Employers Need More Same-Sex Marriage Guidance

Kevin Hogan • February 5, 2014

Last summer, the Supreme Court determined that the Defense of Marriage Act (“DOMA”) was unconstitutional.  The Supreme Court’s ruling in United States v. Windsor had the effect of extending many employee benefits to same-sex spouses.  Employee benefit plans were significantly impacted by the ruling, and, as a result, the IRS and the Department of Labor released guidance explaining the treatment of same-sex spouses for federal tax purposes after Windsor , including the impact on employee benefit plans.  Importantly, the guidance provides that the term “marriage” includes a marriage between individuals of the same sex if that marriage was validly performed in a jurisdiction that allows same-sex marriage. This is known as the “state of celebration” standard.

The guidance published by the federal agencies was effective September 16, 2013 on a prospective basis, but it does not address questions that the Windsor decision raises if the opinion has retroactive effect.  For example, are previously denied qualified domestic relations orders (“QDROs”) now valid or should employees with a same-sex spouse who were not offered a qualified joint and survivor annuity (“QJSA”) be offered another opportunity to make such election.  The agencies have indicated that they intend to issue further guidance on qualified plans in the very near future.  We are keeping an eye out for this guidance and plan to report on it as soon as it is released.

For more information on the application of the Windsor decision, please see the following links:

  • IRS Revenue Ruling 2013-17 , DOL Technical Release 2013-04 , our September 9, 2013 Legal Alert, Agencies Issue Guidance on Same-Sex Marriage Impacting Employee Benefits for more information on the “state of celebration” standard.
  • IRS Notice 2013-61 for information on payroll taxes and procedures for employers to make adjustments or claims for refund or credit.
  • IRS Notice 2014-1 for information on cafeteria plans, flexible spending arrangements and health savings accounts.
  • DOL Fact Sheet #28F was updated to include same-sex spouse in the definition of spouse for purposes of the Family & Medical Leave Act, but note that the current FMLA guidance uses a “state of residence” standard. The DOL has informally indicated that it will be revising regulations to use a “state of celebration” standard.

Employee burnout: what it is and how to prevent it

By Mardy Gould • May 24, 2024
Employee burnout has become an epidemic in today’s modern workplace. So much so that the World Health Organization (WHO) officially recognizes it as an “occupational phenomenon.”1 While many used to consider mounting workplace stress an individual employee problem, these days, it’s become an employer’s responsibility to prevent burnout before it hurts productivity and business performance—not to mention your employees’ physical and mental health. Luckily, you can prevent burnout from affecting your workforce in several ways. This article will explore the causes and signs of employee burnout and the steps you can take to create a positive work environment where employees feel safe from toxic stress levels.

Form 720 and PCORI fee FAQs

By Mardy Gould • May 23, 2024
If you're a small business owner, you may have heard of the acronym PCORI and the fees that come with it. But what is PCORI, and how does it apply to your organization? Under the Affordable Care Act (ACA), sponsors of self-insured health plans must pay a fee to fund the federal Patient-Centered Outcomes Research Institute (PCORI). PCORI is an independent organization the ACA created to conduct research to help healthcare consumers make better decisions for their specific needs and outcomes. It also performs research related to clinical effectiveness. Employers offering a self-insured medical reimbursement health plan, such as a health reimbursement arrangement (HRA), must pay this fee by July 31 each year via Form 7201. This fee was initially set to expire in 2019, but Congress extended it through September 30, 20292, due to the Further Consolidated Appropriations Act of 20203.
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