IRS Issues PEO Certification Program Guidelines
The Internal Revenue Service (“IRS”) has issued final and temporary regulations that outline the criteria for Professional Employer Organizations (“PEOs”) seeking IRS certification status. Cherry Bekaert Benefits Consulting’s (“CBBC”) Health & Benefits Update discusses the certification requirements PEOs must satisfy ahead of submitting their applications to the IRS. Read more by downloading the May 2016 CBBC Health & Benefits Update .
Partners Can’t Get Employee Benefits – What Should Your Next Move Be?
Your partnership or limited liability company (“LLC”) may have to reconsider the way it structures compensation for partners. That’s because the Internal Revenue Service (“IRS”) recently released temporary regulations that ban a practice used by many of these entities. LLCs that are treated as corporations for tax purposes are not impacted by the new rules. Background The Internal Revenue Code prohibits individuals from being treated as employees of an entity that is treated as a partnership for tax purposes, regardless of the size of the individual’s partnership interest. Individuals are also prohibited from being employees of a certified professional employer. Read More.
FLSA Overtime Rule Changes to Impact Colleges & Universities
If you’re a campus administrator, chances are you’ve heard that the Department of Labor (“DOL”) recently issued new regulations (“Final Rule”) that address the overtime provisions of the Fair Labor Standards Act (“FLSA”). Effective December 1, 2016, the Final Rule amends key provisions related to “white collar” exemptions. The Final Rule will extend overtime eligibility to many campus employees, and is certain to strain your institutional budget. As a result, your college or university will likely face difficult choices in the coming months to meet full compliance by December 1. Cherry Bekaert Benefits Consulting’s (“CBBC”) latest Alert discusses the FLSA’s new. Read More.
EEOC Issues Final Wellness Plan Rules
The Equal Employment Opportunity Commission (“EEOC”) has issued wellness plan rules with respect to Title I of the Americans with Disabilities Act and Title II of the Genetic Information Nondiscrimination Act. Applicable to wellness programs that are part of a group health plan or offered outside of the group health plan, the new guidance will be effective for plan years beginning on and after January 1, 2017. More on the EEOC’s final wellness plan rules is in Cherry Bekaert Benefits Consulting ’s latest Health & Benefits Update .
Reminder: Foreign Investment Survey Due May 31
The annual foreign investment survey from the Bureau of Economic Analysis (“BEA”) is due by Tuesday, May 31, 2016. This survey is the 2015 Annual Survey of U.S. Direct Investment Abroad, also known as the Form BE-11 series of forms. Every year, the BEA, a division of the U.S. Department of Commerce, gathers information regarding investments in foreign affiliates by U.S. persons, including business entities, estates, and individuals. The survey generally requests financial, operational, and ownership information about certain investments outside the U.S. This is not a tax filing, and no payments are due. However, failure to file the required forms can result. Read More.
New Savings for Virginia’s Charitable Organizations
If your organization purchases prepared foods, meals, catering and related services (“prepared meals”), the cost of these items may have just been reduced by more than 4%! That’s because the Virginia Department of Taxation has reversed its policy regarding these purchases by nonprofit organizations. Under the new policy effective April 22, 2016, purchases of prepared meals by nonprofit organizations (other than churches using a self-issued ST-13A exemption certificate) and state and local governmental entities are no longer subject to sales tax provided that: the prepared meal promotes your entity’s function, mission, service or purpose; the purchase is billed to and. Read More.
FAQs About Affordable Care Act (Part 31)
As discussed in Cherry Bekaert Benefits Consulting ’s (“CBBC”) Health & Benefits Update, the Departments of Health and Human Services, Labor and Treasury have issued Frequently Asked Questions (“FAQs”) Part 31 . The new set of FAQs addresses Affordable Care Act market reform provisions, as well as mental health parity requirements and the coverage of women’s health issues. The May 2016 Health & Benefits Update on the new FAQs is available via the CBBC website.