The New IRS Form 990: What Does It Mean For Your ... - Venable LLP

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EMPLOYEE BENEFITS ALERT AUGUST 14, 2007 2 SPECIAL ALERT FOR EMPLOYERS WITH EMPLOYEES IN MASSACHUSETTS ‣ Massachusetts Health Care Reform Law: Massachusetts is at the forefront of state initiatives to require universal— or near-universal—health insurance coverage for its residents. In order to achieve this goal, a new law—the Massachusetts Health Care Reform Act (the “HCRA”)—places significant new obligations on ALL employers with 11 or more full-time employees in the state. Two of its key provisions relating to employers are discussed in more detail below. • Fair Share Contributions: The HCRA requires that employers make a “fair and reasonable” contribution towards the cost of health insurance for their Massachusetts employees. An employer is considered to have made such a contribution if either (1) there is at least 25% participation by full-time employees in the employer’s health plan, or (2) the employer contributes at least 33% of the premium cost of its health plan to all full-time employees. If an employer does not meet one of the criteria listed above, it must make a “fair share” contribution to the state. This contribution is capped at $295 per employee per year. Employers will be required to report to the state that they have met this requirement. This reporting will likely be done through an online system that is currently being developed. It is expected that the first reporting deadline will be sometime during the Fall of 2007. • Premium Conversion Cafeteria Plans: Also, in order to allow all Massachusetts employees to pay health plan premiums on a pre-tax basis, covered employers are required to have adopted a cafeteria plan under Section 125 of the Internal Revenue Code. These premium conversion Section 125 plans must meet certain criteria mandated by the HCRA. Notably, many existing Section 125 plans do not meet these criteria because they do not cover all employees required to be covered by the HCRA. Consequently, many employers are meeting their obligations under the HCRA by amending their Section 125 plans or by creating separate “Massachusetts Only” premium conversion plans. Employers are required to submit their premium conversion plans to the Commonwealth Health Insurance Connector Authority (the state agency created to administer the HCRA) by October 1, 2007. _________________________________________________________________________________________________ Please contact any of the attorneys in our Employee Benefits and Executive Compensation Group if you have questions regarding this Employee Benefits Alert. Harry Atlas (410) 528-2848 Andrea O'Brien (301) 217-5655; (202) 344-4328 hiatlas@venable.com aiobrien@venable.com Jennifer Berman (410) 244-7756 Barbara Schlaff (410) 244-7494 jsberman@venable.com beschlaff@venable.com Kenneth Hoffman (202) 344-4810; (410) 244-7771 Serena Simons (202) 344-4599 krhoffman@venable.com sgsimons@venable.com Thora Johnson (410) 244-7747 Lisa Tavares (202) 344-4075 tajohnson@venable.com latavares@venable.com Jason Levine (202) 344-4629 Martha Jo Wagner (202) 344-4002 jelevine@venable.com mjwagner@venable.com Patricia McDermott (202) 344-8061 John Wilhelm (703) 760-1917 pmcdermott@venable.com jawilhelm@venable.com © 2007 Venable LLP • www.Venable.com • 1.888.VENABLE. This alert is published by the Employee Benefits and Executive Compensation Practice Group at the law firm Venable LLP. It is not intended to provide legal advice or opinion. Such advice may only be given when related to specific fact situations that Venable has accepted an engagement as counsel to address. VALUE ADDED, VALUES DRIVEN. ®
Employee Benefits Alert JULY 24, 2007 Section 403(b) Tax-Sheltered Annuity Final Regulations Expected This Week Final regulations under Section 403(b) ("Final Regulations") of the Internal Revenue Code are expected to be published on July 26, 2007. Generally effective in 2009, the Final Regulations substantially follow the November 2004 proposed regulations, with some changes in response to public comments. Section 403(b) provides a tax-favored retirement vehicle for employees of public schools and Code Section 501(c)(3) organizations. The Final Regulations supersede prior regulations dating back to 1964 and reflect 40 years worth of statutory changes and administrative developments. Major provisions of the Final Regulations: ‣ Require a written plan document, which may incorporate by reference terms in related documents; ‣ Apply the universal availability requirement without regard to previous administrative exceptions for certain groups of employees; ‣ Specify circumstances in which tax-exempt entities must or may be aggregated and treated as a single employer; ‣ Limit tax-free exchanges of Section 403(b) contracts with a grant of IRS authority to allow tax-free exchanges in additional circumstances; and ‣ Permit employers to terminate Section 403(b) plans and distribute benefits to employees. In response to concerns about the continued availability of an ERISA exemption applicable to certain Section 403(b) plans, in conjunction with the release of the Final Regulations, the Department of Labor will issue a Field Assistance Bulletin addressing the interaction of the ERISA exemption and the requirements of the Final Regulations. In upcoming weeks, we will provide more detailed information about the Final Regulations, including a checklist to assist employers in bringing their Section 403(b) plans into compliance by January 1, 2009, the effective date of the Final Regulations for calendar year plans. Please contact any of the attorneys in our Employee Benefits and Executive Compensation Group if you have questions about the impact of these new regulations on Section 403(b) plan sponsors or on the financial institutions and other organizations that provide Section 403(b) plan funding and administrative services. Harry Atlas (410) 528-2848 Andrea O'Brien (301) 217-5655; (202) 344-4328 hiatlas@venable.com aiobrien@venable.com Jennifer Berman (410) 244-7756 Barbara Schlaff (410) 244-7494 jsberman@venable.com beschlaff@venable.com Kenneth Hoffman (202) 344-4810; (410) 244-7771 Serena Simons (202) 344-4599 krhoffman@venable.com sgsimons@venable.com Thora Johnson (410) 244-7747 Lisa Tavares (202) 344-4075 tajohnson@venable.com latavares@venable.com Jason Levine (202) 344-4629 Martha Jo Wagner (202) 344-4002 jelevine@venable.com mjwagner@venable.com Patricia McDermott (202) 344-8061 John Wilhelm (703) 760-1917 pmcdermott@venable.com jawilhelm@venable.com © Venable LLP. www.Venable.com. 1-888-VENABLE. This alert is published by the Employee Benefits and Executive Compensation Practice Group at the law firm Venable LLP. It is not intended to provide legal advice or opinion. Such advice may only be given when related to specific fact situations that Venable has accepted an engagement as counsel to address. VALUE ADDED, VALUES DRIVEN. ®
