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.
Q.- We are an applicable large employer with a self-funded health plan. Do we have to send Form 1095-C to all full-time employees or only those full-time employees who enrolled in our health coverage?
The Affordable Care Act requires employers that are “applicable large employers” (ALEs) to offer health coverage to their full-time employees or pay a penalty. Employers that are not ALEs are not required, under federal law, to provide health benefits. This makes it important for an employer to know if it is an ALE.
Employers with federal contracts must make certain their sick leave policies comply with federal requirements. The U.S. Department of Labor requires federal contractors with contracts renewed or awarded on or after January 1, 2017 to provide the following rights to employees working on the federal contracts:
Although tax reform nullified the individual mandate for 2018, the individual shared responsibility provisions of the Affordable Care Act still require each individual for 2017 to have health coverage, have a health coverage exemption, or make a shared responsibility payment.
Q.- We know the IRS has extended the Form 1095 distribution date. Do we have to wait until March 2 to distribute our 1095 forms?
The Affordable Care Act requires insurers and sponsors of self-funded health plans to report to the IRS information about individuals enrolled in health coverage. An individual is identified in the reporting by Social Security Number (SSN). The IRS uses the SSN to match information sent by plan sponsors and health plans to information submitted on an individual’s federal income tax return.
Q.- We are a large employer with a self-funded health plan. An employee quit December 30, 2017. Since the person is no longer employed by us, do we have to send him a 1095 Form?
Many employers reimburse employees for the cost of using a car for business purposes. The 2018 optional standard mileage rates for calculating the deductible cost of operating a car for business, charitable, medical or moving purposes have changed from the 2017 rates.
Q.- What is the difference between a prescription and a letter of medical necessity? I want to get reimbursed from my health FSA for the cost of over the counter acetaminophen and I was told I need a prescription.
The Tax Cuts and Jobs Act, which was signed into law by the President last month, dismantles some popular employee benefit programs. Once such program is the tax break for employer-provided parking benefits.
Even with an extension to the ACA Form filing date, applicable Large Employers (those with 50 or more full-time/full-time equivalent employees in the prior year) should be in the process of completing their Form 1095 Forms. An ALE must furnish Form 1095-C to full-time employees and employees covered under a self-funded health plan.