Understanding Employee Benefits

DOL’s ARPA COBRA Subsidy Notices and FAQs: Stay Tuned for More

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On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 (“ARPA”) into law. Under ARPA, certain employees and their dependents who lost group health coverage during the COVID-19 pandemic due to the employee’s involuntary termination (other than for gross misconduct) or reduction of hours are allowed... Read More

Topics: Cafeteria Plans, Health Plan, Payroll, Welfare Plans

CARES Act offers Opportunity for Tax-Free Student Loan Repayment Available until 2020 Year-End

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On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which addresses the public economic and health crisis related to the 2019 novel coronavirus (COVID-19). The CARES Act includes a temporary provision that allows employers to make tax-free student loan payments... Read More

Topics: Compensation Questions, Errors & Omissions Liability, Payroll, Uncategorized, Welfare Plans

IRS Annual Limits on Qualified Plans for 2019

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IRS Annual Limits on Qualified Plans for 2019 By Jeffrey P. Cairns The Internal Revenue Service has released the 2019 cost-of-living adjustments affecting dollar limits on benefits and contributions for qualified retirement plans. The Notice providing the cost-of-living adjustments is available here 2018-83. The Service announced the Health Savings Account... Read More

Topics: Cafeteria Plans, Payroll, Retirement Plans

Embezzlement of 401(k) Deferrals by COO of Architecture Firm is (Doubly) Costly

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On March 22, 2017, the U.S. Court of Appeals for the Second Circuit ruled against Christine Bodouva that her restoration of funds to her Company’s 401(k) Plan should be offset against the District Court’s order for forfeiture in her criminal trial. U.S. v Christine Bodouva, Case 16-3937, 2nd Cir. 3/22/17.... Read More

Topics: ERISA and Other Benefits Litigation, Fiduciary Guidance, Payroll, Retirement Plans

Federal Court Determines that Employer Use of Employee Health Insurance Premium Payments Breach of ERISA Fiduciary Duties

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On November 9, 2015, Minnesota Federal District Judge Susan Richard Nelson ruled that the president and CEO of Faribault Woolen Mills Company breached his fiduciary duties under ERISA by diverting Employee health insurance premiums toward corporate and personal use. The lawsuit was brought by the U.S. Department of Labor. Facts:... Read More

Topics: ERISA and Other Benefits Litigation, Fiduciary Guidance, Health Plan, Payroll, Welfare Plans

Some Wellness Benefits are Taxable

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My colleagues blogged on recent wellness guidance from the Equal Employment Opportunity Commission (EEOC) and the three agencies charged with enforcing the Affordable Care Act (ACA), the Department of Treasury, the Department of Labor, and the Department of Health and Human Services. The guidance from the EEOC reiterated that compliance... Read More

Topics: Health Care Reform, Health Plan, Payroll

Gas Prices Must be Going Down

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Every year the IRS issues optional standard mileage rates that can be used by taxpayers to calculate the deductible cost of operating an automobile for business, charitable, medical or moving purposes. Many employers reimburse employees based on this standard mileage rate. The standard mileage rate also factors into medical expense... Read More

Topics: Cafeteria Plans, Payroll