Q.- We are not going to offer someone COBRA coverage because he was fired for gross misconduct. Do we have to take any special action?
Starting this July, Philadelphia, Pennsylvania employers may not base hiring or other job-related decisions on credit history or other credit related information.
June 30, 2016 is the deadline to electronically file Affordable Care Act information returns with the IRS for the 2015 plan year. The date for filing paper returns was May 31, 2016. Employers that file 250 or more Forms 1095-B or Forms 1095-C must electronically file them with the IRS.
Q.- Should we offer COBRA when a person switches from full-time to part-time and no longer is offered benefits?
Recent guidance from the IRS confirms two widely understood features of a health flexible spending account plan.
The Affordable Care Act requires insurers and self-funded plans to pay a yearly fee to support health plan clinical research. The patient-centered outcomes research institute (PCORI) fee applies to plan years ending on or after October 1, 2012 and before October 1, 2019. The fee is due by July 31 of the calendar year following the close of the plan year. 2015 PCORI fees must be paid by July 1, 2016.
Q.- Can we send our employees Form 1095-C electronically next year?
The Equal Employment Opportunity Commission, (EEOC) recently released its Final Rule on Employer Wellness Programs and Title I of the Americans with Disabilities Act, (ADA). The final rule states that employers may provide limited financial and other incentives in exchange for an employee answering disability-related questions or taking medical examinations as part of a wellness program, whether or not the program is part of a health plan.
Under health care reform, a full-time employee is an employee who works 130 or more hours per month. Many teachers and other employees of educational institutions do not work over the summer months. If structured properly, employees of educational organizations are not penalized for full-time status if they don’t have working hours during the summer.
Q.- A new hire is enrolling in our health FSA. Our plan allows a contribution up to the IRS maximum of $2550. Do we prorate this amount due to his mid-year enrollment?
The Department of Labor provides explanations to employees on steps to take to ensure proper health coverage at different stages of life.
Applicable Large Employers must file a return with the IRS that includes copies of all 1095 Forms furnished to employees. A Form 1094-C must be filed when an employer files one or more Forms 1094-C. A Form 1094-B must be filed when an employer files one or more Forms 1094-B.
Q.- An employee terminated employment after receiving workers’ compensation. As part of the settlement, we all agreed that there would be no COBRA right. Do we have to do anything?
In a recent information letter, the IRS explained that if a health FSA administrator’s request for additional documentation to substantiate a FSA claim is reasonable, the employee must provide the requested information in order to be reimbursed for the expense. A copy of the letter can be accessed here.
Employers with July 1 plan years are likely preparing for open enrollment. Large employers for Affordable Care Act purposes (those with 50 or more employees) should make certain to offer health coverage to full-time employees. For an employer that uses the lookback method to calculate full-time status, this will require analyzing the measurement period results to determine if an employee worked an average of 130 hours per month to be considered full-time for an upcoming stability period.