Question: My client would like to only allow only spouses who do not have other coverage to enroll on their benefit plan. Is this permissible? Compliance Team Response: Conditional spousal offers of coverage are permitted. There is no requirement under the ACA pay or play rules to offer coverage to a spouse (the offer […]
Question: How are independent contractors handled for reporting under ACA? They are not offered benefits. Compliance Team Response: The ACA pay or play rules apply only to an employer’s common-law employees. There is no obligation (or even ability to) offer coverage to properly classified independent contractors who are paid by Form 1099 (because these […]
Three hurricanes came to town and altered lives, property and businesses. Hurricanes Harvey, Irma and Maria blew out an estimated $120 billion to $190 billion of insurance losses according to analysts. To throw salt on the wound, the fires in Napa Valley and Sonoma County are being modeled by Moody’s at about a $5 billion […]
Question: When does ERISA require that employees provide an electronic disclosure authorization? How about an acknowledgement of receipt? Compliance Team Response: ERISA Electronic Disclosure Rules (SPDs, SMMs, etc.) The standard ERISA disclosure rules provide that ERISA-required documents must be provided to participants in a manner that’s “reasonably calculated to ensure actual receipt” by the intended […]
The ongoing and devastating fire disaster in Northern California hit home for my family over the weekend. While−as of the time of this writing−our home and family are safe, we found ourselves more unprepared that I’d like to admit this past weekend for this disaster. So, from my family’s experience, I thought it might be […]
Our thoughts are with our Bay Area clients, friends and neighbors. With the fires in the North Bay and throughout California continuing to spread, we want to make sure everyone is safe, connected, and aware ABD is here help. ABD’s first priority is to make sure everyone is safe; second is to help as you […]
A lot is happening this Fall, even if the anticipation of an ACA repeal/replace bill never came to fruition. 2018 Health FSA Salary Reduction Limit Likely to Increase to $2,650 The ACA limitation on health FSA salary reduction contributions was a common target for the multiple ACA repeal/replace bills considered over the course of the […]
Question: Are employers required to confirm a mid-year Section 125 permitted election change event with documentation from the employee that substantiates the event? Compliance Team Response: It’s fine if the company wants to make it a standard practice to confirm that the mid-year event at issue has actually occurred. However, such documentation is not required. […]
When both spouses contribute to Dependent Care Spending Accounts they must take care not to exceed the IRS limit, Question: An employee recently realized that his combined dependent care FSA elections with his spouse will exceed $5,000 for the current calendar year. Can the employee change his election mid-year to avoid the excess contributions? Compliance […]
The waiting period rules under the ACA can be complex. Question: How can an employer offer coverage as of the first day of the fourth full calendar month of employment without violating the ACA 90-day waiting period rules? Compliance Team Response: The ACA pay or play rules provide that an ALE will not be subject […]
ABD Insights Blog