Dependent Care FSA for Part-time Work

Question: Can an employee reimburse day care expenses under the dependent care FSA if the employee (or spouse) is working part-time?    Compliance Team Response:   In general, work can be full-time or part-time to qualify—as long as the daycare expense enables to the individual to work.  A day on which the individual works at […]

2017 ACA Reporting Deadline Extended by 30 Days

Today, the IRS issued IRS Notice 2018-06, extending the deadline for providing the 2017 Forms 1095-B and 1095-C to individuals by 30 days.  This Notice mirrors the same 30-day extension provided last year for the 2016 ACA reporting. As a reminder, applicable large employers (ALEs) provide the Form 1095-C to individuals. If the plan is […]

Measuring Hours and Offers of Coverage

Question:  When does an ALE need to offer coverage to a part-time employee who start working full-time hours to avoid potential pay or play penalties?  The ALE utilizes the look-back measurement method for determining full-time employee status.  Compliance Team Response:    Reminder: Very Different Approach Depending on Measurement Method There are two different approaches for […]

Trends in Work Related Injuries and Illnesses

The Department of Industrial Relations has reported California’s 2016 occupational injury and illness data. Data collected by the U.S. Bureau of Labor Statistics’ Survey of Occupational Injuries and Illnesses showed California’s overall incidence rate was at the lowest it has been in over a decade, with a reported 3.7 cases per 100 full time workers. […]

Tax Cuts and Jobs Act Passes Senate

The Senate’s version of the Tax Cuts and Jobs Act (TCJA) passed the Senate late Friday night (technically early Saturday morning) today by a vote of 51 to 49.  Senator Corker (R-TN) was the only Republican to vote against the bill that otherwise held to strict party lines. The bill passed just two weeks after the House passed its […]

ACA Form W-2 Cost of Coverage Reporting

Question: Which employers are subject to the ACA Form W-2 cost of coverage reporting? What coverage must be reported? Compliance Team Response:   Employers Subject to Form W-2 Cost of Coverage Reporting The Form W-2 cost of coverage reporting in Box 12 using code DD was added in the ACA, effective for 2012, and remains […]

Failing the Dependent Care 55% Average Benefit Test

Question:  What happens when highly compensated employees have already contributed more than the reduced contributions limit from the dependent care FSA nondiscrimination testing?   Compliance Team Response:    Unfortunately, it is very common for employers to fail the 55% Average Benefits Test component of the Dependent Care FSA NDT.  It’s a test that’s almost designed […]