Updates • Individuals will no longer be charged a penalty for not having ACA-compliant health coverage starting with the 2019 tax return (individual mandate repealed) • Employer mandate has not changed • If you are using the safe harbor amounts for what an employee would have to pay per month for self- only coverage, the amount is $99.75 per month (2019)
Updates • Penalty notices is triggered if one of your employees obtains a premium tax credit and health insurance from the exchange • IRS matches 1094-C and 1095-C forms • Letter 226J being sent for 2015, 2016, 2017 – $1,750,000 in penalties abated
Form 1094-C
Form 1094-C
ACA Update – Most Important Items • Are you required to file 1094 / 1095 forms? • Make sure Form 1094-C, Page 2, Part III checkboxes are marked correctly
Retirement Plans
Hardship Withdrawal Changes The Bipartisan Budget Act of 2018: • Eliminated the six-month suspension of salary deferral after receipt of a hardship withdrawal • Amended Internal Revenue Code to allow participants to take a hardship withdrawal without having to first take all available plan loans
401(k)/403(b) Deferrals 20,000 19,500 19,000 18,500 18,000 17,500 17,000 2016 2017 2018 2019 2020
401(k)/403(b) Catch-Up Catch-up contribution limit for employees age 50 and older increases to $6,500 for 2020
Cafeteria Plans
FSA Limit Limit for healthcare flexible spending account increases to $2,750 for 2020
Family and Medical Leave Act ( FMLA )
FMLA Requirements • Employers with 50 or more employees • Employees are exempt at locations with less than 50 employees within 75 miles • Public agencies, including state and local governments, and public and private schools – regardless of the number of employees
Employees must have: Worked 12 months prior to the commencement of leave and Worked at least 1,250 hours in the previous 12 months
FMLA Requirements Up to 12 weeks of unpaid leave in any 12-month period
FMLA Requirements
Service Member Family Leave Up to 12 weeks of leave during any rolling 12 month period
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