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FSA Discrimination Testing


Guest mls

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Posted

We were just notified we failed our dep care disc test. Does anyone out there have experience with this? How did you handle? I've gotten some general guidelines about - that we have to go back and deduct monies from highly comps - that is, they will have to pay taxes on monies. Any resources on web to help? Thanks.

Posted

You might want to post this on the Cafeteria Plan work group.

  • 3 weeks later...
Guest jlcowden
Posted

We've helped some large and small employers with this, not uncommon problem.

Depending on your level of creativity you may want to consider dclaring only employees with dependents to be eligible. I've seen nothing to say that this is approved, but common sense and the opinion of one very good benrfits atty.(not me) says it should work.

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jlcowden

Posted

I've heard the idea of limiting the test to just those people who could benefit under a DCAP, i.e., only those who have at least one eligible dependent. The part I have a hard time with is how you identify that group. Do you do an annual survey of employees and ask them whether they have any dependents?

Doesn't that seem a bit intrusive?

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