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December 11, 2015

In This Edition:
OVERVIEW OF 2015
QUICK REVIEW OF NEW
FEDERAL LAWS
DOL ASSISTS STATES
ESTABLISHING SAVINGS
PROGRAMS
PROPOSED CHANGES TO
ERISAS DISABILITY CLAIMS
AND APPEAL PROCESS
MORE IRS GUIDANCE ON
APPLICATION OF SAME-SEX
MARRIAGE TO BENEFIT PLANS
2016 BENEFIT PLAN LIMITS
AND COST OF LIVING
ADJUSTMENTS
YEAR-END REMINDERS
ANNUAL NOTICE REMINDERS

Looking back over 2015, there werent many new laws


enacted impacting employee benefits, though, there
were a few including:

Surface Transportation and Veterans Health Care


Choice Improvement Act of 2015 (Public Law 11441; enacted July 31, 2015). This law provides that
veterans receiving coverage from TRICARE or the
Veterans Administration are not counted in
determining applicable large employer status under
the Affordable Care
Acts
employer shared
responsibility provision.
This provision applies
retroactively for months beginning January 1, 2014.
In addition, beginning January 1, 2016, veterans
receiving hospital care or medical services for
service-connected disability can participate and
contribute to health savings account (HSA).
Protecting Affordable Coverage for Employees Act
(PACE)(Public Law 114-60; enacted October 7,
2015).
This law allows a state to define small
employer for purposes of health insurance as an
employer employing between 1 and 50 employees.
This definition applies to all insurers, including those
in SHOPs (Small Business Health Options Programs).
Prior to enactment of PACE, a small employer would
have been defined as one employing between 1 and
100 employees, beginning January 1, 2016.
Bipartisan Budget Act of 2015 (Public Law 114-74;
enacted November 2, 2015). This law repeals the
Affordable Care Acts automatic enrollment provision.
This provision would have required employers
employing 200 or more employees to automatically
enroll new full-time equivalents into qualifying health
plans offered by the employer, plus automatically
continue enrollment of current employees.
page 1

continued from page 1

It was, nevertheless, a frenetic year for


HR and employee benefit departments
due in large part to regulatory activity. As
we sit on the precipice of 2016, it appears
that the same will be true next year.
In the welfare benefit plan arena, the
Equal
Employment
Opportunity
Commission issued two sets of proposed
regulations impacting wellness programs
this year one relating to compliance with
the Americans with Disabilities Act,
and the second set relating to compliance
with
the
Genetic
Information
Nondiscrimination Act. It is probable
that both sets of regulations will be
finalized sometime in 2016.
There was a plethora of guidance issued
this year relating to the Affordable Care
Act. For a recap of these matters, please
refer to the CBIZ Health Reform
Bulletins.
In the retirement plan arena, President
Obama, in his 2014 State of the Union
address,
expressed
an
interest
in
encouraging personal savings and directed
the Treasury Department to develop a
new Roth IRA-type plan option for
employers of any size who do not
currently offer a retirement plan. In this
myRA program, an employer would set
up a payroll direct deposit process for
employees to make contributions to their
myRA accounts if they choose to
participate. Also see the article, Updates
to myRA Program, below.
Coincidentally,
several
states
have
initiated efforts to provide opportunities
for individuals to engage in personal
savings. One of the questions that have
arisen is how to reconcile these state
efforts with ERISA.
As background, a
federal law, the Employee Retirement
Income Security Act (ERISA), was enacted
in 1974. The general premise is that
ERISA preempts state laws; thus, states
cannot mandate employers do anything as
it relates to employee benefits.
December 11, 2015

