Silver70

Wondering how others handle this. We have outstanding FSA reimbursement checks through our third-party administrator from current and former employees. These are reimbursement checks that have been sent to the employee and the employee has not cashed them. These can go back years, and involve employees that no longer work for us, or may also be deceased. What are the options that we can do? How have others handled this? Are we able to put a time limit on these, and if they do not cash a reimbursement check that they forfeit the reimbursement? If the check is reissued, we have no way of knowing if the employee’s address is current, so it could just be another check written that goes uncashed. Is there a point where the TPA writes off the uncashed funds and returns the funds to us? Are there any IRS regs that address this? I’d love to hear some suggestions. Thanks, John

Hello, This just came across my screen. My employer would like to give an employee a travel allowance in lieu of them needing to submit mileage reimbursement forms monthly. I know this is taxable, but would it be considered supplemental wages? If so, it will be separated from their normal wages, so would this be best to do at the Supplemental rate? Would this need to be coded for the W-2's? Thank you, John

Fringe Benefits - Can I use Special Accounting Period? Our HR department just brought over a list of employees that received vouchers for Fitbits. They received the vouchers in late December. Are we able to use the Special Accounting Period for vouchers? I keep seeing it can only be used for Noncash fringes, but was wondering if someone had experience correctly applying that rule to cash/gift cards/vouchers for wellness initiatives. -John

Glad to see this topic, as i had the same question. So what i am getting from this is an employee that is on leave from November through January, it is ok to proceed with pre-tax catch-up premium payments upon their return in February. If the plan was to double-up payments before their leave to cover January benefits, the January benefits would be post-tax, if collected in the previous year. Thank you, -John

We are offering Voluntary Life benefits in increments of 10,000.00 to employees, and their spouses. These benefits are 100% paid for by the employee with no tax benefit. If an employee wants to add their domestic partner, would the employee paid voluntary life premium have any tax implications? -John

So, am i overthinking it? The employee still paid their premium. Would this not be considered a tax deferred "event"?

We received notice that a FT employee was terminating after they had terminated. This resulted us in only receiving one-half of their premiums for their health, dental and vision payments. Amazingly, they wrote us a check for the half that we paid. Just trying to think this through, 1. Would i add this to their yearly totals of deductions. It would show on their w-2. (I'm thinking yes) 2. Do i deduct it from their taxable gross? (Drawing a blank on this one) 3. If it's part of their taxable gross, do i owe them some Medicare deduction amount? 4. Anything else i'm not thinking of? Thank you,

Am I able to have my sick leave/vacation lump sum payout directed toward a 403(b) account?

This is also how we handle it. The employee is imputed the cost of adding a person from Single to Family. I have a question that touches on this. Does the imputed amount get added to the Employer Sponsored Health amount that is on the W-2? -John

HR is planning on implementing a spousal surcharge in 2016. I was wondering how others process this. 1. Do you make it pre-tax or post-tax? 2. Is it an additional deduction or do you add it to the premium? Does this affect it's pre-tax/post-tax status? 3. We currently offer a Cash Award to employees who opt-out of our insurance. If the opting out employee's spouse also works for the organization, do you charge then the surcharge if they pickup their spouse (who is an employee)? If so, does the waiving spouse still receive the cash award? 4. What about Domestic Partners? Thank you

Hello, We have a couple employees that have contributed over their allowable amounts for the FSA as they have been classified as Highly Compensated Employees. I understand the refund must pass through payroll. Should the amount be taxed as a supplemental payment or as a regular payment that is taxed through the tax tables? Thank you,

My mind is going blank on this, as i thought i knew this. 1. When an employee has an FSA and is on Leave of absence without pay, are they required to make their FSA contributions to keep "current"? Can they if they choose? 2. When the employee returns from unpaid leave, is the employer permitted to "catch-up" the amounts the employee missed? 3. If an employee is going on a leave at the beginning of the month, is the employer permitted to double up the contributions on the employee's pay in order to get the current month's complete deduction? Thank you,

A husband has Family coverage HDHP through their employer. His wife waives coverage at her seperate employer, and receives a cash award per pay for waiving health coverage. The wife would like to take the cash award and contribute that amount to an HSA. Would the HSA contribution be pretax, or should it be treated as a voluntary deduction, and they can claim that on their taxes? -John

I was at an APA seminar yesterday, and they said most organizations are making this an HR function.

We have a former employee that has submitted paperwork from a 403(b) providor, to move her Ohio Deferred Comp funds (457)to the 403(b) providor. Wouldn’t she need to contact Ohio Deferred Comp to start the process to move funds from her 457 to that providor? I am not sure what role we as an employer would have for her moving funds from OHDEF to a 403(b) account. Are there IRS regulations that require the employer to be involved in distributions of a governmental 457? Thank you,