IRS Announces 2020 Contribution Limits

Good news! With Rev. Proc. 2019-44 the IRS has announced the annual inflation adjustments for 2020, which include increased contribution limits for the following benefit accounts:

  • Healthcare FSA annual contribution limit: $2,750 (increase of $50)
  • Transit Account monthly maximum: $270/month (increase of $5)
  • Parking Account monthly maximum: $270/month (increase of $5)

The annual limits for Dependent Care FSA will remain unchanged at $5,000 per year; $2,500 if married filing single.

Keep track of all current IRS limits at www.tasconline.com/benefits-limits.

TASC to send multi-employee Microbusiness clients PCORI information in June

Due to requirements resulting from the Patient Protection and Affordable Care Act (PPACA), employers who offer employer-sponsored benefits are required to file IRS Tax Form 720 and pay a small fee. This will impact Plan years ending 2012-2019. Don’t worry; TASC has your multi-employee AgriPlan, BizPlan and No Limit Plan clients covered!

Fee helps to fund research and consumer-based health decisions

Established by PPACA, the Patient-Centered Outcomes Research Institute (PCORI) is charged with examining the relative health outcomes, clinical effectiveness, and appropriateness of different medical treatments by evaluating existing studies and conducting its own. The Institute will be funded in part by employer-paid fees.

This means your multi-employee AgriPlan, BizPlan, and No Limit Plan clients will have to file an additional tax form and pay a small fee by July 31st each year. The fee total will be $2.26 per Plan Participant.

What do your clients need to do?

TASC is committed to keeping your clients in compliance and backs every Plan with our Audit Guarantee. To help ensure compliance, please ask these clients to watch their mail early-June for a pre-filled IRS Tax Form 720 and instruction from TASC regarding the required PCORI information.

  • Completed form with payment should be mailed to the IRS and postmarked no later than July 31, 2018
  • Mail to the Department of Treasury, Internal Revenue Services, Cincinnati, OH 45999-0009

If you are already filing IRS Tax Form 720 for your clients, please include the PCORI calculation and fee that was sent to your client.

 

 

Employers who sponsored QSEHRA Plans in 2017 must report the benefit on employee’s W-2 form.

If you have eligible employees who are entitled to receive payments and reimbursements from the Small Business HRA (also known as a QSEHRA) for the calendar year 2017,, please be aware you must do the following:

  • Enter code FF in Box 12a on the employee’s W-2 form (This code was been assigned to represent QSEHRA payments/reimbursements.)
  • Enter the maximum PERMITTED benefit. In 2017, this was $4,950 for an individual and $10,000 for a family.

For instance, this is what the W-2 would look like for an employee with individual coverage under the QSEHRA who was reimbursed for $3,500 in benefits.

2017 Form W-2

Complete and distribute your employee W-2 forms by January 31, 2018 and be sure to use the new FF code in box 12 for any QSEHRA eligible employees. For more information, click on the following LINK and see Section J (Reporting Requirement) which starts on page 35 or contact your tax professional.

ACA Minimum Essential Coverage Reporting is required for Microbusiness No Limit Plan Clients

A new President and Congress continue attempts to repeal the Affordable Care Act (ACA). To date, they have not had success in doing so and therefore the ACA Reporting requirement for Minimum Essential Coverage stands.

Employers who provide health coverage are required to report health Minimum Essential Coverage information to covered employees, former employees and the IRS annually. For Group-insured health plans, this requirement lies with the insurance carrier. For self-insured Plans, this responsibility rests with the employer.

Employers are required to submit a 1094-B Transmittal Form and 1095-B forms for each covered employee to the IRS by February 28th, or March 31st if filing electronically.

In addition, they must distribute IRS Form 1095-B to affected employees by January 31st. Employees will use this form when completing their own individual income tax returns as proof of health insurance coverage for the prior calendar year. Under existing Healthcare Reform rules, an individual can be fined for any month they fail to maintain health coverage.

