Q.- We have an employee who is paying for the full year of daycare up front. He wants to be reimbursed from his Dependent Care FSA for the full amount. Do we have to allow this?
The U.S. Department of Labor’s office of Disability Employment Policy developed a toolkit to help employers and employees understand their rights and responsibilities under the Americans with Disability Act (ADA).
The Affordable Care Act requires insurers and sponsors of self-funded health plans to report to the IRS information about individuals enrolled in health coverage. An individual is identified in the reporting with his or her Social Security Number (SSN). The IRS uses the SSN to match information sent by plan sponsors and health plans to information submitted on an individual’s federal income tax return.
Q.- I have to pay a registration fee for my child’s day care which will start in September. It is a big fee and I want to be reimbursed from my Dependent Day Care FSA now. Will this be a problem?
The Equal Employment Opportunity Commission (EEOC) requires all employers with 100 or more employees, and federal contractors with 50 or more employees and contracts of $50,000 or more, to provide information about the makeup of their workforce. Form EEO-1 must be filed annually to identify employees by race, ethnicity and sex, in each employer location and job category (Component 1 data). Employers with 100 or more employees have an additional obligation to report pay data for their workforce (Component 2 data).
Individuals covered by high deductible health plans may now receive coverage for certain chronic conditions as preventive care benefits. This is important because HDHP participants with conditions such as asthma, heart failure or diabetes can be covered for treatments and medications without having to first satisfy the plan’s deductible.
The health care cost affordability percentage for 2020 has been issued by the IRS. Under the Affordable Care Act, an applicable large employer must provide affordable, minimum value coverage to its full-time employees and their dependents or pay a tax penalty. A plan is affordable if the premium for self-only coverage does not exceed a certain percentage of the employee’s household income. The IRS sets the percentage each year.
Q.- Our company is an S corporation owned evenly by two shareholders. Both are employed by the company. They want to participate in our health FSA and pay for their medical coverage with pre-tax dollars. Is this allowed?
The IRS released the limits for health savings accounts and high deductible health plans for 2020. These amounts take into account cost-of-living adjustments.
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, 2019.