You likely heard about the Anthem breach back in 2015. Given that 79 million individuals were impacted, it is likely that you or someone in your family was impacted by the breach. Well it took HHS several years, but they just announced the settlement with Anthem this week. Anthem has agreed to pay HHS $16 million and take substantial corrective ...
The deadline for providing the annual Medicare Part D Creditable Coverage Notice (the “Notice”) is quickly approaching. This Notice is provided to inform participants whether or not your plan’s prescription drug coverage is creditable. A group health plan’s prescription drug coverage is considered “creditable” if the coverage ...
Let’s revisit our previous blog post and our example of Karl one more time to show another wrinkle that you should be aware of when making a contribution for a partial year missed deferral failure. In some circumstances, an employer make up contribution will be limited due to the elective deferral limit in §402(g) of the Internal Revenue Code.
Many employers provide length of service awards for their employees, often in the form of a small gift, to reward employees for their continued service. But employers must be careful to not turn an award program into a tax liability for their employees. An employee will be treated as receiving taxable compensation equal to the fair market value of ...
Our original blog post explained that the correction procedures for an elective deferral failure included the employer making a contribution equal to 50% of the employee’s missed deferral, but noted that the percentage contributed could be reduced to 25% or 0% if one of the IRS exceptions apply. It is now time to discuss those exceptions and find ...
It is no secret that the success of a company is largely determined by its workforce. Because recent graduates are facing record amounts of student loan debt upon graduation, some employers are implementing new strategies to attract elite talent by easing this financial burden. Several companies have started student loan programs that ...
Let’s revisit our previous blog post and our example of Karl to show another wrinkle that you should be aware of when correcting a deferral failure. An employer can use a different method of correction if the elective contribution failure is either due to the failure to implement an automatic enrollment feature for an affected eligible employee ...
Because of the complexity involved in the operation of a retirement plan, mistakes are almost impossible to avoid. It is important to have measures in place to find mistakes, and to know how to make the necessary corrections when the mistakes are found. One error that can arise during the life of a 401(k) retirement plan is for an employee to be ...
If you sponsor a self-insured group health plan, make sure you’ve set your calendar alerts for the annual PCORI fee (Patient-Centered Outcomes Research Institute fee) for the 2017 plan year. As a reminder, the PCORI fee was put into place by the ACA to help fund the Patient Outcomes Research Institute and is based on the average number of covered ...
Co-authored by Lyndsey Barnett and Alex Mattingly
A Section 125 plan, commonly referred to as a cafeteria plan, provides employees with the option of purchasing employer-sponsored benefits on a pre-tax basis. These plans allow employees to pick between increased total compensation and contributing part of their compensation for the payment ...