In this time of increased competition and scrutiny, it is more important than ever to ensure your organization is in top-notch shape. This year's conference will once again feature an expert faculty of attorneys, accountants, government officials and nonprofit managers who will be ready to answer your questions and give you the tools you need to resolve the legal, financial and management challenges you encounter every day. Stay tuned!
Final Regulations on the ACA Employer Mandate Released
On February 12, 2014, the U.S. Department of Treasury released the final regulations on the Affordable Care Act’s shared responsibility provisions (commonly referred to as the “employer mandate” or “pay or play” rules) which will be enforced on a staggered basis. The final rules are similar to the proposed rules and guidance previously issued. “Large employers” (those that employ an average of 50 or more full-time and full-time equivalent employees) are still required to offer full-time employees and their dependents health insurance coverage that meets certain standards or to pay a fee.
However, to ease the burden on employers, the final regulations phase in the employer mandate by requiring only employers with 100 or more employees to comply by January 1, 2015 (for calendar year plans) or the first day of the plan year beginning in 2015 (for non-calendar year plans). As long as these employers offer coverage to at least 70% of their full-time employees and their dependents (as opposed to 95%, as was originally proposed) in 2015, they will avoid the fee. Moreover, coverage for dependents will not be required in 2015 if the employer is taking steps to provide coverage for dependents in 2016. An employer may refer to, at a minimum, a consecutive six month period in 2014 (rather than the full 2014 calendar year) to determine if it is a large employer for 2015. Continue reading.
The Administration for Children and Families (ACF) has issued a Program Instruction announcing the availability of additional Head Start funds for FY2014. The additional funds restore the 5.27% reduction that resulted from sequestration and provide all grantees with a 1.3% cost-of-living adjustment (COLA).
Grantees currently using FY2014 funds may apply for the increased funding now. Grantees currently in the middle of a program year funded with FY2013 funds may apply to receive the sequestration restoration and COLA funding when they apply for their FY2014 funds. Going forward, the restored and COLA funds will become part of a grantee’s regular program and will be covered under its regular funding application in future years.
ACF expects grantees to use the additional funding to restore the number of enrollment slots, the number of days or weeks in the program year, or other program cuts made due to sequestration. ACF also expects grantees to use COLA funds to increase staff salaries and fringe benefits, and to pay for higher operating costs. Continue reading.
In early February, the federal Office of Head Start (OHS) announced via a press release that it had selected 103 Head Start grantees for the third round of Head Start competition. Of those 103 Head Start grantees, approximately 40 are Community Action Agencies (CAAs). OHS explained that grantees designated for competition had fiscal or management issues preventing them from properly managing federal funds, or had deficiencies discovered in their on-site federal monitoring review. Also, any grantee that scored in the lowest 10 percent out of all Head Start programs that received a CLASS review last year was placed on the recomplete list. Here is a complete list of all grantees required to compete in the third round.
New IRS Form Concerning Employer Identification Numbers
The IRS now requires, effective January 1, 2014, the use of a new form, Form 8822-B, to report changes in an entity’s “responsible party.” The responsible party is the individual or entity named on the federal Employer Identification Number (EIN) application (Form SS-4). The instructions to Form 8822-B define responsible party “as the person who has a level of control over, or entitlement to, the funds or assets in the entity that, as a practical matter, enables the individual, directly or indirectly, to control, manage, or direct the entity and the disposition of its funds and assets.” If the responsible party has changed since January 1, 2014, then the Form 8822-B should be filed within 60 days of the change. If a change occurred after filing of the initial Form SS-4 and before 2014 (as is likely to be the case for most CAAs), then it should be reported on the Form 8822-B before March 1, 2014. To learn more about this change and the Form 8822-B, see the Legal Insight from the law firm Spencer Fane Britt & Browne LLP, which suggests filing a copy of the Form 8822-B listing the current responsible party and leaving the old name of responsible party blank if the organization cannot locate its original Form SS-4.
This e-News Bulletin is part of the National T/TA Strategy for Promoting Exemplary Practices and Risk Mitigation for the Community Services Block Grant (CSBG) program and is presented free of charge to CSBG grantees. It was created by Community Action Program Legal Services, Inc. (CAPLAW) in the performance of the U.S. Department of Health and Human Services, Administration for Children and Families, Office of Community Services Cooperative Agreement – Grant Award Number 90ET0433. Any opinion, findings, and conclusions, or recommendations expressed In this material are those of the author(s) and do not necessarily reflect the views of the U.S. Department of Health and Human Services, Administration for Children and Families.