The Department of Labor (DOL), through


its enforcement arm, the Employee
Benefits Security Administration (EBSA) is
giving its effort to address the matter (see
the article, DOL Assists States Establishing
Savings Programs, below). Whether and
how these programs would work in
practice remains to be seen.
In addition, over the last several years,
EBSA has been looking at the evolution of
fiduciary responsibility particularly as it
relates to investment advice.
As
background, under ERISA, any person,
including an individual, partnership, joint
venture, corporation, or the like, would be
deemed a plan fiduciary with respect to an
employee benefit plan to the extent that
the person:
Exercises any discretionary authority
or control over plan management, or
exercises any authority or control
(whether or not it is discretionary)
over management or disposition of
plan assets;
Renders investment advice for a fee or
other compensation, direct or indirect,
for any plan money or other plan
property; or
Has any discretionary authority or
responsibility for plan administration.
The DOL first proposed regulations in
2010 governing investment advice by plan
fiduciaries.
These regulations were
subsequently withdrawn and then reproposed in April, 2015. The comment
period for the re-proposed regulations
closed on September 24, 2015. However,
an effort is afoot in Congress to again
extend the comment period on these
regulations,
potentially
delaying
the
issuance of them until after the November
2016 Presidential election. Stay tuned for
further developments on this front.
Following are summaries of a few
proposals that bear monitoring, as well as
some year-end reminders for plan
sponsors.

page 2

DOL ASSISTS STATES ESTABLISHING


SAVINGS PROGRAMS

Due to growing estimates that millions of


U.S. employees do not have access to
employer-based
retirement
savings,
several states have begun enacting laws
to assist them in establishing retirement
savings vehicles.
To date, California,
Illinois and Oregon have enacted laws that
require private sector employers to offer,
or at least facilitate, retirement plans for
their workforce (see Are Employers
Required to Offer Retirement Plans? from
the Benefit Beat, January, 2015).
Specifically, these states have initiated
their programs as a payroll deduction
process to fund tax-favored individual
retirement plans. These programs include
an automatic enrollment feature wherein
the employer would continue to facilitate
payroll deduction amounts on behalf of
the employee unless the individual
affirmatively opts out of participation.
Several other states continue to explore
the possibility of requiring private sector
employers to implement similar saving
programs.
To this end, the DOLs Employee Benefits
Security Administration released guidance
in the form of proposed rules and an
Interpretive Bulletin to assist states in
establishing these types of programs
without the programs becoming subject to
ERISA scrutiny.
The proposed rules provide a safe harbor
standard to assist in determining the
extent and involvement of employers in
these types of arrangements.
In a
nutshell, as long as the employers
involvement
is
limited
to
payroll
functioning of withholding and forwarding
of the deductions to the savings vehicle,
and maintains limited or ministerial
functions, then the program would not be
deemed to be employer-sponsored for
ERISA purposes.

December 11, 2015

In addition, the DOL has sanctioned three


concepts
to
assist
employers
in
establishing ERISA retirement plans for
their employees. They are:
1. State-established marketplace wherein
private sector employers could select
an ERISA plan or non-ERISA plan in
which to participate;
2. State-based prototype plans wherein
the
employer
would
sponsor
a
prototype ERISA plan that would be
administered and managed by the
state or other designated third party;
or
3. Employers could participate in a stateestablished multiple employer plans
(MEP) rather than establishing their
own separate plan. Such MEP would
be administered by the state or other
designated third party.
UPDATES TO MYRA PROGRAM
On the federal front, the Treasury
Department has added new features to
the myRA program. The myRA program
offers a way for employers to set up a
payroll
direct
deposit
process
for
employees to contribute to their myRA
account
(see
Benefit
Beat
article
referenced above for a summary of the
myRA program). Following its successful
pilot timeframe, there are three new ways
for employees to fund their myRA
accounts.
They can fund the account
directly from their paycheck, from their
own checking or savings account, or direct
all or part of their federal tax refund to
the account when filing taxes.
More
information
about
the
myRa
program, including program materials that
could be shared with employees is
available on the Treasury Departments
webpage: http://myra.gov/employers.

