Are You Eligible for the Combined Federal Campaign?

The 2013 Combined Federal Campaign (CFC) has been launched and federal organizations across the country are preparing to participate. CFC is the largest and most successful workplace fundraising campaign in the world. It raised $7 billion for thousands of charities over the past 50 years.  In 2012, 130,000 generous federal employees gave nearly $62 million to help neighbors in need around the corner, across the nation and throughout the world.

Through the CFC’s local campaigns, federal employees have the opportunity to donate to thousands of approved charities (see for example, the complete online list of participating charities in the Washington, DC area campaign: 2013 Catalog of Caring).

The theme of this year’s campaign is “Make It Possible,” designating all the ways the CFC campaign makes it possible for federal employees to make the world a better place.  Many federal agencies will be kicking off their campaigns on October 1 and will run them until December 15 to allow employees to choose charities to receive their donations.

Although it is too late to get onto the list for 2013’s campaign (for money that will be distributed in 2014), Catholic organizations may want to apply to be on the list of eligible organizations in late 2014 (for distributions made in 2015).

RCRI produced a webinar on the CFC in 2012. You can view the webinar and learn more about this potential for fundraising at this link: http://www.trcri.org/members/CFC.php.

EMPLOYER “DID YOU KNOW” PPACA FACTS

Some employers are unaware of some very important requirements and looming deadlines by which they must abide under the new health care law. We have grown accustomed to seeing the IRS and HHS named as the governing bodies in the implementation and enforcement of the PPACA, but the Department of Labor (DOL) is the third agency that is tasked with implementing and governing the new law. Below are a few often overlooked provisions that the DOL has published. Leaders of religious institutes and business office personnel should take notice and make sure that their sponsored ministries are compliant.

(1) Employers Must Give Employees Notice of Coverage Options by October 1, 2013 
Originally set for March 1, this deadline was extended until October 1, the same date that the state marketplace exchanges are set to open for business. See http://www.dol.gov/ebsa/newsroom/tr13-02.html.

This provision applies to virtually ALL employers no matter how many employees you have. It is incorporated into the Fair Labor Standards Act (FLSA), and it requires employers to provide a notice of coverage options to each employee, regardless of plan enrollment status (if applicable) or of part-time or full-time status. (Employers are not required to provide a separate notice to dependents.)

•  Employers are required to provide the notice to each new employee at the time of hiring beginning October 1, 2013. For 2014, the Department will consider a notice to be provided at the time of hiring if the notice is provided within 14 days of an employee’s start date. 
• With respect to employees who are current employees before October 1, 2013, employers are required to provide the notice not later than October 1, 2013. The notice is required to be provided automatically, free of charge. 

The notice must be provided in writing in a manner calculated to be understood by the average employee. It may be hand-delivered directly to the employee, provided by first-class mail, or delivered electronically (if the employee has access to email at work and is sure to get it). Posting a central notice in a common area does not suffice.

The notice that an employer sends must be in writing and it must inform the employee:

• …of the existence of the Marketplace (Exchange) including a description of the services provided by the Marketplace, and the manner in which the employee may contact the Marketplace to request assistance; 
• …that if the employer plan's share of the total allowed costs of benefits provided under the plan is less than 60 percent of such costs, that the employee may be eligible for a premium tax credit if the employee purchases a qualified health plan through the Marketplace; and 
• …that if the employee purchases a qualified health plan through the Marketplace, the employee may lose the employer contribution (if any) to any health benefits plan offered by the employer and that all or a portion of such contribution may be excludable from income for Federal income tax purposes. 

Sample Notices for Employers to Adapt for Employees
-For a sample notice that employers can use for employees to whom they offer health insurance coverage, go to this link.
-For a sample notice that employers can use for employees to whom they do NOT offer health insurance coverage, go to this link.
The differences in these notices is very subtle, but be careful to use the correct one. Also, be sure to fill in the blanks with the applicable contact information when called for.

(2) Automatic Enrollment in Health Plans when employers have more than 200 employees http://www.dol.gov/ebsa/faqs/faq-aca5.html
PPACA amended the FLSA by adding a new section requiring employers with more than 200 full-time employees to automatically enroll new full-time employees in the employer’s health benefits plans and continue enrollment of current employees.

What Agency is responsible for guidance under this new FLSA provision? 
The Secretary of Labor has delegated responsibility for rulemaking and for regulations of this new provision to the Employee Benefits Security Administration (EBSA) within the DOL. EBSA and the Department of the Treasury will coordinate to develop the rules that will apply in determining full-time employee status for purposes of the amendments to the FLSA and the rulemaking by the Treasury Department under the Internal Revenue Code to develop the rules that will apply in determining full-time employee status.

