by admin | Jun 2, 2025 | Compliance
The annual EEO-1 Report, mandated by the Equal Employment Opportunity Commission (EEOC), is a cornerstone of workplace diversity and anti-discrimination efforts in the United States. This data collection provides a demographic snapshot of America’s workforce, helping to monitor for discrimination and promote equal employment opportunity. Missing the deadline can lead to serious consequences, making it imperative for eligible employers to understand the reporting requirements and act promptly.
Who Must File?
Generally, the following employers are required to file an annual EEO-1 Component 1 report:
Private sector employers with 100 or more employees during an employer-selected payroll period (workforce snapshot period) in the fourth quarter (October 1 through December 31) of the reporting year.
Federal contractors and first-tier subcontractors with 50 or more employees and a contract, subcontract, or purchase order amounting to $50,000 or more, or who serve as a depository of Government funds in any amount, or act as an issuing and paying agent for U.S. Savings Bonds and Notes.
It’s crucial to note that even if an employer has fewer than 100 employees during the selected snapshot period, they may still be required to file if their total employee count reached 100 or more at any point during the fourth quarter of the reporting year, or if they are affiliated with a parent company that meets the 100-employee threshold.
The All-Important Deadline: June 24, 2025 (for 2024 data)
For the 2024 EEO-1 Component 1 report, the data collection period opened on May 20, 2025, and the deadline to submit and certify reports is Tuesday, June 24, 2025, at 11:00 PM ET.
This year, the EEOC has emphasized a shorter collection period compared to some previous cycles. This means employers have a more condensed window to gather their data, review for accuracy, and submit their reports through the EEO-1 Component 1 Online Filing System (OFS).
by admin | Feb 6, 2025 | ACA, Compliance
For employers subject to the Affordable Care Act (ACA), staying compliant with reporting requirements is non-negotiable. With 2025 due dates just around the corner, now is the time to prepare for distributing Forms 1095-C to employees and filing with the IRS. These forms provide essential information about health coverage offered to employees and are critical for demonstrating compliance with the ACA’s employer mandate. Missing these deadlines can lead to potential costly penalties and compliance headaches.
Key ACA Reporting Deadlines for 2025
Here are the critical dates you need to mark on your calendar for reporting on the 2024 tax year:
- March 3, 2025:
Deadline for furnishing Form 1095-C to employees.
Employers must provide their employees with a copy of Form 1095-C, which details the health coverage offered, by this date.
- February 28, 2025:
Deadline for paper filing with the IRS.
Employers filing fewer than 10 forms (aggregated with other forms, such as W-2, 1099) may submit paper forms to the IRS. Note: Paper filing is only an option for small employers below the e-filing threshold.
- March 31, 2025:
Deadline for electronic filing with the IRS.
Employers submitting 10 or more forms are required to file electronically. The extra time provided for electronic filing gives employers a little breathing room, but it’s essential to plan ahead and avoid last-minute delays.
Penalties for Missing ACA Reporting Deadlines
Failing to meet ACA reporting deadlines can result in hefty penalties:
- Late Furnishing to Employees:
Employers can be fined up to $310 per form for not providing Form 1095-C to employees by March 3, 2025.
- Late Filing with the IRS:
Penalties start at $60 per form for filing within 30 days of the deadline but can escalate to $310 per form for longer delays.
- Incorrect or Incomplete Information:
Filing forms with incorrect data, such as employee names or Social Security Numbers, can lead to additional penalties.
- Intentional Disregard:
If the IRS determines that an employer intentionally ignored filing requirements, penalties can skyrocket to $630 per form with no annual cap.
Checklist to Stay on Track for ACA Reporting in 2025
Use this checklist to ensure timely and accurate submissions:
- Verify Employee Data:
Review employee names, SSNs, and coverage details for accuracy.
- Select Your Filing Method:
Determine whether you’ll file on paper (if eligible) or electronically. Ensure you have the necessary software for electronic submissions.
- Monitor Deadlines:
Set reminders for March 3(employee furnishing), February 28 (paper filing), and March 31 (electronic filing).
- Test Your Process:
If filing on your own, conduct a test submission through the IRS AIR system to identify potential errors before the official filing.
- Leverage Technology:
Use an ACA compliance software solution to automate form generation, validation, and submission.
- Train Your Team:
Ensure HR, payroll, and benefits teams understand the reporting requirements and deadlines.
- Work with Experts:
Consider outsourcing ACA compliance to a trusted vendor if your internal resources are limited.
Conclusion
ACA reporting doesn’t have to be overwhelming—preparation is key. By understanding the deadlines, filing methods, and potential pitfalls, employers can stay compliant and avoid penalties. With the reporting season fast approaching, now is the time to finalize your plans, gather your data, and ensure you’re ready to meet the 2025 deadlines.
Originally posted on Mineral
by admin | Nov 5, 2024 | Compliance, Health Insurance
As the year comes to an end, a crucial compliance deadline looms for employers with health plans. Under the Consolidated Appropriations Act (CAA), health plans and insurance issuers must submit a Gag Clause Compliance Attestation by December 31, 2024.
Since its enactment in 2020, this regulation prohibits health plans from including gag clauses—provisions that limit transparency around provider pricing, quality, and claims data. These clauses are especially important for employers looking to make informed decisions about their healthcare offerings.
