The COVID-19 pandemic related CARES Act granted tax preferred status to loan repayment employee benefits. Referred to as loan repayment assistance programs – LRAPs or EAPs (educational assistance programs), this new tax preferred benefit is available through 2025 (unless extended), thanks to the Consolidated Appropriations Act (CAA) which was signed by the President toward the end of December, 2020. LRAPs/EAPs provide employers with yet another employee recruitment and retention tool, but there are important considerations.
The federal government has now provided employers with additional relaxations affecting tax preferred, Flexible Spending Accounts (FSAs), in light of the Coronavirus pandemic. These relaxations come about as a result of the passage into law of the Consolidated Appropriations Act, 2021. It’s important to note that these FSA changes are not mandatory either in total or individually. Employers may opt to amend their FSA plans to allow any or all of these provisions, but are not compelled to do so.
Although a number of Affordable Care Act (ACA) taxes/fees were repealed by the 2019 SECURE Act (see – https://smstevensandassociates.com/aca-taxes-repealed/) , the PCORI fee (also known as the Comparative Effectiveness Research Fee (CERF)) was not, and was in fact extended for an additional 10 years. So in addition to plan years ending prior to October 1, 2019, the PCORI fee will now apply to plan years ending in 2020-2029.
In light of the COVID-19 pandemic, the Departments of Health/Human Services, Labor and Treasury (DHS, DOL & DOT), along with the IRS have issued (April 29, 2019) guidance that extends many of the deadline dates associated with various employee benefits related time frames.
The COVID-19 pandemic has disrupted and changed the health insurance landscape for many people. Here’s a review of the various options available to people, depending on their specific situation and eligibility:
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) became law. The CARES Act amends certain provisions of the Families First Coronavirus Response Act (“FFCRA”). CARES also temporarily eliminates deductibles for certain services in HSA Qualified High Deductible Health Plans (HDHPs), and temporarily expands the list of qualified expenses reimbursable through HSAs, HRAs, and FSAs.
On March 18, 2020 the President signed into law the Families First Coronavirus Response Act (FFCRA), which takes effect April 2, 2020. The FFCRA includes several provisions that impact employers with less than 500 employees, with allowable exemptions for affected employers with fewer than 50 employees. This blog post addresses the three (3) main aspects of the FFCRA: 1. Mandated waiver of health insurance related cost sharing for COVID-19 testing; 2. New paid leave entitlements; and 3. Employer tax credits.
On Jan. 15, 2020, the Department of Labor (DOL) released its 2020
inflation-adjusted civil monetary penalties that may be assessed on
employers for violations of a wide range of federal laws, including:
The Fair Labor Standards Act (FLSA);
The Employee Retirement Income Security Act (ERISA);
The Family and Medical Leave Act (FMLA); and
The Occupational Safety and Health Act (OSH Act).
If your organization offers, or is in the process of considering a Wellness Program…HOLD THE PHONE! There is pending litigation involving the American Association of Retired Persons (AARP) and the U.S. Equal Employment Opportunity Commission (EEOC) that could profoundly alter the regulatory and compliance requirements associated with certain Wellness Programs. Generally speaking, the rules and regulations affecting Wellness Programs, apply to those defined as “health contingent” and “outcome based”.
Many in the health insurance and employee benefits space are claiming to have found the next new, innovative and sure fire way to reduce health insurance costs. Actually its an old idea, originally deployed in the retirement/pension area of the overall employee benefits palette, and fairly recently resurrected for use in employer provided health insurance. The next “silver bullet”?
DEFINED CONTRIBUTION
(Remember 401(k)s gradual replacement of many defined benefit retirement pension plans in the eighties?)
