Posts by Smola Consulting Team

Dear Valued Partner, We understand that COVID19 has had significant and far-reaching impacts on all aspects of living, including broad shifts in workplace operations, culture, and benefits. Smola Consulting is continuing to monitor pandemic trends and explore resources to share best practices, raise public awareness, and support and advocate worksite vaccination efforts. As the COVID19…

In response to COVID-19, the IRS released new relief affecting Flexible Spending Accounts (FSAs) and Dependent Care Assistance Programs (DCAPs). Extended Claim Period The claims period has been extended to apply unused amounts remaining in a Health FSA, or DCAP, for expenses incurred for those same qualified benefits, through December 31, 2020. Mid-Year Elections Participants…

Form 1095-B is used to report certain information to the IRS and to taxpayers about individuals who are covered by minimum essential coverage.  Taxpayers are not required to include Form 1095-B with their tax return.  However, health insurers are required to make the form available to members for their records.   The IRS made changes…

On December 20, 2019, President Trump signed the Consolidated Appropriations Act, 2020, repealing the Affordable Care Act’s (ACA) Cadillac Tax.   The U.S. Senate voted 71-23 on December 19, 2019, to approve the spending bill that included a repeal of the ACA’s excise tax on high-cost, employer-sponsored healthcare plans, also known as the “Cadillac Tax.”​…

The IRS announced that the maximum FSA contribution limit for 2020 will increase by $50, from $2,700 to $2,750.   The FSA limit increase is effective for FSA plan years beginning on or after January 1, 2020.   The limit is based on the employee and not the household.  If an employee and spouse both…

Recently, the 2020 New York Paid Family Leave (PFL) employee contribution rates and updated annual cap were announced.  As of January 1, 2020, the following will take effect: Premium Deduction Rate: 270% (up from 0.153% in 2019) Statewide Average Weekly Wage: $1,401.17 (up from $1,357.11 in 2019) Annual Contribution Cap: $196.72 (up from $107.97 in…

On June 20, 2019, new Health Reimbursement Account (HRA) rules were released by the Departments of Labor, Health and Human Services, and the Treasury, which can be found here.  The changes go into effect for plan years beginning on or after January 1, 2020, and introduce two new types of HRAs: Individual Coverage HRA (ICHRA)…

The IRS released the 2020 Health Savings Account (HSA) contribution limits, the minimum required HDHP deductibles, and the HDHP out-of-pocket maximums.  Each year, the IRS reviews these figures based on a cost-of-living adjustment.   The figures below pertain to HSAs and HSA-qualified High Deductible Health Plans.   2020 Annual HSA Contribution Limits Single:  $3,550 ($50…

The IRS announced that the maximum FSA contribution limit for 2019 will increase by $50, from $2,650 to $2,700.   The FSA limit increase is effective for FSA plan years beginning on or after January 1, 2019.   The limit is based on the employee and not the household.  If an employee and spouse both…

In October 2018, the 2019 New York Paid Family Leave (PFL) employee contribution rates and updated annual cap were announced.  As of January 1, 2019, the following will take effect. Premium Deduction Rate: 153% (up from 0.126% in 2018) Statewide Average Weekly Wage: $1,357.11 (up from $1,305.92 in 2018) Annual Contribution Cap: $107.97 (up from…

The IRS released the 2019 Health Savings Account (HSA) contribution limits, the minimum required HDHP deductibles, and the out-of-pocket maximums.  Each year, the IRS reviews these figures based on a cost-of-living adjustment.   The figures below pertain to HSAs and HSA-qualified High Deductible Health Plans.   2019 Annual HSA Contribution Limits Single:  $3,500 ($50 increase…

2018 Limits For High Deductible Health Plans (HDHP) And Health Savings Accounts (HSA)   In May 2017, the IRS originally released the 2018 Health Savings Account (HSA) contribution limits, the minimum required HDHP deductibles, and the out-of-pocket maximums (https://www.irs.gov/pub/irs-drop/rp-17-37.pdf).  However, the December 2017 passing of the Tax Reform Bill led to a review of the…

In May 2017, the IRS originally released the 2018 Health Savings Account (HSA) contribution limits, the minimum required HDHP deductibles, and the out-of-pocket maximums (https://www.irs.gov/pub/irs-drop/rp-17-37.pdf). However, the December 2017 passing of the Tax Reform Bill led to a review of the limits. Each year, the IRS reviews these figures based on a cost-of-living adjustment.  …

On January 23, 2018, Congress passed, and President Trump signed into law, a stopgap spending deal that ended the shutdown of the federal government. Included in this deal are the suspensions of three taxes: The Cadillac Tax was delayed for two additional years, from 2020 until 2022. This tax would have imposed a 40% surcharge…