page 3

PROPOSED CHANGES TO ERISAS


DISABILITY CLAIMS AND APPEAL
PROCESS

Plans subject to ERISA, both welfare and


retirement, must comply with rules
relating to claims for benefits and appeals
of such claims. The Affordable Care Act
(ACA) expanded these rules as it relates
to health plans.
On November 18, 2015, the DOLs
Employee Benefits Security Administration
released proposed rules that are
intended to strengthen the existing ERISA
rules, as well as align the current
procedural protections and safeguards
with the ACAs claims, appeals and
external review procedures.
Following are highlights of the proposed
rules (also see the related FAQs):
Independence
and
impartiality:
avoiding conflicts of interest. Claims
and appeals must be adjudicated in
manner
designed
to
ensure
independence and impartiality of the
individuals involved in making the
decision.
Improvements to basic disclosure
requirements. Benefit denial notices
must contain a full discussion of why
the plan denied the claim and the
standards behind the decision.
Right to review and respond to new
information before final decision.
Claimants would have access to their
entire claim file and would be allowed
to present evidence and testimony
during the review process.
In
addition, claimants must be notified of
and have an opportunity to respond to
any new evidence, reasonably in
advance of an appeal decision. Any
final denial at the appeals stage
cannot be based on new or additional
rationales unless the claimant is given
notice and a fair opportunity to
respond.

December 11, 2015

Deemed exhaustion of claims and


appeals processes.
If plans fail to
adhere to all claims processing rules,
then the claimant would be deemed to
have exhausted the administrative
remedies available under the plan,
unless the violation was the result of a
minor error and other conditions are
met.
Coverage rescissions: adverse benefit
determinations. Certain rescissions of
coverage must be treated as adverse
benefit
determinations,
thereby
triggering
the
plan's
appeals
procedures.
Notices must be written in a culturally
and linguistically appropriate manner.
This means that individuals residing in
a particular county where 10% or
more of its population are literate in a
non-English
language
must
be
provided relevant communications in
the appropriate non-English language.
In addition, the plan would be required
to provide a customer assistance
process, such as a telephone hotline,
with oral language services available in
the non-English language.

The comment period on these proposals


closes on January 19, 2016. At this point,
these rules are only proposed and there is
no need to comply with the proposed
changes; however, it is worth monitoring
them in the event they become applicable.

MORE IRS GUIDANCE ON APPLICATION


OF SAME-SEX MARRIAGE TO BENEFIT
PLANS

In its on-going effort to provide guidance


on the treatment of spouses under
employee benefit plans, the IRS issued
Notice 2015-86 on December 9, 2015.
As result of the Supreme Courts decisions
in United States v Windsor and Obergefell
v. Hodges, all legal marriages are treated
the same. Generally, for federal purposes,
including federal tax purposes, this has
been true since the Windsor decision on
June 26, 2013. There have been some
lingering questions, though, and this
guidance attempts to address them.
page 4

In a nutshell, an employers retirement


plan will retain qualified status even if it is
amended to recognize a same-sex spouse
as a spouse prior to June 26, 2013.
Further, a retirement plan can provide an
opportunity to an individual whose marital
status is recognized as a result of these
Court decisions, an opportunity for
enhanced benefits. For example, if the
individual was receiving a single annuity,
the plan can allow the individual to switch
to a joint and survivor annuity available to
spouses.
With regard to welfare benefit plans,
generally, these types of plans do not
define spouse. The guidance provides
that an IRC Section 125 cafeteria plan can
allow a mid-year status change due to
recognition of a marriage. If a Section
125 plan is amended to recognize samesex marriage, and particularly one that
was already in existence, a status change
event could be allowed as a result of a
benefit enhancement. It is common for a
cafeteria plan to include, as a status
change event, a change in coverage.
Before allowing this type of change,
however, an employer should review its
cafeteria plan, with particular emphasis on
status change events, to ensure proper
coordination of plan language. Generally,
it would be addressed under the title of
change in cost or coverage, or similar
title. If the plan does not include this type
of language, it could certainly be amended
to allow it.

2016 BENEFIT PLAN LIMITS

In Revenue Procedure 2015-53, the


IRS released 2016 inflationary or cost of
living adjustments relating to several
types of benefits, as follows.
FLEXIBLE SPENDING ACCOUNT PLAN CAP
The amount that can be contributed to a
health flexible spending account (FSA)
plan through voluntary salary reductions
in 2016 is unchanged from 2015 and
remains at $2,550.
December 11, 2015

SMALL BUSINESS TAX CREDIT (SBTC)


