Q.- We have an employee who was participating in an FSA and then took a leave of absence. We allowed her to stop participating in the FSA when she left. The employee has now returned to work. Can we require that she be reinstated in the FSA and continue contributions?
As the summer arrives, many employers hire students who are out of school on summer break. The law is very specific as to what jobs can and cannot be held by children.
Health care reform places two new reporting requirements on employers starting next year. The guidance offers specific clarifications for controlled groups. For reference, a controlled group is determined from the basic IRS definitions under Code section 414(b), (c), (m), or (o).
The Department of Labor (DOL) and its reporting agencies require employers to communicate certain information to their employees. In some cases, the DOL mandates notices to be posted in the workplace. Posting requirements vary based on the size of employer.
Q.- I just got a notice saying my 24-year-old child can no longer receive dental coverage. I thought children had to be covered up to age 26. What happened?
The three agencies responsible for the implementation of health care reform (Treasury, Health and Human Services, and Labor) released a joint set of Frequently Asked Questions on cost sharing limits.
Q.- An employee terminated employment. At her exit interview, she told me that she does not want COBRA coverage. Do we still have to send her a COBRA qualifying event letter?
Employers that hire non-traditional workers must make sure to classify all members of their workforce properly. The misclassification of workers can result in serious problems for employers. Employee misclassification impacts federal/state tax withholdings, pay and benefits, and can give rise to potential unemployment compensation claims.
Starting in 2015, employers that employ, on average, at least 50 full-time employees may be subject to a penalty if their employees receive a tax credit and purchase coverage through an Exchange.
Q.- We have a calendar year health FSA. An employee purchased contact lenses in December 2013. He got the bill for the lenses and paid the bill in January 2014. He submitted his claim for the expenses to be paid from his 2014 FSA, but it was denied. Is this denial correct?
A.- Yes. The expense is properly denied. The Internal Revenue Code provides that a medical expense is incurred when the employee is provided with the medical care that gives rise to the expense, and not when the employee is formally billed, charged or pays for the care. The employee was fitted and received the contact lenses in 2013. The expense may be paid from his 2013 FSA, even though he actually paid the bill for the lenses in 2014.
The Internal Revenue Service issued 2015 limits for health savings accounts (HSAs) and their associated high deductible health plans (HDHPs). The limits increased based on inflation and cost of living.
The limits are as follows:
The Department of Labor issued guidance intended to coordinate continuation of coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA) with qualified health coverage offered through the Health Care Exchanges. The guidance is scheduled to be published in the Federal Register today.
The Affordable Care Act provides that starting this year, individuals must have minimum essential health coverage for each month of the year, qualify for an exemption, or pay a tax penalty.
The Department of Health and Human Services clarified that all insurance companies must make available the option to cover same-sex spouses on their group and individual heath plans.