BAS Blog


 

Question of the Week

Q.-  It is open enrollment for our flexible spending account plans. We have an employee who is getting divorced. He is financially responsible for his children, but they will stay with him on weekends, only. He wants to know if he should enroll in our dependent care FSA and get reimbursed for the amount he spends on day care for his children while they are at their mother’s house. 

A.- No. Your employee is not the custodial parent for dependent care FSA purposes. A Dependent Day Care Flexible Spending Account Plan may reimburse expenses only for qualifying individuals. A qualifying individual must have the same principal place of abode as the employee for more than half of the year. In a divorce situation, a child is a qualifying individual with respect to the custodial parent. This is the parent having custody for the greater portion of the calendar year (the parent with whom the child resides for the greater number of nights during the calendar year). If the number of nights with each parent is the same, the parent with the higher adjusted gross income is treated as the custodial parent.    

Read More »

EEOC Settles GINA Lawsuit

The Equal Employment Opportunity Commission brought a class action suit against an employer for violations of the Genetic Information Nondiscrimination Act (GINA).  Under GINA, employers cannot discriminate against employees or job applicants because of their genetic information, including family medical history.  

Read More »

Deadline Extended for Submitting Enrollment Counts for Reinsurance Contributions

The Centers for Medicare and Medicaid Services announced that contributing entities now have until 11:59 pm on December 5, 2014 to submit 2014 enrollment counts for transitional reinsurance program contributions. 

Read More »

Question of the Week

Q.- We have an employee who paid for her contact lenses with her Benny Card.  She is now being asked to send in a receipt.  Why is that?  Contact lenses are a covered medical expense.

Read More »

Employer Properly Rescinded Employment Offer After Egregious Facebook Posting

Over the past few years, the National Labor Relations Board has ruled against employer policies that stop employees from discussing the terms and conditions of their employment on social media.  Last month, however, the NLRB dismissed a complaint by a former employee of a Teen Center in San Francisco after the Center rescinded his rehire offer based on an inappropriate Facebook conversation. 

Read More »

New FAQs Address Reimbursement Plans and Individual Health Policies

Last week, the Department of Treasury, Department of Health and Human Services and Department of Labor released a joint Frequently Asked Question (FAQ) clarifying that under health care reform, employers cannot pay or reimburse employees for individual health policy premiums. 

Read More »

Question of the Week

Q.- An employee is terminating employment.  He has a health flexible spending account, but he has already taken out more than he has put into the account.  Do we have to offer him COBRA for the health FSA? 

Read More »

IRS Releases Cost of Living Increases for Welfare Benefits

The IRS announced cost of living adjustments for various welfare benefits in 2015. 

Read More »

HPID Enforcement Delayed

The Affordable Care Act requires all health plans to obtain a Health Plan Identification Number (“HPID”), which is a standard, unique health plan identification number to be used for health plan transactions.  This 10-digit number, similar to a Social Security number or Employer Identification Number, will facilitate the transfer of information from one covered entity to another.  

Large health plans were required to obtain a HPID by November 5, 2014.  Small plans ($5M or less in annual receipts) had an extra year, until November 2015, to comply. 

Read More »