October 1, 2009

August 28, 2009

  • Report: America’s Seniors and Health Insurance Reform: Protecting Coverage and Strengthening M

    Secretary Sebelius Releases New Report

    America’s Seniors and Health Insurance Reform: Protecting Coverage and Strengthening Medicare

    HHS Secretary Kathleen Sebelius today issued a new report, America’s Seniors and Health Insurance Reform: Protecting Coverage and Strengthening Medicare. The report highlights the problems with the status quo that leave seniors paying escalating costs for their health care while outlining how health insurance reform will strengthen Medicare and protect coverage for seniors. The report is available at www.HealthReform.gov/reports/seniors/index.html.

    “Senior citizens have seen their premiums and out-of-pocket drug costs rise and without reform, many seniors on Medicare could lose access to the doctor they know and trust,” Secretary Sebelius said. “Health insurance reform will protect the coverage seniors depend on, improve the quality of care and help make Medicare strong.”

    The report highlights current problems in the status quo and the solutions health insurance reform will provide, including:

    Overpayments to Private Plans: A typical older couple in traditional Medicare will pay almost $90 next year on average to subsidize private insurance companies who are not providing their health benefits. Health insurance reform will eliminate these overpayments.

    High Prescription Drug Prices: Health insurance reform will cut the drug costs that seniors have to bear in the “doughnut hole” by 50 percent.

    Imminent Doctors’ Payment Cut will Limit Access: Because of a flawed system for paying physicians, Medicare is scheduled to reduce its fees next year by 21 percent next year. According to a recent survey by the American Medical Association, if Medicare payments are cut by even half that amount, or 10 percent, 60 percent of physicians report that they will reduce the number of new Medicare patients they will treat, and 40 percent will reduce the number of established Medicare patients they treat. Health insurance reform will stop this cut and ensure seniors can continue to see the doctor they know and trust.  

    Preventing Medicare from Going Bankrupt: The Medicare Hospital Insurance Trust Fund is projected to be exhausted in eight years, sometime during 2017. Health insurance reform will reduce overpayments to private plans and clamp down on fraud and abuse to bring down premiums for all seniors and extend the life of the Medicare trust fund by five years.

    “The status quo is unsustainable and unacceptable for seniors,” added Sebelius. “Health insurance reform will ensure our seniors have the quality, affordable coverage they deserve.”

    To learn more and read the complete report, visit www.HealthReform.gov/reports/seniors/index.html.

July 17, 2009

July 10, 2009

  • 652 Businesses Served with Audit Notices

    U.S. Immigration and Customs Enforcement (ICE) is launching a bold, new audit initiative by issuing Notices of Inspection (NOIs) to 652 businesses nationwide - which is more than ICE issued throughout all of last fiscal year.

    The notices alert business owners that ICE will be inspecting their hiring records to determine whether or not they are complying with employment eligibility verification laws and regulations. Inspections are one of the most powerful tools the federal government has to enforce employment and immigration laws.

    This new initiative illustrates ICE's increased focus on holding employers accountable for their hiring practices and efforts to ensure a legal workforce.

    For more information, visit www.ice.gov.

July 7, 2009

  • S Corporations

    IRS Posts New S Corporation Information
     

    S corporations are corporations that elect to pass corporate income, losses, deductions and credit through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income. S corporations are responsible for tax on certain built-in gains and passive income.

    Please visit IRS' expanded S Corporation pages at www.irs.gov/businesses/small/article/0,,id=98263,00.html 

    for more information on S Corp Employment taxes, including Social security, Medicare taxes, income tax withholding, Federal unemployment (FUTA) tax, and more.

June 26, 2009

  • IRS Provides Tips for Proper Employment Tax Treatment of Part-Time or Seasonal Workers

    For many businesses, summer traditionally brings an influx of part time or seasonal workers into the work force. Employers must ensure they are treating these workers properly for employment tax purposes.

    Generally, workers are either employees or independent contractors, based upon the facts and circumstances of the relationship between the business and the worker.

    For federal income tax withholding, Social Security, Medicare, and federal unemployment tax purposes, neither the number of hours worked nor amount earned alone determines the status of an individual as independent contractor or employee. For example, an individual can be an employee even though the individual works one hour a week or one day a year.

