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Monthly Newsletter
Brought to you by Integrated Benefit Solutions
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March 2017 Issue
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Employers Must Use New Form I-9
 U.S.
Citizenship and Immigration Services (USCIS) has
released a new version of Form I-9, Employment
Eligibility Verification. As of January 22, 2017, employers must
use the updated form.
Background
Federal law requires employers to hire only individuals who may legally
work in the United States--either U.S. citizens or foreign citizens who
have the necessary authorization. To comply with the law, employers must
verify the identity and employment authorization of each person they hire
by completing and retaining Form I-9.
New Form I-9 and Dates
As of January 22, 2017, employers must use the "11/14/2016 N"
version of Form I-9 to verify the identity and work eligibility
of every new employee, or for the reverification
of expiring employment authorization of current employees (if applicable).
This date is found on the lower left-hand corner of the form.
Click here to access the latest
Form I-9.
For more information on complying with employment eligibility verification
requirements, please visit our section on Form I-9.
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Revised Model CHIP Notice Now
Available
 A
revised model notice is now available for all employers that
provide group health coverage in states with premium assistance through the
Children's Health Insurance Program (CHIP), or Medicaid, to inform
employees of potential opportunities for assistance in obtaining coverage.
The employer CHIP notice must be furnished to all employees annually
before the start of each plan year. An employer may provide the notice
applicable to the state in which an employee resides concurrent with the
furnishing of:
- Materials notifying the employee of health plan
eligibility;
- Materials provided to the employee in connection
with an open season or election process conducted under the plan; or
- The summary plan description.
The revised model notice
includes information on how employees can contact their state for
additional information and how to apply for premium assistance, with
information current as of January 31, 2017.
Click
here to access the revised model CHIP Notice.
Check out our Benefits Notices Calendar to learn about other
federal notice requirements and to download additional model notices
available for employers and group health plans.
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IRS Updates Publication on
Deducting Travel, Entertainment, and Car Expenses
 The
Internal Revenue Service (IRS) has updated Publication 463 (Travel,
Entertainment, Gift, and Car Expenses) for use in preparing 2016 tax
returns that are filed in 2017. This publication explains what travel,
entertainment, and car expenses are deductible, how to report them on
returns, what records are needed to prove expenses, and how to treat any
expense reimbursements received.
Highlights of Updated Publication
Updated Publication 463 contains the following new information:
- Standard mileage rate. For 2016, the standard mileage rate for the
cost of operating a taxpayer's car for business use is 54
cents per mile.
- Depreciation limits on cars, trucks, and vans. For 2016, the first-year limit on the total
depreciation deduction for cars remains at $11,160 ($3,160
if a taxpayer elects not to claim the special depreciation allowance).
For trucks and vans, the first-year limit is $11,560 ($3,560
if a taxpayer elects not to claim the special depreciation allowance).
- Section 179 deduction. For 2016, the section 179 deduction limit on qualifying
property purchases (including cars, trucks, and vans) is a total
of $500,000, and the limit on those purchases at which the
deduction begins to be phased out is $2,010,000.
- Special depreciation allowance. For 2016, the special ("bonus")
depreciation allowance on qualified property (including cars, trucks,
and vans) remains at 50%.
Click here to access the updated Publication
463.
For more information, including details on company vehicles, visit our
section on Fringe Benefits.
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New SBC Template Required For
Use On or After April 1
 New
versions of the Summary of Benefits and Coverage (SBC) template,
instructions, uniform glossary, and related documents are required for
use on or after April 1, 2017. Under the Affordable Care Act,
group health plans and health insurance issuers are generally required to
provide a written SBC to plan participants and beneficiaries at specified
times during the enrollment process and upon request.
Changes to SBC Template
The new SBC template includes an additional coverage example as well
as language and terms to improve individuals' understanding of their health
coverage. Specifically, the new template includes more information about
cost sharing, such as enhanced language to explain deductibles, and
requires plans to address individual and overall out-of-pocket limits.
Changes have also been made to the SBC to improve readability.
Implementation Date for Using New Template and Related Documents
The implementation date for using the new SBC template and associated
materials will be as follows:
- Health plans and issuers that maintain an
annual open enrollment period will be required to use the new
editions beginning on the first day of the first open
enrollment period that begins on or after April 1, 2017 with
respect to coverage for plan years beginning on or after that date.
- Health plans and issuers that do not use an
annual open enrollment period will be required to use the new
editions beginning on the first day of the first plan year
that begins on or after April 1, 2017.
Click here to access the new
SBC template and related materials.
Additional information can be found in our Summary of
Benefits and Coverage (SBC) section.
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How to Handle Employee
Attendance During Bad Weather
 Snow
and slippery conditions during the winter months may make it difficult for
your employees to travel to work. Consider the following guidelines that
can help your company be prepared when bad weather strikes.
1. When an employee misses work due to bad weather conditions, whether
the employee is entitled to be paid for the absence may depend on the
employee's exempt or non-exempt status.
Under the federal Fair Labor Standards Act (FLSA), employers are not
required to pay non-exempt employees for hours they did not work, including
when the office is closed due to bad weather.
Exempt
employees generally must be paid their full salary amount if they
perform any work during a workweek. However, an employer that remains open
for business during a period of bad weather may generally make
deductions, for full-day absences only, from the salary of an
exempt employee who chooses not to report to work because of the weather.
Deductions from salary for less than a full-day's absence are not
permitted.
If the business is closed for the day as a result of inclement weather, the
employer may not deduct the day's pay from the salary of
an exempt employee. The general rule is that an employer who closes
operations due to a weather-related emergency or other disaster for less
than a full workweek must pay an exempt employee the full salary
for that week, if the employee performs any work during the week. This is
because deductions may not be made for time when work is not available.
2. Some states require employers to pay employees for showing up even if
no work is available or there is an interruption of work and the employee
is sent home.
Although payment for time not worked may not be required for non-exempt
employees under federal law, some states do require that employees be
paid for a minimum number of hours for reporting to work, even if there
is no work that can be performed (such as when the office is closed) or the
employee is sent home early, for instance, due to an impending storm.
Often called "reporting time pay," these laws may apply to
specific industries (e.g., manufacturing) or certain employees only, so it
is important to check with your state
labor department for requirements that may apply to your company
before implementing any policy.
3. Plan ahead to let your employees know what is expected of them
and to help minimize disruption to your business.
Make it a priority to notify all of your employees, both exempt and
non-exempt, of your company's policy regarding employee attendance and pay
during periods of inclement weather. Your policy should include information
on how your employees can find out whether the office is open or closed,
such as by email, radio broadcast, calling in to hear a recorded message,
or other methods that all employees can access. Be sure to apply your
policy consistently and fairly to all employees.
It's also prudent to remind employees to use their best judgment and not to
put their safety at risk when it comes to traveling to work during or after
a storm. If possible, see if you can arrange for employees to work remotely
from home on days when the weather makes travel dangerous.
For more issues related to employee compensation, including guidelines for
determining the exempt or non-exempt status of your employees, visit our
section on Employee Pay.
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