Archive by tag: Flexible Spending AccountReturn
RSS
If you are looking at implementing a Health Savings Account during this upcoming 2019 open enrollment season, you should carefully review the details of your existing benefit plan(s), in order to identify any issues and make any required modifications in advance when possible to preserve HSA eligibility.
Read More
Categories: Benefits in General, Compliance, Health Care in General | Tags: HSA , Health FSA , HRA , Health Savings Account , Health Care Flexible Spending Accounts , Health Reimbursement Arrangements , HSA Headaches , Disqualifying Coverage , Qualified HDHP , HDHP , Rollover , Grace Period , HSA eligibility
For purposes of the Health Care Flexible Spending Account (FSA), medical expenses are incurred when the employee (or the employee’s spouse or dependents) is provided with the medical care that gives rise to the medical expenses, and not when the employee is billed, charged for, or pays for the medical care. The only exception to this rule is orthodontia expenses that are reimbursed based upon contract payments for ongoing service. This means we have to pay special attention to dates when expens...
Read More
Categories: Benefits in General, Compliance | Tags: Health FSA , Medical Expense , IRS Code Section 1.125-6 , Substantiation , Incurred Date , FSA , Flexible Spending Account

Consumer Driven Health Care Activity on the Hill

posted on
The House Ways and Means Committee marked up several bills mid-July that would raise contribution limits for health savings accounts (HSAs) and expand the allowable uses of these accounts, at a cost of $41 billion over ten years, the Joint Committee on Taxation (JCT) estimates. Collectively all the bills would cost an estimated $92 billion over the next ten years.
Read More
Categories: Benefits in General, Health Care Reform, Compliance, Health Care in General | Tags: HSA , Health Savings Accounts , FSA , Flexible Spending Account , OTC , Internal Revenue Code , Medicare and HSA eligibility , Premium Tax Credit , Medical Device Tax , Cadillac Tax , IRS , ACA , HDHP
Health Insurance Portability and Accountability Act (HIPAA) Special Enrollment Rights provide the ability to add an individual to a group health plan without regard to prior health history when certain events occur (i.e. loss of coverage, marriage, birth, adoption, placement for adoption).
Read More
Categories: Benefits in General, Compliance | Tags: HIPAA , HIPAA Special Enrollment Rights , HCFSA , Health Care Flexible Spending Accounts , Change of Election

IRS Publication 15-B on Fringe Benefits Released

posted on
March 6, 2018, the IRS released Publication 15-B, Employer's Tax Guide to Fringe Benefits for use in 2018. As a result of changes related to the Tax Cuts and Jobs Act passed late in 2017, the Publication on page 20 outlines the tax treatment of qualified transportation fringe benefits to employees, including those provided through the use of salary reduction program.
Read More
Categories: Benefits in General, Compliance | Tags: Publication 15-B , Transportation plans , parking , transit , bicycling benefit , Tax Cuts and Jobs Act , QSEHRA , health flexible spending account , business mileage , tax reform
The IRS has published IRS Rev. Proc. 2018-18 in Internal Revenue Bulletin 2018-10 this week that recalculates the limits on various benefits. One of the provisions in the tax reform bill enacted late last year, the Tax Cuts and Jobs Bill, was a change in the way the IRS was required to calculate cost-of-living increases.
Read More
Categories: Benefits in General, Compliance | Tags: IRS , IR Bulletin 2018-10 , HSA , Indexes for inflation , Adoption Assistance Plans , Archer MSA , Small Employer Tax Credit , Health Care Flexible Spending Accounts , Transportation Plans , Tax Reform , 2018 Limits

GOP Passes Tax Reform

posted on
After months of debate on tax reform, today the House by a by a vote of 224-201, passed the “Tax Cuts and Jobs Act” (H.R. 1) to overhaul the tax code. The bill now heads to the White House where President Trump says that he will sign it into law. We anticipate that the bill will be signed before Christmas.
Read More
Categories: Benefits in General, Health Care Reform, Compliance | Tags: Tax Reform , GOP , Depedent Care Flexible Spending Accounts , Transportation Plans , Bicycling Benefit , Transit , Parking , Education Assistance , Adoption Assistance , IRS , Individual Mandate , ACA , Cadillac Tax
The IRS recently released an information letter addressing the treatment of cafeteria plan forfeitures when an employer ceases operations and the plan terminates. Specifically, the letter clarifies that Section 125 of the Internal Revenue Code does not require that unused cafeteria plan funds be paid to the U.S. Treasury in these circumstances. How unused funds are disposed of when a plan terminates depends on what the plan document provides and the facts and circumstances at the time.
Read More
Categories: Benefits in General, Compliance | Tags: cafeteria plan , forfeitures , irs , information letter , health fsa , flexible spending account , Section 125
Last week, Senators Orin Hatch (R-UT) and Marco Rubio (R-FL) introduced the Health Savings Act of 2017, S.403. Companion legislation was introduced in the House of Representatives by Rep. Eric Paulsen (R-3rd MN). The legislation would expand the use of HSAs by broadening eligibility rules, increasing maximum contribution limits and widening the universe of expenses that could be reimbursed from HSAs. The legislation also contains provisions pertaining to the interaction between HSAs, FSAs and...
Read More
Categories: Health Care Reform | Tags: HSA , HRA , FSA , Health Savings Accounts , Health Reimbursement Arrangements , Flexible Spending Accounts , Health Care Reform
As calendar-year cafeteria plans have begun the 2017 plan year, employers might be wondering whether it is really too late to allow employees to make changes to or revoke their flexible spending account (FSA) elections, especially if it is prior to the first payroll of the new plan year.
Read More
Categories: Benefits in General | Tags: fsa , flexible spending accounts , cafeteria plan , permitted election change
Page 1 of 2FirstPrevious[1]2NextLast