Loss of Health Plan Eligibility Caused by Move to Part-Time Work

Question:  When does an employee lose health plan eligibility upon a change in employment status to part-time work? Compliance Team Response: Reminder: Very Different Approach Depending on Measurement Method There are two different approaches for an applicable large employer (ALE) subject to the ACA employer mandate pay or play rules to determine employees’ full-time status: […]

Employer Commuter Benefit Subsidies

Question:  What compliance issues should employers be aware of if they want to add a commuter benefit subsidy? Compliance Team Response: General Tax-Advantaged Status of Qualified Transportation Plans Under IRC §132(f) IRC §132(f) provides a tax-advantaged limit of $265 per month that may be contributed to a transit pass/vanpooling and/or parking commuter benefit program.  This […]

SF HCSO City Option Contributions

Question:  What are the basic rules that apply for SF HCSO City Option Contributions that are used to fund a SF MRA for employees? Compliance Team Response: City Option Contributions Employers subject to the SF HCSO must make quarterly contributions to the City Option for covered employees if the employer is not satisfying the required […]

How the ACA Applies to Contingent Workers

Question:  What are the ACA rules surrounding offering benefits to the contingent workforce, and how do most employers approach the issue? Compliance Team Response:   The “contingent workforce” category generally breaks down into three practical groups that each require a separate analysis: Employees on the Employer’s Payroll Employees Hired Through an Outside Staffing Firm Properly […]

California and New Jersey HSA State Income Tax

Question:  Which states tax HSAs at the state income tax level, and how does that affect employers? Compliance Team Response: General Rule: HSAs are Triple-Tax Advantaged HSAs offer an unparalleled three tiers of federal tax savings: Pre-Tax Contributions Employee contributions through payroll are made on a pre-tax basis through the Section 125 cafeteria plan Employee […]

Annual PCORI Fee Deadline Coming July 31st

PCORI – An ACA Fee That is Nearing the End If you have a calendar year self-insured medical plan, 2019 will be the last year that you will need to pay PCORI fees.  Non-calendar year plans with plan years ending between January and September 2019 will have one more payment due in 2020. The fee […]

Massachusetts Delays Payroll Tax and Notification Requirement

Massachusetts has announced a three-month delay to the new Massachusetts Paid Family and Medical Leave (PFML) law tax.  Payroll contributions are now scheduled to begin October 1, 2019. What is Staying the Same Beginning January 1, 2021, employees who meet certain financial requirements (have earned at least $4,700 during the last four completed calendar quarters, […]

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 […]