Q.- Can we apply a $500 carryover to our dependent day care FSA? We have one in our health care FSA.
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.
For employers subject to health care reform, tracking hours worked is an ongoing process. An employer must offer affordable, minimum essential health coverage to its full-time employees and their dependents or pay a tax penalty. A full-time employee is someone who works 30 or more hours per week or 130 hours per month.
Q.- Were we supposed to report the cost of COBRA coverage on Form W-2?
The U.S. Equal Employment Opportunity Commission (EEOC) issued proposed regulations that will require all employers with 100 or more employees to report salary information to the government beginning in 2017. The intent is to allow the EEOC to investigate discriminatory pay practices.
When an employee works for more than one employer within an Aggregate Large Employer controlled group and the employers have different taxpayer identification numbers, only one of those employers should identify the person as an employee to be reported on Form 1095-C for each month of the year. Generally, the employee is treated as an employee of the employer for whom the employee has the greatest number of hours of service for a calendar month. If the employee has an equal number of hours of service for two or more employers of the same aggregated ALE group for the calendar month, those employers must choose one of them to treat the individual as an employee for that calendar month.
Q.- Do we have to send a notice that someone’s COBRA period is expiring?
The IRS released an updated version of Publication 502, “Medical and Dental Expenses.” Publication 502 explains the medical and dental expenses that can be claimed as a deduction on an individual’s tax return.
Q.- We have a 1099 consultant who has been covered under our plan. We are no longer going to be offering coverage to consultants. Do we need to offer a COBRA notice?
The U.S. Department of labor issued guidance for employers who share employees. This guidance for “joint employers,” found in Administrator’s Interpretation No. 2016-1 explains that understanding joint employment is important in determining employees’ rights and employers’ obligations under the Fair Labor Standards Act (FLSA).