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Monthly Archives: July, 2016

  • Sample Notice Helps Employers Comply With New ADA Wellness Program Rules

    sample notice is now available from the U.S. Equal Employment Opportunity Commission (EEOC) to help employers satisfy new requirements for wellness programs under the federal Americans with Disabilities Act (ADA). The ADA applies generally to employers with 15 or more employees who worked for the employer for at least 20 calendar weeks (in this year or last).

    New ADA Wellness Program Notice
    Among other things, the new rules require employers offering wellness programs that collect employee health information to provide a notice to employees informing them what information will be collected, how it will be used, who will receive it, and what will be done to keep it confidential.

    The requirement to provide the notice takes effect as of the first day of the plan year that begins on or after January 1, 2017. Employees must receive the notice before providing any health information, and with enough time to decide whether to participate in the wellness program.

    Q&As Provide Additional Guidance
    To help employers comply with the new notice requirement, the EEOC also released a set of Q&As which clarify, among other things:

    • Who must provide the notice;
    • The format in which the notice should be provided;
    • Whether an employee’s signed authorization is required as part of the notice requirement; and
    • Whether the current notice required under the federal Health Insurance Portability and Accountability Act (HIPAA) satisfies the new notice requirement under the ADA.

    More information on the new ADA rules is available in previously released Q&As and a fact sheet from the EEOC.

    Visit our section on Wellness Programs for additional details.

    Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose.

    The information provided herein is intended solely for the use of our clients and members. You may not display, reproduce, copy, modify, license, sell or disseminate in any manner any information included herein, without the express permission of the Publisher. Kindly read our Terms of Use and respect our Copyright.

    © 2016 HR 360, Inc. – All rights reserved

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  • New Proposed Rule on Opt-Out Arrangements and Affordability of Employer-Sponsored Coverage

    Proposals May Impact Employer Liability Under ‘Pay or Play’

    The IRS has released a proposed rule addressing how opt-out arrangements are taken into account for purposes of determining whether an employer-sponsored group health plan offers affordable coverage. An opt-out arrangement is an arrangement whereby an employer offers its employees a cash payment in exchange for declining coverage under the employer-sponsored plan.

    Affordability of Employer Sponsored Coverage
    As a reminder, applicable large employers (ALEs) may be subject to a “pay or play” penalty if any of the employer’s full-time employees receives a premium tax credit to purchase coverage through a Health Insurance Marketplace because the employer-sponsored coverage is either unaffordable to the employee or does not provide minimum value.

    For plan years beginning in 2016, an employer-sponsored plan is considered “affordable” if the portion of the annual premium an employee must pay for self-only coverage (the “required contribution”) does not exceed 9.66% of his or her household income. (For plan years beginning in 2015, the threshold is 9.56%.)

    Treatment of Opt-Out Arrangements  
    Under the proposed rule, the amount of any cash payment made available to an employee under an opt-out arrangement increases the employee’s required contribution for purposes of determining the affordability of the eligible employer-sponsored plan to which the opt-out arrangement relates (regardless of whether the employee enrolls in the plan or declines to enroll and receives the opt-out payment), unless the arrangement constitutes an “eligible opt-out arrangement.” An eligible opt-out arrangement is an arrangement under which the employee’s right to receive an opt-out payment is conditioned on:

    1. The employee declining to enroll in employer-sponsored coverage; and
    2. The employee providing reasonable evidence that he or she (and all other individuals for whom the employee reasonably expects to claim a personal exemption deduction for the taxable year or years that begin or end in or with the employer’s plan year to which the opt-out arrangement applies) have or will have minimum essential coverage (other than coverage in the individual market, whether or not obtained through the Marketplace) during the period of coverage to which the opt-out arrangement applies.

    Until a final rule is issued and becomes applicable, except for opt-out arrangements adopted after December 16, 2015, employers are not required to increase the amount of an employee’s required contribution by amounts made available under an opt-out arrangement for purposes of any potential “pay or play” consequences.

    Our Pay or Play section includes an Affordability Calculator to help employers determine whether their coverage is affordable using three safe harbors permitted under the rules.

    Health Care Reform Updates provided by:

    Team Nash
    2005 E 2700 St, Suite 140, Salt Lake City, UT, 84109
    385-234-6754

    Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose.

    The information provided herein is intended solely for the use of our clients and members. You may not display, reproduce, copy, modify, license, sell or disseminate in any manner any information included herein, without the express permission of the Publisher. Kindly read our Terms of Use and respect our Copyright.

