Compliance Corner

February 27, 2024

State and Territory Updates

Massachusetts
Washington


ANNOUNCEMENTS

March Get Wise Wednesdays – Register Now

Topic: Kick-Starting Spring with a Compliance Refresher on HSAs

HSAs are useful but sometimes confusing. This employee benefit tool comes with a myriad of compliance rules. In this webinar, we will clarify eligibility rules, discuss the mechanics of HSA contributions, and learn to identify and remedy some common issues associated with HSAs.

Note: The speakers will answer as many questions as possible during the webinar. If your question isn’t answered, reach out to your advisor for further assistance. 

Date/Time: March 20, 2024
3:00 to 4:00 p.m. ET

Register Now

This program is pending approval for 1.0 (general) recertification credit hours toward PHR, SPHR and GPHR recertification through the HR Certification Institute. For more information about certification or recertification, visit the HR Certification Institute website at hrci.org.

Note: Those listening to a recorded webinar will not be eligible for credit.


Reminder: CMS Medicare Part D Disclosure Due by March 1, 2024

All fully insured and self-insured plans (including level-funded plans) of all sizes, including church and governmental plans, must annually disclose to CMS whether their plan’s prescription drug coverage is creditable. Generally, “creditable coverage” refers to prescription drug coverage that is expected to pay (based on the actuarial value) on average at least as much as Medicare Part D coverage.

The disclosure must be made to CMS within 60 days of the start of the policy or contract year. Accordingly, for calendar year prescription drug policies, the Medicare Part D disclosure is due to CMS by March 1, 2024. 

For additional information about the disclosure to CMS, please ask your consultant for a copy of NFP’s Medicare Part D Disclosures: A Guide for Employers. The publication includes links to the CMS website and instructions for accessing the disclosure form.


Reminder: Upcoming ACA Form 1094/1095 Reporting Deadlines

Applicable large employers (ALEs) (employers with 50 or more full-time employees (FTEs), including full-time equivalent employees in the prior year) must comply with IRC Section 6056 reporting in early 2024. Specifically, ALEs must complete and distribute Form 1095-C to full-time employees by March 1, 2024. The form should include details regarding whether the employee was offered minimum value, affordable coverage during 2023.

The forms may be mailed, electronically delivered, or delivered by hand (although proof of delivery in some manner is recommended). Remember that there is a special rule for electronic delivery of Form 1095-C: the employee must affirmatively consent to delivery of the form. Consent to receive Form 1095-C in electronic format must be given in a manner that reasonably demonstrates that the recipient is able to access the statement in the electronic format in which it will be furnished. Alternatively, consent may be given in a paper document that is confirmed electronically.

Employers who sponsored a self-insured plan during 2023 must comply with Section 6055 reporting in 2024. Self-insured ALEs must complete Section III of Form 1095-C detailing which months the employee (and any applicable spouse and dependents) had coverage under the employer's plan. If the self-insured employer has fewer than 50 FTEs, it must complete and distribute a Form 1095-B with such information. Again, the forms must be delivered to employees by March 1, 2024.

An alternative method for distributing Form 1095-B is available to self-insured employers with fewer than 50 FTEs. These employers are permitted to post a clear and conspicuous notice on their website of the document's availability and the necessary contact information to request it. Any such request must be fulfilled within 30 days. This alternative is not available for Form 1095-C. Employers must also file these forms with the IRS by February 28, 2024, if filing by paper, and April 1, 2024, if filing electronically. The filing must include the transmittal Form 1094-C (if filing Forms 1095-C) or Form 1094-B (if filing Forms 1095-B). Importantly, beginning this year, employers that file 10 or more returns of any type (e.g., counting Forms 1095, W-2, and 1099 together) to the IRS in a calendar year must do so electronically absent a hardship waiver. Please see our article for more information on this change.

Additionally, employers with employees located in states with individual mandates may also have to comply with state reporting requirements and should be aware of the applicable deadlines. For more information on ACA and/or state reporting requirements, please ask your broker or consultant for a copy of the following NFP publications ACA: Employer Mandate Reporting Requirements and State Individual Mandate Reporting Requirements.

2023 Form 1094-C »
2023 Form 1095-C »
2023 Form 1094-B »
2023 Form 1095-B »
2023 Instructions for Forms 1094-C and 1095-C »
2023 Instructions for Forms 1094-B and 1095-B »