The IRS released a webpage, www.IRS.gov/taxreform which provides information about how the Tax Cuts and Jobs Act affects an individual's taxes. A link to the webpage can be accessed by clicking here.
BAS Blog
Q.- Do we have to provide ongoing notices to a COBRA continuant when the person pays each month?
This week, the U.S. Departments of Treasury, Health and Human Services and Labor issued joint proposed regulations that, if finalized, would expand the use of Health Reimbursement Arrangements (HRAs).
Q.- An employee’s wife’s employer is restricting her contributions to their health FSA starting immediately (they must have failed nondiscrimination testing). The employee wants to know if he can enroll in our plan mid-year because of this.
In order to keep tax-favored status, elections under an employer's cafeteria plan must stay in place for the entire plan year. The IRS does allow elections to be changed for certain approved reasons. These reasons include changes during the open enrollment period, for a qualifying change in status event, for a special enrollment event, and for certain other mid-year events recognized by an employer’s cafeteria plan.
Q.- Do we have to let an employee enroll her new child on our health plan when the child is born? The baby will have a lot of medical expenses and we would prefer to delay the coverage until our next open enrollment.
The Department of Labor released new model forms that employers may use for determining and communicating an FMLA leave.
Q.- Are there any limits on the amount we can charge for COBRA coverage?
A.- Yes. Under the COBRA rules, the premium is the cost of coverage for similarly situated active employees (employer plus employee cost), plus a 2% administrative fee. The 2% admin fee applies to federal COBRA and individual state continuation laws may allow for a different administrative fee.Employers with prescription drug plans must provide a notice to Medicare-eligible participants letting them know if their prescription drug coverage is “creditable” or “non-creditable.” Prescription drug coverage is creditable if it provides benefits that are at least as good as the standard Medicare Part D benefit.
