Q.- An employee’s wife’s employer is restricting her contributions to their health FSA starting immediately (they must have failed nondiscrimination testing). The employee wants to know if he can enroll in our plan mid-year because of this.
In order to keep tax-favored status, elections under an employer's cafeteria plan must stay in place for the entire plan year. The IRS does allow elections to be changed for certain approved reasons. These reasons include changes during the open enrollment period, for a qualifying change in status event, for a special enrollment event, and for certain other mid-year events recognized by an employer’s cafeteria plan.
Q.- Do we have to let an employee enroll her new child on our health plan when the child is born? The baby will have a lot of medical expenses and we would prefer to delay the coverage until our next open enrollment.
The Department of Labor released new model forms that employers may use for determining and communicating an FMLA leave.
Q.- Are there any limits on the amount we can charge for COBRA coverage?A.- Yes. Under the COBRA rules, the premium is the cost of coverage for similarly situated active employees (employer plus employee cost), plus a 2% administrative fee. The 2% admin fee applies to federal COBRA and individual state continuation laws may allow for a different administrative fee.
Employers with prescription drug plans must provide a notice to Medicare-eligible participants letting them know if their prescription drug coverage is “creditable” or “non-creditable.” Prescription drug coverage is creditable if it provides benefits that are at least as good as the standard Medicare Part D benefit.
Q.- We have an employee who wants to be reimbursed from his health FSA for medical items he is buying for his aging mother. Is this allowed?
The IRS released its Affordable Care Act electronic filing guidance, Test Package for Electronic Filers of Affordable Care Act Information Returns. BAS uses the IRS’ AIR filing system to transmit Form 1094 to the IRS for clients contracted for Affordable Care Act (ACA) data collection and reporting services.
The Bureau of Consumer Financial Protection updated two of its model Fair Credit Reporting Act (FCRA) Notices: The Summary of Consumer Rights and the Summary of Consumer Identity Theft Rights. The FCRA requires employers who take adverse action based on a credit report to provide the impacted individual a summary of rights under FCRA.