Category Archives: Taxes

Flexible spending accounts (FSAs), also called Section 125 plans after the relevant section of the Internal Revenue Code, are commonplace benefits. But, perhaps because they are common, some employers and employees don’t understand some of the regulations that apply to these plans. IRS Publication 969 titled “Health Savings Accounts and Other Tax-Favored Health Plans” isContinue reading “Flexible Spending Accounts – Different Strokes for Different Plans”

A frequent Compliance Corner question asks whether employers can include independent contractors in their health plans or other benefits. The answer to this question is more complicated than one might think. Most benefit experts advise against including independent contractors or other non-employees such as 1099 employees, non-employee directors or leased employees on employer’s benefit plans.Continue reading “Caution if Offering Health Coverage to Non-Employees”

Health Savings Accounts (HSAs) were created in 2003 according to the U.S. Department of the Treasury. Since that time, there haven’t been significant changes to them, especially significant legislative changes. Legislation is now pending in Congress to give HSAs a “refresh” that would bring HSAs more in line with today’s consumer needs. On June 5,Continue reading “HSAs Pose Compliance Concerns”

IRS Notice 2018-27 provides limited relief for employers who wished to utilize the small employer health insurance tax credit but there were no available plans in their county. As a reminder, the tax credit is available for a two-consecutive tax year period. It was first available for tax years beginning after December 31, 2009. ToContinue reading “IRS Provides Limited Bare-Counties SHOP Relief”

IRS Revenue Procedure 2018-27 returns the annual limit for 2018 HSA family contributions to $6,900. This follows and supersedes Revenue Procedure 2018-18 which was published this past March. The IRS acknowledged that the $50 reduction to the limit on HSA deductions for family HDHP coverage imposed “administrative and financial burdens.” The notice reflected that theseContinue reading “Déjà vu — IRS Revises HSA Family limit”

In the spirit of “beware what you wish for” the recent tax reform law included a small surprise for those with health savings accounts (HSAs). Page 400 of IRS Bulletin number 2018-10 contains a revision -downward – of the HSA family contribution limit. The revision is due to a change in how the amount isContinue reading “Tax Reform Changes HSA Limit”

The new tax law passed by Congress and signed by the President does not repeal the individual mandate as many people have assumed. The tax law actually zeroes out the individual mandate penalty. And, importantly, this action takes effect in 2019. The actual law text is: SEC. 11081. ELIMINATION OF SHARED RESPONSIBILITY PAYMENT FOR INDIVIDUALSContinue reading “ACA’s Individual Mandate — Still in Force”