Opinion: Employers should be aware of new guidelines, tax codes

A new year brings new changes to state and federal laws. Immediately affecting employers, President Barack Obama signed the Consolidations Appropriations Act into effect, the Internal Revenue Service issued a notice impacting requirements under the Affordable Care Act and the Equal Employment Opportunity Commission released two major guidelines. Here’s a look at the potential impact for employers.

Consolidated Appropriations Act
Obama recently signed CAA into law, which delays the Cadillac tax by two years and provides for the deductibility of the Cadillac Tax. The ACA imposes a 40 percent excise tax on high-cost, employer-sponsored health coverage.

A high-cost plan is one in which the cost for single coverage is more than $10,200, and the cost for two-person or family coverage is more than $27,500.

Employer-sponsored health coverage is defined as the aggregate of group health plans, flexible savings accounts, on-site medical clinics, pre-tax contributions to health savings accounts and many other forms of coverage.

Previously, the Cadillac tax was nondeductible, but under the CAA, any Cadillac tax paid by a provider or corporation sponsoring a self-insured plan is deductible.

Another significant change to the Cadillac tax is employers will not always be directly liable for paying the tax. Instead, health insurers and third-party administrators often will be required to pay the tax. It is expected that health insurers and third-party administrators will require reimbursement from employers.

Affordable Care Act
The IRS issued a notice Dec. 28 providing establishments with additional time to file required annual reports. The ACA mandates applicable large employers, defined as companies with 50 or more full-time and full-time equivalent team members, to report minimum essential coverage annually on forms 1094 and 1095.

Forms 1095-B and 1095-C were originally due to employees on Feb. 1, but now are due March 31. Businesses had until March 31 to file forms 1094 and 1095 electronically with the IRS. This deadline is now June 30. Nonelectronic filers initially had until Feb. 29, but the deadline has been extended to May 31.

Title 7 of the Civil Rights Act
The EEOC recently published new guidelines regarding discrimination against Muslims and Middle Easterners in reaction to the attacks in Paris and San Bernardino, Calif., as well as other recent world events.

Title 7 prohibits religious and national origin discrimination and harassment in all areas of employment, including recruiting, hiring, job assignments, salaries, training, performance reviews, discipline and termination. Religious practices and dress must be reasonably accommodated unless doing so would create an undue hardship. Retaliation against a Muslim or Middle Easterners who criticizes a discriminatory practice, files a charge or participates in a discrimination investigation is illegal.

Both a supervisor and the company maintain liability under the law. A manager must immediately take action to correct any unacceptable workplace behavior based upon religion or national origin.  

Americans with Disabilities Act
The EEOC issued new guidance concerning applicants and employees infected with HIV. Job candidates and staff with HIV may not be denied employment, due to their condition, if they can perform the essential functions of the job. Job seekers and workers have workplace privacy rights and remain protected from discrimination and harassment because of their HIV condition.

In addition, when requested, reasonable accommodation must be provided to ensure equal opportunity to contend for and perform positions, unless the accommodation would impose an undue hardship. Undue hardship is defined as, “significant difficulty or expense in light of the employer’s resources and the nature and operation of its business.”

Under the ADA, organizations are permitted to not hire an applicant and to take adverse employment action against an associate with HIV, if the individual poses a direct threat to the health or safety or himself or others that cannot be eliminated or reduced by reasonable accommodation.

Companies may not rely on myths or stereotypes about HIV when determining duties the candidate is able to safely perform. The corporation must have the best available objective evidence confirming the individual would create a significant safety risk.

Lynne Haggerman, M.S., is president/owner of Lynne Haggerman & Associates LLC, a Springfield firm specializing in management training, retained search, outplacement and human resource consulting. She can be reached at lynne@lynnehaggerman.com.