ACA, DOL Legal and Compliance Updates
Some Paid Family Leave Tidbits!
I have received similar questions on some aspects of Paid Family Leave, to keep our clients as up to date as possible, the questions and answers (provided directly by the WCB) are below.
Cadillac Tax Relief
Relph Benefit Advisors is a member of the IRS’s Employee Council on Flexible Compensation (ECFC) and Lisa Allen, our VP of Regulatory Affairs sits on their compliance committee which provides constructive observations regarding current or proposed IRS policies, programs, and procedures, and proposes improvements:
Recently ECFC added their endorsement to a letter to Congress, along with 36 other prominent trade groups requesting that Congress grant relief from the impending 40 percent “Cadillac” tax on employer-sponsored health coverage before the end of this year.
The letter stresses the importance of quick action by pointing out the following:
- Many employers plan for and determine benefits up to two years in advance.
- These employers are already restructuring their health care benefit offerings to avoid the future tax.
- If the Cadillac tax is not repealed, many employers will be forced to make additional benefit modifications.
- Employees will be hurt by higher copays and deductibles and lower Health Savings Account contributions.
I encourage you to take the time to send this letter to your congressional representatives. The Cadillac Tax was a flawed provision from the beginning and will only create further hardship for your employees in the form of higher out of pocket costs as employers will understandably avoid paying these taxes in whatever ways are needed.
Bob Relph, President
Relph Benefit Advisors
You can download the letter here and follow the steps below to send to your members of Congress.
- Visit the House.gov website
- Enter your zip code
- Click on your representative’s name to be directed to their contact information/website
If you should have any questions, please do not hesitate to reach out to your Senior Benefit Consultant or myself directly at 1-800-836-0026 x230 or 585-415-0448 or email at email@example.com.
The Workers’ Compensation Board released 3 new Paid Family Leave (PFL) forms.
I have reviewed the forms and am providing details of each below along with a link to download each form. We continue to monitor both the Workers’ Compensation Board and Department of Financial Services website daily so we can bring you up to the minute information.
Your PCORI fee is due by July 31, 2018
On October 5, 2017 the Internal Revenue Service issued Notice 2017-61 increasing the PCORI fee from $2.26 to $2.39 effective for plan years ending on or after October 1, 2017 and before October 1, 2018.
The Employee Notice of Exchange OMB1210-0149 is available
A model notice for employers to use to inform employees of the availability of the Exchange and plan information on minimum value standards and affordability is available. The updated notice has an expiration date of May 31, 2020
Final 2017 IRS Forms 1094-C and 1095-C released
The IRS issued final 2017 ACA Reporting forms 1094-C Employer Transmittal and 1095-C Offer of Coverage. Final instructions were released October 4th and there were no substantive changes.
The anticipation is over, the Paid Family Leave rate has been released!
On June 1st, the Department of Financial Services released that the rate shall be Community Rated.
“As provided by Insurance Law 4235(n)(1), The Superintendent of the Department of Financial Services (“DFS”), in consultation with the Chair of the Workers’ Compensation Board, has determined that paid family leave benefits coverage issued pursuant to Article 9 of the Worker’s Compensation Law (“Family Leave Benefits”) shall be community rated. Community rating ensures that all employers are similarly treated and are not subject to cost variations based upon age, gender, geographic location, or any other demographic factor.”