Tag: employee Benefits

Question: Under the Family and Medical Leave Act (FMLA), do employers continue to make matching 401(k) contributions during an unpaid leave? Answer: While not required under the Family and Medical Leave Act (FMLA), retirement accounts, such as 401(k) matching contributions, are maintained in accordance to your Summary Plan Description and typically do require continued matching…

Question: Can an employee pay the cost of preschool with a dependent care flexible spending account (FSA)? Answer: Expenses for a child in nursery school, preschool, or similar program for children below the level of kindergarten are considered reimbursable expenses for dependent care. These programs may provide an educational and or social experience; however, the primary…

Question: We have an employee out on workers’ comp leave and the company is currently paying all costs for his family premiums because he has not submitted his payment. Can we terminate his coverage? If he doesn’t return, how can we recover his part of the premiums owed? Answer: If the employee is eligible for…

Question: What is the grace period after the plan year ends for an employee with a Dependent Care FSA to use the funds? Answer: The IRS allows for a grace period of up to two months and 15 days after the plan year ends. However, an employer may adopt a different grace period within that…

Question: Is it sufficient notification to exclude spousal health coverage if an employer has language in the handbook stating that spouses will not be covered under the health plan? Answer: In order for a “spousal carve-out” to be enforced, it should be outlined in the official benefit plan documents. It is certainly permissible to summarize…

Question: What are the employer reporting requirements for the 2015 Employer Shared Responsibility Payment under Section 6056? Answer: The Affordable Care Act (ACA) includes several new reporting requirements under the Internal Revenue Service (IRS) tax codes. Section 6056 requires employers to report information to the IRS about their compliance with the employer shared responsibility provisions,…

Question: Can Health Saving Account (HSA) distributions be used for a dependent covered under a non-HSA plan? Answer: Yes, monies in an individual HSA account may be used for a dependent not covered under the High Deductible Health Plan (HDHP), as long as the dependent is claimed on the participating employee’s tax return, and the…

Question: Can an employee waive employer-sponsored health care when participating in COBRA?  If so, can she or he enroll in the plan at a later date? Answer: Yes, the employee can choose to waive employer-sponsored coverage and maintain coverage under COBRA continuation for the maximum duration. If coverage is waived, the employee may enroll either:…

Question: Can we take “double” deductions from an employee’s paycheck to cover medical premiums when s/he resigns mid-month? Answer: When an employee is terminating, final wages are subject to amounts authorized in writing by the employee under a salary reduction agreement. Remember state laws govern what can legally be deducted from wages.  Most state laws provide…