Small
businesses
and
tax-exempt
employers who provide health care
coverage to their employees under a
qualified health care arrangement are
entitled to a tax credit, as established by
the Affordable Care Act.
To be eligible for the small business tax
credit, the employer must employ fewer
than 25 full-time equivalent employees
whose average annual wages are less
than $50,800 (indexed for 2015). The tax
credit phases out for eligible small
employers when the number of its fulltime employees (FTEs) exceeds 10; or,
when the average annual wages for the
FTEs exceeds $25,900 in the 2016 tax
year (the phase-out wage limit for 2015
was $25,800).
As a reminder, only qualified health plan
coverage purchased through a SHOP
marketplace is available for the tax credit,
and only for a 2-consecutive year period.
QUALIFIED TRANSPORTATION FRINGE
BENEFITS
With regard to transportation expenses
reimbursed
by
an
employer
and
excludable from the employees income
under a qualified transportation program,
there is a slight increase in the amount for
qualified parking in 2016:

COMMUTER HIGHWAY VEHICLE


(VAN POOLING) AND
ANY TRANSIT PASS
QUALIFIED PARKING

2015

2016

$130

$130

$250

$255

As a reminder, employees who use their


bicycles for traveling between home and
their place of employment are entitled to
receive a reimbursement of up to $20 per
month ($240 annually) for qualified
bicycle expenses. This limit is not indexed
nor tied to a cost of living adjustment.

page 5

QUALIFIED ADOPTION ASSISTANCE


REIMBURSEMENT PROGRAM (IRC 137)
An
employer-provided
adoption
assistance program that meets the
qualifications
of
IRC
137,
allows
participants to recover expenses relating
to adoption, such as reasonable adoption
fees, court costs, attorneys fees and
traveling expenses.
Below are the
exclusion limits and adjusted gross
income (AGI) phase-out limits for 2015
and 2016:

EXCLUSION
LIMIT
AGI PHASEOUT LIMITS

2015

2016

$13,400

$13,460

BETWEEN
$201,010 AND
$241,040

BETWEEN
$201,920 AND
$241,920

HEALTH SAVINGS ACCOUNTS


Please note that the 2016 annual limits
applicable to health savings accounts were
released earlier this year (see Health
Savings Accounts 2016 Cost of Living
Adjustments, Benefit Beat, 5/12/15).
ARCHER MEDICAL SAVINGS ACCOUNTS
The Archer MSA pilot project ended on
December 31, 2007; therefore, no new
MSAs could be established after that date.
For existing MSAs, the annual deductible
limits of a high deductible health plan
used in conjunction with an Archer
medical savings account for 2016 are
slightly increased:
2016
HDHP ANNUAL
DEDUCTIBLE

SINGLE
BETWEEN
$2,250 AND
$3,350

FAMILY
BETWEEN
$4,450 AND
$6,700

$4,450

$8,150

OUT-OF-POCKET
EXPENSES

December 11, 2015

LONG-TERM CARE PREMIUMS


The IRS limitations relating to eligible
long-term care premiums includible as
medical care, as defined by IRC 213(d)
are:
AGE AT END
OF TAX YEAR
<40

2016 PREMIUM
LIMIT
$390

>40 BUT <50

$730

>50 BUT <60

$1,460

>60 BUT <70

$3,900

>70

$4,870

PREMIUM TAX CREDIT FOR COVERAGE UNDER


A QUALIFIED HEALTH PLAN
Individuals who buy coverage through the
marketplace and meet certain income
criteria may be eligible for an advance
credit payment wherein a portion of the
premium is made directly to the insurer to
cover the cost of coverage. The amount
of an individuals premium tax credit is
reduced by the amount of any advance
credit payments made during the year. If
the advance credit payment for a taxable
year exceeds the premium tax credit limit,
the individual would owe the excess as
additional
tax,
subject
to
certain
inflationary limits.
For tax years
beginning in 2016, the limitation on tax
imposed for excess advance credit
payments is determined using the
following table:
HOUSEHOLD
INCOME
(AS PERCENT
OF POVERTY
LINE)

UNDER 200%
BETWEEN
200% AND
300%
BETWEEN
300% AND
400%

LIMITATION
AMOUNT FOR
UNMARRIED
INDIVIDUALS
(OTHER THAN
SURVIVING SPOUSE
AND HEAD OF
HOUSEHOLD)

LIMITATION
AMOUNT FOR ALL
OTHER
TAXPAYERS

$300
$750

$600
$1,500

$1,275

$2,550

page 6

2016 PENSION AND RETIREMENT PLAN


LIMITS

The 2016 plan limits, applicable to defined


benefit and defined contribution plans,
have been issued by the IRS (highlights
below).
Note, however, these pension
limits, as well as the Social Security wage
base, will remain unchanged in 2016 due
to a flat cost of living index.

