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The Wagner Law Group

The Wagner Law Group is a nationally recognized practice in the areas of ERISA and employee benefits, estate planning, employment, labor and human resources, investment management and real estate. 

 

Established in 1996, The Wagner Law Group has 28 attorneys engaged exclusively in employee benefits, estate planning and employment law. Six of our attorneys are AV rated by Martindale-Hubbell as having very high to preeminent legal abilities and ethical standards. The firm is among the largest ERISA boutiques in the country. Our practice is national in scope, with clients in more than 40 states and several foreign countries.

 

 

 

 

Contact Info

The Wagner Law Group

 

  Integrity | Excellence

  

Boston 

Tel: (617) 357-5200 

Fax: (617) 357-5250 

99 Summer Street 

13th Floor

Boston, MA 02110

 

Washington, D.C.

Tel: (202) 969-2800

  Fax: (202) 969-2568

800 Connecticut Ave., N.W.

Suite 810

Washington, D.C. 20006

 


Palm Beach Gardens 

Tel: (561) 293-3590
Fax: (561) 293-3591
7108 Fairway Drive
Suite 125
Palm Beach Gardens, FL 33418

   

Tampa

Tel: (813) 603-2959

Fax: (813) 603-2961

101 East Kennedy Boulevard

Suite 2140
Tampa, FL  33602 

 

San Francisco

Tel: (415) 625-0002

Fax: (415) 358-8300

300 Montgomery Street

Suite 600

San Francisco, CA 94104

 

St. Louis

Tel: (314) 236-0065

Fax: (314) 236-5743
100 South 4th Street, Suite 550
St. Louis, MO  63102 

 

 

www.wagnerlawgroup.com

 

 

 

March 9, 2017

 

 Health and Welfare Law Alert

 

 

 

    IRS Extends Deadline for Small Employers to Furnish QSEHRA Notice to Employees

 

 

 

The IRS has issued Notice 2017-20 to extend the deadline for employers who establish a qualified small employer health reimbursement arrangement ("QSEHRA") to send a required notice to employees concerning the arrangement. 


Background.  The 21st Century Cures Act (the "Act"), among other things, established QSEHRAs.  The Act provides that, effective January 1, 2017, eligible small employers may begin offering QSEHRAs to eligible employees. 

 

QSEHRA Requirements.  A QSEHRA, must:

 

  • be funded solely with employer contributions, which means employees cannot make salary reduction contributions under the arrangement.
  • be offered to all eligible employees on the same terms.  However, the employer can exclude employees with less than 90 days of service, certain part-time and seasonal employees, certain collectively bargained employees, and non-resident aliens.
  • limit annual employer contributions to $4,950 per year for employee-only coverage and $10,000 for family coverage.
  • provide payment or reimbursement for health care expenses incurred by the employee (or the employee's family member), including premiums for individual health insurance.

 

Employer Eligibility Requirements.  An employer is eligible to establish a QSEHRA if:

 

  • it is not an Applicable Large Employer under the ACA (i.e., an employer that had 50 or more full-time employees or full-time equivalent employees during the preceding calendar year); and
  • it does not offer group health coverage to any of its employees. 

QSEHRA Employee Notice Requirements. Employers that offer QSEHRAs must furnish a written notice to all eligible employees at least 90 days in advance of the beginning of the new plan year.  The notice must explain:

  • the amount that will be the employee's benefit under the arrangement for the plan year;
  • that the employee should provide specified information to any Health Insurance Marketplace to which the employee applies for an ACA premium tax credit; and
  • if the employee is not covered by minimum essential coverage during the entire plan year: (i) the employee may be subject to the ACA's individual mandate penalty, and (ii) reimbursements under the QSEHRA may be included in income.

 

IRS Notice 2017-20.  IRS has extended the deadline for the notice requirement from March 13, 2017 to at least 90 days after the IRS issues additional guidance concerning the content requirements for QSEHRA notices.  IRS also provides employers with transition relief from penalties for failures to furnish QSEHRA notices until after the IRS issues additional guidance.

 

 

 

Notice 2017-20 is available at: https://www.irs.gov/pub/irs-drop/n-17-20.pdf

 

 

 

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This Newsletter is provided for information purposes by The Wagner Law Group to clients and others who may be interested in the subject matter, and may not be relied upon as specific legal advice.  This material is not to be construed as legal advice or legal opinions on specific facts. Under the Rules of the Supreme Judicial Court of Massachusetts, this material may be considered advertising.