Health & Welfare Plans Newsletter

January 9, 2018

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[Guidance Overview]

Want to Reduce Your Tax Liability? Offer Paid Family Medical Leave
"[T]he employer is required to have a written policy that provides two weeks of paid leave for family and medical leave at not less than 50% of wages for full time, and a prorated amount for part-time, employees.... [T]he two weeks of paid leave cannot be provided as vacation, personal, medical, or sick leave. In order to be considered for the tax credit, the paid family and medical leave has to be a separate provision in the employer's policies. Your company's current PTO policy will not likely qualify for the tax credit."
Graydon

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Don't Overlook Fact That Association Health Plans Are MEWAs
"The regulation of AHPs is colored by the fact that they constitute Multiple Employer Welfare Arrangements (MEWAs). Under [ERISA], states have broad authority to apply their insurance laws to self-insured MEWAs. Many states regulate self-insured MEWAs like a commercial insurance company. State authority to regulate fully insured MEWAs, however, is much more limited."
Morris, Manning, & Martin, LLP

Association Health Plans Will Profoundly Affect the Health Plan Marketplace
"[As] a MEWA, the Form M-1 and Form 5500 reporting requirements would apply. It is unclear how states will regulate these types of health plans, but the approach taken could impact the success of AHPs in that state (and those that cross state lines).... [T]he DOL has indicated that it would like input on possible approaches to exempt self-insured MEWAs from state insurance regulations."
Kilpatrick Townsend

Wellness Incentive Rules: The Saga Continues
"Financial incentives can be powerful, but with smaller limits on the 2019 horizon, it may give us good reason to get creative and spend less on cash incentives. 'Voluntary' programs may need to be truly elective. This means no more coercing employees to participate in screenings and HRAs. You can still offer them and incorporate incentives/penalties, you just need to provide a second option that doesn't have to do with an HRA/screening."
Frenkel Benefits - an EPIC Company

DOL Issues Annual Adjustments to Penalties for 2018
"[T]he increased penalty levels apply to any penalties assessed after January 2, 2018.... For the failure or refusal to file an annual report, up to $2,140 per day, up from $2,097; ... For the failure of a multiple employer welfare arrangement to file a report, up to $1,558 per day, up from $1,527; For the failure to provide a Summary of Benefits and Coverage, up to $1,128 per failure, up from $1,105[.]"
Wolters Kluwer Law & Business

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Idaho Governor Signs Order Seeking to Roll Back Obamacare Rules
"Idaho Gov. Butch Otter (R) on Friday signed an executive order ... directing the state's insurance department to allow insurers to sell health plans that do not meet ObamaCare requirements.... [I]nsurers might not have to cover all of ObamaCare's essential health benefits, which include areas like maternity care and mental health coverage."
The Hill

Benefits in General

Fourth Circuit: District Court Misapplied ERISA Preemption Principles in Taft-Hartley Fund Dispute
"[T]he Fourth Circuit concluded that ... The state-law claims were not preempted, and the case should have proceeded as a breach of contract suit.... [T]he Fourth Circuit determined that the district court treated conflict preemption and complete preemption as opposing choices. The Fourth Circuit noted, however, that the jurisdictional issue implicating complete preemption was not present in this case." [ Greenbrier Hotel Corp. v. UNITE HERE HEALTH , No. 16-2116 (4th Cir. Jan. 3, 2018)]
Thomson Reuters Westlaw

Executive Compensationand Nonqualified Plans

New Excise Tax on 'Excess' Executive Compensation Paid by Tax-Exempt Employers
"Tax-exempt employers must [1] identify their 'covered employees' for 2018 and 2017 (because ... the 'covered employee' status persists into subsequent years), and [2] review their existing executive compensation and severance arrangements (including any deferred compensation plans) to determine whether payments to any covered employee in 2018 or future years could result in the imposition of the 21% excise tax."
Jackson Lewis P.C.

Tax Reporting for Stock Comp: Understanding Form W-2, Form 3922, and Form 3921
"For employees with stock compensation, tax-return paperwork and the information it contains can be confusing and hard to decipher. This [article] provides an overview of the reporting you need to understand."
myStockOptions.com

Press Releases

Arista Wealth Management is Certified for Fiduciary Excellence Centre for Fiduciary Excellence [CEFEX]

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David Rhett Baker, J.D., Editor and Publisher
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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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