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Massachusetts Finally Authorizes Second Chance Elections for Mini-COBRA

Excerpt: A second chance mini-COBRA enrollment in MA will be effective as of August 1, 2009. It can last for the duration of the 18 month period that would have applied if mini-COBRA had been elected at the time of the involuntary termination. Notification of this new right is required within 60 days of the new MA law's enactment on July 2, 2009. Small employers should coordinate with their insurers immediately to determine whether the carrier will send the notice or whether the employer is stuck with that chore.

Massachusetts Supreme Court Takes Tough Stance on Vacation Pay

Excerpt: Massachusetts employers should review their vacation and paid time off ('PTO') policies, to be sure they comply with a recent MA Supreme Court decision, ELECTRONIC DATA SYSTEMS CORPORATION vs. ATTORNEY GENERAL & another, SJC 10260 .... [Note to lawyers: [embedded] link is to the slip opinion.] The Court ruled that EDS, a Massachusetts employer, must pay for accrued vacation time when it terminates an employee. An employer policy which defined unused vacation time as 'unearned' and forfeitable was declared void. The Court upheld an Attorney General citation requiring EDS to pay the vacation accruals plus a 200% penalty.

The New Continuation Statute in Rhode Island Relating to Insurance - Extended Medical Benefits

Excerpt: This act would provide a method to resume extended medical coverage when a person has declined to elect coverage within the timeframe provided.

Age-Weighted Plans Made Simple (PDF)

2 pages.

Massachusetts Will Tax Unincorporated Owners and Partners on 401(k)

Excerpt: The Department of Revenue ... just confirmed that it wants current taxes from the self-employed and partners ('Unincorporated Owners') on their 401(k) deferrals and matches. For a 50 year old who saves $20,000, that's $1,060 up front to the Commonwealth at the 5.3% rate.

Massachusetts May Tax Unincorporated Owners and Partners on 401(k)

Excerpt: Starting in 2008, DOR says it will want current taxes from the self-employed and partners ('Unincorporated Owners') on their 401(k) deferrals and matches. For a 50 year old who saves $20,000, that's $1,060 to the Commonwealth at the 5.3% rate. Provided that the Unincorporated Owners keep records, they can then deduct this Massachusetts 'basis' many years later, when they eventually get paid from the plan.

IRS Applies Wash Sale Rules to IRAs, and Maybe to Other Directed Accounts

Excerpt: Ideally, Section 1091 wash-sale rules should only apply to replacement purchases by IRAs, and should not extend to the other types of directed plans. Conservative taxpayers, however, will take the approach that purchase by any directed account, in whatever form, will trigger the wash sale rule of Section 1091.

Massachusetts May Tax Owners and Partners on 401(k) Deferrals and Matching Amounts, According to Draft Directive

Excerpt: For taxable years beginning on or after January 1, 2008, this Directive clarifies and prescribes the Massachusetts personal income tax treatment of contributions made on behalf of partners and other self-employed individuals under a so-called 401(k) plan. As explained in this Directive, under G.L. c. 62 § 2(d)(1)(D), partners and other self-employed individuals are denied any deduction for contributions to their 401(k) plans, irrespective of whether the contributions are elective contributions or matching contributions made on their behalf.

More Rules for Massachusetts Health Care

Excerpt: During the holidays, State regulators were formulating new guidance for sponsors of health plans in Massachusetts. The focal point was continued coverage for children beyond the time when they can be claimed as dependents on a federal tax form. This article explains Bulletin 2008-1 (the 'Bulletin') from the Division of Insurance, and TIR 07-16 (the 'Release') from the Department of Revenue.

Overview of the Civil Union Law Which Takes Effect in New Hampshire on January 1, 2008

Excerpt: This article is meant to help employers understand rights and obligations in the workplace. It does not address knotty issues which confront same-sex couples moving to NH from other states, and NH same-sex couples who may already have married in Massachusetts or Canada. Generally, these marriages or unions will be respected, and will not have to be renewed under NH procedures.