December Compliance Calendar Important Dates

Staying compliant with federal regulations is crucial for businesses, particularly as the year ends. December 2024 marks a critical period for meeting compliance obligations. This guide outlines key dates and actions for employers to ensure they remain on track with their legal responsibilities.

December 15, 2024: Provide Summary Annual Report (SAR) to Plan Participants

If your organization manages a calendar-year benefits plan and filed for an extension on Form 5500, you must distribute the Summary Annual Report (SAR) to plan participants by December 15, 2024.

Who Must Provide the SAR?

• Calendar-year plans: Employers with an extended Form 5500 deadline.
• Filing timeline: Generally, SARs are due nine months after the plan year ends. If an extension is granted, the deadline is extended to two months after the new Form 5500 submission deadline.

Exemptions from SAR Requirements

• Plans exempt from Form 5500 filing.
• Unfunded welfare plans.

Employers should confirm their plan’s status and ensure timely delivery of the SAR to meet compliance obligations.

December 31, 2024: Submit Gag Clause Attestation for Health Plans

Under federal transparency regulations, all health plans and insurance issuers must submit an attestation of compliance with the prohibition on gag clauses by December 31, 2024. This process ensures transparency and accountability in health plan operations.

What Are Gag Clauses?

Gag clauses prevent health plans from sharing pricing information and other critical details with plan participants or providers. Prohibiting these clauses ensures consumers have access to transparent and fair healthcare pricing.

How to Submit an Attestation

• Submission portal: Employers and issuers must complete their attestations through the CMS website.
• Fully insured plans: If the insurance provider handles the attestation, the health plan itself is exempt.
• Self-insured plans: Employers may delegate the task to their third-party administrators (TPAs), but the legal obligation remains with the employer.

Timely submission protects employers from penalties and demonstrates compliance with federal health plan transparency requirements.

Compliance Checklist: Year-End Priorities

As 2024 concludes, businesses should review and finalize all outstanding compliance tasks. The following checklist ensures no critical items are overlooked:

1. Complete Annual Performance Reviews

• Finalize all employee evaluations for 2024 to maintain records of workplace performance and development.

2. Schedule and Finish Employee Training

• Ensure mandatory training, such as workplace safety, harassment prevention, or industry-specific certifications, is completed before the year's end.

3. Update Tax Withholding Forms (Form W-4)

• Encourage employees to review and update their Form W-4 for 2025 if they’ve experienced significant life changes, such as:
  • Marriage or divorce.
  • Birth of a child.
  • Adjustments in income or deductions.

4. Conduct Nondiscrimination Testing

• Perform annual testing for benefit plans subject to nondiscrimination requirements, including:
  • Section 125 cafeteria plans.
  • Self-insured health plans.
  • Flexible Spending Accounts (FSAs) for health and dependent care.
  • Health Reimbursement Arrangements (HRAs).
  • Group-term life insurance.
  • Retirement plans.

Timely testing ensures compliance with federal regulations and avoids penalties.

Why Compliance Matters

Failing to meet these critical deadlines can result in penalties, increased scrutiny from regulatory agencies, and potential legal risks. Regular reviews and updates to compliance protocols keep businesses aligned with federal requirements and foster trust among employees and stakeholders.

Conclusion: Prepare for a Compliant 2025

By adhering to these essential compliance deadlines, businesses can end the year on a strong note and set the stage for a successful and legally compliant 2025. Start now to ensure all tasks, from SAR distribution to gag clause attestations, are completed promptly. Use this guide to stay ahead of regulations and maintain smooth operations into the new year.

Contact a TPG Payroll & HR Specialist at 909.466.7876 for more guidance on next year's important compliance dates and Payroll support!

Also, check out the November 2024 Compliance Calendar's Important Dates and the New 2025 Notice Requirement for Fixed Indemnity Coverage on our blogs/resources page!