Key Information:
Who Must Comply?
Fully insured and self-insured group health plans, including ERISA plans, nonfederal government plans, and church plans, must file the attestation. While grandfathered health plans are not exempt, plans offering only excepted benefits or HRAs are not required to submit.
- Fully Insured Plans: If the issuer of the health plan submits the attestation, employers do not need to file it themselves. This ensures the plan remains compliant with CAA requirements.
- Self-Insured Plans: Employers are responsible for ensuring timely submission, even if a third-party administrator (TPA) handles the attestation. Some TPAs may not agree to submit the attestation, so employers must verify compliance themselves.
Why It’s Important:
Employers should review their contracts to confirm they align with these requirements. Failure to comply may lead to penalties, making immediate action essential. It’s vital that agreements with healthcare providers, TPAs, or service providers do not contain gag clauses that restrict access to key cost and quality-of-care data.
Next Steps:
- Review Contracts: Ensure your contracts with healthcare providers, TPAs, or service providers don’t include gag clauses.
- Confirm Submission: Ensure your health plan’s attestation is filed before the December 31, 2024, deadline.
- Use CMS Resources: The attestation process can be completed through the CMS web form, with detailed instructions, user manuals, and FAQs available on the CMS website.
For more information or assistance with the attestation, feel free to reach out. Compliance goes beyond meeting deadlines; it ensures your health plan operates transparently and with integrity for the benefit of your employees.
This reminder is crucial for employers managing healthcare compliance. Don’t let the December deadline catch you off guard!
by admin | Oct 29, 2024 | ACA, Compliance
The Department of Health and Human Services (HHS) has issued a final rule that significantly expands the Mental Health Parity and Addiction Act (MHPAEA) requirements under the Affordable Care Act (ACA). This rule aims to ensure that health plans provide equal coverage for mental health and substance use disorder (MH/SUD) benefits as they do for medical benefits.
Key Changes in the Final Rule:
Expanded Parity Definition: The rule expands the definition of mental health conditions to include substance use disorders and conditions associated with autism spectrum disorder.
Expanded Treatment Limitations: The rule prohibits health plans from imposing stricter limitations on mental health benefits than those applied to medical benefits. This includes limitations on the number of visits, days of service, or types of treatments.
Enhanced Enforcement: The rule strengthens enforcement mechanisms to ensure compliance with mental health parity requirements.
Implications for Health Plans and Employers
Compliance Review: Health plans will need to review their benefit plans to ensure they comply with the expanded parity requirements.
Benefit Design Changes: Some plans may need to be modified to eliminate discriminatory treatment of mental health benefits.
Increased Costs: The expanded parity requirements may lead to increased costs for health plans.
Improved Access to Care: The rule is expected to improve access to mental health and substance use disorder treatment for individuals with health insurance coverage.
Next Steps for Employers and Employees
Review Your Plan: Employers should review their health plans to ensure compliance with the expanded parity requirements.
Understand Your Benefits: Employees should become familiar with their mental health benefits and how they are covered under their plan.
Seek Assistance: If you have questions or concerns about your mental health benefits, contact your health plan or your employer’s human resources department.
The final rule represents a significant step forward in ensuring that individuals with mental health and substance use disorders have access to the same level of care as those with medical conditions. By understanding the expanded parity requirements, employers and employees can work together to improve access to mental health treatment and promote overall well-being.
by admin | Oct 7, 2024 | ACA, Compliance
by admin | Sep 9, 2024 | ACA, Compliance
The Affordable Care Act (ACA) introduced the Medical Loss Ratio (MLR) to ensure that health insurance companies spend a significant portion of premiums on medical care and quality improvement activities rather than administrative costs and profits. When insurers fail to meet the MLR threshold, they are required to issue rebates to plan sponsors.
Understanding MLR Rebates
The MLR mandates that health insurers spend at least a certain percentage of premium dollars on medical claims and quality improvement activities. This percentage varies depending on the type of plan. If an insurer’s medical loss ratio falls below the required threshold, they must issue a rebate to the plan sponsor, typically the employer.
Approaching Deadlines: Time to Prepare
It’s essential for employers to be aware of the MLR rebate deadlines. These deadlines vary by year, but typically, insurers have until September 30th of the following year to issue rebates for the previous year’s plan performance. For instance, rebates for 2023 plan performance are due by September 30, 2024.
What to Do with Your MLR Rebate
Employers who receive MLR rebates should carefully consider how to use the funds. While the specific use of the funds depends on the plan’s legal structure and governing documents, some common options include:
- Offsetting future premium costs: Using the rebate to reduce future premium payments.
- Funding wellness programs: Investing in employee wellness initiatives to improve overall health and productivity.
- Contributing to a health savings account (HSA): Offering additional contributions to employee HSAs to help cover healthcare costs.
- Other plan improvements: Using the rebate to enhance other plan benefits or expand coverage options.
Important Considerations:
- ERISA Compliance: If the rebate qualifies as a plan asset under ERISA, it must be used solely for the benefit of plan participants and beneficiaries.
- Documentation: Maintain proper documentation of how the rebate is used to comply with regulatory requirements.
By understanding the MLR rebate process and carefully considering how to use the funds, employers can maximize the benefits of this unexpected windfall and improve the overall health and well-being of their workforce.
