Mid-Year Enrollment of a Domestic Partner

Question:  When should an employer permit an employee to enroll a domestic partner in the health plan mid-year? Compliance Team Response: The Section 125 permitted election change event rules generally do not apply to domestic partner coverage because employees pay for such coverage on an after-tax basis (unless the domestic partner is the employee’s tax […]


Welcome to Compliance Friday Answers to the Service Team (FAST)!  Each Friday we publish our response to a question that the ABD Compliance Team received from a client or member of the EB Service Team.  These represent the most frequently asked (or interesting) questions we see. We post all of our FAST responses on the […]

Health FSA and Dependent Care FSA for Parents

Question:  When can an employee use the health FSA or dependent care FSA for a parent’s expenses? Compliance Team Response: Health FSA for Parents In order to take a distribution from the health FSA for a parent’s medical expenses, the parent must be a tax dependent under IRC §152 (as modified by §105(b)). This standard […]

How to Talk About Pay at Work

We all know the reason for work – we work to get paid, so why is the conversation of salary so awkward and taboo? “Pay is a deeply personal issue for everyone. Dissatisfaction with pay can make a huge impact on employee engagement and how likely they are to stay at your company.” Employees can […]

Overspent Health FSA Upon Termination of Employment and Life Event

Question:  Can a cafeteria plan require employees to continue health FSA contributions upon experiencing a mid-year life event if the account is overspent? Compliance Team Response: That clearly is not permitted where an employee terminates employment.  However, as discussed below, the rules appear to be different where the employee experiences any other mid-year permitted election […]

How ABD Gives Back to the Community

ABDers are passionate about giving back to the community. Through our annual golf tournament, we’ve raised over $350k for the American Cancer Society and 85% of our team members volunteer for or support financially over 125 organizations. During the month of December, we’ve been featuring team members and how they give back during the holidays. […]

Washington State Paid Family and Medical Leave

Beginning January 1, 2020, employees who have worked at least 820 hours in employment in the last four completed calendar quarters will be eligible for between 12 to 18 weeks of leave annually to: Care and bond after a baby’s birth or placement of a child younger than 18 Care for a family member experiencing […]