Common Infertility HRA Expenses

Question:  What are some common infertility related expenses that an employer’s infertility HRA could cover?  Compliance Team Response: Infertility HRAs are an increasingly common employer-sponsored benefit to provide employees with a tax-advantaged vehicle to cover all or a portion of their infertility expenses that are not covered by the major medical plan. For more details […]

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 […]

No FSA Contributions from Bonus Payments

Question: In this bonus season, an employee has requested additional dependent care FSA and commuter benefits deductions from his bonus. Is that permitted? Compliance Team Response: Section 125 Dependent Care FSA: No Contributions from Bonus Our recommendation is that the company not take additional dependent care FSA contributions from an employee’s bonus check. The Section […]

Only HCEs Participating in the Dependent Care FSA

Question: What happens when the cafeteria plan nondiscrimination pre-test results show that only highly compensated employees (HCEs) have elected the dependent care FSA? Compliance Team Response: Unfortunately, there is no way to pass the nondiscrimination testing requirements for the dependent care FSA if only HCEs participate.  The employees’ remaining contributions in the FSA will simply […]

Dependent Care FSA for Part-time Work

Question: Can an employee reimburse day care expenses under the dependent care FSA if the employee (or spouse) is working part-time?    Compliance Team Response:   In general, work can be full-time or part-time to qualify—as long as the daycare expense enables to the individual to work.  A day on which the individual works at […]

Trends in Work Related Injuries and Illnesses

The Department of Industrial Relations has reported California’s 2016 occupational injury and illness data. Data collected by the U.S. Bureau of Labor Statistics’ Survey of Occupational Injuries and Illnesses showed California’s overall incidence rate was at the lowest it has been in over a decade, with a reported 3.7 cases per 100 full time workers. […]

FCA Changes at the SEC, and Impact to Ds&Os

Early this month, the House of Representatives passed the Financial Choice Act of 2017 (the “FCA”). This bill extensively amends the Dodd Frank Act that was enacted in 2010 after the financial crisis. It now goes to the Senate, where more debate and publicity will likely occur. The most significant change proposed in the FCA […]