DEFINED BENEFIT PLAN ANNUAL

2015

2016

$210,000

$210,000

$53,000

$53,000

$18,000

$18,000

$18,000

$18,000

$6,000

$6,000

$12,500

$12,500

$3,000

$3,000

$600

$600

$120,000

$120,000

LIMIT

DEFINED CONTRIBUTION PLAN


ANNUAL LIMIT

ELECTIVE DEFERRAL LIMIT FOR


PURPOSES OF CASH OR DEFERRED
ARRANGEMENTS (401(K) PLANS)
AND TAX-SHELTERED ANNUITIES
(403(B) PLANS)
MAXIMUM DEFERRAL LIMIT FOR
457 PLANS
>AGE 50 CATCH-UP
CONTRIBUTION LIMIT TO
401(K), 403(B) OR 457(B)
PLANS
MAXIMUM DEFERRAL LIMIT FOR
SIMPLE PLANS
>AGE 50 CATCH-UP
CONTRIBUTION LIMIT TO
SIMPLE PLANS
MINIMUM COMPENSATION

The Medicare tax is generally assessed on


all wages. The combined tax rate remains
at 7.65% - the Social Security portion is
6.2% on wages up to the applicable
maximum taxable amount; the Medicare
portion is 1.45% on all wages. Additional
adjustments are included in the SSAs
Fact Sheet: 2016 Social Security Costof-Living Adjustments.

2016 MEDICARE PREMIUMS AND


DEDUCTIBLES

The Centers for Medicare & Medicaid


Services released the 2016 premiums and
deductibles for the Medicare Part A and
Part B programs.

CONSIDERED IN DETERMINING
ELIGIBILITY FOR A SEP

THRESHOLD FOR HIGHLY


COMPENSATED EMPLOYEE (HCE)
KEY EMPLOYEE COMPENSATION
LIMIT FOR TOP HEAVY PLAN
PURPOSES
ANNUAL COMPENSATION LIMIT

$170,000

$170,000

$265,000

$265,000

Sources:

IRS News Release

IRS COLA Table ( 2014-2016 limits)

2016 SOCIAL SECURITY COST-OFLIVING ADJUSTMENT

The Social Security Administration (SSA)


announced that there will be no cost of
living adjustments for 2016. Thus, the
Social Security wage base in 2016 will
remain unchanged from the 2015 wage
level of $118,500.
December 11, 2015

Medicare Part A Premium and


Deductible
Generally, there is no monthly Part A
premium for those with 40+ quarters
of Medicare-covered
employment.
Individuals who buy Part A will pay up
to $411 each month in 2016.
Part A deductibles in 2016 will be
$1,288 for first 60 days of inpatient
care; an additional $322 co-insurance
per day for days 61 through 90, and
additional $644 per day beyond the
90th day.
Medicare Part B Premium and
Deductible
The annual deductible for Part B
beneficiaries will increase from $147 to
$166 in 2016.
With regard to Part B premium,
because there was no Social Security
cost of living increase for 2016, the
monthly premium for most individuals
with Medicare Part B will remain the
same as last year ($104.90). The
amount of monthly premium is
adjusted based on income see chart
below:

page 7

Beneficiaries
who file an
individual tax
return with
income:
$85,000
>$85,000
and
$107,000
> $107,000
and
$160,000
> $160,000
and
$214,000
> $214,000

Beneficiaries
who file a
joint tax
return with
income:
$170,000
> $170,000
and
$214,000
> $214,000
and
$320,000
> $320,000
and
$428,000
> $428,000

Incomerelated
Total
monthly
monthly
adjustment premium
amount
amount
$0.00
$121.80
48.70

170.50

121.80

243.60

194.90
268.00

316.70
389.80

Part B premiums for individuals who are


married, live with their spouse at any time
during the taxable year, and file a
separate return are:
Beneficiaries who are
married and lived with
their spouse at any time
during the year, but file a
separate tax return from
their spouse:
$85,000
> $85,000 and
$129,000
> $129,000

Incomerelated
monthly
adjustment
amount
$0.00

Total
monthly
premium
amount
$121.80

194.90
268.00

316.70
389.80

Medicare Parts C and D monthly premiums


vary by plan.
Additional information about Medicare
premium and deductibles is available from
Medicares 2015 & 2016 Costs at a
Glance and CMS press release.