To help ensure the compliance, TASC will once again email (or mail if TASC doesn’t have an email address on file) its Microbusiness multi-employee No Limit Plan Clients (who don’t sponsor Group insurance) detailed instruction and links to these online fillable tax forms next week.

TASC’s legal, compliance and governmental affairs departments have concluded that Clients who had a QSEHRA Small Business HRA are not required to file or distribute these forms.

TASC’s ACA Reporting service is available to all other Clients for a fee. If interested in learning more, please contact your RSD or call Customer Care at 800.422.4661.

Tax season is right around the corner

You probably need no reminder; however, it’s time for your Clients to start thinking about tax season! TASC makes it fast and easy for your Clients to get the records they need with MyTASC online tools. These tools let your Clients download their AgriPlan, BizPlan and No Limit Plan Year-End Report as soon as they’ve finished submitting all of their medical expenses for the year—and the earlier they have their Year-End Report in hand, the sooner they can schedule an appointment with you or their tax professional!

We make it fast and easy for your Clients to download their Year-End Report

Here are the instruction we are sending to your Clients:

  • Log in to your MyTASC account at http://www.tasconline.com. There’s an instructional video on how to log in to MyTASC on the TASC home page.
  • Enter any additional medical expenses that weren’t purchased through your TASC Card. (Expenses paid for with your TASC card are already included.)
  • Click on the Create Year-End Report button (found under both My Expenses and the Year-End Report tab in MyTASC).
  • We’ll compare your expenses against a list of eligible ones. If your expenses are approved, you’ll be able to immediately create and print your report in PDF format.
  • If any of your submitted expenses are in question, your Year-End Report will take another three to five business days for manual review. After this review and approval, you’ll receive an email with a link to log back into MyTASC and you’ll be able to download your report at your convenience.

Do you prefer a paper Transmittal?

If you told us last year that you wanted a Transmittal form mailed, you will receive one in the mail this year and every year thereafter.

If you have not previously request a mailed paper Transmittal form and would prefer this method of reporting your expenses, please complete our Online Form or submit a MyService Request online (log in to MyTASC, click on the Contact Us tab, click on the Service Request link, fill out and submit the form). Please have your TASC ID available. You should receive your paper Transmittal in the mail within 5 to 10 business days. You need only contact us one time in regard to receiving a mailed Transmittal.

Would you like to save time and print a Transmittal worksheet?

If you would like to download and complete a paper Transmittal of your expenses, click on Year-End Report from the MyTASC home page or the Year-End Report tab anytime after December 20th. Then simply click on the Paper Transmittal link to open and print a PDF Transmittal worksheet. Complete the form and mail to TASC.

Thank you for your business!

 

IRS Tax Form 720 Filing and PCORI Fee Due July 31st

Established by PPACA, the Patient-Centered Outcomes Research Institute (PCORI) is charged with examining the relative health outcomes, clinical effectiveness, and appropriateness of different medical treatments by evaluating existing studies and conducting its own. The Institute will be funded in part by employer-paid fees.

Your multi-employee AgriPlan, BizPlan, and No Limit Plan Clients are required to file IRS Tax Form 720 and pay a small fee by July 31st each year. This impacts Plan years ending 2012-2019. The total fee for Plan Year 2016 will be $2.26 per Participant.

As in the past, please remind these Clients to watch their mail around mid-June for a pre-filled IRS Tax Form 720 from TASC containing the required PCORI information.

They will need to:

  • Verify their EIN number (this cannot be their Social Security number)
  • Sign the form
  • Include payment and voucher
  • Ensure their completed form with payment is mailed to the IRS and postmarked no later than July 31, 2017
  • Mail to the Department of Treasury, Internal Revenue Services, Cincinnati, OH 45999-0009

If they are already filing IRS Tax Form 720, they are advised to contact their tax preparer (which in most cases is you) to include the PCORI calculation and fee on their form submission.

If  your multi-employee Clients have corrections to the mailed pre-filled Form 720 they can download, create, and print a corrected fillable PDF Form 720 from the IRS website. As always, if they need further assistance your Clients are asked to please contact our Customer Care Center at 800.422.4661.

