Welcome to the Compliance Center
Find News and Perspectives on Legal and Legislative Changes Affecting Employer Compliance
- Oct 11, 2016
The Affordable Care Act (ACA) imposes a penalty on certain high cost employer-sponsored health coverage. Generally, a 40 percent excise tax (commonly referred to as the “Cadillac Tax”) will be assessed on the monthly cost of employer sponsored health coverage that exceeds threshold amounts defined under the ACA. As the employer, you will want to review your benefits in the context of this tax to determine what changes might be needed. Read more »
- Oct 11, 2016
There are many rules employers must consider when implementing an employee wellness program, including the Health Insurance Portability and Accountability Act (HIPAA) and the Affordable Care Act (ACA). Here are the final regulations as issued by the departments of Treasury, Labor, Health and Human Services. Read more »
- Sep 26, 2016
In March 2014, the Internal Revenue Service (IRS) released final regulations on the reporting requirements under the Affordable Care Act (ACA), which are designed to enforce the individual and employer mandates. The regulations provide guidance on the data elements, the process of reporting to the IRS, and the furnishing of statements to individuals.Read more »
- Sep 26, 2016
For an updated summary of the required provisions for The Patient Protection and Affordable Care Act (ACA), review the following details for both large and small employers. Read more »
- Sep 22, 2016
The United States Department of Labor (DOL) had published its final rule for the Fair Labor Standards Act (FLSA) on May 18, 2016 which will take effect December 1, 2016. Here are some additional changes to the final rule and the effect it will have on employers. Read more »
- Sep 22, 2016
On August 1, 2016, Massachusetts passed an act to establish pay equity, which promotes equal pay across genders for comparable work and provides equal opportunities to earn competitive salaries in the workplace. Here is a summary of this new Act which takes effect July 1, 2018. Read more »
- Sep 22, 2016
Earlier this summer the IRS announced upcoming ACA compliance changes. They released drafts of the 1094-C and 1095-C forms as well as new 2016 instructions for completing them. Read more »
- Sep 21, 2016
IRS has issued a helpful video and transcript on ACA information return corrections and errors—a big issue for 2016 employer reporting.
- Mar 29, 2016
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. Read more »
- Mar 14, 2016
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.
- Mar 14, 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.
- Dec 31, 2015
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.
- Dec 1, 2015
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.
- Jul 3, 2015
On June 25th, 2015 the Supreme Court has voted to sustain the current understanding of the Affordable Care Act law that premium subsidies to buy health insurance are available to enrollees in the federal and state health insurance exchanges. This is known as the King v. Burwell decision which affects all 50 states. To understand some of the implications for employers on this ruling, read Jim O'Connell's blog post on the ruling.
- Jun 11, 2015
In March 2014, the Internal Revenue Service (IRS) released final regulations on the reporting requirements under the Affordable Care Act (ACA), which are designed to enforce the individual and employer mandates. In 2016, employers and insurance issuers will be required to provide data they start collecting in 2015 to the IRS, and the regulations provide guidance on the data elements, the process of reporting to the IRS, and the furnishing of statements to individuals. The final regulations provide for combined reporting using a single form for employers that self insure and simplified reporting alternatives for employers that offer affordable coverage to substantially all full-time employees. After releasing draft forms and instructions, in February 2015, the IRS released final 2014 forms and instructions for those employers choosing to submit reporting on a voluntarily basis. See the below Resources section for additional information on the reporting requirements, final regulations on MEC reporting, final regulations on ALE reporting, and IRS Forms and instructions. Read more »
- Jun 11, 2015
The Health Insurance Portability and Accountability Act (HIPAA) regulate how employers may use wellness programs to encourage healthy behavior in employees without discriminating against individuals based on health factors. These rules include limits on employee incentives (and penalties) based on participation in a health-contingent wellness program. The Affordable Care Act (ACA) increased these limits beginning in 2014, from 20 percent to 30 percent generally, and from 20 percent to 50 percent for smoking cessation programs. In addition, the ACA also changed the HIPAA wellness rules for operating a health-contingent program. Read more »
- Jun 11, 2015
