HSA Contribution Election Changes

Question:  When can employees change their HSA pre-tax contribution elections? Compliance Team Response: HSA Contributions Governed by Cafeteria Plan Rules The Section 125 cafeteria plan is the exclusive mechanism for employees to make pre-tax contributions to an HSA through payroll.  Therefore, all employee pre-tax HSA contributions are governed by the cafeteria plan rules. Employers Must […]

How Portfolio Companies Can Use Trade Credit to Insure Accounts Receivable

Portfolio company CFOs can recall the fear and uncertainty they experienced when the recession hit.  Unprecedented market dynamics caused new concerns to emerge as they determined how the financial downturn would affect their company. Some of their concerns included whether their banking partners were on solid footing: Would they change their lending practices? Could they […]

Late COBRA Election or Payment Exceptions

Question:  Can an employer make an exception for an individual who failed to timely elect or pay for COBRA coverage? Compliance Team Response: The COBRA rules generally require that qualified beneficiaries elect COBRA within 60 days of receiving the election notice, and that they make the first premium payment no later than 45 days after […]

What Benefits Administration Means to the ABD Team

As companies grow in size, maintaining a benefits plan that serves and supports all employees, aligns with company values and doesn’t overwhelm the human resources team can feel like an impossible task. But at ABD, we’ve come up with a strategy that accomplishes these goals and allows for more energy to be invested in higher […]

Health FSA Eligibility Footprint Rule

Question:  Can an employer’s health FSA eligibility rules be different from the major medical plan? Compliance Team Response: Health FSAs must be considered an “excepted benefit” to avoid violating the ACA market reform provisions. The general requirements for a health FSA to be considered an excepted benefit (and therefore not subject to the ACA market […]

Streamlined ACA Reporting Methods

Question:  When can an employer use the “Qualifying Offer Method” or “98% Offer Method” for streamlined ACA reporting, and what are the advantages? Compliance Team Response: There are two streamlined ACA reporting methods available for employers that qualify: Qualifying Offer Method Requirements to Utilize Employers must meet two requirements to utilize the Qualifying Offer Method: […]