Benefits Law

Who is eligible for the subsidy, and who isn’t?
The IRS has now answered both questions for DCAPs with plan years other than a calendar year.
One of the reasons 401(k) plans are vulnerable to phishing and scamming is because the Department of Labor hasn’t issued any cybersecurity standards. The DOL has begun to rectify this deficiency by issuing fact sheets for employers and employees.
The Department of Labor has dedicated a web page to the American Rescue Plan Act’s 100% COBRA subsidy. It’s also released a ton of guidance on the subsidy, and just in time. The 100% subsidy kicked in April 1. There’s a lot to unpack, so let’s get started.
It turns out that the COBRA subsidy in the American Rescue Plan Act isn’t all that straightforward.
Current employees who default on paying back 401(k) plan loans can’t have their 401(k) balances reduced or offset to cover the default until there’s a distributable event, like their termination. Once a distributable event occurs, you offset the balance of the loan and distribute the rest to employees.
Can you require employees to get vaccinated? And must your group health plan cover the expense cost-free to employees?
Among the hottest gifts are DNA testing kits, which allow individuals to trace their ancestry. They are not reimbursable by flexible spending accounts, since they’re not deductible medical expenses. But testing kits can serve a medical purpose, too, and employees may be reimbursed by their FSAs for those expenses, the IRS concluded in a private letter ruling.
The 2021 plan and calendar years are drawing close, which means the IRS, the Department of Labor and the Department of Health and Human Services are updating inflation adjustments and other materials for the coming plan year. Here’s the latest.
Under the Affordable Care Act, applicable large employers must offer 95% of their full-time employees affordable group health benefits providing minimum value. The ACA offers you various tests for determining whether you are an ALE and for identifying the employees who work full time. For calendar year health plans, it’s time to start thinking about testing for 2021.