When do employers have to comply with the new automatic enrollment requirements of the FLSA? 
Are you ready for this answer? Section 18A provides that employer compliance with the automatic enrollment provisions of that section shall be carried out “[i]n accordance with regulations promulgated by the Secretary [of Labor].” Accordingly, it is the view of the Department of Labor that, until such regulations are issued, employers are not required to comply with section 18A. The Department of Labor expects to work with stakeholders to ensure that it has the necessary information and data it needs to develop regulations in this area that take into account the practices employers currently use for auto-enrollment and to solicit the views and practices of a broad range of stakeholders, including employers, workers, and their families. The Department of Labor intends to complete this rulemaking by 2014.

(3) Ninety Day Waiting Period Limitation for New Employee Coverage (Link is here)

New DOL regulations propose that a group health plan, and a health insurance issuer offering group health insurance coverage, not apply any waiting period that exceeds 90 days. (Neither a plan nor an issuer offering coverage is required to have any waiting period.) If, under the terms of the plan, an employee can elect coverage that becomes effective on a date that does not exceed the 90-day waiting period limitation, the coverage complies with the waiting period rules, and the plan or issuer will not be considered to violate the waiting period rules merely because individuals choose to elect coverage beyond the end of the 90-day waiting period.

This provision is effective January 1, 2014. The proposed regulations have several sample scenarios to help employers figure out if their plans are or will be compliant with the provision when it takes effect.

How Well Do You Know Your Bible?

If you are relaxing tonight, flipping channels, and looking for something to watch on the television, consider a 9:00 (Eastern time) detour over to the Game Show Network (GSN) where you can watch a fun episode of "The American Bible Challenge." (To see if the channel is available in your area, go to the GSN TV website and enter your zip code. Note the time differences also for those not in the Eastern time zone!)

What will make this program fun tonight is that a team of three Dominican Sisters from Michigan (Dominican Sisters of Mary, Mother of the Eucharist) will be competing in the semifinal round of this family-friendly quiz show that is a cross between "Minute to Win It" and "Are You Smarter than a Fifth Grader?" Jeff Foxworthy is the host of the program, and he will entertain you in his own comic style.

Sister Peter Joseph, Sister Maria Suso, and Sister Evangeline

Here is a snippet from the three young Sisters' previous appearance on the game show.

I learned about the Sisters' upcoming semifinal round appearance on Zenit. You can read more about them and their religious institute at this link.

We wish the Sisters the best of luck in their endeavor!

Certain Tax Return Preparers Freed from Exam and Continuing Education Requirements

Two weeks ago, individuals who assist with the filing of tax returns won a significant victory over the IRS. The lawsuit filed by three individual tax return preparers in March of 2012 charged that the IRS did not have the authority to require them to complete an exam and attend continuing education classes annually. These requirements had been enacted by the IRS in 2011, as a means of trying to ensure that those who are paid to assist others with the filing of their tax returns are competent to do so. However, the requirements placed a heavy burden on many small business preparers who were subjected to the rigorous requirements. For example, the fee to take the exam was $116.

On January 18, 2013, the United States District Court for the District of Columbia agreed with the plaintiffs and enjoined the Internal Revenue Service from enforcing the regulatory requirements for registered tax return preparers. In accordance with this order, tax return preparers covered by this program are not required to complete competency testing or secure continuing education. The ruling does not affect the regulatory practice requirements for CPAs, attorneys, enrolled agents, enrolled retirement plan agents or enrolled actuaries.



Two weeks after that decision of the District Court, on Friday, Feb. 1, the court clarified its order and said  that it does not affect the requirement for all paid tax return preparers to obtain a preparer tax identification number (PTIN). Consistent with this modification, the IRS has reopened the online PTIN system. The current PTIN sign-in page is being modified, so until then, those signing in as registered tax return preparers can answer however they choose when asked if they have completed the educational requirements.

For more information go to www.irs.gov/taxpros.

To access the case Loving v. Internal Revenue Service, go to this link at www.leagle.com.

Pay Now or Pay Later?

Credit cards have become an almost indispensable part of conducting business in this country. Even the most routine and mundane of purchases see us using the number-emblazoned plastic to complete a transaction. Generally speaking, with credit cards we can track our purchases, pay all at once, and not have to worry about running out of cash in a bind. They have become a necessity for some rather than a mere convenience.

However, a change happened this week that could make you think twice about swiping that card at some retail establishments. As a result of a settlement in a lawsuit that dragged on for over seven years involving a number of retail merchants against the two biggest credit card issuers -- Visa and MasterCard -- merchants are now free to pass along to their customers certain "swipe fees" that the issuers charge to merchants for the use of their cards by customers.

The fees generally apply to credit cards
rather than debit cards.

For decades Visa and MasterCard prohibited merchants who accept their credit cards from charging a fee to customers to compensate the merchant for having to pay a percentage fee to MasterCard or Visa. (Discover and American Express were not named as defendants in the lawsuit.) Merchants must contract with the credit card issuers whose cards they accept in order to set up the payment process, so these two issuing companies essentially held a monopoly on the credit industry. Merchants who wanted to increase their business by accepting credit cards were told by these two card issuers that they could not charge a "swipe fee" to customers, meaning merchants were not allowed to pass on the fee atop the established price.

