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The cafeteria plan nondiscrimination tests are a series of tests that are required by the Internal Revenue Service (IRS) to determine if plans unjustly favor higher-paid individuals or those who own or are in charge within an organization. Employers are required to perform annual nondiscrimination tests or hire a third party to conduct testing on their cafeteria plan. Employee Benefits Corporation provides nondiscrimination testing for our BESTflex and BESTflex Premium Only Plan clients as part...
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Categories: Benefits in General, Compliance, Health Care in General | Tags: Cafeteria Plan , Nondiscrimination Testing , NDT , HCFSA , DCFSA , Flexible Spending Account , FSA , IRS , Annual Compensation , Gross Compensation , W-2
Annually, the maximum salary reduction for the Health Care Flexible Spending Account (FSA) is increased based on inflation measured by the average chained Consumer Price Index for all Urban Consumers (CPI-U), for the 12-month period ending August 31st. The August 2020 CPI-U was released this week and Thomson Reuters has reported on projected inflation adjustments for 2021 health, charitable, compliance and other specialty items.
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Categories: Benefits in General, Health Care Reform, Compliance, Health Care in General | Tags: Health Care FSA , FSA , Plan Limits , Inflation , CPI-U

Deadline Approaching for Medicare Part D Notice

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Annually, employers who offer prescription drug coverage are responsible for providing notice to their Medicare-eligible plan participants (employees, former employees, and covered dependents) regarding the creditability status of their prescription drug coverage. This notice is required prior to the start of the Medicare Part D annual enrollment period, no later than October 14, 2020.
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Categories: Benefits in General, Compliance, Health Care in General | Tags: Medicare Part D , Certificate of Creditable Coverage , Non-Creditable Coverage , CMS , HRA , FSA , HSA , Notice Requirement
Nondiscrimination tests on a cafeteria plan are a series of tests that are required by the Internal Revenue Service (IRS) to determine if plans unjustly favor either higher-paid individuals or key employees who own or are in charge within an organization. Employers are required to perform annual nondiscrimination tests or hire a third party to conduct testing on their plan(s). Employee Benefits Corporation includes nondiscrimination testing for our cafeteria plan clients (including BESTflex, BE...
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Categories: Benefits in General, Compliance, Health Care in General | Tags: IRS , Nondiscrimination Testing , NDT , Key Employees , Highly Compensated Employees , Non-Highly Compensated Employees , Flexible Spending Accounts , FSA , Premium , Cafteria Plan
As the July 15th income tax deadline quickly approaches, employees that participate in a cafeteria plan that includes employer sponsored health insurance, Health Care Flexible Spending Accounts (FSA), Dependent Care Flexible Spending Accounts (FSA), or health savings accounts (HSA) should keep a few things in mind.
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Categories: Benefits in General, Health Care Reform, Compliance | Tags: HCFSA , HSA , DCFSA , Dependent Care Flexible Spending Accounts , Health Savings Accounts , Health Flexible Spending Accounts , IRS Form 2441 , IRS Form 8889 , W-2 , IRS , Income Tax Deadline , April 15th , 2018 tax deadline , IRS Form 1099-SA , IRS Form 5498-SA , IRS Notice 2020-35

IRS Releases Cafeteria Plan Relief

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On Tuesday, May 12th, the IRS released a pair of notices that affect cafeteria plans and flexible spending accounts (FSAs). These notices give employers the opportunity to add extended grace periods to FSAs, increase the maximum rollover amount on Health Care FSAs, and/or allow their participants to make mid-year cafeteria plan election changes if their needs change during the pandemic.
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Categories: Benefits in General, Compliance | Tags: IRS Notice 2020-29 , IRS Notice 2020-33 , Permitted Election Changes , Cafeteria Plans , Health Care FSA , Dependent Care FSA , Grace Period , Rollover , Amendments

What Benefit Changes Can I Make Due to COVID-19?

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Many employers are having to make difficult decisions regarding staffing during the national pandemic due to COVID-19. Employers are faced with staff leave of absence situations including layoffs, furloughs, and reduction in hours. This leads to questions regarding what changes employees are able to make to their benefits as a result.
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Categories: Benefits in General, Compliance | Tags: Permitted Election Changes , Section 125 , Health Care FSA , Dependent Care FSA , Transportation Plans
As we ring in the New Year, 2020 calendar-year cafeteria plans have also started a new Plan Year. Employers are often faced with requests from participants to change their elections shortly after a new plan year begins. This article reviews the rules including when elections can and cannot be changed.
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Categories: Benefits in General, Compliance | Tags: FSA , Flexible Spending Accounts , Cafeteria Plan , Permitted Election Change
When an employer is implementing a Health Savings Account (HSA) qualified high deductible health plan (HDHP) for the first time, or when they offer it as one plan option among many, it is important for employees to understand how other coverage can impact their HSA eligibility. This includes plans from the prior plan year that extend benefits into the new plan year, such as standard Health Care Flexible Spending Accounts with rollover.
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Categories: Benefits in General, Compliance | Tags: HSA , Health Savings Accounts , Flexible Spending Account , FSA , Health Care FSA , Rollover
Standard Health Care Flexible Spending Accounts (HCFSAs) which may reimburse medical expenses are disqualifying coverage for both an individual as well as their spouse for purposes of the tax benefits of a health savings account (HSA). Employees wishing to open and contribute to an HSA (or have employer contributions into their HSA) would not be eligible if their spouse has a standard HCFSA (unless the FSA is a limited purpose FSA with reimbursements restricted to dental and vision expenses).
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Categories: Benefits in General, Compliance | Tags: HSA , Health Savings Account , FSA
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