Dear Valued Clients and Associates,
Happy New Year and best wishes to you all for everything you strive for in 2020! While folks are wrapping up year end, preparing for tax deadlines and setting goals for the new year, my goal is to make your life easier. With that said, what better way to kick off the new year than with a reminder of some compliance updates for 2020! Read on for some changes to be aware of this year.
Did you know PF Compass has held a 98% retention rate for over 20 years? If you’d like to learn how we can help you reach your employee benefits and compliance goals, let’s chat! Give me a call today 732-258-1032.
Here is your January 2020 Newsletter with a combination of HR and Health related news. I hope you enjoy!
2020 – New Rules for Salaries and Wages
By Maggie Johnson, HR Consultant
As we start the new year, there are a number of changes in employment law affecting the payment of salaries and wages by New York and New Jersey employers. Here’s an overview of the new regulations.
Upcoming Group Health Plan Compliance Dates
Employers must comply with numerous reporting and disclosure requirements throughout the year in connection with their group health plans.
Listed below are upcoming important compliance deadlines for employer-sponsored group health plans, organized chronologically. For these requirements, the information provided herein shows the deadlines that apply to calendar year plans. For non-calendar year plans, these deadlines will need to be adjusted to reflect each plan’s specific plan year.
Employers that filed 250 or more IRS Forms W-2 for the prior calendar year must file Forms W-2 with the Social Security Administration and furnish Forms W-2 to employees by Jan. 31 of each year, unless an extension applies.
ALEs that sponsor fully or self-insured health plans are required to report information about the coverage to the IRS each year, using IRS Forms 1094-C and 1095-C. Employers that are not ALEs use IRS Forms 1094-B and 1095-B to meet these reporting obligations. The deadline for filing paper versions of the forms is Feb. 28, 2020. The deadline for electronic filing is March 31, 2020.
Group health plan sponsors that provide prescription drug coverage to Medicare Part D-eligible individuals must disclose to the Centers for Medicare & Medicaid Services (CMS) whether prescription drug coverage is creditable or non-creditable within 60 days after the beginning of the plan year. For calendar year plans, the deadline is March 1, 2020.
ALEs that sponsor fully or self-insured health plans to report information about the coverage to covered employees each year, using IRS Form 1095-C. Employers that are not ALEs use IRS Form 1095-B to provide this information. The IRS recently extended the deadline for furnishing 2019 employee statements, from Jan. 31, 2020, to March 2, 2020.
The electronic filing deadline for Code Sections 6055 and 6056 reporting is March 31, 2020. ALEs that sponsor fully or self-insured health plans are required to report information about the coverage to the IRS each year, using IRS Forms 1094-C and 1095-C. Employers that are not ALEs use IRS Forms 1094-B and 1095-B to meet these reporting obligations.
Detox & Cleanses to Help Kick Start New Year’s Resolutions
By Natural Medicine & Rehab
Detox & Cleanse, ways that many people kick start their New Year’s Resolutions to be healthier. People are seeking ways to cleanse their bodies of toxins for many reasons:
- Weight loss
- Digestive problems
- Acne and other skin problems
- Body aches and pains
- Or just to become healthier
With the marketplace filled with more and more processed foods, additives, sweeteners and convenience / fast foods to help with hectic schedules, our bodies need to work harder than ever to get rid of these toxins we consume.
Paid Leave May be 2020’s Biggest Workplace News
By Lisa Nagele-Piazza, SHRM-SCP, J.D., and Allen Smith, J.D – shrm.org
Paid-leave requirements will spread beyond a mandate for paid parental leave for federal workers to the private sector in several states in 2020. This trend may increase calls for a federal paid-leave law applicable to the private sector nationwide. New paid-leave mandates are taking effect in 2020 in Washington state, Nevada and Washington, D.C. Employees’ paid-leave contributions start in 2021 in Connecticut, while paid leave comes into force in Oregon in 2023.
Read more about Paid Leave, Appearance Discrimination, Pre-employment Marijuana Testing and Predictable Scheduling here
DOL Announced Final Rule Regular Rate under FLSA
At A Glance
- The Department of Labor (DOL) announced the final Regular Rate rule under the FLSA. The rule clarifies what employee benefits may be excluded from the regular rate of pay.
- This comes after the FLSA announced the Final Overtime Rule on 09/24/19.
- The Regular Rate rule goes into effect 01/15/20.
- The full text can be found on the Federal Register.
The US DOL has had several items pending on its legislative calendar for 2019 including the change to what benefits are included in calculating the regular rate of pay. The regular rate of pay is used in calculating the overtime rate of time and a half. This is the first significant update to the rule in over 50 years.
Read More here
5 Performance Review Best Practices
Performance reviews are an annual ritual for many employers, but their usefulness has been debated for years. To make sure you—and your employees—get the most out of performance reviews, follow these five tips.
- Perform formal evaluations at the same time for everyone each year. While this increases the workload of managers and supervisors during review time, it forces direct comparisons of employees and establishes a non biased system.
- Have regular meetings with supervisory staff. Supervisors will learn from each other’s experiences. Provide adequate training and insist on candid observations.
- Clearly communicate to employees what their duties are and what satisfactory performance is. Accomplish this through periodic reviews of job descriptions, training, and both formal and informal reviews.
- Tell employees the criteria upon which their performance will be reviewed. Develop standards and establish reasonable goals for employees. Make sure that employees understand the consequences of their failure to improve.
- Don’t wait until the annual evaluation to provide feedback; offer it throughout the year. Give both positive and negative feedback regularly or it becomes less useful.
2020 Benefit Plan Limits and Thresholds Chart
By Stephen Miller, CEBS – shrm.org
401(k) Plan, HSA and HDHP, Health FSA, QSEHRA, Commuter Transit and parking, and Earnings Subject to Social Security Payroll Tax can all be found here
New Summary of Benefits and Coverage Template Will Be Required for 2021
Recently, the Departments of Labor (DOL) and Health and Human Services (HHS) issued an updated template and related materials for the summary of benefits and coverage (SBC). These materials are required to be used for plan years beginning on or after Jan. 1, 2021. This means that the updated template must be used for the 2021 plan year’s open enrollment period.
The SBC is a concise document providing simple and consistent information about health plan benefits and coverage.
Employers should prepare to use the new SBC template and related materials for the 2021 plan year. Prior to the beginning of the 2021 plan year:
- Self-funded plan sponsors should ensure that they use the new template.
- Employers with insured plans should make sure the carrier is providing the correct version of the template.
10 Employee Retention Resolutions for 2020
With a new year upon us, your attention is likely focused on setting financial and productivity goals for your business. As you plan, make sure to look at one area you may have overlooked: employee retention. Employee retention has a huge impact on your bottom line, and now is a great time to make some employee retention resolutions that will pay off all year long. Watch the video below to learn 10 key employee retention resolutions for 2020.
Need Dental Insurance?
Delta Dental now offers individual policies – Search Plans, see prices and sign up online here.
Brandi Bowers | Benefits Consultant
PF Compass Employer Guidance & Benefit Solutions
Credits: Copyright © HR 360, Inc. All rights reserved., Maggie Johnson, HR Consultant, shrm.org, paylocity.com, Natural Medicine & Rehab