Q.- We have a 7/1 FSA plan year. An employee elected to participate in the health FSA, but she did not realize she was ineligible since her husband’s health plan includes a health savings account. Can we let her revoke her FSA election?
Benefits offered to employees through a Code section 125 cafeteria plan must follow certain rules to maintain a tax-favored status. The IRS allows employees to pay for coverage with pre-tax dollars in exchange for the health plan following certain rules. One of the rules is that benefit elections may not be changed during the plan year unless the participant experiences an IRS-approved mid-year change event.
Q.- Can sunscreen be reimbursed from a health flexible spending account plan?
Employers subject to the Fair Labor Standards Act (FLSA) must keep records for each non-exempt worker. The records must include accurate information about the employee, the hours worked and the wages earned. There is no required form for the records. The following is a listing of the records that an employer must maintain:
Q.- Do we have to offer COBRA to an employee who we know is moving overseas? She won’t be able to use our health coverage since we only offer HMOs.
As people enjoy the summer months visiting federal parks and other landmarks, many don’t think about the people working at those destinations. Last month, the President issued an Executive Order modifying the minimum wage requirements for federal seasonal recreational workers.
Q.- An employee wants to be reimbursed from his health flexible spending account for bandages. We would typically allow the reimbursement, but he purchased 100 boxes of bandages. Do we have to allow the reimbursement?
The IRS released a draft form 1095-C for Affordable Care Act reporting for the 2018 tax year. The 2018 Form 1095-C will be provided in 2019. Applicable Large Employers (ALEs) which are employers with 50 or more full-time employees, must file Form 1094-C with the IRS and furnish Form 1095-C to their employees.
Employers with large, calendar year health plans subject to ERISA should be prepared for the Form 5500 filing deadline. Unless an extension is requested, ERISA-covered, calendar year health plans with 100 or more participants must file their Form 5500s by July 31, 2018.