YEAR-END REMINDERS
COBRA
If you employed 20 or more employees on
at least 50 percent of the business days in
2015, and if you sponsor a group health
plan, COBRA will be applicable to the plan
in 2016, unless another exception applies.

December 11, 2015

ACAS EMPLOYER SHARED RESPONSIBILITY:


REQUIRED REPORTING AND DISCLOSURE
The Affordable Care Act (ACA) imposes
two new Internal Revenue Code sections.
One requires reporting of minimum
essential coverage (MEC); the other
requires
employers
subject
to
the
employer shared responsibility provisions
to report on offers of coverage.
This
reporting is required beginning January 1,
2015, with the first reports due in 2016.
The forms for both of these reporting
requirements
are
the
Form
1094
transmittal and Form 1095 benefit
statement. IRC Section 6055 reporting is
accomplished on the B series of the form;
the
employer
shared
responsibility
reporting is accomplished on the C series.
A self-funded employer subject to shared
responsibility can satisfy both its IRC
Sections 6055 and 6056 reporting
obligations by completing all parts of the
Form 1095-C.
Deadlines for Filing and Distributing
Forms 1094 and 1095
File Forms 1094 and 1095 with
IRS no later than February 28th of
each year (by March 31st of each year
if filed electronically). Note, the due
date for 2015 forms is February 29,
2016 (or March 31, 2016, if filing
electronically)
Furnish Form 1095 to Individuals
Individuals listed in relevant Forms
1094 and 1095 must be furnished
copy of the relevant Form 1095
annually by January 31st of each year
(or, by next business day if January
31st falls on Saturday or Sunday).
FORM W-2 REMINDERS
Aggregate Cost of Health Coverage
Pursuant to the Affordable Care Act,
the Form W-2 must include the
aggregate cost of health coverage.
For details about this mandatory
reporting, see these CBIZ Health
Reform Bulletins, Reminder: Fast
Approaching Form W-2 Reporting
Requirement
and Additional IRS
page 8

Guidance
on
W-2
Reporting
Requirement. The aggregate cost
information is to be reported in Box
12, using Code DD. As a reminder,
employers exempt from electronic W-2
filing requirement, i.e., file fewer than
250 Form W-2s per year, remain
exempt from reporting the aggregate
cost of health coverage on the Form
W-2 until future IRS guidance is
issued.
Health Savings Accounts. Employer
contributions
(including
amounts
employees elect to contribute via an
IRC 125 cafeteria plan) to an HSA are
reported in Box 12 - Code W.
Any employee
Disability Income.
receiving sick pay benefits from a third
party payer, such as an insurance
company, must be provided a Form W2 reflecting these amounts.
The
employer is responsible for providing
the Form W-2 if the third party payer
has notified the employer accordingly.
The third party payer will provide the
employer with the relevant information
to be included on the Form W-2. This
information must be given to the
employee by January 31, 2016, for
benefits paid in 2015.
Dependent
Care
Assistance
Programs.
Amounts
reimbursed
through a dependent care assistance
program and amounts in excess of the
maximum $5,000 exclusion must be
reported in Box 10 of the Form W-2.
Amounts over the $5,000 exclusion
amounts must be included in Boxes 1,
3 and 5.
Group Term Life Insurance. The
cost of group term life insurance over
$50,000 (Table I rates only, as below)
is reported in Boxes 1, 3 and 5. Also,
show the amount in Box 12 - Code C.

