With the end of the year quickly approaching, it’s more important than ever for employers to stay on top of their benefits administration. Depending on what types of benefits employers offer, there are different considerations they need to make to ensure their plans are compliant prior to the end of this year and for the start of next year.

1. Verify Compliance Requirements are Met

When it comes to employee benefits, there are a lot of regulations that can be confusing. Using some of the following resources can help employers check to see if they’re meeting some of the common compliance snags that frequently cause issues.

ERISA Compliance

Most employers regardless of size are subject to ERISA, with the exception of governmental employers and church plans. This means, employers who are subject to ERISA have certain compliance obligations that they must follow.

Employers who are subject to ERISA should consider the following:

1. Do you currently have an ERISA compliant up-to-date plan document that has been formally adopted?
2. Do you currently have an ERISA compliant summary plan description (SPD) that is up-to-date and has been distributed to plan participants within 90 days of enrollment and upon request?
3. Have you distributed all the required employer notices?

Download our ERISA compliance checklist for a rundown on some of the commonly overlooked compliance gaps that should be addressed before the start of the plan year.

HSA Compatibility

Any employer who offers a health savings account (HSA), but especially those who are offering one for the first time, needs to ensure that their benefits are HSA-eligible. Since HSAs have many unique advantages and offer employees immense tax savings, strict eligibility rules must be followed.

Employers who offer an HSA should consider the following:

1. Is your medical plan an HSA-qualified high deductible health plan (HDHP)?
2. Do you require your employees to certify that they are HSA-eligible before establishing an account?
3. Does your health care FSA plan year align with your medical plan year? If a participant has a health care FSA, their eligibility for an HSA may depend on when their FSA plan year is over.
4. Are you clear on how your health reimbursement arrangement (if any) impacts HSA eligibility?

Download our HSA checklist to learn more about HSA implementation considerations and verify your plans follow the common compliance pitfalls.

COBRA

Many employers are required to comply with the federal COBRA regulations. If your company has 20 or more employees (except church plans) and sponsors a group health plan, like a major medical, dental, vision, health care FSA, HRA, or employee assistance/wellness plan, you are likely required to offer COBRA to employees.

Employers who are subject to COBRA should consider the following:

1. Are you offering COBRA to everyone that’s eligible?
2. Are you sending timely COBRA-compliant notices to plan participants and qualified beneficiaries regarding their COBRA rights?
3. Does your company’s HR department know which qualifying events trigger a loss of coverage and an offer of COBRA to an employee and/or their spouse and dependents?

Download our COBRA checklist for a full list of considerations employers should be aware of to ensure their plan is compliant.

2. Share Year-End Reminders with Employees

There are several ways employees can maximize their benefit accounts and prepare for the upcoming year. Sharing these reminders with employees can help them get the most out of their accounts and recognize the value of their benefits.

A few ways employees can make the most of their benefits include:

1. Submit outstanding claims before their runout period is over and claims are no longer eligible for reimbursement.
2. Use remaining FSA funds, because funds are forfeited at the end of the year, unless there’s a rollover in place.
3. Substantiate claims prior to the end of the plan year to ensure their claim will be reimbursed.

For more comprehensive list of year-end reminders, download our year-end checklist and share it with your benefit plan participants.

3. Promote Your 2024 Benefits

Did you know that about 50% of all employees don’t understand their benefits? During this open enrollment season and beyond, employers should empower their employees by taking a proactive benefits communication approach that focuses on education.

Employers who use EBC for their FSA, HSA, lifestyle spending account, or Commuter Benefits, can take advantage of our enrollment toolkits. These mix and match communications can be used across a variety of channels, including presentation slides, flyers, email templates, online resources, and more. Employers can use these communications to help share important information like contribution limits, information about how to use the account, and the incentives they have to use their accounts. Sharing these resources not only helps educate employees on how to get the most of their accounts, but also helps them recognize the true value the benefits that their employer provides.

4. Attend EBC’s Year End Compliance Webinar

There are many year-end requirements and it can be stressful to navigate, but it doesn’t need to be. Join us for our year-end compliance roundup, where Sue Sieger of EBC’s Compliance Team reviews legislative and regulatory items that have happened in 2023 and will discuss what should be on your radar as you review benefit plan strategies for 2024.

We’re Here to Help

While going through the above resources, if any questions at all came up, contact us. We’re here to help and see what solutions we can come up with to meet your needs.