State Income Tax Imputation for Same Sex Spouses

in Court Cases, Tax Issues

Since the Supreme Court allowed same sex marriage in all fifty states, employers have been busy turning off state income tax imputation for health benefits for those states that previously had not allowed same sex marriage. However, that only affects the period from and after June 26, 2015. Many employers have wondered what they should do with state income tax imputation that occurred January 1, 2015 through June 25, 2015.

To date, only two states have issued definitive guidance on that...Continue Reading

End of an Era – Determination Letter Program to Terminate

in Retirement Plans

On July 21, 2015 the IRS issued Announcement 2015-19, ending the regular determination letter program because of limited resources, and providing a transition period for certain plans.

Effective Jan. 1, 2017, the IRS will no longer accept determination letter applications based on the staggered five-year determination letter remedial amendment cycles for individually designed plans. The last on-cycle determination letter filings will be Cycle A.  Sponsors of Cycle A plans will we allowed...Continue Reading

More Incentive to File IRS Returns Correctly and Timely

in Affordable Care Act, Tax Issues

The Trade Preferences and Extensions Act signed at the end of June includes an unpleasant surprise for employers.  Penalties for many types of information returns employers are required to provide under the Internal Revenue Code and that are filed on or after January 1, 2016, will more than double, including for Forms W-2, Forms 1099, and the new information returns that are required as part of the Affordable Care Act to report full-time employees and individuals covered under group health...Continue Reading

Tri Agencies Update Preventive Care Regulations

in Affordable Care Act, Health Benefits

Today the Tri- Agencies (DOL, IRS and CMS) issued final preventive care regulations replacing prior interim rules and proposed regulations that applied to non-grandfathered health plans.  The final regulations apply to plans on the first day of the plan year that begins on or after September 14, 2015 (January 1, 2016, for calendar year plans).  These rules maintain the existing accommodations for religious organizations that object to providing contraceptive services and finalize the...Continue Reading