You've received a letter from the Department of Labor (DOL), now what? If it is a request for documents it likely means you are at the beginning of a DOL civil investigation often referred to as an “audit”.  The DOL has increased its audit activity significantly this past year, meaning this letter could be on its way to your desk soon. 

Are you a small employer with less than 50 employees? If yes, this is for you.

While most of the tax provisions of the Affordable Care Act (ACA) are geared toward what are defined as "applicable large employers," there are some ACA tax provisions that apply only to employers with fewer than 50 full-time or full-time equivalent (FTE) employees. Generally, under the ACA a "small employer" is any employer with fewer than 50 full-time or FTE employees. 

On December 30, 2015, the EEOC lost a Wisconsin federal court case (EEOC v. Flambeau, Inc.) that determined group health plan eligibility on certain wellness plan participation. Since it is a federal case, it has significance beyond just Wisconsin. While this could be considered a groundbreaking case regarding wellness plans, employers should proceed with caution. 

With the extended deadlines, you may have a few lingering questions regarding previous extension requests, failure to file penalties, and individual tax returns.

As of January 2016, employers with 50 or more full-time employees, including full-time equivalent employees, are considered to be Applicable Large Employers (ALEs) and are subject to several complex Affordable Care Act (ACA) reporting requirements. For employers with 50 - 99 full-time or full-time equivalent employees, there is transition relief available from the ACA Employer Mandate penalties for 2015, but such employers must still complete and file Forms 1094-C and 1095-C on time. 

H.R. 2029, or the Consolidated Appropriations Act of 2016, is a $1.1 trillion omnibus spending bill that was signed into law on December 18, 2015. The Act is far-reaching and it contains modifications to three taxes and fees assessed under the Affordable Care Act (ACA).

The Affordable Care Act (ACA) limits the amount of annual cost sharing that small group and individual health plans can impose on an enrollee for essential health benefits (EHBs). Cost sharing under the ACA includes deductibles, co-insurance and co-payments for in-network providers. Out-of-pocket maximums for self-only coverage must also incorporate a carve-out benefit such as prescription drugs.

Since the collapse of the U.S. economy several years ago, many employers have been in survival mode and/or looking to improve efficiencies. For that reason many cost-cutting measures have been put in place, including close scrutiny of the biggest costs attributable to employees—salaries and benefits. But reducing costs through terminations and layoffs can have a variety of adverse consequences. Employers must be aware of numerous employment and employee benefits laws when considering these drastic measures.