e3 Compliance Navigator™ Logine3 Financial News Archive For November / December 2011
Year-End Reminder!
Dec 13, 2011
As year-end approaches, here are a few helpful reminders:
- 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. The value of the excess benefit coverage is subject to Social Security and Medicare taxes. For more information, including the IRS rate table and employer responsibilities, click on the following link and review the Publication 15-B document (pages 11-13): http://apps3.irs.gov/govt/fslg/article/0,,id=110345,00.html
- 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).
- Increase in 401k & Health Savings Account Limits: The IRS and the Social Security Administration recently announced most of the dollar amounts that employers will need to administer their benefit plans for 2012. Unlike the past two years, many of the amounts will be adjusted upward to account for inflation. Please see the attached reference card for detailed numbers.
- Employer Notice Regarding Children's Health Insurance Program: Employers sponsoring group health plans are required to notify employees of potential opportunities currently available in the State in which employees reside for group health plan premium assistance under Medicaid and the Children's Health Insurance Program (CHIP). In many cases this notice must be provided by Jan. 1, 2011 (as described below). The U.S. Department of Labor has published a model notice which may be used to satisfy this requirement, which can be found at: http://www.dol.gov/ebsa/chipmodelnotice.doc
For more information, please contact your e3 Financial Client Service Team and they will assist you.
Supreme Court Agrees to Hear Challenge to the 2010 Health Care Reform Law
Nov 15, 2011
The U.S. Supreme court has agreed to hear arguments regarding the constitutionality of the 2010 Health Care Reform law. Oral arguments should occur by March with a possible decision to follow in late June, in the midst of the 2012 presidential campaign. The justices will decide whether the mandate to purchase health insurance is constitutional. Many argue that the mandate exceeded Congress’s power by requiring almost all Americans to have health insurance by 2014 or pay a penalty. If the Supreme Court decides that the mandate was unconstitutional, they will also look at how much of the balance of the Patient Protection and Affordable Care Act, must fall along with it.