 

Save 10% on Microbusiness Compliance Suite!

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Could your small business Clients pass a Department of Labor audit?

Help them relax this summer by giving them true peace of mind with the Microbusiness Compliance Suite. The Department of Labor (DOL) keeps a close eye on businesses of every size—including small ones. If your Clients have 2-20 employees and sponsor a Group Health Plan, they’re subject to ERISA, DOL, PPACA, and HIPAA requirements and could risk DOL penalties of up to $147/day per Participant.

Protect your small business owner Clients TODAY with our comprehensive Microbusiness Compliance Suite. Includes required documents and guidelines, DOL audit support, and a Hold Harmless Agreement.

Order before August 31, 2017 and receive a 10% discount—that’s up to $100 in savings!

Disclaimer: The Microbusiness Compliance Suite is only available to employers with 2-20 employees. Completed application must be received by August 31, 2017 and ERISA must be included in the bundled service offering in order to qualify for the 10% discount.

Contact Microbusiness Sales at 888-595-2261 Ext. 17732 • microbusiness@tasconline.com

ACA Minimum Essential Coverage Reporting is required for No Limit Clients

Employers who provide health coverage are required to report health Minimum Essential Coverage information to covered employees, former employees and the IRS annually.

For Group-insured health plans, this requirement lies with the insurance carrier. For self-insured Plans, this responsibility rests with the employer.

Employers are required to submit a 1094-B Transmittal Form and 1095-B forms for each covered employee to the IRS by February 28th, or March 31st if filing electronically.

In addition, they must distribute IRS Form 1095-B to affected employees by March 2, 2017 (delayed from January 31, 2017 deadline). Employees will use this form when completing their own individual income tax returns as proof of health insurance coverage for the prior calendar year. Under new Healthcare Reform rules, an individual can be fined for any month they fail to maintain health coverage.

To help ensure the compliance, TASC will once again email (or mail if TASC doesn’t have an email address on file) its Microbusiness multi-employee No Limit Plan Clients (who don’t sponsor Group insurance) detailed instruction and links to these online fillable tax forms early next week. (TASC’s legal, compliance and governmental affairs departments had previously concluded that Clients who had a 2015 or 2016 Non-Excepted Flexible Spending Account (NEFSA) are not required to file or distribute these forms.)

TASC’s ACA Reporting service is available to all other Clients for a fee. If interested in learning more, please contact your RSD or call Customer Care at 800.422.4661.

The Cures Act brings relief to employers without Group insurance

H.R. 34 containing provisions that establish Small Business HRAs (SBHRA) was signed into law on December 13, 2016.

What does this mean to you and your Clients who own small businesses? That employers with more than one but fewer than 50 full-time employees can once again use a Health Reimbursement Arrangement (HRA) to assist employees with health insurance premiums and out-of-pocket medical expenses without sponsoring Group insurance. (Integrated and One Employee HRA Plans are already compliant with federal law.)

  • You can begin providing tax relief to Clients who were previously ineligible for HRA health & welfare benefit Plans as early as January 1, 2017. Contact your Microbusiness Regional Sales Director today to find out how we can help.
  • It’s important to know that HRA Plans require your Clients to plan ahead. Here are some key things to be aware of:
  • Clients can write off insurance premiums beginning the first of the year in which they enroll.
  • But they cannot write off out-of-pocket medical expenses until the first of the month in which they enroll.
  • The earlier your Clients sign up during a calendar year, the more they’ll save on their taxes.

Healthcare Reform will continue to bring BIG changes that will affect you. TASC has you covered.

Upcoming changes to the nation’s Healthcare Reform legislation (Affordable Care Act) will continue to impact employee health & welfare benefit Plans. Not only will TASC continue to implement the necessary changes and administrative process updates to comply with changing law, we’re proud of the fact that our own legislative team led the charge in getting this law passed!

Plus, we’ll continue to monitor and respond to additional employee benefit legislation and keep you informed and in compliance. Subscribe to our Capital Connection blog at http://www.tasccapitalconnection.com and you’ll receive email notifications whenever there’s a post about changes to federal and state government policy.

