The Department of Labor recently updated its self-compliance tool for plan sponsors and plan administrators of group health plans. The self-compliance tool contains questions relating to requirements on issues such as limitations on preexisting conditions, certificates of creditable coverage, special enrollment rights, HIPAA nondiscrimination rules, wellness programs, Mental Health Parity and Addiction Equity Act, Newborns’
Understanding Employee Benefits and key developments in the employee benefits field and items of interest to our clients. MORE
Benefits Notes
Stuck Between the IRS and the NLRB
By Stinson LLP on
Employers who sponsor 401(k) plans know that distributions from those plans can be made only on certain allowable events, such as separation from service. While an employee is still employed, distributions can be made after age 59½ or as a result of financial hardship. Defined benefit pension plans face similar restrictions on in-service distributions before …
If the Tax Withholding is Wrong, Don’t Rely on the Employer to Fix it
By Stinson LLP on
Verizon Communications, Inc. sponsored a number of plans for its foreign employees. These employees were citizens of foreign countries who never worked in the United States. Because these employees never worked or resided in the United States, their employment income and the benefits from their retirement plans were foreign source income not subject to U. …
Not All Courts Agree With The Eighth Circuit
By Stinson LLP on
I blogged recently about an Eighth Circuit decision concluding that an agreement with a single employee cannot be an ERISA plan because a plan necessarily requires more than one participant. Other courts disagree. Recently the United States District Court for the District of Idaho in the case of Knoll v. Moreton Insurance of Idaho, Inc…
Top Hat Plan Benefits Can Be Garnished
By Stinson LLP on
In a recent District Court decision, a court held that non-qualified deferred compensation benefits being paid to a participant under a “top hat” plan could be garnished by the participant’s creditor. Employers who sponsor plans covered by ERISA know that creditors cannot garnish a participant’s benefits under a qualified retirement plan. Any state laws …
IRS Issues Guidance on $2,500 Limit on Health FSAs
By Stinson LLP on
Under the Health Care Reform Act, health flexible spending arrangements under cafeteria plans are limited to $2,500 in salary reduction contributions beginning in 2013. Employers with plan years that were not calendar years have been wondering how the limit would be applied. The IRS has now issued guidance in the form of Notice 2012-40 with …
FAQs Issued on Mental Health Parity and Addiction Equity Act of 2008
By Stinson LLP on
The Departments of Labor, Treasury and Health and Human Services have the responsibility to administer and enforce the Mental Health Parity and Addiction Equity Act of 2008. The Departments recently issued two sets of FAQs, describing the guidance issued under the Act and restating some of that guidance in an accessible Q & A format.…
IRS Issues Guidance on W-2 Reporting of Health Care Coverage
By Stinson LLP on
The IRS issued recently FAQs relating to W-2 reporting of employer-provided health care coverage, a health care reform requirement that employers must first meet for the 2012 calendar year. We have previously discussed these requirements [Link to earlier health care reform posts]. These FAQs largely restate prior guidance.
The IRS also released an article on …
Short Term Disability Plan as a Payroll Practice
By Stinson LLP on
I blogged recently about an Eighth Circuit decision where the court concluded that a deferred compensation agreement with a single employee did not constitute an ERISA plan. I warned employers that courts do not always accept an employer’s characterization of a plan or program as being covered by ERISA. Another example of this phenomenon is …
What is a Trade or Business and Why Does It Matter?
By Stinson LLP on
If an employer withdraws from a multiemployer plan and is assessed withdrawal liability, all members of the employer’s controlled group are liable for that assessment. The controlled group rules look at the extent of common ownership among various trades or businesses, whether or not incorporated. The determination of controlled group status can be complicated and …