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PCORI Fees Due to IRS No Later Than July 31
Fees to fund the Patient-Centered Outcomes Research Institute (PCORI) are due to the IRS no later than July 31, 2017 from employers who sponsor certain self-insured health plans, including health reimbursement arrangements (HRAs) that are not treated as excepted benefits.
How to Pay PCORI Fees
Employers that sponsor certain self-insured health plans must report and pay the required PCORI fees via IRS Form 720, Quarterly Federal Excise Tax Return. For plan years ending between January 1, 2016 and September 30, 2016, the fee for an employer sponsoring an applicable self-insured plan is $2.17 multiplied by the average number of lives covered under the plan. For plan years ending between October 1, 2016 and December 31, 2016, the fee is $2.26 multiplied by the average number of lives covered under the plan.
For more information on PCORI fees, visit our PCORI Fees for Self-Insured Plans section.
2018 Health Savings Account Limits Released
The IRS has announced the 2018 inflation-adjusted amounts for Health Savings Accounts (HSAs).
Annual Contribution Limitation
For calendar year 2018, the annual limitation on HSA deductions for an individual with self-only coverage under a high deductible health plan is $3,450 (up from $3,400 for 2017). The annual limitation on HSA deductions for an individual with family coverage under a high deductible health plan is $6,900 (up from $6,750 for 2017).
High Deductible Health Plan Amounts
For calendar year 2018, a “high deductible health plan” is defined as a health plan with an annual deductible that is not less than $1,350 for self-only coverage or $2,700 for family coverage, and annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) that do not exceed $6,650 for self-only coverage or $13,300 for family coverage.
Click here to read the IRS announcement on these amounts.
Be sure to check out our Health Savings Accounts section for more on HSAs.
New OSHA Training Requirements Now Effective
Under the U.S. Occupational Safety and Health Administration’s (OSHA) recent General Industry Walking-Working Surfaces and Fall Protection Standards final rule, employers are now required to ensure that workers who use personal fall protection and equipment are trained about fall and equipment hazards, including fall protection systems.
New Training Requirements
Under the recent final rule, employers whose employees use personal fall protection equipment and work in other specified high hazard situations must provide employee training as to fall hazards, including fall protection systems. Specifically, employees must be trained by a qualified person and must be trained in at least the following topics:
In addition, the final rule requires employers to train each employee on equipment hazards. This required training includes training as to the proper care, inspection, storage, and use of certain equipment (including, but not limited to, dockboards and rope descent systems) before an employee uses the equipment.
Both the fall and equipment hazard trainings must be presented to each employee in a manner that the employee understands. In addition, employers must retrain an employee when the employer has reason to believe the employee does not have the understanding and skill required by the initial training.
For additional information on the final rule and its training requirements, please click here.
To read more about worker safety and health, please visit our Safety & Wellness section.
IRS Offers Tips on Preparing for Natural Disasters
With hurricane season approaching, the IRS is offering advice to those impacted by storms and other natural disasters. The following tips may help businesses prepare for such events:
The IRS offers many resources to help employers plan for and recover from disasters, including IRS Publication 584-B, Business Casualty, Disaster, and Theft Loss Workbook, and web pages devoted to preparing for a disaster and tax relief in disaster situations.
Visit our Planning for Workplace Emergencies section for more on how to protect your business from natural disasters.
Newsletter provided by:
Summit Insurance Advisors
11350 McCormick Road, Executive Plaza III,, Hunt Valley, MD 21031
(410) 584-9600
jb@sumfi.com
http://www.summitinsurnceadvisors.com
The content herein is provided for general information purposes only, and does not constitute, legal, tax, or other advice or opinions on any matters. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy.
© 2017 HR 360, Inc. – All rights reserved
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‘Pay or Play’ Penalty and Affordability Amounts Announced
The IRS has updated its existing Q&As on the Affordable Care Act’s employer shared responsibility (“pay or play”) requirements to reflect adjustments to the pay or play penalty and affordability amounts. Those adjustments are as follows:
The Q&As also address what counts as an “offer of coverage” for purposes of pay or play compliance. Click here to view the Q&As in their entirety. Check out our Pay or Play section for step-by-step guidance, worksheets, and calculators that can help employers understand whether they will be subject to a penalty, and how to calculate it.