In an effort to prevent fraud, fight identity theft, and keep taxpayer dollars safe, Centers for Medicare & Medicaid Services (CMS) is removing Social Security Numbers (SSN) from Medicare cards in a year-long phased approach, beginning April 2018. The Medicare Access and CHIP Reauthorization Act (MACRA) of 2015 requires the removal of Social Security Numbers…

The IRS has announced that the maximum FSA contribution limit for 2018 will increase by $50 – from $2,600 to $2,650. The FSA limit increase is effective for FSA plan years beginning on or after January 1, 2018. The limit is based on the employee and not the household. If an employee and spouse both…

This is a follow-up from the Smola Consulting Benefits Bulletin posted on 7/21/2017 regarding New York Paid Family Leave (PFL) benefits starting January 1, 2018 for new parents, family members caring for sick relatives, and employees with family members deployed abroad on active military duty. The New York State Department of Taxation and Finance just…

On Wednesday July 19, 2017, the New York State Workers Compensation Board posted Final Regulations regarding New York Paid Family Leave (PFL), which takes effect on January 1, 2018. Final regulations can be found here: http://www.wcb.ny.gov/PFL/pfl-regs.jsp Governor Andrew Cuomo announced that the state has adopted regulations implementing New York’s Paid Family Leave program. These regulations…

The IRS released the 2018 Health Savings Account (HSA) contribution limits, the minimum required HDHP deductibles, and the out-of-pocket maximums. Each year, the IRS reviews these figures based on a cost-of-living adjustment. The figures below pertain to HSA’s and HSA-qualified High Deductible Health Plans. 2018 Annual HSA Contribution Limits Single: $3,450 ($50 increase from 2017)…

The IRS has announced that the maximum FSA contribution limit for 2017 will increase by $50 – from $2,550 to $2,600. This is the first increase to the limit in two years, and only the second increase since the limit was originally set at $2,500. The FSA limit increase is effective for FSA plan years…

The annual baseline budget projections by the Congressional Budget Office and Joint Committee on Taxation (CBO), is projecting employer responsibility penalties to total $228 billion by the end of 2020.  The individual mandate penalty will yield a projected $28 billion. The high-premium employer plan’s Cadillac Tax is expected to yield $18 billion. These penalty estimates…

Recently, The Department of Labor published an interim final rule to adjust for inflation within the civil monetary penalties enforced by the Department of Labor. This Benefits Bulletin describes some of the adjustments made to the benefit-related civil monetary penalties enforced by the Employee Benefits Security Administration (EBSA) under the Employee Retirement Income Security Act…

The IRS released the 2017 Health Savings Account contribution limits, the minimum required HDHP deductibles, and the out-of-pocket maximums. Each year, the IRS reviews these figures based on a cost-of-living adjustment. The figures below pertain to HSA’s and HSA-qualified High Deductible Health Plans. 2017 Annual HSA Contribution Limits Single: $3,400 ($50 increase from 2016) Family:…

On December 15, 2015, Congress approved a two-year delay of the Cadillac Tax. The “tax extender” package and provision was signed by the President, making it official. The Cadillac Tax effective date will move from 2018 to 2020. The delay was included in a year-end tax and spending package that also makes the Cadillac Tax…

On 9/17/2015, the IRS issued final forms and instructions for employer reporting relating to insured health plan coverage. The forms will be used to enforce Affordable Care Act employer penalties and individual mandate and tax credit eligibility rules with mandatory reporting starting in 2016 for the tax year 2015. Large employers with 50 or more…

Effective 1/1/2016, the ability to make Health Savings Account (HSA) contributions will be extended to veterans, provided both of these criteria are met: Care is received through a Veteran’s Administration (VA) program Care is specifically for a service-connected disability If the VA hospital care or medical services are specifically affiliated to a service-connected disability, veterans are…

Below is an article released today from Washington (Associated Press), detailing the Supreme Court’s ruling to uphold the Affordable Care Act’s federal subsidies. The ruling holds that the Affordable Care Act authorized federal tax credits for eligible Americans living not only in states with their own exchanges, but also in the 34 states with federal…

The IRS released the 2016 Health Savings Account contribution limits, the minimum required HDHP deductibles, and the out-of-pocket maximums. Each year, the IRS reviews these figures based on a cost-of-living adjustment. The figures below pertain to HSA’s and HSA-qualified High Deductible Health Plans. 2016 Annual HSA Contribution Limits Single: $3,350 (unchanged from 2015) Family: $6,750…

The IRS has issued final forms and instructions for employer reporting and notices relating to insured health plan coverage. The final versions are largely unchanged from the prior draft versions. The forms will be used to enforce Affordable Care Act employer penalties and individual mandate and tax credit eligibility rules with mandatory reporting starting in…