Q.- We fired an employee for gross misconduct. He was our controller and he was stealing from the company. We are not offering him COBRA coverage. Do we have to tell him?
The U.S. Department of Labor issued a Notice of Proposed Rulemaking that, if finalized, will require employers to pay overtime to more employees. Under existing law, employees with a salary below $455 per week ($23,660 annual) must be paid overtime if they work more than 40 hours per week. The Proposed Notice increases the salary level to $679 per week ($35,308 annual).
Employers subject to the employee shared responsibility provisions of the Affordable Care Act should have distributed their 1095 Forms to full-time employees and covered individuals by March 4, 2019. After the Form 1095 distribution, employers focus on transmitting their ACA information to the IRS.
In a recent Opinion Letter, the Department of Labor held that when an absence qualifies for leave under the Family and Medical Leave Act (FMLA), the employer must designate the leave as FMLA leave. An employee may not delay the start of leave under the FMLA and use employer-paid time off first.
Q.- An employee is terminating employment and we are offering her COBRA. She told us she wants to try coverage through the Marketplace. If she doesn’t like the coverage, do we have to let her enroll in COBRA?
The individual mandate provisions of the Affordable Care Act require every taxpayer to (a) have qualifying health coverage; (b) qualify for an exemption from having health coverage; or (c) pay a tax penalty. The penalty was not reduced to $0 until 2019. Individuals use their 1040 tax returns to identify their individual mandate health coverage status to the government. All individuals must check a box on the 1040 to indicate compliance with the individual mandate.
Q.- An employee’s daughter is taking weight training at a gym after school. She wants to be reimbursed from her Dependent Day Care FSA for the cost of the class since it is held while she is at work. Is this an eligible expense?
All employers in the United States must verify that their new employees are eligible for US work. As mentioned in previous articles, employers may wish to use the government’s E-Verify services. Alternatively, employers can complete paper copies of Form I-9.
The IRS updated its questions and answers on information reporting by health coverage providers. The Affordable Care Act (ACA) requires every provider of minimum essential coverage to report coverage information to individuals (Form 1095) and to the IRS (Form 1094).
Q.- If a COBRA continuant’s coverage is ending before the 18 month maximum coverage period because he didn’t pay the monthly premium, do we have to give him advance notice before we terminate the coverage?
Employers who administer background checks to employees or job applicants should review those forms for new compliance requirements. The U.S. Court of Appeals for the 9th Circuit recently held that state disclosures cannot be mixed with disclosures required under the Fair Credit Reporting Act.
Applicable Large Employers (employers with 50 or more full-time equivalent employees) should have completed their employee shared responsibility form distribution reporting for the 2018 plan year. IRS 1095 forms were required to be furnished to full-time employees and covered individuals by March 4, 2019.