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CADILLAC TAX IS FINALLY REPEALED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.
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.
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.
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.
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.