Redesigned Green Cards Impact Form I-9 Compliance
U.S. Citizenship and Immigration Services (USCIS) has announced a redesign to the Permanent Resident Card (“Green Card”) and the Employment Authorization Document (“EAD”). USCIS is expected to begin issuing the new Green Cards and EADs on May 1, 2017.
Redesigned Green Cards The new Green Cards and EADs will:
Also, Green Cards will no longer have an optical stripe on the back.
What Employers Need to Know Employers should be aware of the following regarding the redesigned Green Cards and EADs:
Check out our section on Form I-9 for more information on complying with employment eligibility verification requirements.
Avoiding Employee Misclassification Under the FSLA
In order for the federal Fair Labor Standards Act’s (FLSA) minimum wage and overtime pay requirements to apply to a worker, the worker must be an “employee” of the employer, meaning that an employment relationship must exist between the worker and the employer. The FLSA defines “employ” as including to “suffer or permit to work,” representing the broadest definition of employment under the law, as it covers work that the employer directs or allows to take place. Applying the FLSA’s definition, workers who are economically dependent on the business of the employer, regardless of skill level, are considered to be employees. On the other hand, independent contractors are workers with economic independence who are in business for themselves.
While the U.S. Department of Labor (DOL) finds that most workers are employees under the FLSA, in order to make the determination of whether a worker is an employee or an independent contractor, the DOL uses the multi-factor “economic realities” test, which focuses on whether the worker is economically dependent on the employer or in business for him or herself. Each factor of the “economic realities” test is outlined below.
Our Independent Contractors section includes more information on how to correctly determine worker classification.
President Trump Signs Repeal of OSHA’s “Volks Rule”
President Trump has signed into law House Joint Resolution 83, which repeals the “Volks Rule,” a U.S. Occupational Safety and Health Administration (OSHA) rule which imposed on employers certain continuing obligations to make and maintain accurate records of recordable injuries and illnesses. The rule previously became effective on January 18, 2017
OSHA Recordkeeping Regulations OSHA’s recordkeeping regulations require employers to record information about certain work-related injuries and illnesses on an OSHA 300 Log. Employers must enter each recordable injury or illness on the OSHA 300 Log, as well as on a supplementary OSHA 301 Incident Report, within 7 calendar days of receiving information that a recordable injury or illness has occurred. At the end of each calendar year, employers must create, certify, and post annual summaries of the cases listed on their 300 Logs for the prior calendar year. Generally, employers must retain their OSHA Logs, Incident Reports, and annual summaries for 5 years following the end of the calendar year that they cover.
If an employer initially fails to record a recordable injury or illness on the OSHA 300 Log or the corresponding OSHA 301 Incident Report, the employer still has an ongoing duty to record that case; as long as an employer fails to comply with the ongoing recording duty, there exists an ongoing violation of OSHA’s recordkeeping requirements. OSHA can cite employers for such recordkeeping violations for up to 6 months after the 5-year retention period expires.
‘Volks Rule’ Explained OSHA’s “Volks Rule,” which became effective on January 18, 2017, amended OSHA’s recordkeeping regulations to state that:
‘Volks Rule’ Repealed On April 3, 2017, President Trump signed into law House Joint Resolution 83 (H.J. Res. 83), which declares the “Volks Rule” to no longer have force or effect.
To read more about worker safety and health, please visit our section on Safety & Wellness.
Firing a Problem Employee
Firing an employee is never easy. As unpleasant as any layoff or termination situation is, however, handling one with a problem employee makes the task even more challenging. Check out our Discipline & Termination section for more helpful tips.
Newsletter provided by:
Summit Insurance Advisors
11350 McCormick Road, Executive Plaza III,, Hunt Valley, MD 21031
(410) 584-9600
jb@sumfi.com
http://www.summitinsurnceadvisors.com
Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose.
The information provided herein is intended solely for the use of our clients and members. You may not display, reproduce, copy, modify, license, sell or disseminate in any manner any information included herein, without the express permission of the Publisher. Kindly read our Terms of Use and respect our Copyright.
