We might only be a few weeks into the new year, but 2019 hit the ground running in the world of benefits. Here are the highlights of what should already be on your 2019 radar:
- The IRS Has Started to Enforce 2016’s “Pay or Play”
The Internal Revenue Service (IRS) began issuing enforcement letters regarding employer compliance with the shared responsibility rules under the Affordable Care Act, in late 2018.
Only Applicable Large Employers (ALEs) are sent these letters and the determination of whether an ALE may be liable for a penalty is based on the information in forms 1094-C and 1095-C.
If an ALE receives this enforcement letter, they must either agree with the IRS’s determination of employer shared responsibility or formally disagree before the penalty is assessed and payment is demanded. ALEs must respond within 30 days from the date of the letter.
- FSA Limit Increases in 2019
The Affordable Care Act (ACA) has historically set a dollar limit on health flexible spending account (FSA) contributions. Typically, cost of living adjustments are a consideration in setting this limit and the limit may be increased each year.
The same will be true in 2019. As of November 2018 the FSA contribution limit was increased from $2650 to $2700, effective with the 2019 tax year. This contribution limit increase is par for the course and in step with similar increases made over the past few years.
It’s important for employers that offer FSA’s to their employees to communicate the new 2019 limit during the open enrollment process.
It would appear that the word of 2019 is “Compliance.” At Boon, Compliance is our middle name; it’s also part of our New Year’s Resolution to keep providing competitive benefits solutions for government contractors.
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