Boon Buzz: 2019 in Benefits, So Far…

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:

  1. 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.

  1. 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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About The Boon Group

The Boon Group® is a full service employee benefits company specializing in the design, implementation and administration of cost-effective fringe benefit plans for federal, state and local government contractors. Since 1982, The Boon Group has developed a partnership philosophy that expands beyond the products and services we offer. We stand with the employers and employees who, just like all who work at The Boon Group, are faced with the daunting task of navigating the U.S. healthcare system. Together, we can find a better way for all Americans to access healthcare. The Boon Group, Inc. is the parent holding company of The Boon Insurance Agency, Inc., Boon Administrative Services, Inc. (formerly named CEBA), Boon Insurance Management Services, L.P., Health & Welfare Benefit Systems, Inc. and Boon Investment Group, Inc. The Boon Group was formed to support and strengthen the position of these companies as a wholesaler of exclusive products and services. www.boongroup.com
This entry was posted in ACA, ACA reporting, compliance, employee benefits, IRS. Bookmark the permalink.

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