Q.- What is the difference between a copay and coinsurance and are both eligible for reimbursement from a health FSA?
While employers are in the process of preparing and distributing their 1095 Forms to meet the extended deadline of March 2, 2020, they should remember that the IRS did not extend the Form 1094 reporting timeline.
The Medicare Modernization Act requires employers with health plans that include prescription drug coverage to notify Medicare-eligible participants if the drug coverage is “creditable” or not. This means the employer must let participants know if the employer’s prescription drug coverage is expected to pay on average as much as the standard Medicare prescription coverage.
Q.- I purchased ibuprofen at the pharmacy. I submitted the receipt for reimbursement from my FSA. It is clearly a medicine, but the reimbursement was rejected. Why?
The Internal Revenue Service issued an updated Tax Withholding Estimator that allows employees to determine the appropriate amount of federal income to be withheld from pay. It is important for employees to select the desired amount of federal income tax to be withheld throughout the year so they are prepared to pay or receive a refund at tax-time.
Last week our Health Care Reform article explained the Codes for completing Line 14 of Form 1095-C. This week we focus on completing Line 16 of Form 1095-C.
Q.- I heard that we have to report the cost of health coverage on an employee’s W-2. Is this correct?
The Internal Revenue Code allows employers to offer transportation benefits to employees on a before-tax basis through a qualified transportation fringe benefit plan. A qualified transportation fringe benefit plan may be provided for
Applicable Large Employers (those with 50 or more full-time/full-time equivalent employees in the prior year) should be in the process of completing their Form 1095 Forms. An ALE must furnish Form 1095-C to full-time employees and employees covered under a self-funded health plan.