2012 Mandatory New Hire Notice

by | Nov 1, 2011 | HR Compliance

Start 2012 by Being Prepared for the Federal Mandatory  New Hire Notices REQUIRED for ALL Employers!

Below, please find the annual notices and documents you MUST provide your employees!

  • Medicare Part D Notice: Employers whose health plans contain prescription drug coverage must distribute an Annual Notice to plan participants who are or who might be eligible for Medicare Part D coverage or have covered family members who may be eligible. The Centers of Medicare and Medicaid Services (CMS) releases updated notices for your use. Notices must be provided before October 15 every year.
  • 401K and Profit Sharing Plans: A defined contribution (DC) plan with a safe harbor plan design, automatic contribution arrangements and/or a default investment feature is required to provide annual notice to participants to describe these types of plan provisions.
  • Safe Harbor Notice: A safe harbor plan provides a certain level of employer contribution and strict vesting requirements in exchange for not having to pass the “ADP” (Average Deferral Percentage) and “ACP” (Average Contribution Percentage) tests. This notice must be given to all plan participants at least 30 days and no more than 90 days before the beginning of each plan year.
  • Automatic Contribution Notice: A plan with an automatic contribution arrangement is required to provide an annual notice to plan participants. This notice must be given to all plan participants at least 30 days and no more than 90 days before the beginning of each plan year.
  • Qualified Default Investment Alternative (QDIA) Notice: ERISA Section 404 c (5) provides fiduciary protection to plans which provide a participant’s accounts will be invested in a default investment fund if no investment direction is given by the participant. This notice must be given to all plan participants at least 30 days before the beginning of each plan year.
  • COBRA Notice: Initial COBRA notices must be furnished to all employees no later than 90 days after the date that health plan coverage begins. COBRA notices are also required for all qualifying events. These notices must be given to plan participants within 30 days.
  • Notice of Unavailability: Under COBRA, if an employee or other qualified beneficiary is not entitled to COBRA coverage the employer must provide this notice.
  • Notice of Termination: Under COBRA, the employer must provide the employee or other qualified beneficiaries this notice prior to the end of maximum applicable period of coverage.
  • Qualified Joint and Survivor Annuity (QJSA) Notice: This notice waives right to benefits, spouses’ right to benefits, and right to revoke waiver for defined benefit (DB) and defined contribution (DC) plans. Notice must be provided 90 days prior to annuity start date.
  • HIPPA Certificate of Health Plan Coverage Notice: This notice must be provided to health plan participants of time period for health coverage. Notice must be provided by COBRA qualifying event notice deadline or within reasonable amount of time if participant requests within 24 hours of coverage end date.
  • Notice of Period of Pre-Existing Condition Exclusion Notice: This notice provides pre-existing condition exclusion period, basis of determination, and provides opportunity to present additional evidence of creditable coverage for group health plan. Notice must be provided at a “reasonable” time period upon receipt of credible coverage.
  • Special Enrollment Rights Notice: This notice is provided to those participants who qualify for special enrollment into group health plans. Notice must be provided no later than participant’s enrollment period.
  • Summary Plan Description (SPD): ERISA requires a summary plan description be provided to all participants/retirees for all benefit plans. Notice must be provided 90 days of eligibility date.
  • Summary of Material Modifications (SMM): ERISA requires a summary of changes to any information in Summary Plan Descriptions (SPD) for all benefits plans. Notice must be provided within 210 days following end of plan year when modification occurred. The only exception to this notice is if the employer has revised the SPD within this time frame.
  • Statement of Accrued Vesting Benefits Notice: is notice informs participants of accrued benefits under a defined benefit (DB) or defined contribution (DC) plan at normal retirement age. For those participants not vested, the notice should state when vesting is effective. Notice must be provided 30 days of a request.
  • Women’s Health and Cancer Rights Act Notice: This notice states the benefits under the Women’s Health and Cancer Rights Act, including applicable deductibles and coinsurance limits for group health plans. Notice must be provided upon enrollment in health plan and annually thereafter.
  • Explanation of Rollover and Certain Tax Options Notice: This notice communicates to the recipient of rollover options for defined benefits (DB) and/or defined contributions (DC) plan into a qualified plan (i.e. IRA). Tax rules for distribution not rolled over are also included in the notice (mandatory 20% withholding). Notice must be provided no less than 30 and no more than 90 days before the initial payment start date.
  • Age 70 ½ Distribution Requirements Notice: This notice communicates to terminated vested participants and active participants in defined benefits (DB) and/or defined contribution (DC) plans who become 70 1/2 and older. Notice must be provided by April 1 every year.
  • I-9 Form: The Immigration and Reform Control Act of 1986 (IRCA) requires that every new hire employees provide employment eligibility verification. This form must be completed within 3 days of employment. The employer is REQUIRED to examine documents and retain the I-9 document. All
  • W-4 Form: The Internal Revenue Service (IRS) requires all new hire employees to complete this form documenting the Employee’s Withholding Allowance Certificate. This form should be completed annually and if the employee fails to properly document their status, the employer MUST withhold federal income taxes as if s/he is single claiming no withholding allowances.

 The Department of Labor (DOL) issued their final rule that employers can send electronic benefit plan information and NOTICES to employee’s residences if the employee agrees to electronic notification. There MUST exist an option to receive a hard copy as well.