Adoption assistance programs are designed to help adoptive parents meet costly needs. Reasonable and necessary adoption fees, court fees, and other expenses can be reimbursed under flexible spending accounts (FSAs).
One way for companies to achieve and maintain lower costs is to ensure only eligible individuals are covered under benefit plans. At FBA, our dependent audit team is prepared to review all covered dependents under each benefit plan against eligibility rules to identify possible ineligible participants. This helps companies focus on attracting and retaining quality employees.
Education Reimbursement Account
Tuition reimbursement is something that many employers offer as a way to pay back employees for education expenses. Those who choose to participate still pay out-of-pocket for courses they take. When the course is over, the employee can get back some or all of the tuition expenses. Depending on the employer, conditions for reimbursement may apply.
Medical Expense Reimbursement Plan
Medical Expense Reimbursement Plan (MERP) allows an employer to reimburse an employee for uninsured healthcare costs for accidental expenses incurred by the employee and their dependents. The primary objective of the plan is for the employer to reduce health plan costs. This plan can be used in conjunction with a health insurance plan and can be set up with a specific plan design that will align with your overall benefit strategy.
A non-discrimination test can be performed when implementing a flexible benefit plan. Under IRS regulations, Section 125 plans benefit from favorable tax treatment. As such, there are certain non-discrimination rules in place to ensure that these plans do not favor highly compensated or key employees over other classes of employees. As an optional service, FBA can provide testing to guarantee these plans are within compliance guidelines and recommend improvements, if necessary, should a benefit program not meet requirements.
Plan Document Preparation
Whether you need a complete set of “wrap” documents for your Section 125 plan, or you are looking for premium only plan (POP) documentation, FBA has a dedicated team that can provide support and answer your questions. Our team uses internal and external resources to stay current on industry and regulatory updates, using the latest documentation management tools to prepare required documentation to keep your company within compliance guidelines.
Simple Cafeteria Plans
The Health Care Reform law allows eligible small employers to establish a new type of cafeteria plan called a “Simple Cafeteria Plan.” Compliance with the cafeteria plan non-discrimination rules has been problematic for many small employers and as a result, this new plan can now make cafeteria plans a more practical option. Simple Cafeteria Plans eliminates problems by providing a safe-harbor plan design that ensures compliance with non-discrimination rules.