Compliance Update | January 2020 | McGohan Brabender

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PCORI FEE WILL CONTINUE

 

The Patient -Centered Outcomes Research Institute (PCORI) Fee was originally scheduled to have the last payment for 2019 payment effective on July 31, 2019.  With other ACA changes, the PCORI Fee will be reinstated for 2020-2029 fiscal years.   Read below with other ACA rulings.

 

 

CADILLAC TAX IS FINALLY REPEALED

 

Before going on holiday break, President Trump took his pen to the ACA papers, changing tax laws and fees.  Effective 2020, the Cadillac Tax will no longer be hanging around.  No more delays… it is gone.   The Medical Devices Excise Tax has been up and down.  Now as of January 2020, there will be no taxes applied for any sales made after January 1, 2016.

 

2020 ACA CHANGES YOU MUST KNOW

 

Effective January 2021, the Health Insurance Providers Fee will be reversed.  Considering the distribution of this cost, there may be considerable savings for employers going forward.

 

IMPORTANT:  FINAL FORMS FOR 2019 ACA REPORTING

 

Just because the individual mandate penalty has gone away, does not mean that the IRS will pass on having their forms completed.  This is the government we’re talking about. The link below will give you the instructions, the forms, and the important due dates for 2019 reporting.

 

ACTION STEPS FOR 2019 REPORTING

 

ACA INDIVIDUAL MANDATE RULED UNCONSTITUTIONAL

 

Two weeks prior to the new year, a federal court took another step closer to eliminating the individual mandate portion of the ACA rulings.  Because the penalty is removed, the court stated the individual mandate is unconstitutional.

 

APPEALS COURT RULING

 

Although individuals are no longer penalized, the next step, to determine if all ACA rulings will be eliminated from the individual mandate, is still in motion.

 

 

EMPLOYEE BENEFIT PLAN LIMITS FOR 2020

 

Nothing new here, each year we have limits places on our HSA, the FSA, 401(k) and the Transportation benefits.   You probably have already received notice of these limits, but we want to be sure you are compliant and have the defined limits for 2020.

 

NEW YEAR BRINGS NEW LIMITS

 

The attached table defines each limit both for 2019 and the amount for 2020 reflecting the amount of change.

 

 

FORM W-4 REFLECTING TAX WITHHOLDING DECLARATIONS

 

As part of the Tax Cut and Jobs Act, employees must declare their correct withholding to jive with their tax return.  New employees must complete the W-4 or be reflected as an individual.

 

NEW W-4 FORM TO MATCH TAX RETURN DECLARATION