    Furthermore, businesses must remember that part-time or seasonal workers who are employees are subject to the same tax withholding rules that apply to other employees.

    More information about treating these workers properly is on the Part Time or Seasonal Help Web page on IRS.gov. The page contains helpful tips for filing Form 941, Employer’s Quarterly Federal Tax Return, other information about seasonal/part-time workers and links to other resources to help businesses with employees.

June 11, 2009

June 2, 2009

  • It's Hurricane Season

    Hurricane Preparedness: Are You Ready?

    Don’t let hurricane season catch you off guard!

    If you live in a hurricane risk area, take steps now to prepare. GovBenefits.gov suggests reviewing disaster assistance programs from the Federal government. Knowing the types of assistance available when disaster strikes could save you time and worry.... view more

May 31, 2009

May 22, 2009

  • Denial of COBRA Premium Reduction

    Application for Review of Denial of COBRA Premium Reduction

    If you or a family member has lost employment, The American Recovery and Reinvestment Act of 2009 (ARRA) may make it possible for you to keep your employment-related health coverage. ARRA provides for premium assistance for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).  The premium assistance is also available for continuation coverage under certain State laws. For coverage periods beginning on or after February 17, 2009, assistance eligible individuals pay only 35% of their continuation coverage premiums to the plan for the first nine months. The remaining 65% is reimbursed to the plan, employer, or health insurance issuer through a payroll tax credit.

    To be eligible for assistance, you must meet all of the following requirements:

    ·         Be eligible for continuation coverage under COBRA or a State law that provides comparable continuation coverage (for example, so-called “mini-COBRA” laws) at any time during the period beginning September 1, 2008 and ending December 31, 2009;

    ·         Elect continuation coverage (when first offered or during the additional election period); and

    ·         Have a qualifying event for the continuation coverage that is the employee’s involuntary termination during the period beginning September 1, 2008 and ending December 31, 2009.

    The applicant (person requesting review of a denial of premium assistance) may either be the former employee or a member of the employee’s family who is eligible for COBRA continuation coverage or the COBRA premium assistance through an employment-based health plan. The employee and his/her family members may each elect to continue health coverage under COBRA, request the premium assistance, and request a review of a denial of premium assistance.

    If Your Request is Denied

    If you believe you are eligible for COBRA continuation coverage and for this premium reduction through a private sector health plan sponsored by an employer generally with at least 20 employees, but your request for these benefits or the reduced premium has been denied, you may apply to the U.S. Department of Labor to review the denial. If your continuation coverage is provided through a Federal, State or local government plan, or if it is provided pursuant to State insurance law, you should direct your request for review to the Department of Health and Human Services.

    Applying For Review: Answer all of the questions on the application to the best of your knowledge and ability. If you don’t know the answer to a question you may check the box marked “Unsure or N/A.” (N/A stands for “not applicable.”) Please include copies of any documents that you think would help the Department in its review of your application, examples of which are listed in the attached instructions. Provide your complete contact information (daytime phone number, an alternate phone number, and an email address, if available) so that the person reviewing your application can contact you with any questions or if additional information is needed. The Department of Labor will not review your denial until you submit a properly completed application form. A separate application(s) must be completed for any family member whose plan information is not identical to the information you provide. Keep a copy of the application(s) submitted for your records. Note: In the course of its review, the Department may need to share information on this application with your employer or plan administrator.

    You are encouraged to complete your application online or you can fax or mail the completed application, along with your attachments, to:

    Fax to:
    U.S. Department of Labor
    Employee Benefits Security Administration
    Attn: COBRA Appeals
    Fax number: 202.693.8849

    Mail to:
    U.S. Department of Labor
    Employee Benefits Security Administration
    Attn: COBRA Appeals
    P.O.      Box 78038
    Washington, DC 20013-9038

    For Assistance: If you have questions on how to complete this form or about eligibility for COBRA or the COBRA premium reduction, please see our web site at www.dol.gov/COBRA. You may also call a DOL benefits advisor toll-free at 1.866.444.3272. Benefits advisors can assist you with questions, but cannot complete or take your application for review by phone.

    For more information: