How ACA Affects Flex Credits

Question:  What are some of the main compliance considerations for employers that are implementing a flex credit contribution approach? Compliance Team Response: Flex credits are a feature available under a Section 125 cafeteria plan for employers to provide a defined contribution amount that employees may allocate among various qualified benefits. Employers enjoy a considerable amount […]

ACA Employer Mandate and Outside Staffing Firms

Question:  How does the ACA employer mandate apply to workers hired through an outside staffing firm? Compliance Team Response: ACA Employer Mandate: Applies to Common-Law Employees The ACA employer mandate rules apply only to an employer’s common-law employees. ACA Employer Mandate: Workers Payrolled Through an Outside Staffing Firm Full-time workers hired through an outside staffing […]

Common Summer Intern Approaches Under the ACA

Question:  What are some common options for employers in deciding how and when to offer health plan coverage to summer interns? Compliance Team Response: ACA Employer Mandate General Rule: New Full-Time Hires The ACA employer mandate pay or play rules permit a standard limited non-assessment period for new full-time hires. That limited non-assessment period generally […]

IRS Releases 2020 Inflation Adjusted Amounts for HSAs

The IRS has released Revenue Procedure 2019-25 detailing the HSA contribution limit increases for 2020. The 2020 HSA contribution limit for individual coverage will increase by $50 to $3,550. The 2020 HSA contribution limit for family coverage (employee plus at least one dependent) will increase by $100 to $7,100. The catch-up contribution limit of $1,000 […]

Dependent Care FSA During Maternity Leave

Question:  Are an employee’s daycare/nanny costs eligible for reimbursement under the dependent care FSA when the employee’s spouse is a new birthing mother who is disabled while on maternity leave? Compliance Team Response:   Dependent Care Expenses Must be “Employment-Related” Employees’ dependent care expenses are eligible for reimbursement under the dependent care FSA only if […]

Dependent Care FSA During Summer Break

Question:  When are summer dependent care expenses reimbursable under the dependent care FSA? Compliance Team Response: Summer Day Camps: Eligible Expense Day camps for qualifying individuals (generally children under the age of 13) are eligible expenses.  These expenses qualify even if the camp specializes in a particular activity, such as computers or soccer. Important Timing […]

ERISA Preemption of State Insurance Mandates

Question:  Are ERISA self-insured health plans required to provide coverage for state insurance mandates? Compliance Team Response: State insurance mandates do not apply to self-insured health plans subject to ERISA. For these purposes, “self-insured” refers to any plan option that is not fully insured.  For example, a level-funded plan is treated as a self-insured plan […]

Employers Should Not Reimburse Medical Expenses Outside of the Plan

Question: What are the issues preventing an employer from reimbursing an employee’s out-of-pocket medical expenses? Compliance Team Response: Overview The main concern is that an employer’s reimbursement of a medical expense creates a group health plan that has to comply with the full array of laws governing employer-sponsored group health plans. Medical expenses are defined […]

ACA Status for New Full-Time Hires in the Gap Period

Question:  How does an ALE determine the ACA status of a new full-time hire who experiences a reduction in hours prior to reaching a stability period under the look-back measurement method? Compliance Team Response: Reminder: Very Different Approach Depending on Measurement Method There are two different approaches for an applicable large employer (ALE) subject to […]