Category Archives: Employee News

Bothered by Unwanted Calls?

I sometimes feel sorry for the people in the telemarketing business – they must get tired of being hung up on (or worse) 9.9 times out of 10! But I think I can safely predict that we all hate those calls.  And don’t even mention those annoying “Robo-Calls.” There’s probably no way to stop them all, but you may be able to decrease the number that you get.  Have you registered your number with the FTC’s Do Not Call Registry? Register your number at www.donotcall.gov

Group Health Plans Required to Offer Special Enrollment

Medical: Special Enrollment Options

 

Certain Events Trigger 30 or 60-Day Special Enrollment Periods

Under HIPAA, certain events that happen to employees or their dependents trigger a right to “special enroll” in a group health plan. Special enrollment allows individuals who previously declined health coverage to enroll in coverage outside of a plan’s open enrollment period.

An employee and his or her dependents must be provided at least 30 days to request special enrollment in a group health plan because of:

  • Loss of eligibility for other coverage, such as coverage from a spouse’s employer;
  • Termination of employer contributions toward other health coverage; or
  • Certain life events, including marriage, birth, adoption, or placement for adoption.

An employee and his or her dependents must be provided at least 60 days to request special enrollment in a group health plan because of:

  • Loss of coverage under a state Children’s Health Insurance Program (CHIP) or Medicaid; or
  • Determination of eligibility for premium assistance under CHIP or Medicaid.

Group health plans must make all employees eligible to enroll in the employer’s group health plan aware of their special enrollment rights at or before the time an employee is initially offered the opportunity to enroll in the plan by distributing a Notice of Special Enrollment Rights. A downloadable model notice from the U.S. Department of Labor (DOL) is available here (scroll to page 2 of the PDF—marked as page 138). Please note that the DOL’s model notice does not discuss the 60-day special enrollment period requirement mentioned above.

2018 W-4 Forms

finance accounting paper desk using Free Photo

The IRS has released the 2018 W-4 Form and updated the withholding calculator to help you determine the appropriate allowances for the 2018 tax year. The IRS recommends checking your withholdings if one of the following pertains to you:

  • Families with more than one earner
  • Those with two or more jobs at the same time or who only work for part of the year
  • Those with children who claim credits such as the Child Tax Credit
  • Those with older dependents, including children age 17 or older
  • Those who itemized deductions in 2017
  • Those with high incomes and more complex tax returns

This new form will be available this Saturday, March 17 in Web Pay. It will be updated in Onboarding on Tuesday, March 27.

Paylocity cannot provide tax advice or advise on tax withholdings. Please speak to your tax advisor if you have questions about how the new form may affect you. However, if you have questions about updating your withholdings with Paylocity, contact your Account Manager.

Access the IRS Withholding Calculator

Tax reform brings adjustments to the 2018 HSA limits

IRS adjusts 2018 HSA amounts

The new tax reform plan has changed the 2018 contribution limit for family coverage only. The new contribution limit is now $6,850 (previously set at $6,900). To review the official IRS announcement, visit the Internal Revenue Bulletin (part III, section 4).

Outstaffing’s priority is to keep you informed of information that may impact your financial planning and benefits.

2018 Optum, Inc. All rights reserved

Anthem Blue Cross Blue Shield Formulary Update

 Drug list changes coming April 1

Anthem BC/BS: We believe a sound review process for keeping our drug lists up to date is key to improving members’ health and controlling drug costs. It also helps make sure our members have access to medications they need.

Through our quarterly formulary (drug list) review process, we regularly add or remove drugs or make tier changes to our drug lists. This maintains the highest level of clinical integrity, while delivering cost savings to you and your employees. Medications may move to a higher tier or be removed from our drug lists twice a year. Our next update is coming soon, and the updated drugs lists* will be available as of April 1.

Paylocity Tax Rates

Due to the recently passed Tax Cuts and Jobs Act, we have begun using the new tax rates issued by the IRS. This will change your withholding and net pay on your next paycheck.
 
Below is one example of the impact of these changes. This example is for an individual claiming Married Filing Jointly with one allowance and an annual salary of $52,000. For simplicity, only the Federal Income Tax Withholding Calculation is shown without benefits and other taxes.
 20172018
Weekly Withholding Tax Savings$18.99
Annual Wage$52,000.00$52,000.00
Annual Allowance$4,050.00$4,150.00
Wage Less Allowances$47,950.00$47,850.00
Tax Bracket Base$27,300.00$30,600.00
Base Withholding$1,865.00$1,905.00
Wages in Excess of Base$20,650.00$17,250.00
Additional Over Base
(15% for 2017, 12% for 2018)
$3,097.50$2,070.00
Base Withholding Plus Excess$$4,962.50$3,975.00
Weekly Withholding (Divided by 52)$95.43$76.44

 Click Here to read more about the new tax laws.

IMPORTANT W2 INFORMATION

Make sure that your address information is correct in your Paylocity account. This is the address Outstaffing Payroll uses to mail your W2 form to you.

Also, now is the time to change/update or enroll in HSA and 401(k) plans!  Check them out from your Outstaffing Employee home page.

And did you know…you can view and download your check/tax information in Paylocity? And, you’ll be able to see and download your W2 forms online when available – even before they are mailed to you!

 

IRS Announces 2018 Standard Mileage Rates

The Internal Revenue Service (IRS) has issued the 2018 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, or medical purposes.

2018 Standard Mileage Rates
Beginning on January 1, 2018, the standard mileage rates for the use of a car, van, pickup, or panel truck will be:

  • 54.5 cents per mile for all business miles driven (up 1 cent from 2017)
  • 18 cents per mile driven for medical purposes (up 1 cent from 2017)
  • 14 cents per mile driven in service of charitable organizations (unchanged from 2017)

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

IRS Notice 2018-03 contains additional information about mileage rates.

 

New Tax Law Effectively Repeals the Individual Mandate

Repeal Effective in 2019

President Trump has signed into law the Tax Cuts and Jobs Act, which, among other things, effectively repeals the Affordable Care Act’s (ACA) individual mandate beginning in 2019.

Individual Mandate Repeal Effective in 2019
Under the ACA, individuals are currently required to have minimum essential health coverage, qualify for an exemption from the requirement, or pay a penalty tax. This ACA provision is known as the “individual mandate.” Effective in 2019, the individual mandate is effectively repealed, as the penalty tax for noncompliance with the mandate will be reduced to $0.

IRS Releases Statement on Withholding Under New Tax Law

Employers to Use 2017 Systems Pending New Guidance

The IRS is working to develop withholding guidance to implement the tax reform bill that was recently signed into law. According to a statement released by the agency, it expects to issue the new guidance in January, and employers and payroll service providers will be encouraged to implement the changes in February. In the meantime, these entities should continue to use the existing 2017 withholding tables and systems.

Click here to read the IRS statement in full.