Over the years, some employers have opted to provide their employees with reimbursement toward the cost of purchasing individual insurance plans in lieu of providing a group health plan. Many did so by establishing an Employer Payment Plan (EPP). The EPP refers to any agreement where employees treat the employer’s direct contributions (either through reimbursement […]
Snowfalls in the Northeast have shattered long-time records this year, paralyzing transit systems and roads, and preventing hundreds of thousands of people from making it to their jobs. This raises the question: What are the payroll consequences of situations like this? Background Although state law may control outcomes, the relevant statute on the federal level, […]
An employer-sponsored HRA will not be able to avoid the annual limit requirements by being integrated with individual market coverage or with an employer plan that provides coverage through individual policies. The Agencies apply this rule to any group health plan used to purchase coverage on the individual market, not just to HRAs. The group […]
A critical aspect of the Affordable Care Act is the new employer mandate to offer health insurance. The employer mandate requires businesses with 50 or more full-time and full-time equivalent (FTE) employees to offer health insurance coverage. If tracked incorrectly, your company will become vulnerable to unnecessary audits and costly penalties. Luckily, BASIC offers employees […]
The “quickie election” rules were originally proposed two years ago, but were narrowly rejected by the National Labor Relations Board (NLRB) when the majority of its five members were appointees of President George W. Bush. Today the majority are President Obama appointees, and the rules were adopted 3-2, along party lines. From the majority’s perspective, […]
Question: In applying one of the affordability safe harbors for 2015, is the figure 9.56% applied instead of 9.5%? Answer: No. Beginning in 2015, the IRS increased the percentage of an employee’s household income-from 9.5% to 9 .56% – that may be charged for the employee’s required contribution and still be considered “affordable” for purposes […]
On December 19, 2014. President Obama signed the Tax Increase Prevention Act of 2014 (the “Act). The Act included changes to mass transit benefits. The monthly maximum for mass transit benefits provided to an employee has been $130 per month, while the parking fringe benefit has been $250. The Act has equalized the two benefits retroactively to January 1, 2014 […]
Does your company’s health insurance plan include health reimbursement arrangements (HRAs) or flexible spending accounts (FSAs)? If so, you should know these plan components are both subject to the Affordable Care Act (ACA) and its “market reform” provisions. The Department of Labor and other principal agencies have issued another round of guidance1 to answer some […]
The Internal Revenue Service has issued its 2015 optional standard mileage rates. Effective January 1st, 2015, the IRS standard rate will be 57.5 cents per mile driven for business purposes (an increase of one-and-a-half cents from the 2014 rate of 56 cents per mile). Use of this rate is optional, though it is widely seen […]
Be aware of upcoming Healthcare Reform requirements that impact FSA plans that have employer contributions. 1. 2014 Form W-2 reporting requirement for healthcare benefits: Employers that prepared 250 or more W-2s for tax year 2013 will be required to report the total cost of any group health plan coverage that was provided to an employee. […]
