The IRS always gives us something to look forward to in May – the release of the annual inflation adjusted amounts for Health Savings Accounts (HSAs).  The IRS has released Revenue Procedure 2017-37, providing the inflation adjusted amounts for HSAs.  The HSA contribution limit for the 2018 calendar year for individual coverage will be $3,450, […]

The Summer Interns are Coming! What are the ACA requirements for offering medical coverage to summer interns? Compliance Team Answer: Interns—General Rule The general rule of thumb is that there are no potential pay or play penalties if a full-time employee does not remain employed to the first day of a fourth full calendar month […]

Best practices for support orders when the employee is not currently enrolled in coverage We just received a National Medical Support Order.  Q 1.  Who is responsible for completing the form?  Q 2.  Since the employee did not elect coverage, what date are we using to enroll him per this order? Compliance Team Answer: Q […]

Today the House passed the American Health Care Act (“AHCA”), the Republican’s bill to “repeal and replace” the ACA, on a narrow partisan vote of 217-213.  All but 20 Republicans voted for the bill, and the Democrats were unanimous in opposition. The successful vote comes after a roller-coaster series of weeks that at times appeared […]

Unused commuter benefits can’t be refunded to employees. Question:  What happens to commuter benefits upon termination from employment? Compliance Team Response: IRC Sec. 132(f) governs commuter benefit plans, and it strictly prohibits participation for terminated employees. It also prohibits cashing out terminated employees on the unused amount of their contributions. This means that when an […]

Unlimited PTO polices can have some unintended complications. Question:  Are employers who offer unlimited PTO required to top up salary to 100% for employees who are on disability leave? The response comes from ABD’s MyHRSupportcenter provided through our partnership with HR Answerlink: This will depend on the terms and conditions of the Unlimited PTO policy. […]

Military reservist employees have special rights when called to active duty. Question:  What rights do military reservist employees have to continue health coverage when called to active duty Compliance Team Answer: USERRA Continuation Coverage Military leave is protected under USERRA, not FMLA/CFRA/PDL. Unlike those other forms of protected leave, USERRA does not provide for any […]

In the U. S., parents are never eligible dependents under a group health plan. Question:  I know that employees cannot enroll their parents in the health plan even if they are a tax dependent or have a mid-year event. But what is the technical reason why? Compliance Team Answer: Parents Not Eligible Health plans do […]

There are several options to address Health FSA issues in a M&A situation. Question:  What are the health FSA options for employers in a M&A situation? Compliance Team Answer: Upon acquiring a selling entity that sponsors a health FSA for its employees, the buyer will have two options to address the buyer’s health FSA: Option […]