BAS Blog


 

Question of the Week

Q.- We have an employee who wants to be reimbursed from his health FSA for medical items he is buying for his aging mother. Is this allowed?

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IRS Releases New ACA Test Filing Package

The IRS released its Affordable Care Act electronic filing guidance, Test Package for Electronic Filers of Affordable Care Act Information Returns. BAS uses the IRS’ AIR filing system to transmit Form 1094 to the IRS for clients contracted for Affordable Care Act (ACA) data collection and reporting services.

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Updated FCRA Notices

The Bureau of Consumer Financial Protection updated two of its model Fair Credit Reporting Act (FCRA) Notices: The Summary of Consumer Rights and the Summary of Consumer Identity Theft Rights. The FCRA requires employers who take adverse action based on a credit report to provide the impacted individual a summary of rights under FCRA.

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Question of the Week

Q.- An employee terminated employment. She had a carryover balance in her FSA, but did not make an election for this year. Do we have to offer COBRA for the FSA?

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Summary Annual Report Due Soon

ERISA requires administrators of health plans to give information about the plan’s operation to participants. One of the ERISA requirements is the distribution of a plan’s Summary Annual Report (SAR). A SAR is a summary of a plan’s financial information that is filed with the U.S. Department of Labor on Form 5500. 

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ACA Penalty Notices

Some employers are receiving notices from the IRS informing them of penalties under the Affordable Care Act. These letters (about 300,000 have been sent) indicate that the employer violated the ACA’s employer mandate. The IRS has been issuing letters for 2015 and 2016 compliance years.

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Draft 2018 Form 1094/1095 Instructions Released

This week, the IRS released draft copies of the Instructions for the 2018 Forms 1094-B/C and 1095-B/C. The Instructions will be used for completing 2018 calendar year health care reform reporting.

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Question of the Week

Q.- I just started as the HR director at a closely held business. It is a partnership. One of the partners is paying for medical coverage with pre-tax dollars through the cafeteria plan. Is this allowed?

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School Activity Leave

With the school year back in full swing, employers should be mindful of state school-related leave laws.

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Question of the Week

Q. We provide our employees a life insurance benefit. Someone mentioned that we can’t do this on a tax free basis. Is that true?

A. Employer-paid group-term life insurance in excess of $50,000 is a taxable fringe benefit. The imputed cost of coverage from the amount of insurance over $50,000 must be included in the employee’s W-2 income, using the IRS premium table.
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Withholding Adjustments

The IRS is encouraging employees to review their paychecks to make sure employers are withholding the correct amount of taxes. Taxpayers who receive large refunds should consider adjusting their withholding elections to receive more money throughout the year, rather than waiting until they file their annual tax return. 

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New Q&As on Employer Shared Responsibility

The Affordable Care Act requires certain employers (applicable large employers) to offer health coverage that is affordable and provides minimum value to their full time employees. If an ALE does not provide appropriate coverage, it must make a tax penalty payment to the IRS if at least one of their full-time employees receives a premium tax credit for purchasing individual coverage through the health insurance Marketplace.

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