Here's an example. If a customer came to XYZ store and purchased $100 worth of goods, Visa and MasterCard would only send the merchant $97 to $99, depending on the fee arrangement (based on volume of sales and other factors). The "swipe fee" was called an administrative fee -- it is how credit card companies make money since (believe it or not) a majority of consumers pay off their bills on time monthly and thus owe no interest or finance charges. If a customer was forced to cover that $3.00 fee (thus paying $103 for a $100 purchase), s/he may go elsewhere for a credit card that did not charge the merchant, and who was thus not passing it along to the customer. So the prohibition was a way that the issuers could make the retailer absorb the cost of doing business.

But for some merchants, that cost of doing business put them out of business in the highly competitive markets. Some merchants found creative ways around the problem, such as offering a discounted lower price for those who pay with cash -- a favorite of gas stations across many states. But this did not truly resolve the credit card dilemma -- since many people do not carry cash in large enough quantities to cover purchases.

The class action law suit was an attempt by several thousand merchants who cried foul over what they deemed to be an unfair practice by Visa and MasterCard. The two companies have such a large market share of the credit industry that they were able to suppress the freedom of retailers and control the commerce with their contractual obligations and prohibitions. The court agreed with much of the plaintiffs' arguments, and is now considering approving a $7.2 billion dollar settlement that millions of plaintiffs would have to share. Although the settlement of the lawsuit is still pending final approval, January 27 was the date on which merchants were allowed to start charging up to a 4% surcharge on credit cards issued by these two credit industry giants. Several large merchants, such as Target, Home Depot, and Wal-Mart, have said they will not tack on the credit card surcharge when customers pay by Visa and MasterCard credit cards. Some smaller companies are unwilling--or unable-- to make that promise.

There are still a number of troubling unresolved issues in case that continue to make some retailers unhappy. For instance, Visa and MasterCard have not been precluded from re-imposing the prohibition later, and they will be free to raise the interchange rates that they charge in the future. A final hearing on the settlement is set for September of this year.

Prayer Request for a Wisconsin Baby as He Recovers

Posted by Donna Miller

For two months now, I have been following the progress of a baby boy in Wisconsin named Dominic Pio. This amazing baby has been through so much in his short life. Baby Dominic was born with a facial deformity, and a month ago today he underwent major surgery to remove the growth from his face.

Because of the interest that was generated in Dominic's story, his mother started a blog to update friends and loved ones on the progress he is making. That is how I learned of Dominic and his family's journey. You can read all about what Baby Dominic Pio  has been through at www.dominicpio.com.

My reason for telling our members about this story is not legal or financial or canonical in nature. It is simply that Mary Gundrum, Dominic Pio's mother, posted a video that their friends made for Dominic Pio and his family. In the video, they give a nod of appreciation to one of our RCRI members organizations--the Schoenstatt Sisters of Mary of Waukesha, Wisconsin--for giving the performers a place to practice and for all their prayers for Dominic Pio. Here is the inspiring video.

I'm sure the Gundrum family will appreciate 

all who keep Baby Dominic in their prayers!

Happy New Year and Fiscal Cliff Averted

We at RCRI want to wish all of our members a very Happy New Year. Our office will reopen tomorrow and we'll dive right into our daily tasks. We look forward to welcoming Brother Larry in March when he joins us as our new Director for Administration and Finance.

Early this morning the Senate voted on measures to avoid the devastating measures that kicked in at midnight. One of the many important changes that came from the bill is that it did NOT renew the 2 percentage point reduction in Social Security taxes that employees have enjoyed for the last two years. So employers must again withhold the entire 6.2 percent from employees' earnings, the same amount that the employer contributes.

Also as a result of the deal to avoid going over the fiscal cliff, the CLASS Act, part of Obamacare, has been  repealed. It would have benefited mostly seniors, but it would also have cost an arm and a leg -- $3000 a month. Republicans and Democrats alike realized the provision was not sustainable, so it is now history.

As we review the the Senate deal and await its passage in the House, we will continue to report on provisions that will affect religious institutes.

Another change in 2013 (not part of the fiscal cliff deal, just a regulation that kicks in today) is that the 75-watt incandescent bulbs is now obsolete. They can no longer be manufactured in nor imported into the United State. Once they are sold out from store shelves, you will not be able to get them in the U.S. Next year  40- and 60-watt incandescent bulbs will follow suit.

Lastly for now, our website password will not change until later this week. Since we are not in the office until tomorrow, we will delay the change for several days. If you have renewed your membership, your contact persons will receive an email containing the new password by the end of Friday's work day. If you have not yet renewed, then you will not be able to access the website when the password changes. When you do renew, you will then receive the password and be able to sign up for upcoming webinars.

We look forward to seeing and hearing from you in the coming year!