LEGAL FEES UNDER ERISA LITIGATION No one likes to be involved in a lawsuit except the lawyers. Oftentimes lawyers will take on a case because the statute allows for legal fees. ERISA is one of those laws. ERISA allows fees for “some success” The courts have expanded the circumstances under which lawyers can be awarded fees when the basis of the lawsuit is ERISA. The standard is now that the court may award legal fees... Read More
Download PDF UPDATED MARKETPLACE NOTICES One of the most important parts of the Affordable Care Act is the marketplace, or health care exchange. Although the Trump administration continues to attack the statute, it still is the law of the land. One of the requirements is that employers notify new employees at the time of hire about the marketplaces or health care exchanges. Update to the Marketplace Notice The government provides a model notice employers can... Read More
PCORI FEE DUE The PCORI fee is due the end of this month. The fee is assessed against all health plans. If you are sponsoring a fully insured health plan, the carrier pays the fees but passes the cost on to the employer through higher premiums. On the other hand, if you sponsor a self-funded health plan (including an HRA) then you have to report and pay the fee. PCORI fee: Key action item PCORI... Read More
DOWNLOAD PDF FORM 5500 FILINGS ERISA imposes all kinds of reporting and disclosure obligations. One of the most important ones is the obligation to file Forms 5500. The filing requirement applies to welfare benefit plans that have at least 100 participants (i.e. employees) in them as of the first day of the plan year. A welfare benefit plan with more than 100 participants (i.e. employees) in it on the first day of the plan can... Read More
DOWNLOAD PDF HSA REDUCTION RELIEF MAY BE COMING As we reported in the last newsletter, the IRS retroactively reduced the maximum 2018 family HSA contribution by $50. That is not a lot of money but it does create an administrative headache for those that previously contributed the maximum amount prior to the announcement. Transition relief may follow HSA contribution reduction It is possible Congress may step in and provide legislation granting transitional relief for the... Read More
DOWNLOAD PDF IRS REDUCES MAXIMUM 2018 HSA CONTRIBUTIONS In a surprise move, the IRS reduced the maximum amount an individual with family coverage under an HDHP can contribute to a HSA this year. The reduction is only $50 for the year. The IRS had previously said the 2018 maximum limit was $6,900 for anyone having family coverage under an HDHP, but earlier this month the IRS announced the maximum amount for anyone electing family... Read More
MB FEBRUARY 2018 COMPLIANCE UPDATE IRS FORMS 1094 AND 1095 DUE DATE FAST APPROACHING The individual mandate is going away next year but the employer mandate remains in effect and ACA reporting requirements are intact. This means the deadline for submitting the forms to the IRS is February 28, 2018, if the forms are being submitted in paper format and April 2, 2018, if the forms are being submitted electronically. The deadline for providing the... Read More
JANUARY COMPLIANCE UPDATE PDF IRS FORM 1094 AND IRS FORM 1095 Large employers (i.e. those with 50 or more full-time and full-time equivalent employees) and all employers (regardless of size) sponsoring self-funded health plans have to prepare, distribute and file IRS Form 1094 and IRS Form 1095. The deadline for distributing the forms to the employee has been extended. Information Reporting Requirements IRS Again Extends Distribution Deadline Note that the deadline for filing the forms... Read More
December 27, 2017: The IRS is extending until March 2, 2018, the due date for providing IRS Form 1095 to the employees. As you will recall, large employers (i.e. employers with 50 or more full-time and full-time equivalent employees) plus employers with self-funded health plans have to prepare, distribute and file IRS Form 1094 and IRS Form 1095. Note that the IRS filing due date for IRS Form 1094 is unchanged. Below is a breakdown of the due... Read More
COMPLIANCE UPDATE DECEMBER 2017 TAX REFORM UP IN THE AIR The Republican controlled Congress was unable to pass health care reform but it seems as though they may be able to enact tax reform. Both the House and Senate passed legislation but there are differences between the two bills. So the next step is to reconcile the differences into one version that both the House and Senate can pass. The first article is a chart... Read More