Q.- An employee elected to contribute $2500 to his health FSA and $2000 to his dependent care FSA. He sees that he is not having medical expenses this year. Can he transfer some funds from his health FSA to his dependent care FSA?
The Department of Labor offers many helpful resources for employers, both large and small. Many of those resources are consolidated on the Department’s web page, which can be accessed by clicking here.
The IRS released final Forms 1094-B/C and 1095-B/C along with final instructions. Employers will use these forms to meet their 2015 health care reform reporting obligations. The B series of forms are used by health care providers, including insurers and self-funded small employers. The C series of forms are filed by applicable large employers (employers with 50 or more full-time or full-time equivalent employees).
Q.-We are using the lookback method to determine our full-time employees. Is there a set measurement period that we have to use?
Last week, President Obama issued an Executive Order mandating paid sick leave for workers of federal contractors. The Order applies to federal contracts effective on or after January 1, 2017.
Under Health Care Reform, a health coverage provider, including an employer that provides self-insured health coverage, must report to the IRS certain items, including a taxpayer identification (TIN) number for all covered individuals. The TIN (usually the Social Security Number) is required for the IRS to verify an individual’s coverage.
Q.- An employee was eligible for coverage under our health plan August 1. She terminated employment July 31 prior to her effective date of benefits. We enrolled her effective August 1, even though she should not have been enrolled. We can only terminate her coverage effective September 1. Does she have to be offered the right to continue her coverage under COBRA, even if she should never have been covered in the first place?
The IRS issued an announcement holding that the value of identity protection services provided by an employer to an employee whose information has been breached does do not have to be included in income.
The IRS re-proposed and withdrew its prior guidance on determining minimum value for health care reform purposes.
Q. We offer a cafeteria plan and allow employees to pay for health coverage on a pre-tax basis. Do employees have to sign a new salary reduction agreement each year?
Employers should distribute their Medicare Part D Creditable Coverage Notices by October 15.
Employers who are preparing for health care reform compliance have two options for counting their employees’ hours for determining eligibility for health coverage. Employees who work 30 or more hours per week (130 or more hours for month) are considered full-time equivalent employees and must be offered affordable health coverage that meets minimum value.