|
|
|
Avoid Headaches with Alpha's Year-End
Employer Checklist
We know year-end can be hectic and as a busy employer your plate is full. There are many items that need attention or should be done in the last few weeks, days and hours of the year. Many are relative to various laws and other requirements which require diligent and timely research to make sure you have the most current and correct information in order to avoid costly fines or potential lawsuits. It is much easier to correct a problem before it becomes a big headache later. Below is a short list of reminders for items that are often overlooked. |
|
|
Provide Required Annual Notice
Women's Health and Cancer Rights Act of 1998 (WHCRA) & Children's Health Insurance Program Reauthorization Act (CHIPRA)
The Women's Health and Cancer Rights Act (WHCRA) requires annual distribution of a notice to all participants and beneficiaries in a group medical plan advising them of their rights to post-mastectomy breast reconstruction. Generally, for fully-insured groups, your carrier will distribute this notice. Employers who maintain group health plans are required to notify all employees of their potential Children's Health Insurance Program Reauthorization Act (CHIPRA) special rights to receive premium assistance under a state's Medicaid or CHIP program. Employers who use Alpha's Compliancedashboard, already have a sample letter they can send out. For your convenience, click here for a link to a sample notice. |
|
 W-2's: Medical premium reporting & verify employee information The new Form W-2 Reporting Provision is in effect and
a good time to verify employee social security number & address
The W-2 Reporting provision is about transparency and education, requiring employers to report the total value of certain employer-sponsored health benefits on employees' Forms W-2. Businesses filing 250 or more Forms W-2 in the previous tax year are required to comply with the provision. The provision is currently optional for businesses that filed fewer than 250 Forms W-2 in the previous tax year. Verify Employee Information Suggestion: Mail paychecks or earnings statement, on a payday in November. Incorrect addresses will be returned and you will have time to correct before the last pay of the year. Send a letter to termed employees. |
Review fringe benefits for imputed  income reporting To avoid misunderstandings, employers should be sure they are familiar with the imputed income rules When an employee receives non-cash compensation that is considered taxable, the value of that benefit becomes imputed income to the employee. Imputed income is added to the employee's gross (taxable) income, but is not included in the net pay because the employee has already received the benefit in some other form. This includes but is not limited to Group long-term life insurance, 401(k) contribution limits, dependent insurance, car allowance, S-Corp premiums, and more. Click here to view the IRS Publication 15-B, Employer's Tax Guide to Fringe Benefits. |
|
 Provide employees with 2013 Form w-4 For withholding tax changes
Business owners are required to keep completed W-4 forms on file. Tips & Warnings:
Business owners are not required to file their employees' W-4 forms with the IRS in order to begin the withholding process. The completed forms serve as proof that the employer is withholding taxes from their employees' paychecks and must be given to the IRS for review if requested. |
 Audit retirement contributions Make corrections, prepare and provide information on new contribution limits Audits provide companies with an external review of their accounting procedures regarding certain aspects of their financial information. Not only do audits ensure that companies are following proper accounting rules, they also provide outside stakeholders with a certified picture of the company's financial health. Employee retirement plans and benefits require audits because they represent a large portion of a company's expenses and have strict regulations by government agencies.
If employees contribute more than the 2012 annual limits to your 401(k) plan, then your plan must distribute the excess salary deferrals with earnings. Otherwise the plan may be disqualified. Also, unless the plan makes the distribution by April 15, 2013, employees will be taxed twice on the excess amounts.
|
 Summary Plan Descriptions (SPD) Employers are required to give a SPD to an employee before that employee enrolls in an employer-sponsored retirement or health plan. The plan administrator is legally obligated to provide to participants, free of charge, the SPD. The summary plan description is an important document that tells participants what the plan provides and how it operates. It provides information on when an employee can begin to participate in the plan, how service and benefits are calculated, when benefits becomes vested, when and in what form benefits are paid, and how to file a claim for benefits. Click here for a sample SPD |
|
A Look Ahead
Things to consider going into 2013
Total Compensation Statements for your employees. There is no better time to show your employees the true value of their employment...and with NO COST TO YOU - it's a win, win! Download Fact Sheet
If you could benefit from a 'checklist' such as the one provided above, Compliancedashboard could be just what you are looking for. An online dashboard summarizes your employer responsibilities on a compliance calendar & an email reminder is sent to you with a link and directions on how to complete the task! Download Fact Sheet, View Screencast Click here to view more of Alpha's online service solutions. |
|
|
Gail Reese, MOD, SPHR
216-520-3300 or 800-886-3315 |
|
 |
|
|
|
|
|
|
|
|
|
|
|
