SIMA Login Center
SIMA
Copyright 2018 SIMA Financial Group.
All Rights Reserved.

3 Key ACA Terms Employers Need to Know

Definitions Essential to Understanding 'Pay or Play' Compliance In general, under the employer shared responsibility ("pay or play") provisions of the Affordable Care Act (ACA), applicable large employers—generally those with 50 or more full-time employees, including full-time equivalent employees—may be subject to a penalty if they do not offer minimum essential coverage that is affordable and provides minimum value to their full-time employees (and their dependents). Here are definitions to help employers understand these key terms: Minimum Essential Coverage: Minimum essential coverage includes, among other things, coverage under an employer-based plan (including self-insured plans, retiree plans, and COBRA coverage). It does not include...

Continue reading

Highlights of Maryland Sick & Safe Leave Law

Maryland has passed a sick and safe leave law. Highlights of the law are presented below. Coverage An employer with 15 or more employees generally must provide an employee with paid earned sick and safe leave at the same wage rate as the employee normally earns. An employer with 14 or fewer employees must (at least) provide an employee with unpaid earned sick and safe leave. The law does not apply to an employee who (among other things) regularly works less than 12 hours a week for an employer. Click here for more details on coverage and exceptions. Accrual and Use Earned sick and safe leave...

Continue reading

Maryland Adopts Paid Sick and Safe Leave Law

On Jan. 12, 2018, the Maryland General Assembly overrode Gov. Larry Hogan’s 2017 veto of the Maryland Healthy Working Families Act, which requires employers in the state to permit employees to earn and use sick and safe leave. Absent further legislative action, the measure will become effective Feb. 11, 2018. Accordingly, Maryland should prepare to comply with its requirements immediately.The Healthy Working Families Act applies to all employers in Maryland, including state and local governments; however, it makes a distinction between large and small employers. For employers with 15 or more employees, sick and safe leave is paid leave and must...

Continue reading

IRS Releases New Income Tax Withholding Tables

Tables to be Used No Later Than Feb. 15 The Internal Revenue Service (IRS) has released 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. Highlights of the notice include the following: Early release copies of the percentage method tables for income-tax withholding that will appear in Publication 15 (Circular E), Employer's Tax Guide Social Security and Medicare tax rates for 2018 Additional Medicare Tax withholding rates Employers should begin using the 2018 withholding tables as soon as possible, but...

Continue reading

3 New Year’s Resolutions for Plan Fiduciaries

Note: Written by Nevin E. Adams.  Nevin is the American Retirement Association’s Chief of Communications and serves as Editor in Chief of NAPA Net and NAPA Net the Magazine. This is the time of year when resolutions for the cessation of bad behaviors and the beginning of better ones are in vogue. Here are three for plan fiduciaries for 2018. Start a diet – for your fund menu. Though it is a point often made with studies (well, one study, actually) dealing with jellies and ice cream, a long-standing behavioral finance tenet is that more choice doesn’t lead to better decisions. So what’s...

Continue reading

Forms 1095-B and 1095-C Furnishing Deadlines Extended

The IRS has extended the due dates for furnishing 2017 Forms 1095-B and 1095-C to covered individuals and full-time employees, respectively, from January 31, 2018, to March 2, 2018. The IRS has also extended good faith penalty relief to reporting entities who make certain calendar year 2017 information reporting errors. However, the deadline to file 2017 Forms 1095-B and 1095-C with the IRS remains February 28, 2018 (or April 2, 2018, if filing electronically). Penalty Relief Extension The IRS has extended penalty relief to reporting entities that can show that they made good faith efforts to comply with the calendar year 2017 information reporting requirements (both for furnishing to individuals and...

Continue reading

New Small Business Health Care Tax Credit Form Released

Form Used by Eligible Employers to Claim Credit for 2017 Tax Year 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...

Continue reading

New Tax Law Effectively Repeals the Individual Mandate

Repeal Effective in 2019 President Trump has signed into law the Tax Cuts and Jobs Act, which, among other things, effectively repeals the Affordable Care Act's (ACA) individual mandate beginning in 2019. Individual Mandate Repeal Effective in 2019 Under the ACA, individuals are currently required to have minimum essential health coverage, qualify for an exemption from the requirement, or pay a penalty tax. This ACA provision is known as the "individual mandate." Effective in 2019, the individual mandate is effectively repealed, as the penalty tax for noncompliance with the mandate will be reduced to $0. ...

Continue reading

5 Things ALEs Need to Know About Information Reporting in 2018

Forms 1095-C Due to Full-Time Employees by March 2, 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 months away, ALEs should begin thinking about these five information reporting facts: ALEs are required to furnish Form 1095-C to each of its full-time employees by March 2, 2018 (new extended deadline). ALEs must file Forms 1095-C, accompanied...

Continue reading