Q.- We know there is a penalty for not providing a notice when someone has a COBRA qualifying event. We just learned that there is a requirement to give a notice when someone is first eligible for health coverage- long before COBRA would be a consideration. Is there a penalty for not providing this notice?
Employers are required to let employees know about various rights they have in the workplace. Some of this information must be provided by written notices to employees and some must be provided by posters in the workplace. The U.S. Department of Labor offers tools for determining what notices are required for each employer. The DOL website has electronic copies of all required notice and posters which are available at no charge .
Employers must be paying attention ACA compliance for 2019. Applicable Large Employers must continue to offer affordable health coverage to their full-time employees and be prepared for required IRS reporting.
The Affordable Care Act requires virtually all Americans to have health insurance coverage or pay a tax penalty. The requirement to have health insurance is referred to as the “individual mandate” and the tax penalty is referred to as the “shared responsibility payment.” Starting with the 2019 plan year, the shared responsibility payment is reduced to $0, thereby effectively eliminating the individual mandate.
Q.- We have a COBRA participant who didn’t pay his July premium. He wants us to accept his money now. Do we have to allow a late payment?
All employers with group health plans in states that provide premium assistance for the purchase of group health coverage under a Children's Health Insurance Program ("CHIP") or Medicaid must provide notice of the assistance to their employees. Virtually all states provide such assistance, so almost all sponsors of group health plans must have processes and procedures in place to deliver the federally required CHIP notice.
Q.- We have an employee who is paying for the full year of daycare up front. He wants to be reimbursed from his Dependent Care FSA for the full amount. Do we have to allow this?
The U.S. Department of Labor’s office of Disability Employment Policy developed a toolkit to help employers and employees understand their rights and responsibilities under the Americans with Disability Act (ADA).
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 with his or her 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.- I have to pay a registration fee for my child’s day care which will start in September. It is a big fee and I want to be reimbursed from my Dependent Day Care FSA now. Will this be a problem?
The Equal Employment Opportunity Commission (EEOC) 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. Form EEO-1 must be filed annually to identify employees by race, ethnicity and sex, in each employer location and job category (Component 1 data). Employers with 100 or more employees have an additional obligation to report pay data for their workforce (Component 2 data).
Individuals covered by high deductible health plans may now receive coverage for certain chronic conditions as preventive care benefits. This is important because HDHP participants with conditions such as asthma, heart failure or diabetes can be covered for treatments and medications without having to first satisfy the plan’s deductible.
The health care cost affordability percentage for 2020 has been issued by the IRS. Under the Affordable Care Act, an applicable large employer must provide affordable, minimum value coverage to its full-time employees and their dependents or pay a tax penalty. A plan is affordable if the premium for self-only coverage does not exceed a certain percentage of the employee’s household income. The IRS sets the percentage each year.
Q.- Our company is an S corporation owned evenly by two shareholders. Both are employed by the company. They want to participate in our health FSA and pay for their medical coverage with pre-tax dollars. Is this allowed?