Employer Compliance News
Oregon Minimum Wage Increase
Oregon Governor Kate Brown recently enacted legislation that increases the state’s minimum wage rate by creating separate increases for employers based on geographic location. This change is relevant to your business if you have employees who live or work in Oregon. This increase is effective July 1, 2016, with ongoing increases to occur annually each July 1.
Be Prepared for the Top 4 Compliance Issues
In 2016, agency and elected officials are focused on income inequality and the lack of wage growth. This year’s top compliance issues reflect these priorities, compelling organizations to evaluate and adjust their HR practices. The key to compliance success for 2016 and beyond will be having accurate data, efficient processes, and most importantly, streamlined technology. They are:
- Employee Misclassification
- Minimum Wage
This article is brought to you by the March 2016 issue of Ceridian Voice.
Three Focus Areas for 2016
While Affordable Care Act (ACA) compliance has been on employers’ minds for more than five years, phased implementation and extensions of controversial provisions have kept HR professionals on their toes. Despite the rocky road behind us, important regulatory and legislative issues are ahead, namely a tightened focus on:
- Employer shared responsibility
- Health coverage reporting requirements
- Uncertainty surrounding the “Cadillac” tax
This article is brought to you by March 2016 issue of Ceridian Voice.
IRS Extends ACA Reporting Due Dates
This notice is relevant to organizations who are considered an Applicable Large Employer (ALE) - employing 50 or more full-time U.S. employees, including full-time equivalents - as defined by the Affordable Care Act (ACA).
On December 28, 2015 the Internal Revenue Service (IRS) issued Notice 2016-4 extending the Form 1094-C and 1095-C due dates for both furnishing to individuals and filing with the IRS. The new IRS due dates are as follows:
- March 31, 2016 (formerly February 1) for furnishing Forms 1095-C to employees and covered individuals.
- May 31, 2016 (formerly February 29) for employers filing paper Forms 1094-C and 1095-C with the IRS
- June 30, 2016 (Formerly March 31) for employers filing Forms 1094-C and 1095-C electronically with the IRS, including bulk filers such as Ceridian.
Forms 1094-C and 1095-C are information returns designed to report an employer’s offer of health coverage and an employee’s enrollment in employer-sponsored self-insured health coverage. These forms are used by employers to meet the “furnish and file” mandate of the ACA.
Employee Tax Returns
Notice 2016-4 also includes guidance for employees who, as a result of the new March 31 due date to furnish forms, may not receive a 1095-C before they file their 2015 individual tax returns. For the most part, individual taxpayers who enroll in coverage will not be affected by this extension and should file their tax returns as they normally would.
Individuals who enrolled in coverage through the Marketplace, but did not receive a determination that the offer of employer-sponsored coverage was not affordable, could be affected by the extension if they choose to file their income tax return before they receive their Forms 1095-C. Advise such individuals to consult with their own tax advisors for additional guidance.
Automatic Enrollment of New Hires under the ACA Repealed
An important employer compliance update:
On November 2, 2015, the President signed into law the Bipartisan Budget Act of 2015, which included a provision repealing the automatic enrollment requirement under the Affordable Care Act (ACA). As a result, employers will not be required to automatically enroll employees in the employer sponsored group health plan.
The ACA amended the Fair Labor Standards Act (FLSA) to require employers of a certain size to automatically enroll newly-hired (and newly-eligible) employees in a health plan with an opportunity to opt out. A waiting period was permitted so long as it otherwise met legal requirements (usually 90 days) and notice to affected employees was required. Implementation of the automatic enrollment requirements had been delayed pending regulatory guidance and is now permanently repealed.