On April 5th, the Senate approved the bill approved by the House in early March – the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 (H.R.4) – to repeal the PPACA provision that requires businesses to issue a Form 1099 to all payees who receive $600 or more in a year.

President Obama is expected to sign it into law.

​http://www.whitehouse.gov/blog/2011/04/14/repealing-1099-reporting-requirement-big-win-small-business

Effective May 6, 2011, the Department of Health and Human Services (HHS) will no longer accept new applications for participation in the Early Retiree Reinsurance Program (ERRP) due to the availability of funding.  If a plan sponsor who have yet to decide whether to participate in the ERRP will need to make a decision and file the appropriate application by May 5, 2011.

This application deadline has no affect on currently approved applications.
​
http://www.errp.gov/newspages/20110401-applications-acceptance.shtml

The IRS has issued Notice 2011-28 with guidance for employers on Form W-2 reporting of the cost of their employer-sponsored group health plan coverage for employees as required under the Patient Protection and Affordable Care Act (PPACA).

Compliance is required beginning with the Form W-2 that will cover the 2012 year (delivered to employees in January 2013). Reporting for years prior to 2012 is optional. Several transition rules provide temporary reporting relief with respect to some types of health coverage (e.g., HRAs), for small employers (file fewer than 250 W-2s), and for multiemployer plans.

The guidance covers:

• Transition relief
• Employers subject to reporting
• Methods of reporting
• Aggregate cost of applicable employer-sponsored coverage
• Cost of coverage required to be included in the aggregate reportable cost
• Methods of calculating the cost of coverage
• Other issues relating to calculating the cost of coverage

​
This is a summary of the guidance.  A more detailed explanation can be accessed on the Towers Watson website.

​
Horizon Actuarial Services, LLC is an independent company and is not affiliated with Towers Watson.