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 […]
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 […]
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 […]
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 […]
After a busy fourth quarter and open enrollment season, we on the Employee Benefits team at ABD have a lot to reflect on and prepare for as we head into the new year. This January, we’re hosting a live webinar, led by Brian Gilmore, our Lead Benefits Counsel, to discuss the issues that were important […]
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. […]
Late Friday, a Federal District Court in Fort Worth, Texas struck down the entire ACA. The surprise court decision in Texas v. United States will immediately be appealed. During the appeals process, the ACA will remain in effect. The case is likely eventually headed to the U.S. Supreme Court. Action Item: None. Wait for this third round of major ACA […]
As the year comes to a close, we often look for opportunities to change and grow by creating personal New Year’s resolutions. This year, it’s time to get your company motivated to do some goal setting too. One way your company can enhance their benefits offering and improve the quality of life for its employees […]
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 […]
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