NFP's Benefits Compliance team is hosting a webinar for clients discussing association health plans (AHPs) and the final regulations. The webinar is Thursday, July 12, 2018 from 3:00 - 4:00 p.m. ET. Please join us for a discussion with industry experts where we'll address challenges such as carrier interest and state law. Additionally, we'll answer important questions such as:
- What are AHPs?
- How may small employers or self-employed individuals benefit from joining one?
- How soon will AHPs be available on the market?
The webinar will be recorded for those unable to attend and will remain available through the registration link for later viewing.
This program has been approved for 1.0 (general) recertification credit hours toward PHR, SPHR, and GPHR recertification through the HR Certification Institute. For more information about certification or recertification, visit the HR Certification Institute website at www.hrci.org. Those listening to a recorded webinar will not be eligible for credit.
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In this episode, Suzanne Spradley and Chase Cannon work through benefits compliance issues that arise as a result of common ownership and controlled groups. Suzanne grills Chase on the different types of controlled groups under Internal Revenue Code Section 414 — and how those rules impact employers’ obligations under the ACA's employer mandate, nondiscrimination testing, Form 5500, FMLA and other federal requirements. The two also discuss mergers and acquisitions, and how the change in ownership might impact COBRA and nondiscrimination obligations. The discussion closes on common ownership and MEWAs – some employers may inadvertently create a MEWA – and how employer compliance obligations might be affected by federal and state law.
Every other week, NFP's legal experts make the subject of compliance personal for a wide audience. By breaking down the daunting details of emerging policies and bridging the gap between legislation and what it means for the listener, Chase Cannon and Suzanne Spradley make compliance issues relatable and relevant. Visit our Visit our Soundcloud page every two weeks for the most up-to-date episode.
NFP's Benefits Compliance team is hosting its next series of webinars in August. Register on the NFP Client Learning Portal for the following training dates:
- August 8, 3:00 p.m. ET: "Using Your Benefit Dollars Wisely: Employer Contribution Strategies."
- August 15, 3:00 p.m. ET: "Do I Really Need to Be in Compliance? The Latest on Regulatory Enforcement."
- August 22, 3:00 p.m. ET: "What Did You Call Me? What it Means to be an ERISA Fiduciary."
The team reserves the right to change training topics in the event of significant legislative, judicial or regulatory developments. All programs are pending approval for 1.5 (general) recertification credit hours toward PHR, SPHR and GPHR recertification through the HR Certification Institute. For more information about certification or recertification, visit the HR Certification Institute website.
Applicable plan sponsors must file Form 5500-series returns on the last day of the seventh month after their plan year ends. As a result, calendar-year plans generally must file by July 31 of this year (reporting on the 2017 plan year). Plans may request a two-and-a-half-month filing extension by submitting Form 5558, "Application for Extension of Time to File Certain Employee Plan Returns," by that plan's original due date.
As a reminder, group health plans sponsored by a governmental or church entity aren't required to file a Form 5500, as those plans aren't subject to ERISA. Additionally, unfunded, insured or combination unfunded and insured health plans with fewer than 100 participants on the first day of the plan year are also exempt from the filing.
Need help filing? We have vendors available to assist. Simply ask your advisor.
Forms and Instructions »
Form 5500 EFAST2 »
Form 5558, Extension of Time »
The ACA imposed the PCOR fee on health plans to support clinical effectiveness research. The PCOR fee applies to plan years ending on or after Oct. 1, 2012, and before Oct. 1, 2019. The PCOR fee is generally due by July 31 of the calendar year following the close of the plan year.
PCOR fees are required to be reported annually on Form 720, "Quarterly Federal Excise Tax Return," for the second quarter of the calendar year. Plan sponsors that are subject to PCOR fees but not other types of excise taxes should file Form 720 only for the second quarter. No filings are needed for the other quarters for such employers.
The PCOR fee is generally assessed based on the number of employees, spouses and dependents that are covered by the plan. For plan years ending in 2017 on or before Oct. 1, 2017, the fee is $2.26 multiplied by the average number of lives covered under the plan. For plan years ending between Oct. 1, 2017, and Oct. 1, 2018, the fee increases to $2.39. Form 720 and corresponding instructions were revised to reflect the increased fee.
The PCOR fee can be paid electronically or mailed to the IRS with the Form 720 using a Form 720-V payment voucher. According to the IRS, the fee is tax-deductible as a business expense.
As a reminder, the insurer is responsible for filing and paying the fee for a fully insured plan. The employer plan sponsor is responsible for filing on a self-insured plan, including an HRA. A stand-alone dental or vision HRA would be exempt and wouldn't be subject to the PCOR fee.
Form 720 »
Form 720 Instructions »