Question: How does enrollment in another employer-sponsored group health plan or Medicare affect a qualified beneficiary’s COBRA rights? Compliance Team Response: Short Answer: COBRA generally terminates early where the qualified beneficiary first becomes covered under another group health plan or Medicare after COBRA is elected. General Rule: COBRA Maximum Coverage Period Absent an early […]
New California Law Requires FSA Notice of Claim Submission Deadline California has enacted AB 1554 requiring employers to notify an employee who participates in a FSA of any deadline to submit claims before the end of the plan year. The law purports to apply to both dependent care FSAs and health FSAs. However, it is […]
Question: At what size are employers subject to the Medicare Secondary Payer rules? Short Answer: The Medicare Secondary Payer rules generally apply at 20 employees for Medicare entitlement based on age, and 100 employees for Medicare entitlement based on disability. Medicare Secondary Payer Rules: General Rule The Medicare Secondary Payer (MSP) rules prohibit employer-sponsored group […]
If you are a property owner or developer starting a residential or commercial building project, you have a wide array of insurance coverage options to choose from. One of the most effective options that you should consider is a wrap insurance policy. A wrap is an insurance product that covers the owner, general contractor, and […]
Question: When does the COBRA small employer exception apply? Short Answer: The small employer exception from the federal COBRA requirements applies if the employer had fewer than 20 employees on at least 50% of its typical business days in the preceding calendar year. Small Employer Exception: General Rule The federal COBRA continuation coverage rules do […]
Question: Are there nondiscrimination rules that apply to group-term life insurance benefits? Short Answer: Yes, Section 79 imposes nondiscrimination rules that generally require employers to offer non-key employees the same level of coverage as offered to key employees. Section 79 Nondiscrimination: General Rule The nondiscrimination rules that apply to group-term life insurance plans generally require […]
Question: What are the potential ACA employer mandate penalties for failure to timely offer coverage to a new full-time hire (including a full-time temp or intern)? Compliance Team Response: Short Answer: The “B Penalty” ($312.50/month in 2019, $321.67/month in 2020) may apply for the failure to timely offer coverage to a new full-time hire. […]
The City of Seattle recently passed a Commuter Benefits Ordinance that takes effect in 2020. The ordinance is similar to other commuter benefits ordinances that we have seen in the Bay Area, New York City, and Washington D.C. Employers Subject to the Seattle Commuter Benefits Ordinance: 20+ Employees Effective January 1, 2020, the Seattle Commuter […]
Question: Are gift card rewards from a wellness program always taxable income to the employee? Are there any non-taxable alternatives? Short Answer: Yes, gift cards are always taxable income to employees. Alternatives include de minimis non-cash-equivalent items or health benefit rewards. General Rule: All Cash or Cash Equivalent Compensation is Taxable Any form of compensation […]
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 […]
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