Health & Welfare Plans Newsletter

January 2, 2018

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Jobs

401(k) Retirement Plan Administrator
Nicholas Pension Consultants
in CA

Team Lead / 401(k) Pension Administrator
Nicholas Pension Consultants
in CA

Retirement Plan Compliance Analyst - Large/Mega/Non-profit
Great-West Financial
in KS

401(k) Relationship Manager
MVP Plan Administrators, Inc.
in NC

401(k) Administrator
Duncan Financial Group
in PA, Telecommute

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[Guidance Overview]

IRS Extends Distribution (Not Filing) Deadline for ACA Reporting and Continues Good Faith Standard
"[T]he IRS continued the interim good faith compliance standard under which the IRS will not assess a penalty for incomplete or incorrect information on the reporting forms if a filer can show that it completed the forms in good faith. As was the case last year, this relief only applies if the forms were filed on time. Thus, filers would be wise to distribute and file forms, even imperfect ones, timely and should document their good faith efforts."
Proskauer's ERISA Practice Center

[Advert.]

Complying With W-2 Rules for Reporting Health Care Benefits and HSA Reporting Rules

Sponsored by Lorman and BenefitsLink

Jan. 17 webinar. Learn how to properly complete applicable tax forms and how to communicate relevant tax-reporting information to employees, as well as the due dates for each form. BenefitsLink discount .


[Guidance Overview]

Deadline for Furnishing Form 1095-C Statements to Individuals Extended Along with Good Faith Efforts Standard
"[T]he permissive extension discussed in the instructions to the Form 1095-C no longer applies to the individual statement deadline. Therefore, the March 2, 2018 deadline for furnishing the Form 1095-C statements is now a hard deadline.... The deadline to file the Forms 1094-C and 1095-C with the IRS is February 28, 2018 if the employer is filing on paper. If an employer is filing electronically, the deadline is April 2, 2018."
Accord

[Guidance Overview]

New San Francisco HCSO Rules Impact Self Funded Plans (PDF)
"The San Francisco Health Care Security Ordinance (HCSO) requires covered employers to pay a certain amount toward their covered employees' health care costs.... Starting January 1, 2018, employers may no longer use COBRA equivalent rates to calculate health care Expenditures in self-funded plans. The rules provide two new methods for calculating health care Expenditures in self-funded plans."
EPIC

IRS Delays Deadline for Furnishing Form 1095-C to Employees
"Employers and other coverage providers that do not comply with the March 2, 2018 extended due date for furnishing Forms 1095-B and 1095-C, or fail to comply with the related IRS reporting requirements are subject to penalties for either failing to file correct information returns (under Code Section 6721) and/or failing to furnish correct payee statements (under Code Section 6722). Notice 2018-06 extends transition relief from these penalties to the 2017 reporting year as long as the reporting entity can show that they made a good faith effort to comply with Code Sections 6055 and 6056, both for furnishing statements to individuals and for filing with the IRS."
Burnham Benefits

Maintaining Tissue Sample Quality Might Reduce Costly Medical Errors
"You might not suspect that the success of the emerging field of precision medicine depends heavily on the couriers who push carts down hospital halls. But samples taken during surgery may end up in poor shape by the time they get to the pathology lab -- and that has serious implications for patients as well as for scientists who want to use that material to develop personalized tests and treatments that are safer and more effective."
National Public Radio

Blood Samples and Data from 1 Million Americans May Offer Clues to Disease
"Federal taxpayers are pouring hundreds of millions of dollars into a quest for blood samples, medical information and fitness readouts from a million Americans. It's called the All of Us precision medicine initiative, and it's the biggest push ever mounted to create a huge public pool of data that scientists -- and anybody else who is interested -- can mine for clues about health and disease."
National Public Radio

[Opinion]

The Evidence-Based Medicine Problem: U.S. Doctors Cling to Procedures That Don't Work
"Despite concerns about the rising cost of health care, ... Medicare generally covers treatments deemed 'reasonable and necessary' -- a definition that doesn't include analysis of comparative effectiveness or cost in relation to other treatments. And what Medicare does influences the behavior of private insurers.... [This] approach promotes access to new medical products, yet it doesn't protect patients against the harms from receiving useless or low-value treatments. And it leaves less money to fund expensive therapies that have proven their worth."
Vox

Benefits in General

[Guidance Overview]

Benefit and Compensation Provisions in the Tax Cuts and Jobs Act
"The silver lining on the cloud of lost deductions is that the loss of the performance-based compensation exception may provide some additional flexibility in terms of plan design and administration.... [T]he ability to pay for qualified parking on a pre-tax basis will still benefit employees who can exclude these amounts from income. There is uncertainty whether the contributions made by employees to pay for pre-tax transportation benefits through salary deferrals would also be nondeductible to the employer."
Winston & Strawn LLP

[Guidance Overview]

ERISA Civil Penalties: Annual Adjustments for 2018
Chart lists the various statutory provisions, with a description of each ERISA violation and its penalty amounts for 2017 and 2018.
Butterfield Schechter LLP

Executive Compensationand Nonqualified Plans

[Guidance Overview]

New Tax Law Brings Penalties for Top Paid Non-Profit Executives
"While there was concern among tax-exempts that the tax bill might reduce or even eliminate the presumption of reasonableness, that turned out not to be the case. But the final version of the legislation for the first time imposed a tax on certain excess compensation and excess parachute payments"
Mintz Levin

[Guidance Overview]

Tax Act Provides Planning Opportunities for Deferred Comp Plans and SERPs
"Once an employee becomes a 'covered employee' under Section 162(m), payments made to him or her will remain subject to the $1 million limit on deductibility forever, even on the individual's death! What planning strategies are left to us to reduce the impact of this limit? ... Deferring compensation until retirement or termination of employment is one[.] ... [A]fter a covered employee's retirement or other termination of employment, the company still will be able to pay and deduct up to $1 million in benefits each year."
Winston & Strawn LLP

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BenefitsLink Health & Welfare Plans Newsletter, ISSN no. 1536-9595. Copyright 2018 BenefitsLink.com, Inc. All materials contained in this newsletter are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of BenefitsLink.com, Inc., or in the case of third party materials, the owner of those materials. You may not alter or remove any trademark, copyright or other notices from copies of the content.

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