December 11, 2015

TABLE I UNIFORM PREMIUMS FOR $1,000 OF


GROUP TERM LIFE INSURANCE PROTECTION
5-year
Age Bracket
Under 25

Cost per $1,000 of


Protection for one
Month
$0.05

25 to 29
30 to 34
35 to 39
40 to 44
45 to 49
50 to 54
55 to 59
60 to 64
65 to 69
70 and above

.06
.08
.09
.10
.15
.23
.43
.66
1.27
2.06

Additional
Medicare
Tax
Withholding on High Earners. The
Affordable Care Act imposes a 0.9%
increase in the individuals Medicare
tax rate, applicable on earnings in
excess of $200,000 in a calendar year.
On the Form W-2, the employer would
enter the total employee Medicare tax
(including any Additional Medicare
Tax) withheld on Medicare wages and
tips
in
Box
6
(Medicare
tax
withheld).
The employer is also
required to report any individuals
wages
paid
during the
quarter
exceeding the $200,000 withholding
threshold for the year, as well as the
withholding liability for Additional
Medicare Tax on those wages on the
Form 941 series.
FORM M-1 FOR MEWAS
If you sponsored a multiple employer
welfare arrangement (MEWA) in 2015,
make certain that you file the Form M-1
annual report by March 1, 2016. As a
reminder, all welfare benefit plans
required to file a Form M-1 are required to
file the Form 5500 regardless of the plan
size or type of funding. The Form M-1 can
only be submitted electronically through
the
DOLs
Online
Filing
System
(http://www.askebsa.dol.gov/mewa/).

page 9

MEDICARE PART D DISCLOSURE


NOTICE TO CMS
The annual report, Creditable Coverage
Disclosure Form, must be submitted to
CMS describing whether the prescription
drug coverage is creditable or not
creditable.
This
filing
must
be
accomplished electronically, and is due
within 60 days of the commencement of
the plan year. For details about this
notice,
see
CMS
guidance
and
instructions.

ANNUAL NOTICE REMINDERS


Following are certain plan sponsor
notification obligations that must be
provided on an annual basis to plan
participants.
Summary Annual Report
Plans subject to Form 5500 reporting
are required to provide a Summary
Annual Report with specific information
derived from Form 5500. The SAR is
required to be provided to plan
participants within 9 months after
close of plan year.
Annual
Womens
Health
and
Cancer Rights Act (WHCRA) Notice
This notice describes plan coverage of
mastectomy, reconstructive surgery,
prosthesis and treatment for physical
complications. It can be provided as a
separate
written
notification,
or
included in a plans annual enrollment
materials.
Medicaid/CHIP Premium
Assistance Notice
This notice describes availability of
premium assistance from Medicaid or
CHIP
toward
employer-sponsored
coverage. It must be provided to all
employees who reside in states
offering premium assistance.
The
notice can be distributed as a separate
written document, or included in a
plans annual enrollment materials.

December 11, 2015

Medicare Part D - Creditable


Coverage Disclosure Notice
This notice must be provided prior to
Medicares annual enrollment period
(October 15th through Dec 7th). The
notice must be provided to all
Medicare-eligible individuals, including
employees, former employees, and
Medicare-eligible dependents, who are
covered by the plan, or who become
eligible to enroll in the plan.
401(K) PLAN NOTICES
Participants in 401(k) plans must be
furnished certain information relating
to the plan, including annual and
quarterly
fee
disclosures.
A
comparative investment chart must be
included with the annual participant
disclosure.
In addition, 401(k) plans are obligated
to provide an annual notice of
automatic enrollment and qualified
default investment alternative (QDIA)
notice, if applicable to the plan.

ABOUT THE AUTHOR: Karen R. McLeese is Vice


President of Employee Benefit Regulatory Affairs
for CBIZ Benefits & Insurance Services, Inc., a
division of CBIZ, Inc. She serves as in-house
counsel, with particular emphasis on monitoring
and interpreting state and federal employee
benefits law. Ms. McLeese is based in the CBIZ
Kansas City office.
The information contained in this At Issue is not
intended to be legal, accounting, or other
professional advice, nor are these comments
directed to specific situations. This information is
provided as general guidance and may be affected
by changes in law or regulation. This information is
not intended to replace or substitute for accounting
or other professional advice. You must consult your
own attorney or tax advisor for assistance in specific
situations. This information is provided as-is, with no
warranties of any kind. CBIZ shall not be liable for
any damages whatsoever in connection with its use
and assumes no obligation to inform the reader of
any changes in laws or other factors that could affect
the information contained herein.

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