Benefits Bulletin

The IRS announced that the maximum FSA contribution limit for 2025 will be $3,300, an increase of $100 from 2024. The limit is based on the employee and not the household.  If an employee and spouse both have access to their own FSA through their respective employers, they are each eligible to contribute up to…

In September 2024, the 2025 New York Paid Family Leave (PFL) employee contribution rates and updated annual cap were announced.  As of January 1, 2025 the following will take effect: The state has set forth the following PFL rules which will also take effect from 1/1/2025: Premiums should be withheld from employees’ gross wages, until…

The IRS released the 2025 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. 2025 Annual HSA Contribution Limits Single:  $4,300 ($4,150 in 2024)…

As of January 1, 2024 the following will take effect regarding the 2024 New York Paid Family Leave (PFL): The state has set forth the following PFL rules which will also take effect from 1/1/2024: Premiums should be withheld from employees’ gross wages, until the annual cap is reached, which may occur prior to the…

The IRS released the 2024 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. 2024 Annual HSA Contribution Limits Single:  $4,150 ($3,850 in 2023)…

Per the 1/31/2023 Statement of Administration Policy by President Biden: The COVID-19 national emergency and public health emergency (PHE) were declared by the Trump Administration in 2020.  They are currently set to expire on March 1 and April 11, 2023, respectively.  At present, the Biden Administration’s plan is to extend the emergency declarations to May…

The IRS announced that the maximum FSA contribution limit for 2023 will be $3,050, an increase of $200 from 2022. The limit is based on the employee and not the household.  If an employee and spouse both have access to their own FSA through their respective employers, they are each eligible to contribute up to…

On 9/1/2022, the 2023 New York Paid Family Leave (PFL) employee contribution rates and updated annual cap were announced. As of January 1, 2023 the following will take effect:• Premium Deduction Rate: 0.455% (down from 0.511% in 2022)• Statewide Average Weekly Wage: $1,688.19 (up from $1,594.57 in 2022)• Annual Contribution Cap: $399.43 (down from $423.71…

The IRS released the 2023 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. 2023 Annual HSA Contribution Limits Single:  $3,850 ($200 increase from…

The IRS announced that the maximum FSA contribution limit for 2022 will be $2,850, an increase of $100 from 2021. The limit is based on the employee and not the household. If an employee and spouse both have access to their own FSA through their respective employers, they are each eligible to contribute up to…

The 2022 New York Paid Family Leave (PFL) employee contribution rates and updated annual cap were announced.  As of January 1, 2022 the following will take effect: Premium Deduction Rate: 0.511% (same as 2021) Statewide Average Weekly Wage: $1,594.57 (up from $1,450.17 in 2021) Annual Contribution Cap: $423.71 (up from $385.34 in 2021) The state…

The IRS released the 2022 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. 2022 Annual HSA Contribution Limits Single:  $3,650 ($50 increase from…

On March 11, 2021, President Biden signed into law the American Rescue Plan Act (ARPA).  As part of the ARPA, several provisions were included that relate to the continuation of insurance benefits, known as COBRA (Consolidated Omnibus Budget Reconciliation Act).  Specifically: There is a 100% Medical, Dental and Vision (not FSA) premium subsidy for those…

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…

On December 27, 2020, President Trump signed the year-end spending bill.  In that bill included language that makes Flexible Spending Accounts (FSAs) temporarily more advantageous.  The temporary rule: Allows plans to permit Health FSAs and Dependent Care FSAs to carryover unused benefits, up to the full annual amount, from 2020 to 2021, and from 2021…

The IRS announced that the maximum FSA contribution limit for 2021 will not change from 2020, and remain at $2,750. The limit is based on the employee and not the household.  If an employee and spouse both have access to their own FSA through their respective employers, they are each eligible to contribute up to…

Below is a summary of the details and guidance regarding New York’s new paid sick leave law.  As of now, there is little formal guidance outside of the statutory language itself.  However, as the effective date approaches, we expect regulatory or other guidance from the New York Department of Labor to be issued in the…

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…