Q.- We are gathering data for our health FSA nondiscrimination testing. Is it true that we will need information for all of our employees, not just for those participating in the plan?
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).
The open enrollment period for the Affordable Care Act Marketplace runs from November 1, 2019 through December 15, 2019 for coverage beginning January 1, 2020.
Q.- A full-time employee who had health coverage is terminating this month. We are an applicable large employer for health care reform purposes and we have a fully-insured health plan. Do we have to send the employee a 1095-C form for 2019 if he wasn’t employed the full year?
The U.S. Department of Labor offers a free tool for employers to use to understand federal laws that impact health benefit coverage provided by group health plans. The tool, called the Health Benefits Advisor, discusses the following laws:
The IRS released an updated Affordable Care Act (ACA) Information Returns (AIR) submission Composition and Reference Guide. The new Guide provides guidance to 1094 form transmitters about composing and successfully transmitting compliant submissions to the IRS. The Guide addresses details about Forms 1094/1095-B and Forms 1094/1095-C by transmitters to the IRS. It sets forth the parameters that will be needed to transmit 2019 forms in processing year 2020.
Q.- When we tell a former employee that he must make his COBRA premium payment by the first of the month with a 30-day grace period, what does “make payment” really mean?
The State of California placed a new notice requirement on employers who sponsor flexible spending account (FSA) plans that impose a deadline to withdraw funds before the end of the plan year. The law applies to health care FSAs, dependent care FSAs and adoption expense FSAs. The new notice is intended to warn individuals if their plan requires reimbursement requests to be made before the end of the plan year.
Starting with Tax Year 2019, the State of New Jersey requires employers, insurers and other providers of health coverage to send health care coverage information to the State. The health care coverage returns will be used by the State to verify that each New Jersey resident has health insurance, has a valid exemption from having health insurance or pays a penalty. The New Jersey requirement, set forth in the New Jersey Health Insurance Market Preservation Act (HIMPA), is a continuation of the federal Affordable Care Act (ACA).
Q.- An employee wants to know if she can be reimbursed from her FSA for the cost of a home genetic testing kit. Can she?
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.
With calendar-year plan open enrollment season approaching, employers should consider how they treat payments made for opting out of health coverage.
Q.- Do we have to keep track of PTO hours for determining if an employee is a full-time for ACA purposes?
A new rule from the U.S. Department of Labor will make many more workers eligible for overtime pay under the Fair Labor Standards Act (FLSA). The FLSA sets minimum wage and overtime pay requirements for non-exempt U.S. workers.
- What is Form 1095-C?
Form 1095-C is an IRS form for Affordable Care Act reporting. Form 1095-C provides employees with information about their health coverage and their employer’s offer of health coverage. Applicable Large Employers (those with 50 or more full-time employees in the prior year) must furnish Form 1095-C to their full-time employees confirming the offer of health coverage to employees and their dependents.