young woman with pulled back brown hair smiles holding up a calendar at her desk

Deadline to File Paper Returns With IRS was February 28

2018-03-22
, , , , Human Resources

Employers subject to the Affordable Care Act’s (ACA) information reporting requirements are reminded that the deadline to electronically file ACA information returns with the IRS is April 2.

The reporting deadlines in 2018 are for the 2017 calendar year, and are as follows:

  • Applicable large employers (ALEs)—generally those with 50 or more full-time employees, including full-time equivalents—must electronically file Forms 1094-C and 1095-C with the IRS no later than April 2. The deadline to file paper returns was February 28.
  • Self-insuring employers that are not considered ALEs, and other parties that provide minimum essential health coverage, must electronically file Forms 1094-B and 1095-B with the IRS no later than April 2. The deadline to file paper returns was February 28.

Note: Employers filing 250 or more Forms 1095-B or 1095-C are required to electronically file them with the IRS.

person signing up for health insurance on tablet

Current Requirements Continue to Apply Until Proposal is Finalized

2018-02-26
, , , Human Resources

Federal agencies recently proposed to amend the definition of short-term, limited-duration insurance so that it may offer a maximum coverage period of less than 12 months after the original effective date of the contract, rather than the current maximum period of less than 3 months. The proposal would also revise the required issuer notice that must be displayed in the contract and any application materials.

Proposal Applicability Date

While the current definition applies to policy years beginning on or after January 1, 2017, a non-enforcement policy applies to policies sold before April 1, 2017, and that end on or before December 31, 2017. The current definition and non-enforcement policy would continue to apply unless and until the proposal is finalized. If finalized, the proposal would apply to insurance policies sold on or after the 60th day following publication of the final rule. Policies sold on or after this date would have to meet the definition of short-term, limited-duration insurance in the final rule in order to be considered such insurance.

Background

Under the Affordable Care Act, short-term, limited-duration insurance is exempt from certain market reforms. The allowable duration of such insurance is currently limited to less than 3 months after the original effective date of the contract. In addition, this insurance is not considered minimum essential coverage, which is necessary for an individual to satisfy the individual mandate unless an exemption applies.

Click here to read the proposal in its entirety. A fact sheet is also available.

businessman sick and sleeping on home wicker bench with newspaper over head

TX: Austin Passes Earned Sick Time Ordinance

2018-02-21
, , , , , , , Human Resources

Employees Earn One Hour of Earned Sick Time for Every 30 Hours Worked

The City of Austin has passed an earned sick time ordinance. Highlights of the ordinance are presented below.

Covered Employers and Employees

All private employers are generally covered by the ordinance. To be eligible for earned sick time, employees must work in Austin for an employer (including work performed through the services of a temporary or employment agency) for pay for at least 80 hours in a calendar year.

Accrual and Use

An employer must grant an employee one hour of earned sick time for every 30 hours worked in Austin. Employers are not required to allow employees to accrue more than the yearly cap of earned sick time. The yearly cap depends on employer size, as follows:

  • For small employers (no more than 15 employees at any time in the preceding 12 months, excluding family members), the yearly cap is 48 hours of earned sick time per year.
  • For medium or large employers (more than 15 employees at any time in the preceding 12 months, excluding family members), the yearly cap is 64 hours of earned sick time per year.

An employee may request earned sick time for an absence from scheduled work time caused by certain events (§ D). However, the ordinance does not require any employer to allow an employee to utilize earned sick time on more than 8 calendar days in a given calendar year.

Employer Notice and Effective Dates

Employers must display a sign describing the requirements of the ordinance in at least English and Spanish in a conspicuous place (or places) where employee notices are customarily posted.

An employer that provides an employee handbook to its employees must include in the handbook notice of employee rights and remedies under the ordinance. Also, at least monthly, an employer must provide each employee with a statement (electronically or in writing) showing the amount of the employee’s available earned sick time.

The ordinance is expected to take effect on October 1, 2018, pending the mayor’s signature. However, for an employer with no more than 5 employees at any time in the preceding 12 months (excluding family members), the ordinance is not effective until October 1, 2020. Click here for additional details.

Note: Certain provisions of the ordinance may be subject to change upon final approval by the mayor. Stay tuned for additional updates regarding the ordinance.

Stack of dusty blue, purple, and white employee review files

Keeping Employee Records and Files

2017-12-21
, Human Resources

Employers typically keep a number of different employee records, often called personnel files, as a way of documenting an employee’s relationship with a company. In certain instances, documentation in a personnel file can provide important supportive data—for example, to show an employee’s discipline history in support of a termination in subsequent litigation. The personnel file can also track performance goals, leaves of absence and any employment-related agreements.

In addition to being a good business practice, employers may be required to keep certain types of records in order to comply with specific provisions under both federal and state law. When collecting and maintaining information to be kept in employee personnel files, it is important to comply with all applicable federal and state laws, including any requirements as to what information must or should be collected, what your company may or may not do with that information, and how long employee records should be kept.

All employee records should be kept in a secure location, such as a locked cabinet or locked office.

