e3 Financial News Archive For November / December 2010
Dec 15, 2010
As year-end approaches, here are a few helpful reminders:
- Flexible Spending Accounts: For 2011, Over the Counter medications will no longer be allowed. Please be sure to remind your eligible employees of this fact prior to making their elections.
- Imputed Income for Group Life over $50k: If you provide employer-paid group Life Insurance in excess of $50,000 for any employee, you must include the value of that insurance on the employees’ W-2 at year end. For more information, including the IRS rate table and employer responsibilities, click on the following link http://apps3.irs.gov/govt/fslg/article/0,,id=110345,00.html and review the Publication 15-B document (pages 11-13).
- Domestic Partner Taxation: The amount of premium paid by an employer on behalf of a domestic partner is to be included in the employee’s W-2 as imputed income. Further, premiums paid by the employee via payroll deduction on behalf of their Domestic Partners must be on an after-tax basis. We have included an overview on Domestic Partner taxation for your reference (see attached).
Health Care Reform Update: Grandfathered Rules Amended
Nov 18, 2010
The U.S. Internal Revenue Service (IRS), Department of Labor's Employee Benefits Security Administration (EBSA) and the Office of Consumer Information and Insurance Oversight (OCIIO), Health and Human Services, jointly released an amendment relating to grandfathered health plan status under the Patient Protection and Affordable Care Act (PPACA). The amendment permits certain changes in group health plans and other health insurance policies, certificates or contracts without loss of grandfathered status.
Under the amended rules, a group health plan is allowed to change health insurance coverage without ceasing to be a grandfathered health plan, provided the plan continues to comply fully with the standards set forth in the original rule. If insured coverage is provided in the individual market, a change in issuer would still be a change in health insurance coverage and the new individual policy, certificate, or contract of insurance would not be a grandfathered health plan.
The amendment to the interim final rules is effective Nov. 15, 2010. Comments are due on or before Dec. 17, 2010.
For the HHS Fact Sheet regarding this amendment, go to http://www.hhs.gov/ociio/regulations/grandfather/factsheet.html. For the full amendment, go to http://edocket.access.gpo.gov/2010/pdf/2010-28861.pdf.