $11,560 ($3,560 if a taxpayer elects not to claim the special depreciation allowance).
• Section 179 deduction. For 2016, the section 179 deduction limit on qualifying property purchases (including cars, trucks, and vans) is a total of $500,000, and the limit on those purchases at which the deduction begins to be phased out is $2,010,000.
• Special depreciation allowance. For 2016, the special (“bonus”) depreciation allowance on qualified property (including cars, trucks, and vans) remains at 50%.

Click here to access the updated Publication 463.   For more information, including details on company vehicles, visit our section on Fringe Benefits.

New SBC Template Required For Use On or After April 1

New versions of the Summary of Benefits and Coverage (SBC) template, instructions, uniform glossary, and related documents are required for use on or after April 1, 2017. Under the Affordable Care Act, group health plans and health insurance issuers are generally required to provide a written SBC to plan participants and beneficiaries at specified times during the enrollment process and upon request.   Changes to SBC Template The new SBC template includes an additional coverage example as well as language and terms to improve individuals’ understanding of their health coverage. Specifically, the new template includes more information about cost sharing, such as enhanced language to explain deductibles, and requires plans to address individual and overall out-of-pocket limits. Changes have also been made to the SBC to improve readability.   Implementation Date for Using New Template and Related Documents The implementation date for using the new SBC template and associated materials will be as follows:

• Health plans and issuers that maintain an annual open enrollment period will be required to use the new editions beginning on the first day of the first open enrollment period that begins on or after April 1, 2017 with respect to coverage for plan years beginning on or after that date.
• Health plans and issuers that do not use an annual open enrollment period will be required to use the new editions beginning on the first day of the first plan year that begins on or after April 1, 2017.

Click here to access the new SBC template and related materials.   Additional information can be found in our Summary of Benefits and Coverage (SBC) section.

How to Handle Employee Attendance During Bad Weather

Snow and slippery conditions during the winter months may make it difficult for your employees to travel to work. Consider the following guidelines that can help your company be prepared when bad weather strikes. 1. When an employee misses work due to bad weather conditions, whether the employee is entitled to be paid for the absence may depend on the employee’s exempt or non-exempt status. Under the federal Fair Labor Standards Act (FLSA), employers are not required to pay non-exempt employees for hours they did not work, including when the office is closed due to bad weather. Exempt employees generally must be paid their full salary amount if they perform any work during a workweek. However, an employer that remains open for business during a period of bad weather may generally make deductions, for full-day absences only, from the salary of an exempt employee who chooses not to report to work because of the weather. Deductions from salary for less than a full-day’s absence are not permitted.   If the business is closed for the day as a result of inclement weather, the employer may not deduct the day’s pay from the salary of an exempt employee. The general rule is that an employer who closes operations due to a weather-related emergency or other disaster for less than a full workweek must pay an exempt employee the full salary for that week, if the employee performs any work during the week. This is because deductions may not be made for time when work is not available.   2. Some states require employers to pay employees for showing up even if no work is available or there is an interruption of work and the employee is sent home. Although payment for time not worked may not be required for non-exempt employees under federal law, some states do require that employees be paid for a minimum number of hours for reporting to work, even if there is no work that can be performed (such as when the office is closed) or the employee is sent home early, for instance, due to an impending storm.   Often called “reporting time pay,” these laws may apply to specific industries (e.g., manufacturing) or certain employees only, so it is important to check with your state labor department for requirements that may apply to your company before implementing any policy.   3. Plan ahead to let your employees know what is expected of them and to help minimize disruption to your business. Make it a priority to notify all of your employees, both exempt and non-exempt, of your company’s policy regarding employee attendance and pay during periods of inclement weather. Your policy should include information on how your employees can find out whether the office is open or closed, such as by email, radio broadcast, calling in to hear a recorded message, or other methods that all employees can access. Be sure to apply your policy consistently and fairly to all employees.   It’s also prudent to remind employees to use their best judgment and not to put their safety at risk when it comes to traveling to work during or after a storm. If possible, see if you can arrange for employees to work remotely from home on days when the weather makes travel dangerous.   For more issues related to employee compensation, including guidelines for determining the exempt or non-exempt status of your employees, visit our section on Employee Pay.

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

February 2017 Issue

New Executive Order Calls for Minimizing Economic Burden of ACA

President Trump has signed an executive order calling upon federal administrative agencies to minimize the economic burden of the Affordable Care Act (ACA), pending repeal of the law. Until further guidance is issued or legislation is signed, however, all ACA requirements remain in effect, including penalties for noncompliance.   In addition to making clear that the Trump administration seeks the prompt repeal of the ACA, the executive order specifically calls upon agencies to exercise authority and discretion to:

• Waive, defer, grant exemptions from, or delay the implementation of any ACA provision or requirement that would impose a fiscal or regulatory burden on states, individuals, health care providers, health insurers, and medical device and product producers (including fees, taxes, and penalties);
• Provide greater flexibility to states, and cooperate with them in implementing health care programs; and
• Encourage the development of a free and open market for the offering of health care services and health insurance.

