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Month: November 2019

Health FSA Limit will Increase for 2020

Monday, 25 November 2019 by RISQ Consulting

This article is from RISQ Consulting’s MyWave Connect portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.

 

 

 

The Affordable Care Act (ACA) imposes a dollar limit on employees’ salary reduction contributions to health flexible spending accounts (FSAs) offered under cafeteria plans. This dollar limit is indexed for cost-of-living adjustments and may be increased each year.

On Nov. 6, 2019, the Internal Revenue Service (IRS) released Revenue Procedure 2019-44 (Rev. Proc. 19-44), which increased the health FSA dollar limit on employee salary reduction contributions to $2,750 for taxable years beginning in 2020. It also includes annual inflation numbers for 2020 for a number of other tax provisions.

Action Steps

Employers should ensure that their health FSA will not allow employees to make pre-tax contributions in excess of $2,750 for 2020, and they should communicate the 2020 limit to their employees as part of the open enrollment process.

An employer may continue to impose its own health FSA limit, as long as it does not exceed the ACA’s maximum limit for the plan year. This means that an employer may continue to use the 2019 maximum limit for its 2020 plan year.

The ACA initially set the health FSA contribution limit at $2,500. For years after 2013, the dollar limit is indexed for cost-of-living adjustments.

  • 2014: For taxable years beginning in 2014, the dollar limit on employee salary reduction contributions to health FSAs remained unchanged at $2,500.
  • 2015: For taxable years beginning in 2015, the dollar limit on employee salary reduction contributions to health FSAs increased by $50, for a total of $2,550.
  • 2016: For taxable years beginning in 2015, the dollar limit on employee salary reduction contributions to health FSAs remained unchanged at $2,550.
  • 2017: For taxable years beginning in 2017, the dollar limit on employee salary reduction contributions to health FSAs increased by $50, for a total of $2,600.
  • 2018: For taxable years beginning in 2018, the dollar limit on employee salary reduction contributions to health FSAs increased by $50, for a total of $2,650.
  • 2019: For taxable years beginning in 2019, the dollar limit on employee salary reduction contributions to health FSAs increased by $50, for a total of $2,700.
  • 2020: For taxable years beginning in 2020, Rev. Proc. 19-44 further increased the dollar limit on employee salary reduction contributions to health FSAs by an additional $50, to $2,750.

The health FSA limit will potentially be increased further for cost-of-living adjustments in later years.

Employer Limits

An employer may continue to impose its own dollar limit on employees’ salary reduction contributions to health FSAs, as long as the employer’s limit does not exceed the ACA’s maximum limit in effect for the plan year. For example, an employer may decide to continue limiting employee health FSA contributions for the 2020 plan year to $2,500.

Per Employee Limit

The health FSA limit applies on an employee-by-employee basis. Each employee may only elect up to $2,750 in salary reductions in 2020, regardless of whether he or she also has family members who benefit from the funds in that FSA. However, each family member who is eligible to participate in his or her own health FSA will have a separate limit. For example, a husband and wife who have their own health FSAs can both make salary reductions of up to $2,750 per year, subject to any lower employer limits.

If an employee participates in multiple cafeteria plans that are maintained by employers under common control, the employee’s total health FSA salary reduction contributions under all of the cafeteria plans are limited to $2,750. However, if an individual has health FSAs through two or more unrelated employers, he or she can make salary reductions of up to $2,750 under each employer’s health FSA.

Salary Reduction Contributions

The ACA imposes the $2,750 limit on health FSA salary reduction contributions. Non-elective employer contributions to health FSAs (for example, matching contributions or flex credits) generally do not count toward the ACA’s dollar limit. However, if employees are allowed to elect to receive the employer contributions in cash or as a taxable benefit, then the contributions will be treated as salary reductions and will count toward the ACA’s dollar limit.

In addition, the limit does not impact contributions under other employer-provided coverage. For example, employee salary reduction contributions to an FSA for dependent care assistance or adoption care assistance are not affected by the health FSA limit. The limit also does not apply to salary reduction contributions to a cafeteria plan that are used to pay for an employee’s share of health coverage premiums, to contributions to a health savings account (HSA) or to amounts made available by an employer under a health reimbursement arrangement (HRA).

Grace Period/Carry-Over Feature

A cafeteria plan may include a grace period of up to two months and 15 days immediately following the end of a plan year. If a plan includes a grace period, an employee may use amounts remaining from the previous plan year, including any amounts remaining in a health FSA, to pay for expenses incurred for certain qualified benefits during the grace period. If a health FSA is subject to a grace period, unused salary reduction contributions that are carried over into the grace period do not count against the $2,750 limit applicable to the following plan year.