The Patient Protection and Affordable Care Act (ACA) imposes significant requirements on employers with at least 50 full-time employees, including full-time equivalents (FTEs). These employers will be required to offer Minimum Essential Coverage (MEC)— that it is affordable, but also provides minimum value to substantially all full-time employees, identified according to a 30-hour work week (as defined by the ACA). If they fail to meet this requirement, employers will have to pay a corresponding penalty (Employer Shared Responsibility payment) if a full-time employee receives a premium tax credit, or cost-sharing subsidy from an exchange. Read more »
- Dec 23, 2014
On Dec. 19, 2014, President Barack Obama signed the Tax Increase Prevention Act of 2014 (TIPA). One provision of TIPA establishes parity for the qualified transportation fringe benefits under IRC Section 132(f). This means that the limit on the exclusion for qualified transportation has now increased: from $130 to $250. This provision is retroactive to Jan. 1, 2014. The IRS has not yet issued related guidance for employers on how to address the retroactive adjustments. Since it is significantly easier, however, for employers to correct employee tax withholding during the year affected, some employers may choose to make adjustments prior to receiving IRS guidance. Read more »
- Nov 20, 2014
Since 2007, the HIPAA nondiscrimination rules have prohibited a group health plan from discriminating against an individual based on health factors. These rules include restrictions on the amounts of incentives or penalties (such as the lowering or increasing of premiums) an employer may apply based on employees’ participation in wellness programs. The ACA increased the percentage of premium incentives and penalties from 20 percent to 30 percent generally, and from 20 percent to 50 percent for smoking cessation programs. Click here for details. The ACA also changed the HIPAA wellness rules for operating a health-contingent program to include a requirement for the retroactive removal of a surcharge in certain circumstances. Click here for details on how this impacts our H&W Services.
- Oct 10, 2014
The ACA included a new file processing certification process, which covered entities will be required to undergo to ensure the standard transactions are being accurately performed. The deadline for this certification is December 31, 2015. As a business associate, Ceridian itself is not required to certify, but may be asked by clients or carrier partners to take action as part of the certification process. Click here for additional information »
- Oct 10, 2014
Health plans will be required to use Health Plan Identifiers (HPIDs) to identify the underlying health plan in EDI standard transactions. There may be a ripple effect in that some entities that don’t conduct EDI standard transactions will also be required or requested to obtain HPIDs. As a business associate, Ceridian itself is not required to obtain an HPID, but may be asked by clients or carrier partners to take action, which may include receiving, storing and transmitting the HPID. Click here for additional information »
- Jul 30, 2014
On July 24 the Internal Revenue Service released drafts of forms 1094-B, 1094-C, 1095-B and 1095-C, which employers will use to comply with the extensive reporting requirements mandated by the ACA. The healthcare reform law requires employers annually to report details of employer-sponsored health coverage to the IRS and to their full-time employees. Jim O’Connell, Ceridian’s Washington, D.C., Consultant, elaborated at his blog. Read his post.
- Jul 22, 2014
On Tuesday, July 22, in-tandem court rulings produced highly conflicting legal conclusions regarding the Internal Revenue Service’s interpretation of statutory language in the Affordable Care Act. At issue is the eligibility of individuals to receive tax credit subsidies if they purchase insurance through Healthcare.gov, the federal exchange. Relevant language in the ACA appears to pertain only to state exchanges, noted Jim O’Connell, Ceridian’s Washington, D.C., Consultant. Explaining the significance, at the HR Legislation Blog O’Connell wrote “that 36 states decided not to set up their own exchanges, leaving it to the federal government to roll out Healthcare.gov,” and went on to predict what might happen next. Read his post.
- Jun 13, 2014
At his HR Legislation Blog, Ceridian’s Washington, D.C., Consultant Jim O’Connell continues to follow developments in the ACA as they relate to business. Following are links to his latest analyses:
- Employer ACA Reporting: Significant Compliance Challenge—on June 10, 2014, the U.S. Chamber of Commerce provided testimony to the U.S. Congress on final ACA regulations. The burdens of compliance with mandated employer reporting are of great concern, according to the Chamber. This pertains to employer reporting under sections 6055 and 6056, which O’Connell explains.
- ACA Wild Card: What Will Employers Do?—research published in May suggests that as many as 9 in 10 people who today have health insurance through employer-sponsored coverage will have “transitioned” to federal or state health insurance exchanges. At issue are these exchanges, plus ACA insurance subsidies and soaring costs related to healthcare benefits. O’Connell applies his expertise to the prediction.