    © 2016 HR 360, Inc. – All rights reserved

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  • 5 Most Common ACA Mistakes and How to Avoid Them

    This 5 Most Common ACA Mistakes and How to Avoid Them guide identifies the most frequent ACA compliance errors employers make and how to avoid them, including:

    • Mistake #1-Paying for employees’ individual health insurance premiums.
    • Mistake #2-Assuming all employers are required to offer health insurance.
    • Mistake #3-Not considering common ownership when determining applicable large employer status.

    Click on the image below to view the rest of the common mistakes and to download the guide.

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    Provided by:

    Team Nash
    2005 E 2700 St, Suite 140, Salt Lake City, UT, 84109
    385-234-6754

    Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose.

    The information provided herein is intended solely for the use of our clients and members. You may not display, reproduce, copy, modify, license, sell or disseminate in any manner any information included herein, without the express permission of the Publisher. Kindly read our Terms of Use and respect our Copyright.

    © 2015 HR 360, Inc. – All rights reserved

    Read more
  • Certain Employers May Receive Marketplace Notices

    Appeals Due Within 90 Days

    Health Insurance Marketplaces are now sending letters to notify certain employers that one or more of their employees has been determined eligible for advance premium tax credits and cost-sharing reductions and has enrolled in a Marketplace plan. Because these events may trigger employer penalties under the Affordable Care Act’s “pay or play” provisions, employers may seek to appeal an employee’s eligibility determination.

    Employer Appeals Process
    Marketplaces must notify employers within a reasonable timeframe following any month of the employee’s eligibility determination and enrollment. Employers have 90 days from the date stated on the Marketplace notice to file an appeal. In the appeal, the employer may assert that it provides its employee access to affordable, minimum value employer-sponsored coverage or that its employee is enrolled in employer coverage, and therefore that the employee is ineligible for advance payments of the premium tax credit or cost-sharing reductions.

    An appeal will not determine if the employer is subject to a “pay or play” penalty, as only the IRS, not the Marketplace or the Marketplace Appeals Center, can make such determinations.

    Check out our Pay or Play section for step-by-step guidance, worksheets, and calculators that can help employers understand if they will be subject to a penalty and how to calculate it.

     

    Health Care Reform Updates provided by:

    Team Nash
    2005 E 2700 St, Suite 140, Salt Lake City, UT, 84109
    385-234-6754

    Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose.

    The information provided herein is intended solely for the use of our clients and members. You may not display, reproduce, copy, modify, license, sell or disseminate in any manner any information included herein, without the express permission of the Publisher. Kindly read our Terms of Use and respect our Copyright.

    © 2016 HR 360, Inc. – All rights reserved

    Read more
  • 5 Must-Have Forms and Records for New Hires

    As an employer, one of your most important responsibilities when hiring new employees is to complete and secure necessary forms and records. The following are key requirements under federal law:

    1. Form I-9: Federal law requires employers to verify that each new employee is legally eligible to work in the United States. Within 3 business days of the date employment begins, employers must complete and sign Section 2 of Form I-9Employment Eligibility Verification, using original documents presented by the employee that show his or her identity and authorization to work in the U.S.
    2. Employee’s Social Security Number (SSN):Employers are required to get each employee’s name and SSN for purposes of completing year-end Forms W-2. After an employee is hired, the employer should ask to see his or her social security card and record the new employee’s name and SSN from the card. Any employee without a social security card should apply for one.
    3. Form W-4: To know how much income tax to withhold from employees’ wages, employers should have a Form W-4Employee’s Withholding Allowance Certificate, on file for each employee. Ask all new employees to give you a signed Form W-4 when they start work, and make the form effective with the first wage payment.
    4. New Hire Reporting: Federal law requires that employers report any new employee to a designated state new hire registry within 20 days (or shorter, depending on the state) of the date of hire. Many states accept a copy of Form W-4 with employer information added. The federal government maintains a list of links to state agencies where employers can learn more about reporting new hires and the specific requirements they must meet.
    5. Notice of Coverage Options (Exchange Notice): Employers are required to provide each new employee a written notice with information about a Health Insurance Exchange at the time of hiring, within 14 days of the employee’s start date. Model language is available from the U.S. Department of Labor.

    Keep in mind that many states require additional forms and other records to be completed when a new employee begins work. Certain states and localities may also require employers to provide specific notices to newly hired employees.

    Other key steps in the new hire process are featured in our Onboarding section.

    Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose.

    The information provided herein is intended solely for the use of our clients and members. You may not display, reproduce, copy, modify, license, sell or disseminate in any manner any information included herein, without the express permission of the Publisher. Kindly read our Terms of Use and respect our Copyright.

    © 2016 HR 360, Inc. – All rights reserved

    Read more