Types of Employee Records

Personnel Files

A personnel file may contain documents that fall into one of the following categories of records:

  • Basic Information. This category includes personal information such as the employee’s full name, social security number, address, and birth date.  Employers may also wish to collect information relating to emergency contact numbers.
  • Hiring Documents. Many employers retain documents related to the hiring process, including job descriptions, employment applications, and resumes.
  • Job Performance and Development. This is a broad category that may encompass documents such as performance evaluations and supervisory or management notes regarding performance issues; corrective action or disciplinary letters; awards, nominations, and other commendation letters; promotion records; and records of training or education.
  • Employment-Related Agreements. Any aspect of the employment relationship which is governed by an agreement between the parties, such as an employment agreement, union contracts, non-competition agreement, confidentiality or nondisclosure agreement, should be kept in the personnel file.
  • This category includes documents related to compensation and benefits information, such as W-4s and beneficiary forms, payroll records, and time cards for prior year(s).
  • Termination and Post-Employment Information. It is a good idea to keep information related to an employee’s termination on file should a dispute later arise.  Documents the employer may wish to retain include exit interview forms (if applicable) and any final employee performance appraisal, as well as a record of documents provided to the employee along with the final paycheck (e.g., termination letter, benefits notices, unemployment compensation forms).

Confidential Files–Keep Separate from the Personnel File

It is a good idea (and in certain instances may be legally required) to keep certain employee records and information in a confidential file separate from the personnel file, such as:

  • Medical records and Workers’ Compensation claims
  • Federal and state leave documents
  • Form I-9s
  • Documents pertaining to an employee investigation such as a disciplinary action
  • Background checks
  • Note: Many states have laws which prohibit or limit an employer’s use of background checks (also known as “consumer reports”) or criminal records checks and/or prohibit discrimination based on credit or criminal history information. Be sure to check the applicable laws in your state and consult with an employment law attorney who knows your state laws to ensure full compliance.

Please note that this list represents some of the key examples of personnel information which should be kept in a separate file. Please review the Records and File section thoroughly to get a good understanding of federal recording requirements. States may also have specific recordkeeping requirements as well. If you have any questions regarding the confidentiality of a particular record or form, please contact your state’s labor department or a knowledgeable employment law attorney.

hr woman at laptop in office

Recordkeeping

2017-12-18
, , Human Resources

OSHA’s recordkeeping rule requires employers to record and report certain work-related fatalities, injuries and illnesses, and provides employers a system for tracking workplace incidents.

Which recordkeeping requirements apply to me?

Reporting fatalities and catastrophes: Under a final rule, all employers covered by the Occupational Safety and Health Act of 1970 (P.L. 91-596) must notify OSHA of all work-related fatalities within 8 hours, and of all work-related in-patient hospitalizations, amputations, or losses of an eye within 24 hours. Keeping injury and illness records: The final rule also updated the list of industries that, due to relatively low occupational injury and illness rates, are exempt from the requirement to routinely keep injury and illness records. The rule maintains the exemption for any employer with 10 or fewer employees—regardless of its industry classification—from the requirement to routinely keep records of worker injuries and illnesses.

In addition, the following establishments are now required to electronically submit information from their OSHA recordkeeping forms to OSHA:

Click here for more information on the electronic recordkeeping requirement.

How can I tell if I am exempt?

OSHA has released a list of industries that, due to relatively low occupational injury and illness rates, are exempt from the requirement to routinely keep injury and illness records.

smiling small business owners

New Small Business Health Care Tax Credit Form Released

2017-12-15
, , , , Human Resources

Form Used by Eligible Employers to Claim Credit for 2017 Tax Year

The IRS has released Form 8941, Credit for Small Employer Health Insurance Premiums, and related instructions, for tax year 2017. Eligible small employers use this form to figure the credit for health insurance premiums under the Small Business Health Care Tax Credit.

The Small Business Health Care Tax Credit is designed to encourage small businesses and tax-exempt employers to offer health insurance coverage to their employees. Among other requirements, an employer may be eligible for the credit for tax year 2017 if:

  • It had fewer than 25 full-time equivalent employees for the tax year;
  • It paid at least 50% of the premium cost for single health care coverage for each employee;
  • The average annual wages of its employees for the year were less than $53,000; and
  • It paid premiums on behalf of employees enrolled in a qualified health plan offered through a Small Business Health Options Program (SHOP) Marketplace (or qualifies for an exception to this requirement).

Note: Employers in Hawaii cannot claim this credit for insurance premiums paid for health plan years beginning after 2016.

Click here to review Form 8941 and its instructions.

young african american woman working in a bake shop

How Holiday Help May Impact Your ALE Status

2017-11-25
, , , , , Human Resources

Employers May Apply a Reasonable, Good Faith Interpretation of the Term ‘Seasonal Worker’

Employers that hire seasonal workers this holiday season are reminded that there is an exception when measuring workforce size to determine whether they are an applicable large employer (ALE) subject to the Affordable Care Act’s employer shared responsibility (“pay or play”) and corresponding information reporting provisions.

Seasonal Worker Exception

If an employer’s workforce exceeds 50 full-time employees (including full-time equivalent employees) for 120 days or less (or 4 calendar months) during the preceding calendar year, and the employees in excess of 50 who were employed during that period were seasonal workers, the employer is not considered an ALE for the current calendar year. A seasonal worker for this purpose is an employee who performs labor or services on a seasonal basis (e.g., retail workers employed exclusively during holiday seasons are seasonal workers).

Seasonal Worker Versus Seasonal Employee

While the terms “seasonal worker” and “seasonal employee” are both used in the pay or play provisions, only the term “seasonal worker” is relevant for determining whether an employer is considered an ALE. For this purpose, employers may apply a reasonable, good faith interpretation of the term “seasonal worker.” For more information on the difference between a seasonal worker and a seasonal employee under pay or play, please refer to IRS Pay or Play Q&A #26.

1 2
Copyright © 2024 American Association of Business Networking. All rights reserved. Please note that ABN is an association. While we believe you will be pleased with your overall Association membership, we cannot, however, warrant or guarantee the performance of any discount or service.