- May 7, 2014
On Friday, May 2, 2014, the Department of Labor (DOL) released proposed changes to the COBRA regulations relating to the model general notice and model election notice. In conjunction with those changes, DOL posted new model general and election notices to its website. Ceridian has completed the process of incorporating effectively all of the revised content into our notices and will begin using the updated versions on or about Aug. 15, 2014. Read more »
- May 7, 2014
“Play or Pay” refers to the Employer Mandate, part of the Affordable Care Act. The Internal Revenue Service needs a way to know whether an organization is subject to Play or Pay and, then, whether that organization is complying. That requires paperwork, Forms 1094-B, 1095-B, 1094-C and 1095-C for Sections 6055 and 6056 reporting. IRS issued final rules on all this in early March, and Web Hill, executive vice president of Ceridian Tax Services, has provided a primer. Read Hill’s blog entry.
- May 7, 2014
In March, President Obama signed an executive order directing the Secretary of Labor to “propose revisions to modernize and streamline the existing overtime regulations” found in the Fair Labor Standards Act. The impacts remain unclear, according to Ceridian’s Washington, D.C., Consultant Jim O’Connell. Writing in his blog, he noted that the result may be an increase in the number of FLSA-defined exempt employees entitled to overtime protections.
- May 7, 2014
Writing for the Ceridian HCM blog, Web Hill, executive vice president of Ceridian Tax Services, looks at the history of the Federal Unemployment Insurance Tax Act (FUTA) and explains the basics of complying. Businesses are apt to find the process complex, and many outsource the activity to experts well-versed in FUTA’s intricacies. Read Hill’s blog entry.
- May 7, 2014
As a contributor to The Law Insider, Howard Tarnoff, senior vice president of customer success for Ceridian, writes about employment law and its intersection with technology for human capital management. Following are links to several of Tarnoff’s recent entries at The Law Insider, which Business Insider has ranked among the top 10 most influential law blogs in the United States:
- Apr 10, 2014
The Affordable Care Act is a complex law and many small businesses are challenged to understand exactly what provisions apply to them, and when. This helpful whitepaper from Ceridian provides a road map to the Employer Mandate, also known as Employer Shared Responsibility or “Play or Pay.” If you have 1-300 employees, download this whitepaper now to understand how the ACA may affect you and avoid costly compliance penalties.
- Mar 27, 2014
In March of 2010, the Affordable Care Act became law. It’s an anniversary that happens to occur during March Madness, when the NCAA’s teams battle for the national championship and college basketball fans try their hands at creating brackets of winners and losers, to predict the outcome. Meanwhile, Ceridian’s Washington, D.C., Consultant Jim O’Connell wonders what the brackets might look like for the ACA and offers predictions on winners and losers. Read his blog entry.
- Mar 27, 2014
The Office of Federal Contract Compliance Programs (OFCCP) has made changes related to requirements pertaining to federal contractors in the recruiting, hiring and employment of individuals with disabilities (IWDs). The Rehabilitation Act of 1973, Section 503, “requires these employers to take affirmative action to recruit, hire, promote, and retain” IWDs, as stated by the U.S. Department of Labor.
- Mar 17, 2014
At 2pm ET on Thursday, March 20, Ceridian’s Capitol Hill Consultant Jim O’Connell will deliver a free webinar titled “The Affordable Care Act & Employers: Putting the Pieces Together.” A flurry of delays in ACA-related deadlines has amplified the potential for confusion. O’Connell’s presentation will walk attendees through an array of the ACA’s many moving parts and how they affect employers. Read the press release.
- Mar 17, 2014
A new Presidential Memorandum “instructs the Secretary of Labor to update regulations regarding who qualifies for overtime protection,” according to an announcement at WhiteHouse.gov. Currently, Fair Labor Standards Act regulations related to overtime pay affect salaried workers earning less than $455 per week. “The president’s order does not prescribe a new salary threshold, and it does not take effect immediately,” reported The New York Times.
- Mar 17, 2014
- Mar 10, 2014
- Feb 27, 2014
The U.S. Departments of Labor, Treasury, and Health and Human Services have published final regulations implementing a 90-day limit on waiting periods for health coverage. A press release is available at the U.S. Department of Labor’s website. These Affordable Care Act–related requirements, according to the announcement, help “to ensure that eligibility conditions based solely on the passage of time are not used to evade the waiting period limit.” Click here for the final rule.
- Feb 19, 2014
Following several delays of the Employer Mandate, the Internal Revenue Service has posted 46 questions and answers pertinent to this aspect of the Affordable Care Act. Covering the development, Ceridian’s Capitol Hill Consultant Jim O’Connell has posted a two-part blog series. Read Part One and Part Two.
