Q.- An employee wants to be reimbursed from his health flexible spending account for bandages. We would typically allow the reimbursement, but he purchased 100 boxes of bandages. Do we have to allow the reimbursement?
The IRS released a draft form 1095-C for Affordable Care Act reporting for the 2018 tax year. The 2018 Form 1095-C will be provided in 2019. Applicable Large Employers (ALEs) which are employers with 50 or more full-time employees, must file Form 1094-C with the IRS and furnish Form 1095-C to their employees.
Employers with large, calendar year health plans subject to ERISA should be prepared for the Form 5500 filing deadline. Unless an extension is requested, ERISA-covered, calendar year health plans with 100 or more participants must file their Form 5500s by July 31, 2018.
Q.- A former employee’s COBRA is ending at the end of the 18-month period, and he wants to remain on our health plan. Do we have to let him?
Employers that offer limited wrap-around coverage as part of their employee benefit program must report that coverage to the Centers for Medicare and Medicaid Services (CMS). Limited wrap around coverage is offered by the employer and does not have to satisfy all Affordable Care Act requirements. Basically, it provides benefits that supplement individual coverage purchased by employees.
The United States Department of Labor (DOL) issued final rules on Association Health Plans (AHP). Association Health Plans are group health plans that employers and associations offer to provide health coverage for their employees. They allow small employers to band together to purchase coverage, which may be less expensive than purchasing the coverage individually.
Q.- Do we have to pay out vacation days for employees who leave our company?
Under the health plan flexible spending account (FSA) rules, all FSA amounts must be used for reimbursement within the plan year and grace period (subject to a plan's carryover rules). Amounts not used are "forfeited." Forfeitures, the amounts remaining in participants’ accounts that are not used to pay eligible expenses incurred during the plan year, are returned to the employer under the IRS “use it or lose it” rule.