© 2017 HR 360, Inc. – All rights reserved
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How to Correct Form 1094 & 1095 Errors
To avoid potential noncompliance penalties, employers should confirm the accuracy of all Affordable Care Act (ACA) information returns and correct any errors as soon as possible with both the IRS and their employees. Errors on Forms 1094-C and 1095-C Forms 1094-C and 1095-C are used by applicable large employers to satisfy their reporting obligations. To correct information on the paper version of the original Authoritative Transmittal Form 1094-C, employers should take the following steps:
If correcting information on the paper version of a Form 1095-C that was previously filed with the IRS, employers should:
For more information on correcting errors on Forms 1094-C and 1095-C, see the 2016 Instructions for Forms 1094-C and 1095-C. Section 7.1 of Publication 5165 provides instructions for making corrections to Forms 1094-C and 1095-C filed electronically. Errors on Forms 1094-B and 1095-B Forms 1094-B and 1095-B are used by self-insuring employers that are not considered applicable large employers, and by other parties that provide minimum essential health coverage. If a Form 1095-B filed with the IRS on paper contains an error, the employer should file a corrected return as follows:
For more information on correcting errors on Forms 1094-B and 1095-B, see the 2016 Instructions for Forms 1094-B and 1095-B. Section 7.1 of Publication 5165 provides instructions for making a correction to Forms 1095-B filed electronically. For more on employer information reporting requirements, check out our section on Information Reporting.
2017 Values for Employer-Provided Vehicles Released
The IRS has released the maximum vehicle values for 2017 that taxpayers need to determine the value of personal use of employer-provided vehicles under the IRS’s special valuation rules. 2017 Maximum Vehicle Values
Click here to read the IRS release on the 2017 maximum vehicle values. To learn more about the tax consequences of various employer-provided fringe benefits, visit our Fringe Benefits section.
USCIS Updates Form I-9 Handbook
U.S. Citizenship and Immigration Services (USCIS) has released an updated M-274, Handbook for Employers, which provides guidance for complying with the requirements of Form I-9, Employment Eligibility Verification. Updated Handbook Among other things, the updated handbook provides information and answers on the following topics:
Click here to access the updated handbook. For more information on complying with employment eligibility verification requirements, please visit our section on Form I-9.
3 Tax Recordkeeping Tips for Employers
Keeping good records not only makes tax filing easier and faster, but it can also help you monitor the progress of your business, prepare your financial statements, and support items reported on your tax returns. Here are three simple tips from the IRS to help you get organized: 1. Save Certain Business Records The following are some of the types of records you should keep:
2. Keep Employment Tax Records The following information should be available for IRS review:
3. Store and Organize Your Records Business owners should generally keep all employment-related tax records for at least 4 years after the date that the tax becomes due, or after the tax is paid, whichever is later. The length of time you should keep other documents depends on the action, expense, or event which the document records. You can review our section on Employee Records and Files for information on other federal recordkeeping responsibilities for employers.
Hiring and Managing Seasonal Employees
With the summer hiring season approaching, employers should begin thinking about how best to hire and manage seasonal employees. Employers who do not dedicate time to these critical steps risk having to face disgruntled employees, unhappy customers, and even legal violations. To learn some best practices for hiring and managing seasonal employees, please watch the video below.
To learn how to attract top talent to your company, check out our Recruitment & Hiring section.
Newsletter provided by:
Summit Insurance Advisors 11350 McCormick Road, Executive Plaza III,, Hunt Valley, MD 21031 (410) 584-9600 jb@sumfi.com http://www.summitinsurnceadvisors.com
Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose.
The information provided herein is intended solely for the use of our clients and members. You may not display, reproduce, copy, modify, license, sell or disseminate in any manner any information included herein, without the express permission of the Publisher. Kindly read our Terms of Use and respect our Copyright.
© 2017 HR 360, Inc. – All rights reserved
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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.
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.
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by Jim Naylor
Tax Filing Season Begins January 23
The Internal Revenue Service (IRS) has announced that tax season will begin Monday, January 23, 2017. The filing deadline to submit 2016 tax returns is Tuesday, April 18, 2017.
