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New Reporting Requirements

August 10, 2011

New Health Insurance and New Hire Reporting Requirements

Special Bulletin for New York Employers Regarding the Low Income Support Obligation and Performance Improvement Act

Starting July 15, 2011, New York state employers are required to report whether dependent health insurance benefits are available to their employees on quarterly wage and new hire reports. The Low Income Support Obligation and Performance Improvement Act, which amends New York Tax Law Sections 171-a and 171-h, is an effort to increase the number of children enrolled in health insurance programs.

The NYS-45 is expected to be revised shortly to include a new entry area. Until the revised NYS-45 is available, employers should work with their payroll providers to determine how to identify employees with dependent coverage available

Quarterly Wage Reporting
Under the Act, employers are now required to disclose on Form NYS-45 (Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return) the availability of dependent health insurance benefits to employees. The NYS-45 is expected to be revised shortly to include a new entry area. Until the revised NYS-45 is available, employers should work with their payroll providers to determine how to identify employees with dependent coverage available.

New Hire Reporting
The Act also requires employers to report whether dependent health insurance benefits are available to newly hired or re-hired employees, as well as the date that such employees become eligible for dependent health coverage. The availability of dependent health coverage must be reported on Form IT-2104 (Employee's Withholding Allowance Certificate) or Form IT-2104-E (Certificate of Exemption from Withholding) to comply with the Act. Both Form IT-2104 and Form IT 2104-E were updated in May 2011 to reflect this new requirement. Alternatively, employers may submit the information electronically at www.nynewhire.com. It should be noted that while employers could previously fulfill their new hire reporting obligations by submitting a Form W-4, that form alone no longer suffices.

Impact on Employers
Given that the new quarterly wage and new hire reporting requirements are effective July 15, 2011, New York state employers should begin compliance efforts immediately. Employers using payroll providers to file quarterly wage and new hire reports should coordinate with their payroll providers to determine how to identify and report employees who qualify for dependent health insurance benefits.

For more detailed information visit the link listed below:
Employer's Guide to Unemployment Insurance, Wage Reporting, and Witholding Tax

Category: ACL Updates