Tag: dcap

Question: We have just been notified that we have failed the Dependent Care FSA non-discrimination testing for 2012 where non-highly compensated employees are contributing less than 55% of what the HCIs contribute. Is there a checklist or instructions on what the employer must do to fix this? Answer: If you are working with a third party administrator…

Question: Can you provide information regarding FSA eligibility requirements for hourly employees who are not normally eligible for health care benefits? Answer: The eligibility requirements for FSAs are largely dependent upon the employer policy and health care plans. Under the IRS rules Publication 969 found online at http://www.irs.gov/publications/p969/ar02.html#d0e2936, it simply states the following: “Health FSAs…