FINANCE

Employers Must Withhold Tax for High Earners The Affordable Care Act’s Additional Medicare Tax applies to an individual’s wages that exceed a threshold amount based on his or her filing status ($250,000 for married taxpayers who file jointly, $125,000 for married taxpayers who file separately and $200,000 for all other taxpayers). The following are five […]

Medicare-Eligible Employees Ineligible to Receive Premium Tax Credits Under the Affordable Care Act (ACA), Medicare-eligible individuals are ineligible to receive premium tax credits. As a result, employers with Medicare-eligible employees should consider how those employees may impact their potential liability under the ACA’s employer shared responsibility provisions (also known as “pay or play”). Medicare-Eligible Employees […]

Tool Provides Estimates Only As a reminder, the Taxpayer Advocate Service (an independent organization within the Internal Revenue Service) has developed a tool to assist employers in understanding how the Affordable Care Act’s employer shared responsibility (“pay or play”) provisions work and how the provisions may apply to them. Employer Shared Responsibility Provision Estimator Employers […]

Withdrawals Effective June 7, 2017 The United States Department of Labor (DOL) has announced the withdrawal of both its 2015 guidance regarding independent contractors and its 2016 guidance regarding joint employment. Cautionary note: Still in effect are the common law rules used by the IRS to determine whether a worker is an employee or independent contractor […]

Pension Plans Maintained by ‘Principal-Purpose Organizations’ Deemed Church Plans The U.S. Supreme Court has ruled in Advocate Health Care Network v. Stapleton that defined benefit pension plans established by so-called “principal-purpose organizations” are “church plans” exempted from the requirements of the Employee Retirement Income Security Act (ERISA), regardless of whether a church originally established the […]

DOL Issues Temporary Enforcement Policy During Phased Implementation Ending Jan. 1, 2018 The U.S. Department of Labor (DOL)’s Fiduciary Rule is expected to take effect June 9, 2017, subject to the DOL’s temporary enforcement policy, outlined below. The Fiduciary Rule generally treats persons who provide investment advice or recommendations for a fee or other compensation […]

Affected Employers Must File IRS Form 720 Effective for plan years ending on or after October 1, 2012, and before October 1, 2019, employers that sponsor certain self-insured health plans are responsible for Patient-Centered Outcomes Research Institute (PCORI) fees. Fees for plan years that ended in 2016 are due July 31, 2017. How to Pay […]

Appropriate Wage Order Must Be Conspicuously Posted The California Department of Industrial Relations has recently updated the Industrial Welfare Commission (IWC) Wage Orders with the 2017-2018 state minimum wages and meal/lodging credit information. Background IWC Wage Orders regulate wages, hours, and working conditions and are numbered by industry or occupation group. In order to determine […]

Guidance Affects ACA’s Premium Tax Credit & Individual Mandate Provisions Consistent with prior guidance, the Internal Revenue Service (IRS) has announced adjustments to the required contribution percentages that will be used in 2018 to determine whether an individual is eligible for a premium tax credit and an affordability exemption from the individual shared responsibility provisions […]

HSA Contribution Limits and Minimum Deductibles Announced for 2018 The Internal Revenue Service (IRS) has announced the 2018 inflation-adjusted amounts for Health Savings Accounts (HSAs) as determined under the Internal Revenue Code. Annual Contribution Limitation For calendar year 2018, the annual limitation on HSA deductions for an individual with self-only coverage under a high deductible […]