Yesterday, the Department of Labor published the much anticipated changes to the Overtime Rule. They have posted a wealth of information for employers. The link below is a good place to start — the DOL offers a quick overview and a video.
Employers have six months to analyze the impact and make strategic decisions prior to the December 1, 2016 implementation date.
The DOL’s 3-page overview and summary is available here.
Good news arrived from the IRS just in time for the New Year. On December 28th, the IRS released Notice 2016-4 providing additional time for employers to comply with upcoming ACA reporting requirements.
- The deadline to provide Form 1095 to employees has been pushed to March 31, 2016. The extension provides roughly nine additional weeks for employers to prepare and distribute the forms to full time employees who received an offer of coverage in 2015.
- Deadlines for filing with the IRS have also been extended. If filing paper copies of Form 1094 (Transmittal of Health Coverage Information Returns) along with fewer than 250 copies of Form 1095, the deadline has been shifted from February 29, 2016 to May 31, 2016. If filing electronically with the IRS through the AIR system, employers now have until June 30, 2016 to transmit their forms.
The IRS indicated “automatic and permissive extensions of time for filing information returns…will not apply to extended due dates.” The service also encouraged employers to “furnish statements and file the informational returns as soon as they are ready.”
Read the full notice.
Finally, some good news for employers when it comes to ACA compliance. Today, President Obama signed the Bipartisan Budget Act of 2015. Included, was a provision repealing the auto-enrollment requirement for organizations with over 200 employees.
This change comes as a relief for most large employers. Fears of “defaulting” employees into a medical plan they didn’t want were a significant cause of stress. Thankfully, there’s one less thing to worry about or implement.
Please note: This communication is designed for introductory informational purposes. The contents are summaries and are not intended to cover every aspect of the topic, law or regulation being discussed. The information contained in this post and website does not constitute legal or tax advice. To ensure full compliance based on your unique organizational requirements, discussion with your attorney or tax professional is recommended.
NYC Mandates Pre-Tax Transportation Benefits for 1/1/16
If your organization has an office in New York City, it’s time to review your benefits package. Effective January 1, 2016, companies with 20 or more employees in NYC must offer a pre-tax transportation benefit.
The new legislation does not apply to every employer. Your organization may be exempt if you:
- are Federal, State or Local Government
- are not required to pay federal or state taxes
- have a collective bargaining agreement in place that meets certain guidelines
Non-exempt employers who fail to offer the required pre-tax transportation fringe benefit could face fines and penalties.