Substantiation of Mid-Year Section Permitted Election Changes

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. […]

Bona Fide Orientation Periods

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 […]

HSA Contribution Timing Requirements

There are specific requirements regarding the timing of deposits into the HSA account. Question:  What are the requirements for how soon an employee’s HSA contribution through payroll must be deposited in the HSA? Compliance Team Response: As a general rule, all employee HSA contributions must be “promptly” deposited into their HSA accounts.  The rule of […]

Health FSA Salary Reduction Contribution Limit

The salary contribution limit is applied differently to new hires and short plan years. Question:  How does the $2,600 health FSA salary reduction contribution limit apply to mid-year new hires?  What about to a short plan year? Compliance Team Response: New Hires: Unlimited Health FSA Elections Among Multiple Employers Employees can contribute up to $2,600 […]

Medicare Considerations for Retiring Employees

Health benefits are one of the many issues to consider prior to retirement. Question:  What are the Medicare issues to consider for age 65+ employees who are retiring? Compliance Team Response: There are five key Medicare items for retirees to be aware of: 1.8-Month Special Enrollment Period The employee will have an 8-month special enrollment […]

Setting Up a HRA to Cover Infertility Treatment

There are many things to consider when setting up a HRA. Question:  What are the issues to consider for an employer that would like to offer infertility benefits? Compliance Team Answer: High-Level Summary In order to satisfy the ACA issues described below, any infertility benefit should be available only to either: Employees enrolled in the […]