President Joe Biden signed the American Rescue Plan Act of 2021 (ARPA) into law on March 11, 2021. Along with providing financial relief for individuals, state and local governments, schools, businesses and for other purposes, the law contains the following measures of special interest to employers and their employees: A subsidy for COBRA premiums, funded […]
Open enrollment following the COVID-19 pandemic will be unlike any other in recent memory. Many organizations are still trying to recover from extended closures and maintain safe working environments—open enrollment is the last thing on their minds. Yet, procrastinating on enrollment planning can actually cause more issues than it solves. This article explains what employers […]
OVERVIEW On Dec. 2, 2019, the Internal Revenue Service (IRS) issued Notice 2019-63 to: Extend the due date for furnishing forms under Sections 6055 and 6056 for 2019 from Jan. 31, 2020, to March 2, 2020; Extend good-faith transition relief from penalties related to 2019 information reporting under Sections 6055 and 6056; and Provide additional […]
Many benefit plan limits have changed for the new calendar year. Here’s what those changes are: 401(k) Limits Pre-tax contributions: $19,500 (up $500 from 2019)Catch-up contributions: $6,500 (up $500 from 2019) Health Savings Account (HSA) Limits Pre-tax contributions: Single coverage: $3,550 (up $50 from 2019) Family coverage: $7,100 (up $100 from 2019) Catch-up contributions: $1,000 […]
Beginning in 2020, employers of all sizes may implement a new HRA design – an individual coverage HRA (ICHRA) – to reimburse their eligible employees for insurance policies purchased in the individual market or Medicare premiums. Final rules released by the Departments of Labor, Health and Human Services (HHS) and the Treasury (Departments) permit employers […]
HIGHLIGHTS Each year, the IRS announces inflation-adjusted limits for HSAs and HDHPs. The adjusted contribution limits for HSAs take effect as of Jan. 1, 2020. The adjusted HDHP cost-sharing limits (minimum deductible and maximum out-of-pocket) take effect for the plan year beginning on or after Jan. 1, 2020. IMPORTANT DATES January 1, 2020 The new […]
HIGHLIGHTS Employers with large fully insured welfare plans (100 or more participants) must provide participants with a SAR each year. The SAR is a summary of the plan’s Form 5500. Employers with self-insured, unfunded plans are not subject to the SAR requirement, regardless of plan size. IMPORTANT DATES September 30 Deadline for […]
OVERVIEW The IRS recently released an information letter describing circumstances that would allow an employer to recover contributions mistakenly made to its employees’ HSAs. Previously, IRS guidance allowed employers to recover HSA contributions in very limited situations, such as when the contribution exceeded the applicable annual limit. The new guidance also allows employers to recover […]
OVERVIEW Many employee benefits are subject to annual dollar limits that are periodically increased for inflation. The Internal Revenue Service (IRS) recently announced cost-of-living adjustments to the annual dollar limits for various welfare and retirement plan limits for 2019. Although some of the limits will remain the same, many of the limits will increase for […]
