The Internal Revenue Service issued final regulations on March 5, 2014 that address the reporting requirements for employers under the Affordable Care Act (the "ACA"). The regulations became effective on March 10, 2014.
Section 6055 (Minimum Essential Coverage Report) and Section 6056 (Shared Responsibility Report) that are to be reported on form 1095-C to the IRS by February 28 and to the employees by January 31. Download our full report here.
Flex Credit Cafeteria Plans: How this Cafeteria Plan Design can Help Employers Maintain Costs in 2014 and Beyond
The most complex form of a cafeteria plan is the “full flex” or "flex credit" plan. This type of plan is a true cafeteria plan in which employees can choose among different taxable and non-taxable benefits. Employees use benefit dollars or credits that are offered by the employer to select the benefits that meet their individual needs. The employer can use a full flex cafeteria plan in conjunction with a defined contribution to set an amount that it wants to contribute to the benefits and allow employees to pay the remainder. Download the full article
On March 28, 2014 the IRS issued a memorandum that addresses the corrective steps which should be taken when an employer or third-party administrator makes a payment from a health FSA and later determines that the payment was improper. The memorandum applies substantially the same corrective procedures as are provided in IRS proposed regulations for correcting debit card payments that are not substantiated. Download our document explaining this completely.
Oregon OIC confirms that using a 125 plan to pay for individual insurance premiums "is not allowed under current law."
When we asked the OIC about "vendors marketing the use a 125 plans to pay for
individual insurance premiums" and if it's okay.
Their reply, "the practice is not allowed under current law." If you want more technical information on this, download our attorney reviewed letter.
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