January 23, 2018

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Check Out Our Latest Benefits Compliance Podcast Episode on Soundcloud

Every other week, NFP’s legal experts make the subject of compliance personal for a wide audience. By breaking down the daunting details of emerging policies and bridging the gap between legislation and what it means for the listener, Chase Cannon and Suzanne Spradley make compliance issues relatable and relevant. Visit our Soundcloud page every two weeks for the most up-to-date episode.

This Week’s Podcast: Podcast Episode 22: D.C. Court Decision on EEOC’s ADA and GINA Wellness Regulations

In Episode 22, Chase Cannon and Suzanne Spradley break down the U.S. District Court for the District of Columbia’s decision to vacate the EEOC’s wellness program regulations, which relate to the ADA and GINA and their impact on rewards offered under employer wellness programs. The two provide an overview of the regulations, the types of wellness programs to which the ADA and GINA might apply, the challenge to the EEOC’s rules that led to the lawsuit, and the court’s ruling on the matter. Chase also prognosticates over what the ruling could mean for the EEOC, which must now regroup and publish new regulations within a year (or risk having the current regulations invalidated). The two conclude the episode with a recap of what it all means for employers and wellness programs in 2018 and beyond.

Subscribe to The Benefits Compliance Podcast! Listen on Google Play Music

February Webinar Series – Register Now

NFP’s Benefits Compliance team is hosting its next series of webinars in February. Training dates are Feb. 14, Feb. 21 and Feb. 28, 2018, at 3:00 p.m. ET. The respective topics are “Love Your HSA: The Good, the Bad and the Ugly of HSA Compliance,” “To Be or Not to Be: Compliance Differences Between Fully Insured and Self-Funded Plans” and “2017 Went Out with a Bang: Tax Reform, 226-J Letters and Proposed Changes to the ACA.”

The team reserves the right to change training topics in the event of significant legislative, judicial or regulatory developments.

Can’t make a live webinar? A recording of each session will be posted to the NFP Client Learning Portal within 48 hours of the live webinar. Those listening to a recorded webinar aren’t eligible for recertification credit.

The speaker will answer as many questions as possible during the webinar. If your question isn't answered by the end of the webinar, reach out to your advisor for assistance.


Love Your HSA: The Good, the Bad and the Ugly of HSA Compliance
February 14

Register Now »

Add to Calendar +

To Be or Not to Be: Compliance Differences Between Fully Insured and Self-Funded Plans
February 21

Register Now »

Add to Calendar +

2017 Went Out with a Bang: Tax Reform, 226-J Letters and Proposed Changes to the ACA
February 28

Register Now »

Add to Calendar +

All programs are pending approval for 1.5 (general) recertification credit hours toward PHR, SPHR and GPHR recertification through the HR Certification Institute. For more information about certification or recertification, visit the HR Certification Institute website at www.hrci.org.

Reminder: Form W-2 Cost of Coverage Reporting

Under the ACA, large employers must report the cost of group health coverage provided to employees on the Form W-2. The requirement applies to employers that filed 250 or more Forms W-2 for 2016. Employer aggregation rules do not apply for this purpose. In other words, the number of Forms W-2 is calculated separately without consideration of controlled groups. Indian tribes, self-funded church plans and employers contributing to a multiemployer plan are exempt from the Form W-2 reporting requirement.

Reminder: Upcoming IRC 6055 and 6056 Reporting Deadlines

Applicable large employers (ALEs — those with 50 or more full-time employees including equivalents, or FTEs) in 2016 must comply with IRC Section 6056 reporting in early 2018. Specifically, ALEs must complete and distribute a Form 1095-C to full-time employees by March 2, 2018 (the IRS changed this from Jan. 31, 2018). The form should detail whether the employee was offered minimum value, affordable coverage during 2017. The forms may be mailed, electronically delivered or delivered by hand (although proof of delivery in some manner is recommended).

If an employer sponsored a self-insured plan during 2017, it must comply with Section 6055 reporting in 2018. Self-insured employers with 50 or more FTEs must complete Section III of Form 1095-C detailing which months the employee (and any applicable spouse and dependents) had coverage under the employer’s plan. If the self-insured employer has fewer than 50 FTEs, it must complete and distribute a Form 1095-B with such information. Again, the forms must be delivered to employees by March 2, 2018.

Employers must also file the forms with the IRS by Feb. 28, 2018, if filing by paper, and April 2, 2018, if filing electronically. Those that are filing 250 or more forms are required to file electronically. Lastly, the employer is required to a file the transmittal Form 1094-C (if filing Forms 1095-C) or Form 1094-B (if filing Forms 1095-B).

Form 1094-C »
Form 1095-C »
Forms 1094-C and 1095-C Instructions »
Form 1094-B »
Form 1095-B »
Forms 1094-B and 1095-B Instructions »

Cadillac Tax and Health Insurance Tax Pushed Back

Late Monday evening, Jan. 22, Pres. Trump signed H.R.195 into law to end the government shutdown and fund the government through Feb. 8, 2018. The bill passed the House with a 266-159 vote and the Senate with an 81-18 vote.

Importantly, for employers and group health plans, the bill includes provisions to delay certain tax provisions within the ACA. Specifically, the bill includes a further delay in the implementation of the excise tax on high-cost employer-sponsored health coverage (the Cadillac tax), which is now set to take effect in 2022 (this was previously delayed until 2020). In addition, the bill includes a suspension of the annual Health Insurance Provider Fee (also known as the health insurance tax, or HIT) for 2019. The HIT was in moratorium in 2017. Therefore, the HIT is effective in 2018, on moratorium in 2019, and will be in effect again for 2020 and beyond. Finally, while less of a direct impact on employers, the bill includes a moratorium on the medical device excise tax, which is now set to apply for sales after Dec. 31, 2019.

The delay of the Cadillac tax and HIT is welcome relief for employers as they consider the impact both might eventually have on their plans. In addition to the delay, there appears to be bipartisan support for eventual repeal of the Cadillac tax. Regardless, employers should consult with counsel to consider whether plan amendments are necessary considering these recent changes.

H.R.195 »