Insights

On March 25, 2022, the IRS proposed regulations regarding certain multiple employer plans (MEPs). The proposed regulations provide guidance on an exception to the unified plan rule for MEPs in the event of a failure by one or more participating employers to comply with applicable Code requirements. Additionally, the IRS withdrew 2019 proposed regulations that amended the application of the unified plan rule to MEPs. Under the unified plan rule (also known as the 'one bad apple' rule), the qual

On March 18, 2022, the IRS issued additional guidance (Notice 2022-11) for the No Surprises Act. This guidance describes how to calculate the qualifying payment amount (QPA) for items and services furnished in 2022 when a health plan does not have sufficient information to calculate the QPA by increasing the median contracted rates in 2019. In this situation, the guidance provides that the QPA must be calculated by multiplying the median of the in-network allowed amounts for the same or similar

On March 14, 2022, the IRS announced that, until further notice, they would not accept applications for opinion letters on prototype IRAs (traditional, Roth and SIMPLE IRAs), Small Employer Plans (SEPs) or SIMPLE IRA plans. The IRS will take this time to update the prototype IRA opinion letter program and issue revised model forms, Listings of Required Modifications and related published guidance to reflect recent legislation (such as the SECURE Act). Until the IRS issues further guidance, pre

The HHS Office of Civil Rights (OCR) released its Quarter 1 2022 Cybersecurity Newsletter, which features practical guidance for HIPAA covered entities related to security threats. The number of breaches of unsecured electronic protected health information (ePHI) increased 45% from 2019 to 2020 (for breaches affecting 500 individuals or more). Examples of the most common attacks are phishing emails, weak authentication protocols, and exploitation of known vulnerabilities.   While encrypti

Washington recently passed a new law (House Bill 1733) that added four additional groups that may apply for an exemption from the WA Cares Fund premium assessment. The WA Cares Fund is the state's mandatory long-term care (LTC) insurance program. Employers are required to collect WA Cares premiums of $0.58 per $100 of earnings for employees whose work is localized in Washington starting July 1, 2023. The benefit will be available to eligible employees beginning January 1, 2025. (See the article

As employees become more transient and more states implement their own versions of Paid Family Medical Leave (PFML), Paid Family Leave and Disability Insurance, complying with each state's PFML mandate and administering the overall leave policy is particularly challenging for multistate employers. Though the states' programs share similarities, each state has unique distinctions that complicate employers' efforts to offer standardized leave policies for their employees across multiple states.

The Americans with Disabilities Act (ADA) applies to employers with 15 or more employees and requires them to provide individuals with disabilities an equal opportunity to benefit from the full range of employment-related opportunities available to others. However, an employee that experiences a reduction in hours due to a reasonable accommodation would not be entitled to remain enrolled on the health plan if their reduction in hours drops them below the eligibility threshold. Under the ADA, th

On March 9, 2022, the DOL proposed rules to update the application process for prohibitive transaction exemptions under ERISA and the Code. According to the DOL, the changes are designed to create greater consistency and transparency in the exemption application process. The proposed rule amends the existing prohibited transaction exemption procedure, which was published back in 2011. ERISA establishes an extensive framework of standards and rules that govern the conduct of ERISA plan fiduciar

On March 10, 2022, the DOL published Compliance Assistance Release No. 2022-01. The release announces that the DOL's Employee Benefits Security Administration (EBSA) may investigate 401(k) plans that offer opportunities to invest in cryptocurrencies and related products. The release reminds these plans of their fiduciary duties to their participants, to 'act solely in the financial interests of plan participants and adhere to an exacting standard of professional care.' In the context of 401(k)