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Welcome to the Snell & Wilmer Benefits Blog. We will be posting about current employee benefits and executive compensation topics and issues. We invite you to contact the authors with your thoughts or questions.Blog Contributors
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Certain Information Statements for ISOs and ESPPs Due by January 31, 2019
As reported in Part 4 of our 2018 End of Year Plan Sponsor “To Do” List, Section 6039 of 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 2018, 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, 2019. Read More ›
Posted in Employee Benefits, Executive Compensation
| Tagged 2019, deadline, Employee Stock Purchase Plan, ESPP, Incentive Stock Option, information returns, ISO, January 31, stock
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Approaching Deadlines for Affordable Care Act Reporting
As we recently reported in our “2017 End of the Year Plan Sponsor To Do List,” applicable large employers must continue to submit to the IRS and to employees information regarding offers of health coverage made to full-time employees in 2017.
The IRS recently published Notice 2018-06 (the “Notice”), which contains some relief with respect to the required reporting. In particular, the Notice extends the deadline to distribute Forms 1095-C to employees and continues the application of good faith transition relief. The Notice does not extend the deadline for filing Forms 1094-C or 1095-C with the IRS.
Extension of Deadline to Furnish Forms 1095-C to Employees
The Notice extends the deadline for furnishing Forms 1095-C to employees from January 31, 2018 to March 2, 2018. Read More ›
Posted in Employee Benefits, Health & Welfare Plans, Health Care Reform
| Tagged 1094-C, 1095-C, ACA, deadline, forms, notice 2018-06, reporting
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A Little Breathing Room: IRS Extends ACA Reporting Deadline and Good Faith Penalty Relief
The IRS delivered welcome news to employers gearing up to meet the Affordable Care Act’s (“ACA”) information reporting deadlines for the 2016 calendar year. In Notice 2016-70, the IRS extended the deadline to furnish Forms 1095-B and 1095-C to employees. The new deadlines are provided below.
| Old Distribution Deadline | New Distribution Deadline | |
| Form 1095-B (to employees) | January 31, 2017 | March 2, 2017 |
| Form 1095-C (to employees) | January 31, 2017 | March 2, 2017 |
Importantly, the Notice does not extend the deadline for filing Forms with the IRS. The deadline to file with the IRS remains February 28, 2016 (for paper filings) and March 31, 2017 (for electronic filings). Read More ›
Posted in Employee Benefits, Health & Welfare Plans, Health Care Reform
| Tagged ACA, ACA reporting, deadline, filing extension, Form 1095, Form 1095-B, Form 1095-c, good faith, good faith relief, information reporting, IRS, penalties
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Late Or Incorrect Forms 1095-C: The IRS Provides Relief, But Only For Employers Acting In Good Faith To Comply Or Who Missed The Deadline Due To Reasonable Cause
Many employers struggled to furnish correct Forms 1095-C to employees by the March 31, 2016 deadline. Section 6721(a)(2) of the Internal Revenue Code provides penalties for failure to furnish Forms 1095-C to individuals by the deadline. Although the presumptive penalty is $250 for each delinquent or incorrect return, the penalty amount may be reduced if Forms are furnished or corrected within 30 days of the filing deadline. Correction within 30 days lowers the presumptive penalty to $50 per return. If a failure to correct is not made within 30 days, but is made by August 1, the presumptive penalty is reduced to $100 per return. Read More ›
Posted in Employee Benefits, Health & Welfare Plans, Health Care Reform
| Tagged ACA, Affordable Care Act, correction, deadline, Form 1095-c, furnish forms, good faith, incomplete form 1095-c, incorrect form 1095-c, IRS, reasonable cause
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