Operations

David Heinen, Vice President for Public Policy and Advocacy

New IRS regulations address a quirk in the Affordable Care Act (ACA) health insurance marketplace known as the “family glitch” and may provide relief for employees covering family members on group health insurance plans. Specifically, covered family members may be eligible for subsidies under the ACA on individual plans. Join Marsh McLennan Agency to learn about the “family glitch” changes and how they may benefit your family.

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Legislation moving through the NC Senate (S.410) and NC House of Representatives (H.B 320) would make it easier for nonprofits with members to conduct meetings remotely and for nonprofit board members to use email to take action by unanimous written consent.

The Center is appreciative of Representative Brandon Lofton (D-Mecklenburg) and Senator Mike Woodard (D-Durham) for introducing legislation to bring state nonprofit statutes into better alignment with best practices for nonprofit organizations.

The Center recently visited Washington, DC to advocate with our members of Congress on nonprofit issues. These include:

1. Protecting nonprofit nonpartisanship.

2. UBIT

3. Universal charitable deduction.

4. 2020 U.S.Census

5. Public Service Loan Forgiveness Program

At the Center’s recommendation, both the House and Senate included a provision in their regulatory reform bills that could save money for many small nonprofits with fewer than three employees. Under state law, any employer with three or more employees is required to purchase workers’ compensation insurance. The definition of “employee” in the current law includes nonprofit board officers, meaning that small nonprofits with three or more board officers (i.e. almost all nonprofits) are required to take on an often unnecessary expense.

The N.C. General Assembly is considering a bill (H.B. 482) that would create new penalties for nonprofits and businesses that improperly classify their workers as independent contractors rather than employees. Nonprofits that misclassify their employees and fail to provide benefits such as workers’ compensation or unemployment insurance benefits could face fines ($1,000 per misclassified worker) and could be barred from state contracts for five years.

Independent Contractor or Employee? - For federal tax purposes, there is an important distinction between employee and independent contractor. Worker classification affects how you pay your federal income tax, social security and Medicare taxes, and how you file your tax return. Classification affects your eligibility for social security and Medicare benefits, employer provided benefits and your tax responsibilities. If you aren’t sure of your work status, this brochure can help you determine it.

A bill (S.362) filed in the NC Senate would create a new annual filing requirement for nonprofits that are incorporated in North Carolina. Main requirements of the bill include: