Latest Compliance News

Arizona voters will decide on November 8, 2016, whether to approve the “Fair Wages and Healthy Families Act” (Prop 206) which would provide earned paid sick time to employees. Under Prop 206, Employees would accrue a minimum of one hour of earned paid sick time for every 30 hours worked. Employers with 15 or more employees would be allowed to cap earned paid sick time at 40 hours per year. Employers with fewer than 15 employees would be allowed to cap earned paid sick time at 24 hours per year.

On August 19, 2016, Illinois Governor Bruce Rauner signed into law The Employee Sick Leave Act (the Act) which goes into effect on January 1, 2017.  Under the Act an employee may use “personal sick leave benefits” provided by the employer for absences due to an illness, injury, or medical appointment of the employee’s child, spouse, sibling, parent, mother-in-law, father-in-law, grandchild, grandparent, or stepparent for reasonable periods of time as the employee’s attendance may be necessary, on the same terms upon which the employee is able to use sick leave benefits for the employee’s own illness or injury. 

On August 2, 2016, the Internal Revenue Service (IRS) issued proposed regulations entitled “Information Reporting of Catastrophic Health Coverage and Other Issues Under Section 6055.” These proposed regulations contain important clarifications relating to, among other things, the responsibilities of Applicable Large Employers (ALEs) and/or insurance providers in soliciting Taxpayer Identification Numbers (TINs).

On August 1, 2016, the Internal Revenue Service (IRS) published its draft of 2016 Instructions for Forms 1094-C and 1095-C. In addition to some noteworthy new items, many topics from the 2015 instructions were clarified. The draft 2016 Forms 1094-C and 1095-C were previously released on July 7, 2016. For additional information on the new forms, see IRS Releases Draft 2016 Affordable Care Act Reporting Forms.

The Chicago City Council has approved an Ordinance (O2016-2678) that will require employers to provide paid sick leave to employees beginning July 1, 2017.