By Karen Axelton
Does your small business have employees? If so, there are some changes affecting your treatment of those employees in 2012 that you need to be aware of, HR Morning reports–many of them relating to health insurance. Here’s what you need to know to stay in compliance for 2012.
Changes to W-2 reporting requirements:
Starting in 2012, companies with 250 or more employees are required to report how much each employee’s health care coverage costs on the employees’ W-2 forms. If you have fewer than 250 employees, you are off the hook until at least 2014 (when 2013 W-W-2 forms are issued, although there’s a good chance this will be delayed any further.
Changes to 401(k) fee disclosure regulations:
Beginning January 1, 2012, employers that sponsor 401(k) plans or similar retirement plans for their employees will have to disclose all the associated fees and expenses to the employees. You have 120 days to comply, so the real deadline is April 30. The goal of the change is to make it easier for employees to understand the costs of various plans so they can make informed decisions about investing.
HSA rollovers will end:
The deadline for your employees to transfer the balance of a Flexible Spending Account (FSA) or Health Reimbursement Arrangement (HRA) into a Health Spending Account (HSA) is December 31, 2011. Rollovers will be prohibited after January 1, 2012.
New federal regulations on health care:
Some aspects of health care reform have been delayed, so keep an eye out for further guidelines from the federal government on how employers will need to comply with these reforms once they are implemented. Two areas to watch for:
- Summary of benefits and coverage: Under health care reform, all health plans must give participants a summary of their benefits and coverage. The original deadline of March 23, 2012, has been indefinitely delayed and the federal government has not issued a new one (or said when they plan to).
- Nondiscrimination rules will apply to any health-care coverage that isn’t “grandfathered” in. This will prevent companies from offering either former or current executives any coverage that average employees don’t have access to as well. The federal government is expected to issue a deadline fairly soon as to when these rules will kick in.
Image by Flickr user Walt Stoneburner (Creative Commons)
DISCLAIMER: The information posted in this blog is provided for informational purposes. Legal information is not the same as legal advice — the application of law to an individual’s specific circumstances. The information presented here is not to be construed as legal advice. Network Solutions recommends that you consult an attorney if you want professional assurance that the information posted, and your interpretation of it, is appropriate to your particular business.
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Tags: small business compliance, small business workforce
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