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Small Businesses

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Employers: Don’t Forget to Pay PCORI Fees

Affected Employers Must File IRS Form 720 Employers that sponsor certain self-insured health plans—including some health reimbursement arrangements (HRAs) and health flexible spending arrangements (health FSAs)—are reminded that they are responsible for Patient-Centered Outcomes Research Institute (PCORI) fees. Fees for self-insured plans with plan years that ended in 2017 are due July 31, 2018, and are required to be paid via IRS Form 720, Quarterly Federal Excise Tax Return. Employer-sponsored self-insured plans with plan years that ended between January 1, 2017 and September 30, 2017 must pay a fee of $2.26 multiplied by the average number of lives covered under the plan....

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IRS Releases 2019 ACA Affordability Threshold

The IRS has released a Revenue Procedure, which increases the affordability threshold for ACA (“Affordable Care Act”) Employer Mandate Purposes (“Pay or Play”) to 9.86% for plan years beginning in 2019. For reference purposes: 2015 Percentage: 9.56%  2016 Percentage: 9.66% 2017 Percentage: 9.69% 2018 Percentage: 9.56% 2019 Percentage: 9.86% The Pay or Play rules only apply to employers considered Applicable Large Employers” or “ALEs”.  In general, ALEs are employers that employee an average of at least 50 full time plus full time equivalent employees on business days in during the preceding year.  Under the ACA’s Pay or Play rules, ALEs must offer affordable and adequate coverage to...

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Creditable Coverage Disclosure 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 must be filed with the Department of Health and Human Services within 60 days of the start of the plan year, and it 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 available here. NOTE: If you are offering an actual Part D Plan, you are exempt...

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IRS Announces HSA Limits for 2019

On May 10, 2018, the IRS released Revenue Procedure 2018-30 to announce the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2019. These limits include: The maximum HSA contribution limit; The minimum deductible amount for HDHPs; and The maximum out-of-pocket expense limit for HDHPs. These limits vary based on whether an individual has self-only or family coverage under an HDHP. The IRS limits for HSA contributions will increase for 2019. The HDHP maximum out-of-pocket limits will also increase for 2019. The HSA contribution limits will increase effective Jan. 1, 2019, while the HDHP limits will increase effective for plan...

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Small Businesses May Be Able to Keep Existing Health Coverage Through 2019

A previously extended transitional policy that permits health insurance issuers to continue group coverage that would otherwise be terminated or cancelled due to the Affordable Care Act (ACA) has been further extended to policy years beginning on or before October 1, 2019, provided that all policies end by December 31, 2019. Health insurance issuers that renew coverage under the extended transitional policy are required to provide standard notices to affected small businesses for each policy year. Policies subject to the transitional relief will not be considered to be out of compliance with key ACA provisions, including: The requirement to cover a core...

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Are Summer Interns Subject to Minimum Wage and Overtime Pay Laws?

While the federal Fair Labor Standards Act (FLSA) requires for-profit employers to pay "employees" for their work, interns and students may not be employees under the FLSA. The U.S. Department of Labor (DOL) and many courts use the "primary beneficiary" test to determine whether an intern or student is, in fact, an employee under the FLSA. This test examines the "economic reality" of the intern-employer relationship to determine which party is the "primary beneficiary" of the relationship. The following seven factors are included in the test: The extent to which the intern and the employer clearly understand that there is no expectation...

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DOL Clarifies Federal Law on Tip Pooling

The U.S. Department of Labor (DOL) has released guidance clarifying federal law on tip pooling. The guidance was issued in response to a federal law that amended the federal Fair Labor Standards Act's (FLSA) tip pooling rules. The DOL guidance states that: Employers are prohibited from keeping tips received by their employees, regardless of whether the employer takes a tip credit against the minimum wage for its employees. Federal regulations no longer prohibit tip pooling when employers pay tipped employees at least the full federal minimum wage and do not claim a tip credit. Employers who pay at least the full federal minimum...

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FAQs on Paid Family and Medical Leave Tax Credit Released

The Internal Revenue Service has released FAQs on the Paid Family and Medical Leave Tax Credit, which certain employers can soon claim based on wages paid to employees on family and medical leave. The tax credit is effective for tax years 2018 and 2019. Among other questions, the FAQs answer: Which employers can claim the credit; How the credit is calculated; and How the credit impacts an employer's tax deduction for wages paid. Click here to read the FAQs. ...

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FBI Warns of Direct Deposit Phishing Attacks

The FBI warns that cyber criminals are posing as HR employees and using a phishing scam to get employees to provide the scammer with access to the company’s self-service payroll platform. When employees click on the link within the scammer’s email and provide the requested information, they unknowingly provide the scammer with their W-2 and pay stub information. The scammer can then change direct deposit instructions, passwords, credentials and email addresses linked to the account to avoid detection. In the majority of cases, employers were not aware of anything until workers reported they weren’t receiving their wages. To learn how you can...

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