SF Labor Law Updates for January 1, 2019
1. 2019 Health Care Expenditure rates
Under the Health Care Security Ordinance, employers must spend a minimum amount on health care for their San Francisco employees. As of January 1, 2019, the rates are as follows.
• Employers with 20-99 workers worldwide: $1.95 per hour.
• Employers with 100 or more workers worldwide: $2.93 per hour.
2. Health Care Security Ordinance 2019 Poster:
The new 2019 poster for the Health Care Security Ordinance is now available. This poster must be placed at each job site or workplace in a location where employees can read it […]
ACA Ruled Unconstitutional – Law Remains in Effect During Appeal
On Dec. 14, 2018, U.S. District Judge Reed O’Connor issued a ruling that determined the Affordable Care Act (ACA) is unconstitutional because of last year’s change to the federal tax law that zeroed out the ACA’s individual mandate penalty. The ruling was in favor of Texas and a number of states in Texas v. United States, which is the most recent in a series of judicial challenges to the ACA. The ruling is expected to be appealed, and the ACA remains in effect.
How did we get here?
The U.S. Supreme Court has […]
IRS Extends 2018 Reporting Due Dates for 1095 Forms Sent to Individuals
On Nov. 29, 2018, the Internal Revenue Service (IRS) announced extended deadlines for 2018 Minimum Essential Coverage (Section 6055) and Large Employer Shared Responsibility (Section 6056) reporting due to individuals in early 2019. The extended deadlines are as follows:
2018 Forms Sent to Individuals – Form 1095-B, Form 1095-C
Original Deadline – 1/31/2019
Extended Deadline – 3/4/2019
Employers and insurers are encouraged to provide the forms to individuals as soon as possible, but no later than March 4, 2019. Individuals who file their 2018 federal income tax returns before receiving their 1095-B and […]
The IRS announced the affordability percentages for 2019. These percentages apply for three purposes:
- Employer Shared Responsibility
- Individual Mandate Exemption
- Premium Tax Credit Availability (to an individual)
Employers are most interested in the first one listed above. Under the Employer Shared Responsibility provisions, large employers who do not offer affordable, minimum value coverage face potential penalties if full-time employees qualify for subsidies to buy health insurance in the Marketplace. Employer-sponsored coverage is considered “affordable” if the portion that the employee is required to pay for the lowest cost, self-only coverage does not exceed a certain percentage of the employee’s household income […]
EMPLOYER ANNUAL REPORTING: The online 2017 Employer Annual Reporting Form is now available. Employers covered by the Health Care Security Ordinance are required to submit the form by April 30, 2018 or face penalties of up to $500 per quarter.
If you were one of the few people who stuffed or was trying to stuff your 2018 health savings account to the max before the tax overhaul ratcheted back the contribution limit, you can breathe easy. The Internal Revenue Service announced today in a revenue ruling that it will let taxpayers stick with the original $6,900 contribution limit for family coverage and not face excess contribution penalties.
In March, due to the new inflation-adjustment calculations required under the Trump tax overhaul, the IRS announced that the $6,900 limit would be reduced to $6,850. (The […]