Today, the IRS issued IRS Notice 2018-06, extending the deadline for providing the 2017 Forms 1095-B and 1095-C to individuals by 30 days. This Notice mirrors the same 30-day extension provided last year for the 2016 ACA reporting. As a reminder, applicable large employers (ALEs) provide the Form 1095-C to individuals. If the plan is […]
As of this morning, both chambers of Congress have passed the final Tax Cuts and Jobs Act (TCJA), marking a major overhaul of the Internal Revenue Code on both the individual and corporate side. The bill now heads to President Trump’s desk to be signed into law. Yesterday, the House passed the TCJA by a […]
Question: When does an ALE need to offer coverage to a part-time employee who start working full-time hours to avoid potential pay or play penalties? The ALE utilizes the look-back measurement method for determining full-time employee status. Compliance Team Response: Reminder: Very Different Approach Depending on Measurement Method There are two different approaches for […]
The Department of Industrial Relations has reported California’s 2016 occupational injury and illness data. Data collected by the U.S. Bureau of Labor Statistics’ Survey of Occupational Injuries and Illnesses showed California’s overall incidence rate was at the lowest it has been in over a decade, with a reported 3.7 cases per 100 full time workers. […]
Question: What are the consequences of an employer making a mid-year contribution change to the employee share of the premium? Compliance Team Response: The good news is that the employer can change its contribution rate at any point. The bad news is it may trigger a mini-OE for the affected employees. There are specific […]
Question: Which employers are subject to the ACA Form W-2 cost of coverage reporting? What coverage must be reported? Compliance Team Response: Employers Subject to Form W-2 Cost of Coverage Reporting The Form W-2 cost of coverage reporting in Box 12 using code DD was added in the ACA, effective for 2012, and remains […]
The IPO market for the first half of 2017 saw 77 companies raise $20.5B in proceeds. The secondary market was $22B in volume for the same period, and on track toward $40B in volume for the year. Given the increase and strategic importance of this market, the ABD Team sponsored a panel discussion on “Secondary […]
Question: What happens when highly compensated employees have already contributed more than the reduced contributions limit from the dependent care FSA nondiscrimination testing? Compliance Team Response: Unfortunately, it is very common for employers to fail the 55% Average Benefits Test component of the Dependent Care FSA NDT. It’s a test that’s almost designed […]
The San Francisco Office of Labor Standards Enforcement (OLSE) has posted a new Employee Voluntary Waiver Form for use on or after November 1, 2017. The form permits employees to voluntarily waive their right to employer health care expenditures under the San Francisco Health Care Security Ordinance (HSCO). HCSO Basics Under the HCSO, employers with […]
Question: What are the rules surrounding tax-free bicycle commuting expense reimbursement? Compliance Team Response: Overview The ability for employers to reimburse employees tax-free for bicycle expenses related to commuting was added to the Internal Revenue Code in 2009. The key limitations are: Employee contributions are not permitted (must be exclusively an employer giveaway […]
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