- Feb 12, 2014
Continuing to read the tea leaves, Ceridian’s Capitol Hill Consultant Jim O’Connell explored implications surrounding another delay of the Employer Mandate, announced by the U.S. Treasury on Feb. 11. For employers with 50-99 full-time workers, the mandate will be delayed until 2016. Read the blog entry for details.
- Feb 7, 2014
On Feb. 10-11, 2014, Ceridian will be at the National Grocer Association Show (#NGAShow14), in Las Vegas. During the event, Senior Vice President of Customer Success Howard Tarnoff will be available to address how Dayforce HCM helps employers successfully navigate complex pay rules and proactively manage compliance. Read the press release.
- Feb 7, 2014
The Congressional Budget Office in Washington DC has issued a special report on the economic outlook, including the Affordable Care Act’s possible effect. Ceridian’s Capitol Hill Consultant Jim O’Connell has penned a blog entry exploring the details. “The CBO report adds a new layer of ACA uncertainty,” he writes. Read his blog entry.
- Feb 7, 2014
Ceridian HCM has developed a new eBook that shows employers how the right technology can help them become and stay compliant with complex employment law across North America. From tax reporting to wage-and-hour requirements and more, technology plays a key role in employers’ ability to comply with regulatory rules. Download the eBook here.
- Jan 28, 2014
A section of the U.S. Internal Revenue Service’s website is dedicated to communicating information on tax provisions found in the Affordable Care Act. Individuals, families and employers alike will find several relevant resources designed to help them navigate tax code as it pertains to the ACA.
- Jan 28, 2014
In his latest blog entry, Ceridian’s Capitol Hill Consultant Jim O’Connell takes a look at recent moves that some notable, large companies have made regarding their part-time employees’ health care coverage. Recent developments “demonstrate that the Affordable Care Act, with all of its cost and compliance uncertainty, compels employers to think creatively about health benefits,” he writes. Read the full entry.
National Retail Federation Convention & Expo: Motel 6 Parent G6 Hospitality Presents Session on Dayforce HCM and ACA ComplianceJan 15, 2014
At the 2014 National Retail Federation Convention & Expo, Liz Campagna, director of payroll for G6 Hospitality (formerly Accor), delivered a presentation titled “Compliance and Provisioning for ACA Is Required for All Brands—and Is Easier Than You Think.” In it, she highlighted Dayforce HCM’s ability to carry out complex employee-reporting requirements related to the Affordable Care Act. Read the press release and related blog entry.
- Jan 6, 2014
At the National Retail Federation Convention & Expo, Ceridian’s Capitol Hill Consultant Jim O’Connell delivered a presentation on compliance issues related to the Affordable Care Act. Titled “Reading the Tea Leaves: Forecasting ACA Compliance for Retailers,” his session explored existing and potential challenges retailers face. Read the press release and blog entry.
- Dec 23, 2013
The United States Congress has passed a budget, and Ceridian’s Capitol Hill Consultant Jim O’Connell has provided an analysis. Though the agreement does little to address public debt and yearly deficits, it’s bipartisan and avoids another government shutdown, he notes. Furthermore, according to O’Connell’s blog entry, the deal may be setting the stage for incremental changes to policy over the coming year.
- Dec 16, 2013
In fourteen states, the standard tax credit of 5.4 percent associated with the Federal Unemployment Tax Act (FUTA) decreased for 2013. These fourteen states have yet to repay the loans they received from the federal government in order to pay unemployment claims. Employers in the affected states must pay a FUTA rate higher than the standard (0.6 percent) on employee wages up to $7,000 (the FUTA wage base). The additional credit reduction rate varies per state on the list, which the Department of Labor (DOL) posted on Nov. 12. View the chart.
- Dec 10, 2013
In his latest blog entry, Ceridian’s Capitol Hill Consultant Jim O’Connell reports on a recent paper by the Congressional Budget Office (CBO) exploring options to reduce the U.S. government’s annual budget deficit. The paper identifies tax exclusions for employer-sponsored health insurance as costing “the federal government about $250 billion in foregone revenues each year.” Given the historically high level of federal public debt ($17 trillion) and the parallel rollout of the Affordable Care Act, changes to this fundamental tax policy will almost certainly be considered, according to O’Connell.
