Overview The IRS announced new lower-cost correction procedures for a plan sponsor that failed to properly implement an employee’s 401(k) or 403(b) contributions, or failed to inform an employee of the opportunity to make these contributions. The new rules also provide relief if automatic contributions were not correctly administered. Background Information The IRS maintains a […]
It’s hard to believe that employers have been living with the Patient Protection and Affordable Care Act (also known as Health Care Reform) for almost 5 years. The law was enacted on March 23, 2010 and continues to have a significant impact on employers. The number of requirements and the volume of regulations and other […]
The IRS has published new guidance to clarify that no matter how a reimbursement arrangement is structured or what the reimbursement arrangement is named, reimbursement of employees’ individual health insurance policies violates certain mandates under Health Care Reform. The new IRS Notice 2015-17 affirms and expands upon earlier guidance addressing this issue. To encompass all […]
In February 2015, the IRS released “final” versions of both the forms and instructions for purposes of “individual mandate reporting” under Section 6055 of the Internal Revenue Code (Code) and “pay or play reporting” under Section 6056 of the Code. These forms and instructions replace drafts released by the IRS in 2014. While there were […]
The IRS recently released Notice 2015-16, its first guidance on the excise tax on high cost employer-sponsored health coverage (i.e., the Cadillac tax) which will become effective in 2018. The Cadillac tax is a 40 percent nondeductible excise tax on the aggregate cost of “applicable employer-sponsored coverage” (referred to in the Notice and here as […]
The Patient Protection and Affordable Care Act was enacted on March 23, 2010 and continues to have a significant impact on employers. In the past five years, the number of requirements and the volume of regulations and other guidance which has been issued to date is unprecedented in the employee benefit arena. This issue covers the latest from the IRS including the final forms and instructions on employer reporting requirements, the initial guidance on the Cadillac tax, guidance on reimbursing employees’ individual health insurance premiums, and the temporary reinsurance program fee for 2016.
The amount of the temporary reinsurance program fee has been set for 2016, the final year of the program. Health Care Reform imposes an annual fee on group health plans that provide major medical coverage. The purpose of the fee is to fund a temporary reinsurance program for insurers in the individual market. The fee […]
A recent Michigan Court of Appeals decision has played havoc on the rules surrounding payments to non-family caregivers. DHS rules regarding payments to caregivers state that payments are divestment in two situations: 1) prospective payments made to any caregiver (family or non-related) before care is provided, and 2) payments to family caregivers absent a Medicaid […]