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Showing results for tags 'fsa rules'.
Found 4 results
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Wondering if others have dealt with this idea or can anticipate any hurdles -- Say a company had a standard dependent care FSA program, no pre-tax employer contributions to the employee accounts. Company now wants to establish a fund for employer contributions but subject to taxes, for participating DC FSA employees but not directly to their DC FSA accounts (so to avoid any pre-tax issues plus to avoid being considered towards the employees' $5k/$2.5k contributions limit). Fund would be fixed per year at $xx total (decided at the beginning of the year or end of prior year), and then allocated between participants based on the # of participants in the prior plan year (as if it's a pool to be divvied up based on prior year participation). Eligible participants include anyone who participated in the prior plan year and is still employed at the beginning of the applicable year. Anyone seen this before, or something similar? So long as it's post-tax and not directly to their accounts, any hurdles? -
Hey, everyone - First time caller! I have a client with a Standard Health FSA. It operates on a calendar year basis. However, the employer's payroll processes two weeks in arrears. Tax question as to whether the employer can deduct the final payroll from 2020 when the final payroll for 2020 is actually not paid out until the first payroll period in 2021. In other words, the work performed between December 15 and December 31 is paid on the January 15 payroll. That first payroll for 2021 is included as income for the 2021 W-2s - not 2020. Has anyone dealt with this? The plan language is vague as to "compensation". Trying to determine whether there are different deductibility rules for cash basis versus accrual basis accounting. Thanks!
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Hi, My spouse covers me and my son under his employer's insurance. We did not enroll in flex spending, either medical or dependent care with either of our employers for 2019. My spouse is quitting his job and we will lose coverage as of 8/31. My employer is allowing us to enroll in all plans we lost under my husband's plan (medical, dental, vision) but has told us we are unable to elect medical or dependent flexible spending. Is this correct? They sent me the SPD(?) and I read through it but couldn't find anything saying I could or couldn't enroll. I'm in NJ, if that matters. Thanks! -
If an employee is on a leave of absence (medical or personal) during the Open Enrollment period, is there an IRS regulation that says that they cannot enroll in HCFSA and/or DCFSA for the upcoming benefit plan year until they return from leave?
