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Benefits

SIMA Financial Group > Benefits (Page 5)

Health Savings Accounts: Features Your Employees Will Thank You For

For the majority of future retirees, medical expenses pose significant risk to any retirement plan, and they are only projected to rise. Medical cost estimates for couples throughout their full retirement, assuming both partners are 65, has increased $15,000 from 2016 to 2017, bringing total projections to $275,000, after Medicare coverage. Even for professionals with 401k balance projections at their target retirement age over $1 million dollars, this figure is daunting. At the same time, employers seek cost-effective strategies to enhance their benefits offerings.  While the ever-coveted employer 401k match may seem like the most direct way for employers to help...

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HHS Increases Civil Penalties for HIPAA Violations

Privacy and Security Rule Violations Impacted by Rule On Jan. 17, 2020, the Department of Health and Human Services (HHS) published a final rule increasing the civil monetary penalties for violations of the HIPAA Privacy and Security Rules. HHS is required to adjust these penalties for inflation each year. Effective Jan. 17, 2020, the following civil penalty amounts apply to violations of HIPAA’s Privacy and Security Rules: For each violation where the covered entity does not know about the violation (and by exercising reasonable diligence, would not have known about the violation) the penalty amount is between $119 and $59,522. If the...

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2020 DOL Penalty Amounts for ERISA Violations Issued

The U.S. Department of Labor (DOL) has increased the penalties employers face under ERISA for group health plan reporting and disclosure failures. These new amounts apply to penalties assessed after Jan. 15, 2020, and include the following: Summary of Benefits and Coverage (SBC): Failure to provide group health plan participants and beneficiaries with an SBC may now result in a penalty of up to $1,176 per participant or beneficiary. Employer CHIP Notice: Failure to provide a CHIP Notice to employees in states that offer group health plan premium assistance through a state Children's Health Insurance Program may now result in...

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Cadillac Tax Repealed / PCOR Fee Renewed

The SECURE Act President Trump has signed a year-end spending package that will fund the federal government through September 30, 2020.  The Setting Every Community Up for Retirement Enhancement  (SECURE) Act of 2019 is included in that spending package.  The SECURE Act contains significant changes to retirement plan regulations.  It also contains some significant changes affecting employer health plans. Repeal of the Cadillac Tax The SECURE Act fully repeals the very controversial Affordable Care Act (ACA) excise tax on high-cost employer-sponsored plans, more widely known as the Cadillac Tax.  The Cadillac Tax would have imposed a 40% excise tax on the cost of...

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Medicare Part D Creditable Coverage Notice Reminder

All group health plans that provide prescription drug coverage to Medicare Part D eligible individuals (whether actively working, retired, or disabled) are required to notify CMS whether or not the coverage provided is creditable. This disclosure is required whether the coverage is primary or secondary to Medicare. Employers must file their Disclosure Notice through the CMS website Instructions and guidance on completing the notice are also available. NOTE: If you are offering an actual Part D Plan, you are exempt from this filing requirement. Employers who have applied for a retiree drug subsidy are NOT required to complete this form. You will...

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New Summary of Benefits and Coverage Template Will Be Required for 2021

Recently, the Departments of Labor (DOL) and Health and Human Services (HHS) issued an updated template and related materials for the summary of benefits and coverage (SBC). These materials are required to be used for plan years beginning on or after Jan. 1, 2021. This means that the updated template must be used for the 2021 plan year’s open enrollment period. The SBC is a concise document providing simple and consistent information about health plan benefits and coverage. Employers should prepare to use the new SBC template and related materials for the 2021 plan year. Prior to the beginning of the 2021...

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Upcoming Group Health Plan Compliance Dates

Employers must comply with numerous reporting and disclosure requirements throughout the year in connection with their group health plans. Listed below are upcoming important compliance deadlines for employer-sponsored group health plans, organized chronologically. For these requirements, the information provided herein shows the deadlines that apply to calendar year plans. For non-calendar year plans, these deadlines will need to be adjusted to reflect each plan’s specific plan year. January 2020 Employers that filed 250 or more IRS Forms W-2 for the prior calendar year must file Forms W-2 with the Social Security Administration and furnish Forms W-2 to employees by Jan. 31 of...

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IRS Releases Final Forms and Instructions for 2019 ACA Reporting

The 2019 ACA Reporting is Due in Early 2020 The IRS has released final 2019 versions of Forms 1094-C, 1095-C, 1094-B, and 1095-B that employers will use in early 2020 to report on the group health insurance coverage they offered during the 2019 calendar year. Instructions on how to complete Forms 1094-C and 1095-C and Forms 1094-B and 1095-B for the 2019 calendar year have also been released. The 2019 forms and instructions are substantially similar to the 2018 versions. Note that Section 6055 reporting continues to be required, despite the fact that the individual mandate penalty has been reduced to $0....

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DOL Issues 2020 Form W-4

Employers Must Begin Using the New Form Jan. 1 On Dec. 5, 2019, the Internal Revenue Service released an updated version of its W-4 form, also known as the “Employee’s Withholding Certificate.” Employers use IRS Form W-4 to determine each employee’s federal tax withholdings. The new form is intended to harmonize tax withholding declarations with the Tax Cuts and Jobs Act, which affected individuals for the first time during the last tax filing season. Employees may complete a new W-4 each year or each time they experience a change in their personal financial situation. However, the new form does not invalidate prior...

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Have your employees visited the doctor this year?

Small life decisions can have a huge impact on your health. Those who don’t see a doctor once a year risk greater health complications down the road. Since most health plans cover an annual visit, there’s no reason to skip a checkup.  It's a great time to remind your employees to see their doctor before the year ends! [video width="1920" height="1080" mp4="https://simafinancialgroup.com/wp-content/uploads/2019/12/Have-You-Visited-Your-Doctor-This-Year.mp4"][/video]...

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