Here are just a few recent examples of how TASC’s pro-participant, pro-Client stance helped to protect small business owners:

  • In 2013, IRS Notice 2013-54 was passed requiring HRAs with more than one eligible employee to be integrated with Group health insurance. TASC’s Legal and Governmental Affairs team spent countless hours researching this provision before offering compliant solutions for small business owners who had individual insurance. Clients who enrolled in our Non-Employer Sponsored Premium (NESP) and Non-Excepted Flexible Spending Accounts (NEFSA) received three additional years of tax savings (2014, 2015, and 2016).
  • On December 16, 2015, the IRS provided further guidance on the application of Group health plan market provisions in the form of IRS Notice 2015-87. This provision required TASC to suspend the sales of its NESP/NEFSA Plans and survey Clients to determine the compliance of their Plans. TASC has spent the past year transitioning or cancelling non-compliant Plans. UPDATE: While the NESP/NEFSA Plan is still non-compliant, TASC will reach back out to these impacted Clients to inform them of the new SBHRA tax-advantaged benefit option.

Look to TASC as your back-office partner. TASC will continue to monitor and respond to the nation’s Healthcare Reform legislation. We will make every effort to avoid posing financial harm to our customers. And, as always, TASC will guarantee and defend Clients with compliant Plans.

Please stay tuned for further updates.

Delay announced in enforcement of HIPAA HPID

The Health Plan Identifier and Certification requirements were added by the Affordable Care Act to regulate certain electronic transactions. And while applicable to all Group Health Plans, these requirements were specifically aimed at those covered entities (e.g., healthcare providers, health plans, and healthcare clearinghouses) that transmit electronic Group Health Plan data which is subject to the HIPAA Electronic Data Interchange (EDI) rules. The deadline for obtaining an HPID was originally set at November 5, 2014 for large Plans and November 5, 2015 for small Plans.

On October 31, 2014 the Centers for Medicare and Medicaid Services (CMS) announced a delay in enforcement of HIPD enumeration and use of the HIPD in HIPAA transactions. This delay remains in place until further notice from CMS. A copy of the CMS notice is presented below.

Statement of Enforcement Discretion regarding 45 CFR 162 Subpart E – Standard Unique Health Identifier for Health Plans

Effective October 31, 2014, the Centers for Medicare & Medicaid Services (CMS) Office of e-Health Standards and Services (OESS), the division of the Department of Health & Human Services (HHS) that is responsible for enforcement of compliance with the Health Insurance Portability and Accountability Act of 1996 (HIPAA) standard transactions, code sets, unique identifiers and operating rules, announces a delay, until further notice, in enforcement of 45 CFR 162, Subpart E, the regulations pertaining to health plan enumeration and use of the Health Plan Identifier (HPID) in HIPAA transactions adopted in the HPID final rule (CMS-0040-F).

This enforcement delay applies to all HIPAA covered entities, including healthcare providers, health plans, and healthcare clearinghouses.

On September 23, 2014, the National Committee on Vital and Health Statistics (NCVHS), an advisory body to HHS, recommended that HHS rectify in rulemaking that all covered entities (health plans, healthcare providers and clearinghouses, and their business associates) not use the HPID in the HIPAA transactions (see http://ncvhs.us/wp-content/uploads/2014/10/140923lt5.pdf). This enforcement discretion will allow HHS to review the NCVHS’s recommendation and consider any appropriate next steps.

What does this mean for your Clients’ Group Health Plans?

Under the regulations, insurance carriers would have obtained HPIDs, while employers with fully-insured group health plans would need to take no action in this regard. Employers with self-insured group health plans were to obtain an HPID by the applicable large or small plan deadline.

Per the delayed enforcement, employers with self-insured group health plans need not obtain an HIPD until further guidance is provided by CMS. If you have already obtained an HPID for your self-insured group health plan or plans, please retain that information for your records. TASC will continue to monitor this situation and will inform you of any further guidance provided by CMS.