According to a Wall Street Journal article, New York Department of Financial Services Superintendent Benjamin Lawsky has asked 134 insurers in the state to provide information about IUL illustrations....
ROCHESTER, N.Y.--(BUSINESS WIRE)--
The start of the New Year ushers in a series of new regulatory,
compliance, and legislative changes that affect every small business.
According to Paychex, Inc., a leading provider of payroll,
resource, and benefits
outsourcing solutions for small- to medium-sized businesses, 11
issues top the list of business regulations in 2011.
1. Tax changes – In 2011,
businesses will confront the increasing complexity of the tax
environment, including the implementation of a partial payroll tax
holiday, the ability for businesses to expense 100 percent of their
capital investments, and the retroactive extension of many temporary
business tax incentives that expired at the end of last year.
2. Health care reform - A
key aspect for 2011 is the provision providing business tax credits for
small employers that purchase health insurance, which is effective for
tax year 2010 and carries into next year. It provides, with some
limitations and requirements, incentives for providing health insurance
to employees. Grandfathering will remain an important component of
health care reform. Health plans that existed on March 23, 2010 are
grandfathered, meaning that they do not need to add many of the new
protections under the health care reform law. To remain grandfathered,
health plans cannot make any significant changes to the plan.
3. FSA plans - Effective
1/1/11, over-the-counter medicines and drugs other than insulin (i.e.,
aspirin) will no longer be eligible for reimbursement from a health FSA
unless the item is prescribed by a medical practitioner.
4. Unemployment Insurance rates/changes -
Unemployment insurance (UI) funds in many states are at critically low
levels due to the large numbers of people out of work for extended
periods. Many employers will see a trend that promises to send
state employer UI contribution rates higher in 2011 to replenish
depleted UI trust funds and repay federal loans taken to allow states to
continue to pay benefits. In addition, measures to reduce unemployment
insurance fraud are in the works.
5. Employment law - The
United States Department of Labor and many states have enacted or
are considering measures to provide greater transparency to workers on
the wages they are owed, especially in key areas such as minimum wage
and overtime requirements, and to increase penalties on those who fail
to pay their workers the compensation they are entitled.
6. 401(k) disclosures/target date funds -
For employers offering 401(k) plans to their workers, regulations
requiring disclosures pertaining to fees of the plan will be required;
additionally, plans offering target date funds will likely see further
disclosure requirements around those investments.
7. State budgetary challenges -
Many states are facing critical budget shortfalls, and as such may
contemplate impromptu tax/fee increases or filing changes to raise badly
needed revenue. Additionally, many state agencies are reducing staff,
which could result in processing delays for businesses requiring
licensing or other state services.
8. Federal Trade Commission requirements -
With the dramatic increase in the use of social media such as blogs,
Facebook, and Twitter, the Federal Trade Commission has issued further
regulatory guidance around the use of this media in advertising,
especially regarding endorsements and misleading or dishonest product
reviews. The agency has also recently proposed the creation of a "Do Not
Track" tool for the Internet (similar to the telemarketing "Do Not Call"
9. IRS enforcement -
To help collect more tax revenue in this era of budget deficits, the IRS
is ramping up its enforcement efforts in several areas. In 2010, the IRS
kicked off an employment-tax audit program that will carry into 2011.
These audits are focusing on employee misclassification, executive
compensation, fringe benefits, and adherence to general employment tax
filing requirements. Further, the IRS is accelerating efforts to
increase tax compliance among employees who collect tips.
10. Privacy -
Most states have instituted laws requiring businesses to notify
customers (and, in some states, governmental authorities) when
sensitive data is breached. Some states have enacted laws requiring that
businesses have processes to adequately safeguard sensitive client
data. Businesses handling protected health information are subject
to additional requirements governing the protection of that data.
11. Employment verification/immigration -U.S. Immigration and Customs Enforcement (ICE) continues to crack down
on companies knowingly hiring undocumented aliens. Several different
Congressional immigration reform proposals, which may present further
employment verification obligations, are expected to get attention in
“One of the great values in working with a national provider such as
Paychex, is that our regulatory experts are constantly monitoring
compliance-related issues that impact our 536,000 clients across the
country,” said Martin Mucci, Paychex president and CEO. “With 2011
already shaping up to be another year of sweeping changes for
businesses, Paychex clients can rest assured that we’re on top of these
issues, and we will be there to help them navigate the new regulatory
Paychex, Inc. (NASDAQ:PAYX)
is a leading provider of payroll, human resource, and benefits
outsourcing solutions for small- to medium-sized businesses. The company
offers comprehensive payroll services, including payroll processing,
payroll tax administration, and employee pay services, including direct
deposit, check signing, and Readychex®. Human resource
services include 401(k) plan recordkeeping, section 125 plans, a
professional employer organization, time and attendance solutions, and
other administrative services for business. A variety of business
insurance products, including group health and workers' compensation,
are made available through Paychex Insurance Agency, Inc.Paychex was
founded in 1971. With headquarters in Rochester, New York, the company
has more than 100 offices serving approximately 536,000 payroll clients
nationwide as of May 31, 2010. For more information about Paychex and
our products, visit www.paychex.com.
Paychex, Inc.Becky Cania, 585-387-6337Corporate
Fleming, 585-387-6402Public Relations Program Managerlfleming@paychex.com
Source: Paychex, Inc.