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Page 3 and 4: Articles The 2008 Form 990: Putting
Page 5 and 6: earned and the year paid — has be
Page 7 and 8: Articles Association Trends Telling
Page 9 and 10: OLD AND NEW IRS FORM 990 - COMPARIS
Page 11 and 12: "OLD" FORM 990 "NEW" FORM 990 Whose
Page 13 and 14: Employee Benefits and Executive Com
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Page 19 and 20: experience brings broad perspective
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Page 27 and 28: ASSOCIATION & NONPROFIT PRACTICE GR
Page 29 and 30: OUR EXPERIENCE Venable brings to ea
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Page 45 and 46: 1 The New IRS Form 990: What Does I
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Page 49 and 50: 5 THE SUMMARY ‣ New to the Form 9
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23 REMAINING SECTIONS OF CORE FORM
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25 FORM 990 REPORTING: EXECUTIVE CO
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27 EXECUTIVE COMPENSATION - FORM 99
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29 COMPENSATION REPORTING - PURPOSE
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31 2008 FORM - GENERAL STRUCTURE FO
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33 CHANGES MADE BY DISCUSSION DRAFT
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35 THRESHOLDS FOR SCHEDULE J REPORT
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37 ADDITIONAL SCHEDULE J QUESTIONS
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39 PREPARING FOR IMPLEMENTATION ‣
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41 OVERVIEW OF THE SCHEDULES ‣ 16
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43 SCHEDULE A ‣ Change now allows
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45 SCHEDULE B ‣ No changes - requ
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47 Schedule D ‣ Supplemental Fina
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49 Schedule F ‣ Activities outsid
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51 Schedule F ‣ Requires grantmak
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53 Schedule G ‣ Describe relation
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55 Schedule I ‣ Grants and Other
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57 Schedule K ‣ Supplemental Info
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59 Schedule M ‣ Non-Cash Contribu
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61 Schedule N ‣ Liquidation, Term
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63 Schedule R ‣ Related Organizat
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65 Summary ‣ Significant new info
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Form 990 (2008) Part III Statement
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Form 990 (2008) Part IV 28 a 32 33
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Form 990 (2008) Part VI Governance,
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Form 990 (2008) Part VII Continued
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Form 990 (2008) Page 10 Part IX Sta
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SCHEDULE A (Form 990 or 990-EZ) Dep
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Schedule A (Form 990 or 990-EZ) 200
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Schedule B (Form 990, 990-EZ, or 99
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SCHEDULE C (Form 990 or 990-EZ) Dep
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Schedule C (Form 990 or 990-EZ) 200
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SCHEDULE D (Form 990) Department of
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Schedule D (Form 990) 2008 Part VII
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Schedule D (Form 990) 2008 Part XIV
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Schedule F (Form 990) Department of
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Schedule F (Form 990) 2008 Page 3 P
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SCHEDULE F-1 (Form 990) Department
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Schedule F-1 (Form 990) 2008 Page 3
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Schedule G (Form 990 or 990-EZ) 200
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SCHEDULE H (Form 990) Department of
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Schedule H (Form 990) 2008 Part VIV
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SCHEDULE I (Form 990) Department of
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SCHEDULE I-1 (Form 990) Department
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SCHEDULE J (Form 990) Department of
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Schedule J (Form 990) 2008 Page 3 P
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SCHEDULE J-2 (Form 990) Department
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Schedule K (Form 990) 2008 Page 2 P
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SCHEDULE M (Form 990) Department of
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SCHEDULE N (Form 990) Department of
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Schedule N (Form 990) 2008 Part III
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Schedule N-1 (Form 990) 2008 Part I
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Schedule O (Form 990) 2008 Name of
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Schedule R (Form 990) 2008 Page 2 P
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Schedule R (Form 990) 2008 Page 4 P
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Schedule R-1 (Form 990) 2008 Page 2
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Schedule R-1 (Form 990) 2008 Part I
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Schedule R-1 (Form 990) 2008 Part V
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The New IRS Form 990: What Does It Mean For Your ... - Venable LLP

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