Utah Compliance Connection - November 2022

Federal: Workplace Discrimination Poster Updated by EEOC

In October 2022, the U.S. Equal Employment Opportunity Commission updated its mandatory workplace poster from EEO is the Law to Know Your Rights: Workplace Discrimination is

Illegal. Employers should update their poster with the new version (dated 10/20/22) and display it in the workplace.

The poster should be placed in a conspicuous location in the workplace where notices to applicants and employees are customarily posted. In addition to physically posting, covered employers are encouraged by the EEOC to post the notice digitally on their websites in a conspicuous location. In most cases, electronic posting supplements the physical posting requirement. In some situations (for example, for employers without a physical location or for employees who telework or work remotely and do not visit the employer's workplace on a regular basis), it may be the only posting.

Federal: IRS Announces 2023 PCORI Fee

On November 14, 2022, the IRS released Notice 2022-59 with the 2023 adjusted applicable dollar amount—$3 per enrollee—for the Patient-Centered Outcomes Research Institute (PCORI) Trust Fund fee for plan years that end on or after October 1, 2022, and before October 1, 2023. The fee will continue through 2029. Of note, in 2022 it was $2.79.

The PCORI was established under the Affordable Care Act (ACA), which imposes a fee on specific health insurance policy issuers and applicable self-insured health plan sponsors to help fund the institute. The fee, required to be reported only once a year on the second quarter Form 720, Quarterly  Federal Excise Tax Return and paid by its due date, July 31, is based on the average number of lives covered under the policy or plan.

Read more about the ACA and PCORI fees on the following pages:

• Affordable Care Tax Provisions for Employers
• Patient-Centered Outcomes Research Institute Fee
• Patient-Centered Outcomes Research Trust Fund Fee (IRC 4375, 4376, and 4377): Questions  and Answers
• ACA: PCORI Fee

Price Comparison Tool for 2023

Beginning in 2023, group health plans and health insurance issuers must make an internet-based price comparison tool available to participants, beneficiaries, and enrollees. The purpose of this tool is to provide consumers with real-time estimates of their cost-sharing liability from different providers for covered items and services, including prescription drugs, so they can shop and compare prices before receiving care. Upon request, plans and issuers also must provide this information in paper form or over the telephone.

Compliance Deadlines

For plan years beginning on or after Jan. 1, 2023, plans and issuers must make price comparison information available for 500 shoppable items, services and drugs. For plan years beginning on or after Jan. 1, 2024, price comparison information must be available for all covered items, services, and drugs.

Action Steps

Most employers will rely on their issuers or third-party administrators (TPAs) to develop and maintain the price comparison tool and provide related disclosures on paper or over the phone upon request.

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Fully insured plans—Employers with fully insured health plans should confirm that their issuer will comply with the price comparison tool requirements beginning with 2023 plan years and ensure this compliance responsibility is reflected in a written agreement.

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Self-insured plans—Employers with self-insured plans should reach out to their TPAs (or other service providers) to confirm they will comply by the deadline and update agreements to reflect this responsibility. In addition, employers should monitor their TPAs’ compliance with this requirement.

Unlike fully insured plans, the legal responsibility for this tool stays with a self-insured plan even if its TPA agrees to provide the price comparison tool on its behalf.

State Compliance Update

Nothing to report…

End of Year HR checklist

Santa has his list and HR has theirs… The end of the year is usually an extremely busy time. A smooth and effective year-end process may help ensure HR professionals comply with relevant laws and regulations and that necessary tasks are completed in an orderly manner. This checklist can assist professionals like you with an effective year-end process.

This checklist is not an all-encompassing but provides an overview of common HR activities. This checklist is intended to be used as a guide, and the steps in this list should be modified to meet the unique needs of your organization. Due to the complexities and legal requirements of some of these activities, employers are encouraged to seek legal counsel to address specific issues and concerns.

Compliance

• Research federal, state, and local employment and labor laws for all locations where the organization’s employees work. ☐
• Review and update the employee handbook and employment policies. ☐
• Audit employee personnel files (Transfer personnel files of terminated employees to storage). Ensure all applicable recordkeeping requirements are met ☐
• Update workplace employment and labor law posters and notices. ☐
• Ensure all required workplace employee trainings are completed. ☐
• Prepare and distribute annual compliance notices to employees. ☐
• Review the organization’s insurance policies, including workers’ compensation, employment practice liability insurance, liability, etc. ☐
• File EEO-1 Component 1 report with the U.S. Equal Employment Opportunity Commission, if applicable. ☐

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Payroll and Taxes

• Audit the organization’s payroll balances including employee carryover balances for unused time off. ☐
• Confirm the payroll schedule for the new year Prepare for the organization’s first payroll of new year. ☐
• Schedule and issue holiday or end-of-year bonuses to eligible employees. ☐
• Prepare Withholding for Social Security and Employer’s Annual Federal Unemployment Tax Return forms. ☐
• Review all employee wage, tax and withholding information. ☐
• Prepare, verify and distribute Forms W-2, 1095s, and 1099 for each employee and contractor. ☐

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Employee Benefits

• Renew group health insurance policies, if applicable. ☐
• Review all healthcare plan filing requirements and deadlines. ☐
• Prepare and distribute Medicare Part D notices to all eligible employees. ☐
• Audit the number of full-time employees to determine whether the organization is an applicable large employer under the Affordable Care Act (ACA), if applicable. ☐
• Review and comply with the ACA’s annual reporting requirements, such as preparing Forms 1094-C and 1095-C, distributing employee notices and checking the grandfathered status of plans, if applicable. ☐

Compliance Calendar

December

Nothing to report…

January

1/31 – Form 940 Filing Deadline (2022) 1/31 – Form 941 Filing Deadline (Q4)

1/31 – Forms W2 and 1099-Misc Distribution Deadline 1/31 – Forms W2 and W3 Filing Deadline

February

2/1 – Deadline for Posting OSHA Form 300A

2/28 – Forms 1094-B, 1095-B, 1094-C, and 1095-C Filing Deadline (paper filers)