The IRS will begin accepting electronic tax returns on January 23, 2017. Many software companies and tax professionals will be accepting tax returns before January 23 and then will submit the returns when IRS systems open. The IRS will begin processing paper tax returns at the same time. According to the IRS, there is no advantage to filing tax returns on paper in early January instead of waiting for the IRS to begin accepting e-filed returns.
April 18 Filing Deadline
The filing deadline to submit 2016 tax returns is Tuesday, April 18, 2017, rather than the traditional April 15 date, as a result of a weekend and a District of Columbia holiday.
Certain Small Employer HRAs Exempt From ACA Market Reforms
A new law allows certain small employers–those with fewer than 50 full-time equivalent employees who do not offer a group health plan–to offer new “qualified small employer health reimbursement arrangements” to reimburse employees for qualified medical expenses, including individual health insurance premiums, for years after December 31, 2016. The law also includes a notice requirement for these new HRAs.
Qualified Small Employer HRAs
Qualified small employer health reimbursement arrangements (HRAs) are exempt from the ACA’s market reforms. To be considered a qualified small employer HRA, the arrangement generally must:
•Be funded solely by an eligible small employer without salary reduction contributions;
•Provide, after an eligible employee provides proof of coverage, for the payment or reimbursement of qualified medical expenses (which generally includes individual health insurance premiums) incurred by the employee or his or her family members;
•Limit annual payments and reimbursements to $4,950 per employee or $10,000 per family (these amounts are prorated when coverage is for less than the entire year); and
•Be provided on the same terms to all eligible employees.
Note: Large employers and employers who offer a group health plan are not eligible to offer qualified small employer HRAs.
Notice Requirement
An employer funding a qualified small employer HRA for any year must provide a written notice to each eligible employee that includes the following information:
•A statement regarding the maximum dollar amount of payments and reimbursements that may be made for the year with respect to the employee (the “permitted benefit”);
•A statement that the employee should provide information regarding his or her permitted benefit to any Health Insurance Marketplace to which the employee applies for advance payment of the premium tax credit; and
•A statement that if the employee is not covered under minimum essential coverage for any month, the employee may be subject to the individual mandate penalty for such month and reimbursements under the HRA may be includible in gross income.
Effective for years beginning after December 31, 2016, the notice generally must be provided no later than 90 days before the beginning of the year in which the HRA is funded–or, if an employee is not eligible to participate in the arrangement as of the beginning of such year, the date on which the employee is first eligible.
Check out our section on Health Reimbursement Arrangements (HRAs) for more.
IRS: Opt-Out Arrangement Rules To Be Finalized ‘At A Later Time’
In July 2016, the IRS released a proposed rule addressing how opt-out arrangements–arrangements whereby an employer offers its employees a cash payment in exchange for declining coverage under an employer-sponsored plan–are to be taken into account for purposes of determining whether the coverage is affordable under certain provisions of the Affordable Care Act. While the IRS anticipated finalizing this rule prior to the end of 2016, the IRS has announced that it expects to finalize such guidance “at a later time.”
Latest Opt-Out Arrangement Guidance
Until final regulations are applicable, employers can rely on the opt-out arrangement guidance provided in IRS Notice 2015-87 and the proposed rule. That guidance generally provides that, for purposes of “pay or play” and the corresponding information reporting provisions, employers are not required to increase an employee’s required contribution by the amount of an opt-out payment as long as payment was not made as part of a “non-relief-eligible opt-out arrangement.” In general, a non-relief-eligible opt-out arrangement is an unconditional opt-out arrangement (an arrangement providing payments conditioned solely on an employee declining coverage under employer-sponsored coverage and not on an employee satisfying any other meaningful requirement related to the provision of health care to employees, such as a requirement to provide proof of coverage through a plan of a spouse’s employer) adopted after December 16, 2015.
Note: Opt-out arrangements conditioned on an employee obtaining individual market coverage could operate as an impermissible employer payment plan that may be subject to a $100 per day excise tax per applicable employee ($36,500 per year, per employee) under the federal tax code.
Follow our Health Care Reform section for the latest Affordable Care Act updates.
5 HR Compliance Resolutions for 2017
The new year is a great time to take stock of your company’s compliance with important federal, state, and local labor law requirements. Keep these resolutions in mind to help start your company off right in 2017:
1Give your poster wall a thorough check-up. Make sure all of your workplace posters are up-to-date and the correct size. Check with your state labor department for any industry-specific poster requirements that may apply to your business. Note that certain localities may also have posting requirements.
