Insights

On October 5, 2022, in Earl v. Jewel Food Stores, the US District Court for the Northern District of Illinois ruled an employer failed to document a good faith attempt to provide the required COBRA election notice to a terminated employee. The plaintiff, Billy Earl, sued his former employer Jewel Food Stores, alleging failure to provide a COBRA election notice and multiple counts of discrimination related to his termination. Jewel Food Stores served as the group health plan administrator respon

On October 18, 2022, the IRS issued Revenue Procedure 2022-38, providing certain cost-of-living adjustments for a wide variety of tax-related items, including health FSA contribution limits, transportation and parking benefits, qualified small employer health reimbursement arrangements (QSEHRAs), the small business tax credit and other adjustments for tax year 2023. Those changes are outlined below. Health FSA. The annual limit on employee contributions to a health FSA will be $3,050 for pla

On October 11, 2022, the IRS finalized its proposed rule to fix the 'family glitch' in eligibility rules for the ACA premium tax credit (PTC). The new final rule will be effective starting in the 2023 tax year. Under the so-called 'family glitch' circumstance, family members were previously ineligible for a PTC if the cost of self-only coverage was affordable. A PTC for purchasing health insurance on the ACA's marketplace is available to people who do not have access to 'affordable' coverage th

On October 7, 2022, the IRS issued Notice 2022-53 (the notice), which provided clarification and transitional relief regarding changes to Code section 401(a)(9) required minimum distributions (RMDs) under the SECURE Act. The notice addressed compliance with respect to 2021 and 2022 post-death RMDs under defined contribution plans and IRAs. As previously reported in Compliance Corner, the SECURE Act made significant changes to the post-death required minimum distribution rules effective beg

The IRS recently released the final Forms 1094-B/C and 1095-B/C and the drafts of general instructions for Forms 1094-B/C and 1095-B/C for the 2022 reporting year. 2022 Forms Forms 1094-C and 1095-C are filed by applicable large employers (ALEs) to provide information that the IRS needs to administer the employer mandate penalties and eligibility for premium tax credits, as required by the ACA under Section 6056. Forms 1094-B and 1095-B are filed by minimum essential coverage providers (e.g.,

On October 17, 2022, the IRS released the updated Fringe Benefits Guide (Publication 5137) to assist federal, state, and local government employers in determining the correct tax treatment of employee fringe benefits, including using the appropriate withholding and reporting procedures. This publication covers: An overview of how to determine whether specific types of benefits or compensation are taxable Procedures for computing the taxable value of fringe benefits The taxation and exclusi

The Oregon Employment Department that administers 'Paid Leave Oregon' (Oregon state's paid family and medical leave program) recently released the model notice poster that can be used for employers to fulfill their notice requirement to their Oregon employees. Employers must post and/or send the model notices no later than January 1, 2023. Employers who have at least one employee working in the state of Oregon must display this Paid Leave Oregon model notice poster at each work site in a clear

On October 14, 2022, the Pension Benefit Guaranty Corporation (PBGC) proposed a rule to provide interest rate assumptions that may be used by a plan actuary to determine a withdrawing employer's liability under a multiemployer defined benefit pension plan. Generally, a multiemployer plan is a collectively bargained plan involving two or more unrelated employers. Under ERISA, an employer that withdraws from a multiemployer plan may be liable to the plan for withdrawal liability, which generally

On October 21, 2022, the NJ Department of Labor and Workforce Development (LWD) announced the 2023 TDI and FLI contribution rates. Below are the 2023 contribution rates for employees who work in NJ:   2023 2022 TDI 0.00% 0.14% FLI 0.06% 0.14% As the above chart shows, there will be no employee contribution for TDI but only for FLI of 0.06% rate in 2023. Employers who participate in the state's TDI program will be moved to a lesser contribution table and are expected to see a collecti