The executive order must be implemented in a manner consistent with applicable law, including the Administrative Procedure Act, which requires extended review of and public comment on any federal rules which may be proposed as a result of the executive order.   For more information on the ACA, check out our Health Care Reform section.

DOL Adjusts Labor Law Penalties for 2017

The U.S. Department of Labor (DOL) has published a final rule adjusting for inflation the civil monetary penalties assessed for violations of a number of federal labor laws. The increases generally apply to civil penalties assessed after January 13, 2017, whose associated violations occurred after November 2, 2015.  Key Penalty Increases Penalty increases that may be of particular interest to employers include:

• FLSA Requirements. Repeated or willful violations of the FLSA’s minimum wage or overtime pay requirements are subject to a penalty of up to $1,925 per violation (formerly $1,894);
• FMLA Posting. Willful violations of the FMLA’s posting requirement are subject to a penalty not to exceed $166 for each separate offense (formerly $163) (note: covered employers must post this general notice even if no employees are eligible for FMLA leave);
• Employer CHIP Notice. Failure to provide employees with an Employer Children’s Health Insurance Program (CHIP) Notice is subject to a penalty of up to $112 per day per violation (formerly $110);
• SBCs. Failure to provide a Summary of Benefits and Coverage (SBC) is subject to a penalty of up to $1,105 per failure (formerly $1,087);
• Form 5500. Failure or refusal to file an annual report (Form 5500) with the DOL is subject to a penalty of up to $2,097 per day (formerly $2,063); and
• OSH Act Posting. Violations of the OSH Act’s posting requirement are subject to a maximum penalty of $12,675 for each violation (formerly $12,471).

Review our Compliance by Company Size chart for a summary of key federal labor laws that may apply to your company.

New Expiration Date for Employer CHIP, COBRA General, and COBRA Election Notices

The U.S. Department of Labor (DOL) has extended the effective dates of its model Employer CHIP Notice, General Notice of COBRA Rights, and COBRA Election Notice through December 31, 2019. Previously, these model notices expired on December 31, 2016.    No other changes have been made to these notices. For the latest guidance regarding these notices, please visit the DOL’s Children’s Health Insurance Program Reauthorization Act and COBRA Continuation Coverage webpages, or contact the DOL directly at 1-866-487-2365.   Our Benefits Notices by Company Size section features additional model notices for employers of all sizes.

Reminder to Employers: Post OSHA 300A Summary Starting Feb. 1

Employers subject to the recordkeeping requirements of the federal Occupational Safety and Health Act are reminded to post the OSHA Form 300A, Summary of Work-Related Injuries and Illnesses, between February 1, 2017 and April 30, 2017. The 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. A company executive must certify that he or she has examined the OSHA 300 Log and that he or she reasonably believes—based on his or her knowledge of the process by which the information was recorded—that the annual summary is correct and complete. To read more about worker safety and health, please visit our section on Safety & Wellness.

Medicare Part D Online Disclosure to CMS Due Mar. 1 The Medicare Modernization Act requires employers that provide prescription drug coverage to Medicare-eligible individuals to complete the Online Disclosure Form to the U.S. Centers for Medicare & Medicaid Services (CMS) to report whether such coverage is creditable prescription drug coverage (“creditable coverage”). Creditable coverage is coverage that is expected to pay, on average, as much as the standard Medicare prescription drug coverage.   This disclosure is required annually, no later than 60 days from the beginning of a plan year—typically March 1st for calendar year plans—and at certain other times.   Visit our section on Medicare for more information about how the law affects employer-provided group health plans.

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

Extension Form 1095-B or Form 1095-C

The U.S. Department of the Treasury and IRS released final rules on ACA reporting. The extension of the filing deadline for employers is a welcome reprieve from the new reporting requirements. Fortunately, the majority of individuals will not be affected by the delay of the receipt of their 1095 form. Employees enrolled in an eligible employer-sponsored plan are not eligible for premium tax credits for any month the employee is eligible for coverage that provides minimum value (MV) and is affordable. The 1095 data is collected at the Health Insurance Marketplace prior to the purchase of insurance coverage.

Employees who enrolled in coverage through the Marketplace and file their tax returns prior to receiving their MEC status simply need to keep the MEC information with their tax records. They do not do not need to file an amended return or send this information to the IRS.

Employers must meet the extended due dates. Failure to do so will subject the employer to penalties outlined in IRS Code Sections 6722 and 6721. The IRS may give leeway of penalties for reasonable cause. The filing extensions are only for 2015 and do not apply to any other calendar year. Please see Notice 2016-4.

Share this story