Health Insurance

ACA Affordability Percentages Increasing

On May 21 of this year, the Internal Revenue Service (IRS) issued Revenue Procedure 2018-34 to index the contribution percentages for 2019 for the purposes of determining affordability of an employer’s plan under the Affordable Care Act (ACA). This change marks a significant increase from the percentages applicable in 2018. As a result, some employers…

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Health Plan Audits: What You Need

Much as the Internal Revenue Service has the authority to audit tax returns, the Department of Labor (DOL) has a broad mandate to investigate and audit an employee benefits plan’s compliance with the Employee Retirement Income Security Act (ERISA). Audits are performed by the DOL’s Employee Benefits Security Administration (EBSA), and will often focus on…

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Fringe Benefits – Tax Changes for 2018

Employers who offer fringe benefits like transportation reimbursement and meals to their employees are familiar with Internal Revenue Service (IRS) Publication 15-B – Employer’s Guide to Fringe Benefits, which offers guidance on the tax treatment of such employee benefits. The IRS recently released an updated version of Publication 15-B for 2018, incorporating tax law changes…

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New Employer Tax Credit for Paid Family & Medical Leave

The Tax Cuts and Jobs Act signed into law in December of last year creates a new business tax credit for employers that provide paid family and medical leave to employees. Here’s what you need to know: The tax credit is temporary and applies to tax years 2018 and 2019 The credit is equal to…

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New Year, New Changes

As always, the turning of that last page on the calendar brings legislative changes to the worlds of benefits and compliance. Here’s a look at highlights of the changes thus far for 2018: Minimum Wage Changes in Many States While the federal minimum wage rate remains at $7.25 per hour, some 20 states have adopted…

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Employee Benefit Plan Limits for 2018

Many employee benefits are subject to annual dollar limits, periodically updated by the IRS to allow for inflation. These include high deductible health plans (HDHPs), health savings accounts (HSAs), health flexible spending accounts (FSAs), 401(k) plans and transportation fringe benefit plans. Here’s a look at what’s changing – and what’s not – next year: The…

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The Executive Order on ACA Rules – What Does It Mean?

On October 12, President Trump signed an executive order intended to change certain rules under the Affordable Care Act (ACA). The order is intended to relax regulations on association health plans, allowing individuals and small businesses to purchase health insurance policies across state lines and avoid certain ACA requirements. The ostensible effect of the order…

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Medicare Part D – Creditable Coverage

As in previous years, employers sponsoring a group health plan with prescription drug benefits must notify their Medicare-eligible employees as to whether the drug coverage provided is “creditable” or “non-creditable.” Here are the details: The term “creditable” means equal or better coverage than that provided under Medicare Part D. Medicare Part D imposes a higher…

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Still the Law of the Land: ACA Penalties Remain In Effect

On January 20, 2017, President Trump signed an executive order intended to “minimize the unwarranted economic and regulatory burdens” of the ACA until the law can be repealed, and eventually replaced. This action led many business owners to wonder whether the penalties imposed by the ACA are still in effect given the language of the…

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ACA to AHCA – Changes and Uncertainty

The future of the Affordable Care Act (ACA) remains uncertain, as Congress has taken steps towards its repeal and replacement. While much remains unknown, there are some definitive changes for 2017 that employers should note. An effort to replace the ACA with the American Health Care Act (AHCA) passed the House of Representatives and is…

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