|
WHA Financial Solutions' Compliance
Corner newsletter contains valuable information on timely
compliance and regulatory issues. Each newsletter is archived by date at www.whafs.com.
|
|
IRS Issues Final HSA
Comparability Regulations
|
|
On April 17, 2008, the
U.S. Treasury Department and the Internal Revenue Service (IRS) issued
final regulations regarding an employer's comparable contributions to
employees' Health Savings Accounts (HSAs). The regulations apply to
non-cafeteria plan HSAs and are effective for employer contributions made
for calendar years beginning on or after January 1, 2009.
Under the final
regulations, an employer:
- has the authority to accelerate
its contributions to participants who have incurred expenses in
excess of the employer's year-to-date contribution amount.
- is required to send a notice by
January 15 to employees who failed to establish an HSA by the
previous December 31. The notice must state that a comparable
contribution will only be made for employees establishing an HSA and
who notify the employer of said account by the last day of February.
For those employees who comply, the employer's contribution would
need to be made by April 15.
Click here for more information
|
|
Final
Rules Update Provisions for Medicare Part D Retiree Drug Subsidy
|
|
The
Centers for Medicare and Medicaid Services (CMS) has issued final
regulations to update and clarify provisions of the Medicare Part D
prescription drug program in 42 CFR Part 423, which will be effective on
June 9, 2008. These final rules offer clarifications of existing policies
associated with the Retiree Drug Subsidy (RDS) program, guidance on
aggregating plan options for purposes of meeting the "net test"
for actuarial equivalence, and modifications for establishing standards
with respect to the timely delivery of infusible drugs.
|
|
IRS Information Letter
Regarding Wages Paid in Lieu of Health Care Benefits
|
|
An
IRS Associate Chief Counsel issued Information Letter 2008-0006 regarding
an individual's settlement amount that was paid by his former employer in
lieu of retiree health care coverage. The Counsel determined that the
amount paid was wages subject to tax withholding, and the individual must
pay Federal Insurance Contributions Act (FICA) taxes on the amount he
received.
|
|
Court Rules on Contract Worker's FMLA Request
|
|
In Grace v. USCAR and Bartech Technical Services, the U.S.
Sixth Circuit Court of Appeals determined an employment agency and a
client company, for which a leased employee worked, were both responsible
for complying with the employee's leave under the Family and Medical
Leave Act (FMLA). This is required regardless of the client company's
size. Additionally, the court ruled that an employer that is determined
to be a "successor in interest" to a previous employer must
include the employee's service time with the previous employer to
determine the employee's eligibility.
|
|
State Updates
|
|
On April 18, 2008, Governor Culver approved H.F. 2145, which
requires individual and group health policies that provide coverage for
vaccinations and immunizations to also provide coverage for the Human
Papilloma Virus (HPV) vaccination. The requirement is effective on
policies issued or renewed after January 1, 2009.
|
|
WHA Financial
Solutions, Inc.
800-362-7121
or 608-274-1820
The
information included in WHA Financial Solutions' Compliance Corner is
intended for general information purposes only. This information
does not and is not intended to constitute legal advice. Any
decisions whether to implement these ideas should be made by the reader
in consultation with professional financial, tax, and legal counsel.
|
|
|