2Stay on top of notice requirements. From summary plan descriptions (SPDs), to COBRA- and FMLA-related notices, employers are required under various laws to provide employees with certain information about their benefits and responsibilities. Confirm that your employee communications are accurate, consistent, and in compliance with applicable law.
3Keep up with record keeping. In addition to being a good business practice, employers are required to maintain certain types of employee records in order to comply with applicable law. Verify that your record keeping procedures address any requirements related to confidentiality and how long to keep records.
4Review policies and procedures. Be sure your company policies and procedures comply with applicable labor laws related to employee leave, equal employment opportunity, sexual harassment, worker safety, and other requirements.
5Confirm that your workers are classified properly. Misclassifying employees as independent contractors can result in costly legal consequences. Also remember that an employee’s exempt or nonexempt status is based on his or her compensation and specific job duties. It’s a good idea to review job descriptions on a regular basis (at least annually) as well, as tasks and requirements may change. However, neither job titles nor job descriptions determine the exempt or nonexempt status of an employee.
Our HR Compliance Quick-Check includes more tips for staying on track with compliance this year.
State Minimum Wage Rates Set to Increase
The minimum wage will rise in a number of states in 2017. Unless otherwise noted, the following minimum wage rates (per hour) are scheduled to become effective on January 1, 2017:
•Alaska: $9.80
•Arizona: $10.00
•Arkansas: $8.50 for employers with 4 or more employees
•California: $10.50 for employers with 26 or more employees (for smaller employers, the rate remains $10.00)
•Colorado: $9.30 ($6.28 for tipped employees)
•Connecticut: $10.10
•District of Columbia: $12.50, beginning July 1, 2017 ($3.33 for tipped employees)
•Florida: $8.10 ($5.08 for tipped employees)
•Hawaii: $9.25
•Maine: $9.00, beginning January 7, 2017
•Maryland: $9.25, beginning July 1, 2017
•Massachusetts: $11.00 ($3.75 for tipped employees)
•Michigan: $8.90 ($3.38 for tipped employees)
•Missouri: $7.70 ($3.85 for tipped employees)
•Montana: $8.15
•New Jersey: $8.44
•New York: $9.70, beginning December 31, 2016 ($11.00 for employers in NYC with 11 or more employees; $10.50 for employers in NYC with 10 or fewer employees; $10.00 for Long Island & Westchester; $10.75 for fast food employees outside of NYC; $12.00 for fast food employees within NYC)
•Ohio: $8.15 ($7.25 for employees at certain smaller companies, and for 14- and 15-year-olds; the wage rises to $4.08 for tipped employees)
•Oregon: $10.25, beginning July 1, 2017 ($11.25 for employees working within the urban growth boundary of a metropolitan service district; $10.00 in non-urban counties)
•Rhode Island: $3.89 for tipped employees (for non-tipped employees, the $9.60 minimum wage rate remains unchanged)
•South Dakota: $8.65 ($4.325 for tipped employees)
•Vermont: $10.00 ($5.00 for certain service or tipped employees)
•Washington: $11.00
Be sure to comply with any city or other local wage requirements (which may be higher than the state or federal minimum wage) that may apply to your business.
For more information on state minimum wage laws, please visit our State Laws section, click on your state, and select “Minimum Wage” in the left-hand navigation menu.
Newsletter provided by:
Summit Insurance Advisors
11350 McCormick Road, Executive Plaza III
Hunt Valley, MD 21031
(410) 584-9600
jb@sumfi.com
www.summitinsurnceadvisors.com
Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose.
The information provided herein is intended solely for the use of our clients and members. You may not display, reproduce, copy, modify, license, sell or disseminate in any manner any information included herein, without the express permission of the Publisher. Kindly read our Terms of Use and respect our
Copyright. © 2017 HR 360, Inc. – All rights reserved
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At Summit Insurance, we partner with our clients to offer all available benefit options. We believe that every business owner, employee, and family is deserving of the benefits that a well-planned insurance program provides: safety, securing and peace of … Read More