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 […]
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 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, […]
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 […]
Question: How does the ACA employer mandate apply to workers hired through an outside staffing firm? Compliance Team Response: ACA Employer Mandate: Applies to Common-Law Employees The ACA employer mandate rules apply only to an employer’s common-law employees. ACA Employer Mandate: Workers Payrolled Through an Outside Staffing Firm Full-time workers hired through an outside staffing […]
Question: What are some common options for employers in deciding how and when to offer health plan coverage to summer interns? Compliance Team Response: ACA Employer Mandate General Rule: New Full-Time Hires The ACA employer mandate pay or play rules permit a standard limited non-assessment period for new full-time hires. That limited non-assessment period generally […]
The IRS has released Revenue Procedure 2019-25 detailing the HSA contribution limit increases for 2020. The 2020 HSA contribution limit for individual coverage will increase by $50 to $3,550. The 2020 HSA contribution limit for family coverage (employee plus at least one dependent) will increase by $100 to $7,100. The catch-up contribution limit of $1,000 […]
Question: How do the health FSA carryover and grace period provisions affect HSA eligibility? Compliance Team Response: General Rule: HSA Eligibility The general rule is that an individual must meet two requirements to be HSA-eligible (i.e., to be eligible to make or receive HSA contributions): Be covered by an HDHP; and Have no disqualifying […]
Question: Are an employee’s daycare/nanny costs eligible for reimbursement under the dependent care FSA when the employee’s spouse is a new birthing mother who is disabled while on maternity leave? Compliance Team Response: Dependent Care Expenses Must be “Employment-Related” Employees’ dependent care expenses are eligible for reimbursement under the dependent care FSA only if […]
Question: When are summer dependent care expenses reimbursable under the dependent care FSA? Compliance Team Response: Summer Day Camps: Eligible Expense Day camps for qualifying individuals (generally children under the age of 13) are eligible expenses. These expenses qualify even if the camp specializes in a particular activity, such as computers or soccer. Important Timing […]
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