Employee Benefits

Subscribe to Employee Benefits via RSS

Please note that the content below was posted on March 19, 2020. We have since provided updated guidance on the topics discussed in this post here.

On Wednesday, March 18, 2020, President Trump signed the Families First Coronavirus Response Act into law. The final version of the law contains significant revisions to the bill that was passed by the U.S. House of Representatives on Saturday, March 14, 2020.

Employers’ obligations will become effective no later than April 2, 2020. A summary of the employment-related provisions and answers to some frequently asked questions regarding the Act are provided below.

On March 23 from 12 p.m. – 1 p.m. CT, we will host a webinar titled “Employer Obligations Under the Families First Coronavirus Response Act”.

Please register here and join us as we discuss the latest guidance for employers and answer your frequently asked questions.

Emergency Paid Sick Leave Act

Employers must provide paid sick time to employees who are unable to work (or telework) for the following purposes through December 31, 2020:

  1. The employee is subject to a federal, state, or local quarantine order related to COVID-19.
  2. The employee has been advised by a healthcare provider to self-quarantine due to COVID-19 concerns.
  3. The employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis.
  4. The employee is caring for an individual who is subject to an order described in (1) above or has been advised as described in (2) above.
  5. The employee is caring for a child if the school or place of care has been closed or the child care provider of such child is unavailable due to COVID-19 precautions.
  6. The employee is experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and the Secretary of Labor.

Continue Reading Families First Coronavirus Response Act

On October 23, 2019, the Department of Labor (DOL) published a proposed rule that, if finalized in its current form, would make it easier for retirement plan administrators to use electronic media to furnish information to participants and beneficiaries. The proposed rule would create a new, optional safe harbor that permits plan administrators to furnish required disclosures through electronic delivery to participants and beneficiaries with valid email addresses or smartphone numbers, unless the participant or beneficiary affirmatively opts out of electronic delivery.

The proposed rule was developed in response to Executive Order 13847, issued by the White House in August 2018, which instructed the DOL to review whether actions could be taken to improve the effectiveness of retirement plan disclosures required under the Employee Retirement Income Security Act of 1974 (ERISA) and reduce costs to employers. Note that employers may not rely on the proposed rule until it is published in final form.Continue Reading DOL Proposed Rule on Electronic Disclosures Could Help Alleviate Costs and Burdens on Employers and ERISA Plan Administrators

We recognize that many of our readers sponsor ERISA welfare benefit plans and are currently undergoing their open enrollment process and issuing related participant communications. To assist with that process, we have prepared an Automatic Participant Disclosures Checklist for use during open enrollment and throughout the plan year.

If you have questions regarding the information…

In an article published by the Nashville Business Journal, Bass, Berry & Sims attorney Doug Dahl discussed student loan repayment benefits offered by employers and the IRS’s ruling last year regarding this issue.Student loan debt in the United States is escalating, and employers are finding it harder to fill open positions. In an effort to tackle both of these issues, more employers have been offering student loan repayment opportunities as part of the benefits packages they offer employees. In an article published by the Nashville Business Journal, I discussed student loan repayment benefits offered by employers and the IRS’s ruling last year regarding this issue.

For example, employers can offer student loan debt management programs that offer counseling services and access to student loan marketplaces or more favorable finance terms. In May 2018, the IRS issued a ruling allowing an employer to make contributions to its 401(k) plan on behalf of employees who make payments toward their student loan.Continue Reading Student Loan Repayment Benefits Offered by Employers

Last Filing for Calendar Year Plans!

The annual filing (and fee payment) for applicable self-insured health plans and specified health insurance policies used to fund the Patient-Centered Outcomes Research Institute (the PCORI fee) is due by Wednesday, July 31, 2019. For calendar year plans and policies, this will be the last required PCORI filing and fee payment. For plan and policy years ending after December 31, 2018 and before October 1, 2019, one more filing and fee payment will be required (due July 31, 2020).

Internal Revenue Service (IRS) Form 720, Quarterly Federal Excise Tax Return, is still used to report and pay (in Part II, IRS No. 133) the annual PCORI fee. The filing rules have not changed, although the applicable rate has increased to $2.45 per covered life (announced via IRS Notice 2018-85).Continue Reading Reminder – Annual Deadline (July 31) to Report and Pay PCORI Fee is Approaching

On November 29, we participated in a webinar sponsored by Bright Horizons about employer-sponsored student loan repayment benefits. In order to help employees faced with mounting student debt, employers are offering creative solutions that help attract and retain workers. Earlier this year, healthcare company Abbott announced a program in which the company will contribute 5%…

As the end of the calendar year approaches, sponsors of qualified retirement plans should consider whether their plan documents require updates to comply with important legal changes and deadlines. Below is a summary of some key legal developments that may impact your plan:
Continue Reading Qualified Retirement Plans: Recent Updates and Action Items

In an article published by Managed Healthcare Executive, I discussed the potential impact of a recently proposed regulation from the U.S. Departments of the Treasury, Health and Human Services and Labor that expands the usability of health reimbursement arrangements (HRA). The new rule as proposed would apply for most health plans beginning January 1, 2020, and would be particularly beneficial to employees of small employers who are not required to offer health plan coverage to their full-time employees under the ACA.
Continue Reading Looser Restrictions on HRAs on the Horizon

In a Law360 article, I provided insight on the Department of Labor’s (DOL) proposed regulations on retirement plans that would make it easier for companies to join existing retirement plans or join forces to generate new ones – which has the potential to broaden the availability of workplace retirement plans to allowing small businesses. Under the proposed regulations, “a group of unrelated employers could now have a single ERISA plan,” I explained.
Continue Reading DOL Proposes Easing Retirement Plan Regulations

We recognize that many of our clients sponsor ERISA welfare benefit plans and are currently undergoing their open enrollment process and issuing related participant communications. To assist our clients with that process, we have prepared an Automatic Participant Disclosures Checklist for use during open enrollment and throughout the plan year.

If you have questions regarding…

From the Bass, Berry & Sims Blog Network
From the Bass, Berry & Sims Blog Network

Thought Leadership by our Attorneys.