- Nov 7, 2013
On Oct. 31, 2013, the Internal Revenue Service (IRS) released Notice 2013-71 (Notice) announcing a change to the Code Section 125 cafeteria plan use-it-or-lose-it rule for Health Flexible Spending Accounts (HFSA). The Notice allows up to $500 of unused amounts remaining in a participant’s HFSA account at the end of a plan year to be carried over for reimbursement of eligible medical expenses incurred during the following plan year. Read more.
Read Ceridian’s Capitol Hill Consultant Jim O’Connell’s blog post titled “FSA Carryover: At Long Last.”
- Oct 23, 2013
Stories surrounding the recent government shutdown captivated the United States and world for about two weeks. Ceridian’s Capitol Hill Consultant Jim O’Connell was there to witness it all and weighed in on the debate—first presenting his take on what caused it and, then, assessing the good and the bad of the shutdown-concluding short-term debt deal.
- Oct 23, 2013
According to a Labor Department news release issued on Oct. 17, September’s consumer price index (CPI) will be released on Oct. 30. The now-resolved partial government shutdown had delayed the originally-scheduled Oct. 16th release of the CPI, used to determine annual cost-of-living allowances for some Social Security coverage and benefits, along with pension-plan deferral limits. Additionally, the Social Security Administration is said to be checking on a new release date for the 2014 Old-Age, Survivors, and Disability Insurance (OASDI) taxable wage base, which is unconnected to the cost-of-living calculation and unrelated to the CPI. In May 2013, the OASDI’s annual report projected the 2014 wage base to be $115,500, up approximately 1.6 percent over 2013’s wage base of $113,700.
- Oct 23, 2013
Ceridian’s Capitol Hill Consultant Jim O’Connell has written several blog posts on what he sees as megatrends attributable to the Affordable Care Act (ACA). These range from the re-imagination of legacy concepts of employer-sponsored health benefits to an acceleration in consumer-directed health, improvements in health overall, and the ACA’s interplay with the economy.
Read Jim O’Connell’s five-part blog series on ACA Megatrends:
- Oct 8, 2013
In a recent press release, Ceridian announced unique features in the Dayforce HCM application for Affordable Care Act compliance. With the Employer Shared Responsibility mandate taking effect January 1, 2015, employers with 50 or more full-time employees will have to offer health care coverage that is both affordable and of minimum value, or risk paying a hefty penalty. Accurately identifying which employees qualify, particularly those employees who work variable hours is a challenge. Technology that efficiently and precisely tracks and records employees’ hours will be critical to ensuring that employers do not fall out of compliance with the ACA.
- Oct 5, 2013
A significant deadline is fast-approaching for required ACA-related action. By Tuesday, Oct. 1, 2013, most employers must inform their current employees about the health insurance exchanges. This mandatory, written communication must be provided to all employees, including those not necessarily eligible under the employer’s health plans. Employers that miss the deadline may face administrative action under the Fair Labor Standards Act. For more details, click here.
- Oct 4, 2013
On July 2, 2013, the White House announced the delay -- until 2015 -- of two key provisions of the Patient Protection and Affordable Care Act (ACA). The employer mandate, under which employers with 50 or more employees would be required to offer health insurance or pay a penalty, and the corresponding IRS reporting requirements were scheduled to go into effect January 1, 2014.
- Oct 3, 2013
The Defense of Marriage Act (DOMA) was invalidated by the US Supreme Court on June 26, 2013. The Court ruled that the defense of Marriage Act (DOMA) is unconstitutional because it violates the due process and equal protection principles of the Fifth Amendment. Employers will experience the effects of this ruling in a range of contexts, including benefits and payroll administration.
- Oct 2, 2013
Have new buzzwords, acronyms and jargon about the ACA and health care reform confused your employees? Could it prevent them from making the best health insurance decisions? Share this lively infographic to provide definitions of commonly-confused health care terms and help employees face critical health care choices they face in the next few months.
- Oct 1, 2013
Compliance with the Affordable Care Act (ACA) is one of the biggest challenges facing employers, workers, governments, and health care providers in the last 50 years. Since health care reform became law in 2010, Ceridian has been tracking the implementation and implications of the law’s regulations. We'll provide context and perspective as new regulations develop and evolve.
Ceridian’s Capitol Hill Consultant Jim O’Connell recently provided Affordable Care Act guidance webinar to help employers deal with uncertainty of health care reform.
How will the ACA affect your employees’ health benefits?
NEW eBooks provide Affordable Care Act insights to help employers comply with health care reform.
- Jun 21, 2013
- Jun 17, 2013
- Jun 17, 2013
- Nov 1, 2012