BAS Blog


 

Cadillac Tax Delayed Again

The most recent congressional agreement to extend government funding included a provision delaying the so-called Cadillac Tax for two additional years. The Cadillac Tax, created by the Affordable Care Act, imposes a 40% tax on the value of employer-provided health coverage above a certain dollar limit. The income from the tax is intended to help fund benefits for the uninsured.

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Question of the Week

Q.- We have an employee who will be enrolling in Medicare Part A in April and then plans to retire in June. How long will COBRA coverage be available to him and his spouse?

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Medicare Part D CMS Filing Due Soon

The Medicare Modernization Act requires employers with health plans that include prescription drug coverage to notify Medicare-eligible participants if the drug coverage is “creditable” or not. This means the employer must let participants know if the employer’s prescription drug coverage is expected to pay on average as much as the standard Medicare prescription coverage.

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Questions about 1095 Forms

The Tax Cuts and Jobs Act eliminated the requirement for individuals to have health coverage. Employers, however, are still required to offer coverage to their full time employees. Employees may be confused when they receive their Form 1095 this year, and they may have questions about what the form means now that there is no more individual mandate.

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Question of the Week

Q.- We changed our health plan January 1, 2018. Do we have to give any communication or document to the plan participants?

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Updated Publication 502 and 503- Medical and Dependent Care Expenses

The IRS released updated versions of Publication 502 and Publication 503.

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Question of the Week

Q.- An employee requested a reimbursement from his health FSA for the cost of a therapy session. The claim was denied. Why?

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Small Business Health Plans

The United States Department of Labor has expanded the ability for small businesses to group together to purchase health coverage. Many employees working for small businesses do not have employer-sponsored health coverage. Historically, small businesses and sole proprietors have had few choices when it came to affordable health coverage.

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Electronic Form 1095 Distribution

Applicable large employers must distribute Form 1095 to each full-time employee and each employee with health coverage by March 31, 2018. Employers may distribute the Form 1095 electronically if certain procedures are followed.

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Flexible Spending Account Plan Structure

A health flexible spending account provides employees the ability to use tax-free dollars to pay medical expenses not covered by health insurance. An employee who participates in a health FSA can contribute up to $2,650 during the 2018 plan year without the amount being subject to federal income tax, Social Security tax or Medicare Tax. The maximum contribution amount may be lower based on plan design.

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