Q.- We allow the coverage of domestic partners under our plan. Do we have to offer a domestic partner the right to continue coverage under COBRA?
The IRS issued its 2017 version of Publication 15-A, Employer's Supplemental Tax Guide. Publication 15-A provides detailed employment tax information, including information about the employment tax treatment of noncash compensation. Employers find this publication helpful for structuring the filing and reporting of tax information for employees.
While employers are in the process of preparing and distributing their 1095 Forms to meet the extended deadline of March 2, 2017, they should remember that the IRS did not extend the Form 1094 reporting timeline.
Q.- Do we need to send any sort of notice if a COBRA continuant wants to stop participating in our COBRA coverage?
The Medicare Modernization Act requires employers with health plans that include prescription drug coverage to notify Medicare-eligible participants if the drug coverage is “creditable” or not. This means the employer must let participants know if the employer’s prescription drug coverage is expected to pay on average as much as the standard Medicare prescription coverage.
Most Affordable Care Act requirements apply to employers who had 50 or more full-time employees in the prior calendar year. There are, however, some obligations on small employers with under 50 employees.
Q.- A former employee is continuing coverage under COBRA due to termination of employment. The individual is disabled according to the Social Security Administration and is terminating COBRA coverage to go on Medicare. Can his spouse stay on COBRA?
The IRS released proposed regulations updating the definition of “dependent” for tax purposes. These regulations reflect changes to Code section 152 made by the Working Families Tax Relief Act of 2004.
Employees may have questions about the 1095 Forms they receive from employers and insurers. Answers to some of those questions follow.
Q.- Do we have to send Form 1095-C to our employees by registered mail or return receipt requested?
The U.S. Citizenship and Immigration Services issued a new Form I-9 that should be used now. Every employer in the United States that recruits, refers for a fee, or hires an individual for employment must complete Form I-9. The form documents employment, and both employers and employees must complete the form. Failure to properly complete and retain Form I-9 can result in civil monetary penalties of up to $2,156 per I-9.