Q.- An employee is planning to send his 12 year old child to a summer program being held at a college. The child is going to sleep in the dorms, which is an optional part of the camp. Can he be reimbursed from his dependent care FSA for the cost of the camp?
The Equal Employment Opportunity Commission requires all employers with 100 or more employees, and federal contractors with 50 or more employees and contracts of $50,000 or more, to provide information about the makeup of their workforce. This information is reported on The Employer Information report, otherwise known as the EEO-1 Report. Form EEO-1 must be filed annually with the U.S. Equal Employment Opportunity Commission's EEO-1 Joint Reporting Committee to identify employees by race, ethnicity and sex, in each employer location and job category.
While employers are in the process of preparing and distributing their 1095 Forms to meet the extended deadline of March 1, 2018, they should remember that the IRS did not extend the Form 1094 reporting timeline.
The most recent congressional agreement to extend government funding included a provision delaying the so-called Cadillac Tax for two additional years. The Cadillac Tax, created by the Affordable Care Act, imposes a 40% tax on the value of employer-provided health coverage above a certain dollar limit. The income from the tax is intended to help fund benefits for the uninsured.
Q.- We have an employee who will be enrolling in Medicare Part A in April and then plans to retire in June. How long will COBRA coverage be available to him and his spouse?
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.
The Tax Cuts and Jobs Act eliminated the requirement for individuals to have health coverage. Employers, however, are still required to offer coverage to their full time employees. Employees may be confused when they receive their Form 1095 this year, and they may have questions about what the form means now that there is no more individual mandate.
Q.- We changed our health plan January 1, 2018. Do we have to give any communication or document to the plan participants?
The IRS released updated versions of Publication 502 and Publication 503.
Q.- An employee requested a reimbursement from his health FSA for the cost of a therapy session. The claim was denied. Why?
The United States Department of Labor has expanded the ability for small businesses to group together to purchase health coverage. Many employees working for small businesses do not have employer-sponsored health coverage. Historically, small businesses and sole proprietors have had few choices when it came to affordable health coverage.