This area of the aggregation rules is highly complex, so it is important that any prospective client should discuss eligibility with their own counsel first. Solely for the purposes of this tax credit, tax exempt organization are required to aggregate when they are part of a controlled group of organizations. Being in a controlled group […]
For the ERTC, What if the employer has two health plans? For example, both a group health plan and a health flexible spending arrangement (FSA)), how are the qualified health plan expenses for each em
The qualified health plan expenses are determined separately for each plan. Therefore, for each plan, those expenses are allocated to the employees who participate in that plan. In the case of an employee who participates in more than one plan, the allocated expenses of each plan in which the employee participates are aggregated for that […]
For the ERC, How does an employer determine if the part of the business that was suspended is enough to qualify the entire business for the tax credit?
The law provides that the part of business operations that must be affected by a government order to qualify that business for the ERC must account for more than a “nominal portion” of its business operations. Solely for purposes of the employee retention tax credit, a portion of an employer’sbusiness operations will be deemed to […]
For the ERTC, Does the amount of qualified health plan expenses include both the portion of the cost paid by the Eligible Employer and the portion of the cost paid by the employee?
The amount of qualified health plan expenses taken into account in determining the credits generally includes both the portion of the cost paid by the Eligible Employer and the portion of the cost paid by the employee with pre-tax salary reduction contributions. However, the qualified health plan expenses should not include amounts that the employee […]
FAQ: After the amendments made by the Affordable Care Act, are small employers still exempt from the MHPAEA requirements? How is “small employer” defined?
FAQ: After the amendments made by the Affordable Care Act, are small employers stillexempt from the MHPAEA requirements? How is “small employer” defined? Yes. Small employers are still exempt. Although there were changes to the definition of “smallemployer” for other purposes under the Affordable Care Act, ERISA and the Code continue to define employer as […]
FAQ: My group health plan normally charges a copayment for physician visits that do not constitute preventive services. The plan charges this copayment to individuals age 19 and over, including emplo
FAQ: My group health plan normally charges a copayment for physician visits that do notconstitute preventive services. The plan charges this copayment to individuals age19 and over, including employees, spouses, and dependent children, but waives itfor those under age 19. Is this permissible? Yes. The Department of Labor’s regulations implementing PHS Act section 2714 provide […]
When are employers required to provide COBRA notices?
When are employers required to provide COBRA notices? Compliance tip: Spouses and dependent children covered under an employer’s health plan have an independent right to elect COBRA coverage. Employers or health plan administrators must provide an initial general notice if employees are entitled to COBRA benefits. Many employers provide an initial notice about COBRA coverage […]
Which employers are required to offer COBRA coverage?
Employers with 20 or more employees are usually required to offer COBRA coverage and to notify their employees of the availability of such coverage. COBRA applies to private-sector employees and to most state and local government workers.
What is a “Convention or association of churches”?
What is a “Convention or association of churches”? Compliance Tip: There are special Aggregation Rules that apply to dioceses and religious orders. The definition of “convention or association of churches”, in a legal sense, is murky to say the least. The IRS has interpreted the term to mean a “cooperative undertaking by churches of the […]