Posts Tagged ‘US Department of Labor’

Form 5500 Revisions Impact Both Small And Large Employers

Tuesday, September 20th, 2016

The post below is a guest blog from Rob Krieg who serves as Principal, Health & Welfare Consultant for CAI’s employee benefits partner Hill, Chesson & Woody.

hcw5500revisionsblogThe Department of Labor (DOL), the Internal Revenue Service (IRS), and the Pension Benefit Guaranty Corporation (PBGC) recently proposed significant changes to the form 5500 which has implications for both large employers and small employers. Targeting an effective date of 2019 plan year filings, the recent DOL Factsheet explains that many changes are on the horizon in an attempt to modernize and improve the Form 5500 annual return/report filed by employee benefit plans.  They identify the driving forces behind the changes include a desire to 1) modernize financial reporting, 2) provide greater information regarding group health plans, 3) enhance data mine-ability, 4 ) improve service provider fee information, and 5) enhance compliance with ERISA and the code.

The most notable proposed changes include:

  • Removing the small group exemption where previously many employers with less than 100 enrolled participants were exempt from filing;
  • Adding a new comprehensive schedule J (Group Health Plan Information) requirement;
  • New Schedule C requirement for each service provider;
  • And an expanded schedule H for funded plans.

Regardless of a group’s size, benefit plans should pay special attention to the new Schedule J requirements. Plans will now be asked to complete information on the types of benefits offered and the funding methods, including if benefits are HDHP, health FSA or HRA.  There will also be questions on participant contributions and employer contributions as well as enrollment information, including participants and dependents.  There appears to be requirements for claims data (including claims submitted, denied, appealed, paid, and where claims are paid from – insurer, trust or employer general assets.  And last but not least, there will be a focus on plan compliance with questions around COBRA, grandfathered status, MLR rebates, HIPAA, GINA, MHP SBC requirements, and SPD requirements.

As traditionally occurs, the DOL has asked for comments to the proposed regulations and these comments are due by October 4, 2016.  It is clear that the agencies are working together to significantly increase Form 5500 reporting obligations for many employers with group health plans. As explained in the fact sheet, the agencies are looking to update the filing requirement to gather data sufficient to support their enforcement efforts. Therefore, employers should take note and make sure to tighten up their benefit plan compliance over the next year.  The silver lining is that the agencies have provided plenty of lead time for employer’s to get into compliance.

If you have questions about these new regulations, or about your health benefit plan’s compliance with some of the regulations mentioned in the proposed regulations, contact your HCW consultant.

Make Sure Your Unpaid Summer Intern Is Actually an Intern

Thursday, May 16th, 2013

summer internsMany organizations offer unpaid summer internships to college students or new job seekers. The opportunity is great for both parties. Interns gain professional experience, learn more about their preferred industry and make connections with the people they meet on the job. A company that offers internships meets several potential new employees who will learn a lot about the company and its culture, which is helpful for potential training in the future.

If you choose to hire unpaid interns, make sure you take great care in following the internship program guidelines provided by the US Department of Labor (USDOL).  Failure to do so could lead to a lawsuit like in the case of Hearst Magazines and a former intern.

Protect yourself and your company from a wage and hour investigation or lawsuit by knowing all of the factors that need to be met in order to offer unpaid internships. If your internship program does not include all of the criteria below, you have an employment relationship and must pay your interns minimum wage and overtime.

According to the USDOL’s Fact Sheet #71: Internship Programs under the Fair Labor Standards Act for an internship to be unpaid, it must meet the following six criteria:

1. The internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an education environment;

2. The internship experience is for the benefit of the intern;

3. The intern does not displace regular employees, but works under close supervision of existing staff;

4. The employer that provides the training derives no immediate advantage from the activities of the intern; and on occasion its operations may actually be impeded;

5. The intern is not necessarily entitled to a job at the conclusion of the internship; and

6. The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.

Along with the six criteria, USDOL also provides some examples and interpretations of workplace situations in the Fact Sheet.

For additional information on company internship programs and compensation, please call a member of CAI’s Advice and Counsel Team at 919-878-9222 or 336-668-7746.

Photo Source: US Department of Education