COBRA Premiums Now Being Paid by Employers Are you aware of the COBRA rules we now live in under the Federal American Rescue Plan Act (ARPA)? From April 1st to September 30th, 2021, employers are required to pay COBRA premiums for employees who were involuntarily separated or had a reduction in hours. Under this federally subsidized program, the government will reimburse employers dollar for dollar against their quarterly payroll tax obligations. How Does it Work? As a standard, employers are already required to offer COBRA coverage for 18 months after the involuntary termination and some states have implemented continuation plans. But under the new subsidy, employees and their qualifying dependents can be covered at no cost for Read More...
Daycare Tax Savings
Are You Making the Right Election? While many parents are still shoring up their 2020 tax filing, they are probably passing up major savings in 2021 that will need a decision now before it's too late. Not only did the pre-tax maximum Dependent Care Flex amount increase from $5,000 to $10,500 for 2021 (if employers choose to participate), but as of this March's tax reform, there's an adjusted Dependent Care Credit that might outweigh flexing this year. By potentially forgoing the pre-tax flex option, families could qualify for up to an $8,000 refundable credit on their tax return. But you cannot do both. There are a variety of factors that go into the calculation, which will be unique to each taxpayer, including income level and Read More...
Employee Benefits – Retention During a Pandemic
During these unprecedented times, we’ve seen businesses struggle with increased costs and the need to look at expenses with more granularity. Health insurance costs and employee benefits are no exception. Other challenges that have been highlighted during this challenging time include employee recruiting and retention. One thing that may help your business remain competitive in a job market where costs and turnover are high would be to look at the benefits you can offer your staff. Our experts may be able to help! At Christianson Insurance Agency, we leverage our extensive insurance advisory experience as well as our administrative capabilities to help business owners simplify their healthcare and benefit offerings. We take a Read More...
Medicare Supplement – What YOU Need to Know
A Medicare Supplement Plan is something everyone age 65 and older will need unless you are still working and are still on a group coverage plan that is offered through your employer. In some cases, a Medicare plan may be a better option even if you have access to group coverage. This year, Medicare Supplements will be changing greatly and there are some things you and/or your eligible family members should know: Open enrollment happens every year from October 15th to December 7th. This is when you can either enroll in a Medicare Supplement Insurance Plan or change your existing plan. There are many different Supplement Plan options and just as much confusion about those plan options this year. By now, most people have Read More...
The HSA Contribution Limit has Changed Again
As many of you read in our previous post about HSA Contribution, in March the IRS announced a reduction to the maximum amount a family could contribute to a health savings account (HSA) in 2018 from $6,900 to $6,850. Just recently the IRS reversed the decision and is declaring that the maximum limit for families to contribute has been raised to $6,900. The $6,900 limit as originally announced before the tax law was passed in late 2017. After the limit was reduced months later, it created a complicated situation for people who had already contributed the full $6,900 amount. They faced having to withdraw the extra $50 before next April 15 unless the IRS relaxed the rules for this year. What do I need to do? It's advised that you work Read More...
IRS Lowers 2018 Family HSA Contribution Limit by $50
The IRS has released a change to HSA contribution limits linked to family coverage for 2018 that will impact anyone with a high-deductible family plan who is making the maximum contribution to their HSA account. What do the HSA Contribution Limits Look Like Now? In 2018, the HSA contribution limit linked to family coverage, which was originally set as $6,900, has been reduced to $6,850. This was recalculated due to the Tax Cuts and Jobs Act that was passed in 2017 which applies the chained CPI (Consumer Price Index) to increase HSA and other contribution limits. According to SHRM, in its Internal Revenue Bulletin No. 2018–10, released March 5, the IRS clarified that: For HSAs, the annual tax-deductible contribution limit for tax Read More...
Health Coverage Due Date Extension
Due Dates for Health Coverage Forms Insurers, self-insuring employers, large employers and other coverage providers have received an automatic extension of 30 days (January 31, 2018 extended to March 2, 2018) to provide 1095-B or 1095-C forms to their employees and covered individuals. However, these entities did not receive an extension for filing 2017 information returns with the IRS which are due February 28, 2018 for paper filers and April 2, 2018 for electronic filers. Taxpayers do not need to wait for Forms 1095-C or 1095-B to file their 2017 individual tax returns. Other information about health coverage can be used. If you are a large employer and need help completing your Form 1095-C or if you are unsure if you are a large Read More...
FSA vs. HSA – What’s the Difference?
It's that time of year again where businesses are looking for a competitive plan to keep their employees covered while individuals are looking for their best option for ensuring coverage for their families. The options seem endless and the task of selecting healthcare plans may be overwhelming. At Christianson, we're here to help! When you are introduced to your healthcare plan, one of your first questions may be: what's the difference between HSA and FSA? You may know that they're both tax-free ways to save, but you may not know the other ways that these two plans differ. So today we will help you identify those differences. Health Savings Account (HSA) A Health Savings Account (HSA) is a way to save tax-free money if you have a Read More...