Category: Employee Benefits

Despite myriad legal challenges, the Affordable Care Act (“ACA”) remains the law of the land. We previously reported on the Supreme Court’s latest validation of the law in our SW Benefits Update, “Three Strikes You’re Out – The Affordable Care Act Survives a Third Legal Challenge.”

The Court’s ruling means that employers and their group health plans must continue to comply with the requirements of the ACA, including its large employer shared responsibility provisions. For employers evaluating their ACA compliance strategies, here is a short refresher:

Large Employer Shared Responsibility Payments: Large employers can be subject to penalties if any full-time employee receives a premium tax credit and either (a) the employer fails to offer minimum essential coverage (“MEC”) to 95% of its full-time employees (and their dependents) or (b) the coverage is either not affordable or does not provide minimum value. Read More ›

While many of us were still in a food coma from the holidays, former President Trump signed into law the Consolidated Appropriations Act of 2021 (the “CAA”) on December 27, 2020.  The CAA includes provisions impacting both retirement plans and health and welfare plans.  This blog focuses on the effective dates for the health and welfare changes.  In later articles we will provide more substantive information.

Some of the CAA protections expand upon protections offered under the Patient Protection and Affordable Care Act (“ACA”).  For example, the CAA includes protections against balance billing for out-of-network emergency care, building on ACA’s emergency care rules.  Read More ›

On December 23, 2020, the IRS issued Notice 2021-03, which extends relief from the “physical presence” requirement applicable to signatures that must be witnessed by a plan representative or notary public.  By way of background, Treasury Regulations Section 1.401(a)-21(d)(6)(i) provides that, in the case of a participant election that is required to be witnessed by a plan representative or a notary public (such as a spousal consent to a waiver of a QJSA), the signature of the individual making the election must be witnessed in the physical presence of a plan representative or a notary public.

In response to the COVID-19 pandemic, the IRS issued Notice 2020-42, which provided temporary relief from the physical presence requirement if the requirements of the notice are satisfied (discussed below).  Read More ›

As reported in Part 3 of our 2020 End of Year Plan Sponsor “To Do” List, Section 6039 of the Internal Revenue Code (the “Code”) requires employers to provide a written information statement to each employee or former employee and file information returns with the IRS regarding: (1) the transfer of stock pursuant to the exercise of an Incentive Stock Option (“ISO”); and (2) the first transfer by the employee or former employee of stock purchased at a discount under an Employee Stock Purchase Plan (“ESPP”).  For ISO exercises and ESPP transfers occurring in 2020, the Section 6039 employee information statement requirement is satisfied by providing Form 3921 (for ISOs) and Form 3922 (for ESPPs) to employees no later than January 31, 2021.  Read More ›