ACA Reporting
ACA Compliance Lessons Learned From Recent Reporting Seasons
Common themes emerge when reflecting on recent ACA reporting seasons that can help employers reduce administrative burdens and improve accuracy.
FSA / HRA / HSA
Question of the Week - Health FSA Upfront Reimbursement
Q.- We started offering employees the ability to contribute to a health flexible spending account beginning 1/1/2024. An employee just submitted her first expense reimbursement
Q.- We started offering employees the ability to contribute to a health flexible spending account beginning 1/1/2024. An employee just submitted her first expense reimbursement request and it is for a $2,500 hospital charge. She has only contributed a small amount to her Health FSA since it is January. Someone told us we have to reimburse the full $2,500 now and can’t wait until her payroll contributions add up to her requested amount. Is that true?
A.- Yes, it is true. For a health flexible spending account plan, the full amount of the annual election must be available as of the beginning of the plan year. This is the case even if the employee does not have contributions to fund the expense. This is one of the monetary risks an employer assumes when establishing a health FSA plan for its employees.
Benefit Allocation Systems (BAS) provides online solutions for: Employee Benefits Enrollment; COBRA; Flexible Spending Accounts (FSAs); Health Reimbursement Accounts (HRAs); Leave of Absence Premium Billing (LOA); Affordable Care Act Record Keeping, Compliance & IRS Reporting (ACA); Group Insurance Premium Billing; Property & Casualty Premium Billing; and Payroll Integration.
MyEnroll360 integrates with major insurance carriers for enrollment eligibility management (e.g., Blue Cross, Blue Shield, Aetna, United Health Care, Kaiser, CIGNA and others), and with leading payroll platforms for enrollment deduction management (e.g., Workday, ADP, Paylocity, PayCor, UKG, and others).
This article is for informational purposes only and is not intended as legal, tax, or benefits advice. Readers should not rely on this information for taking (or not taking) any action relating to employment, compliance, or benefits. Always consult with a qualified professional before making decisions based on this content.
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