Also, if a health FSA does not include a grace period, it may allow participants to carry over up to $500 of unused funds into the next plan year. This is an exception to the “use-it-or-lose-it” rule that generally prohibits any contributions or benefits under a health FSA from being used in a following plan year or period of coverage. A health FSA carryover does not affect the limit on salary reduction contributions. This means the plan may allow the individual to elect up to $2,750 in salary reductions in addition to the $500 that may be carried over.

Plan Amendments

Plan documents that specify the health FSA dollar limit must be amended if the higher limit will be used in 2020.

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7 Things You Need to Stop Doing To Be More Productive

Monday, 18 November 2019 by RISQ Consulting

By Tonya Mott

 

On my “Less Doing” journey I came across this article, 7 Things You Need to Stop Doing To Be More Productive, Backed by Science (Click here).

I promise that I’m not a lazy person.  For me this journey has been about doing the things that give me energy and make me happy. In the article it says that being productive is less about time management and more on managing your energy.  It’s learning how to spend the least amount of energy to get the most benefits. 

Here’s a sneak peak if what the article taught me:

  1. Stop working overtime and increase your productivity instead.
  2. Don’t say “yes” too often and instead of saying, “I can’t” say “I don’t”.

“The difference between successful people and very successful people is that very successful people say “no” to almost everything.”

— Warren Buffett

  1. Stop doing everything yourself and start letting people help you

Often times, even if your friends or coworkers can’t help you, simply having them around can help you become more productive.

  1. Stop being a perfectionist
  2. Stop doing repetitive tasks and start automating.
  3. Stop guessing and start backing up your decisions with data
  4. Stop working, and take some time to do nothing at all.

It‘s important to take time for reflection. We often find the solutions we’re looking for when we’re not actively searching for them.

I don’t know about all of you, but around this time of year I’m usually I’m daydreaming about palm trees and sandy beaches.  Maybe if I learn to manage my energy better, I’ll sneak over to one of those Hawaiian Islands for a long weekend! I think I’ll start with Tip #7 and take some time to do nothing (meaning lounge on the beach with a maitai)!

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Your Local Book Dealer

Monday, 11 November 2019 by RISQ Consulting

By Bailey Penrose

Libraries store the energy that fuels the imagination. They open up windows to the world and inspire us to explore and achieve, and contribute to improving our quality of life. Libraries change lives for the better. 

—Sidney Sheldon

I love libraries, but sometimes I forget my public one is there and my library card lies neglected in my wallet.  When I eventually remember I can borrow as many books as I want for free an effervescent feeling of giddiness fills me.

It’s a quick commute for me to head down to the Anchorage Public Library but Alaska is a big place with pockets of communities that don’t have ready access to a library.  The network of local libraries understands that and are continuously working to make more books available in electronic formats through the Alaska Digital Library (OverDrive), making it easier than ever for Alaskans to access their services.

While not comprehensive, here are the websites of some local libraries:

Anchorage Public Library

Juneau Public Library

Kenai Community Library

Noel Wien Public Library

Delta Community Library

If you have some time and the inclination, I’ve also included a small list of business books that may be fun winter reads.  Why not check a few of them out?  It’s free!

Good to Great: Why Some Companies Make the Leap, & Others Don’t by Jim Collins

The Power of Habit by Charles Duhigg

Limbo: Blue-Collar Roots, White-Collar Dreams by Alfred Lubrano

Grit: the Power of Passion and Perseverance by Angela Duckworth

The E-Myth Revisited by Michael Gerber

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Accessing Employee Emails Under the Stored Communications Act

Thursday, 07 November 2019 by RISQ Consulting

This article is from RISQ Consulting’s MyWave Connect portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.

Think back to a time when a former employee departed your company. Do you remember collecting their work phone and laptop? Did you happen to search their device–perhaps even their personal email? If so, you may have unwittingly violated the Stored Communications Act (SCA), a federal law enacted as part of the Electronic Communications Privacy Act of 1986.

Stored Communications Act Background

The SCA establishes a criminal offense for whoever “intentionally accesses, without authorization, a facility through which an electronic communication service is provided.” In other words, the SCA protects the privacy of electronic communications while in electronic storage (for example, emails stored on an electronic server). Consequences for violating the SCA include a fine or imprisonment for up to five years for the first offense, and an additional fine or imprisonment for up to 10 years for any subsequent offense. The SCA can be used in civil litigation as well. In the case of a civil lawsuit, a successful plaintiff may obtain actual damages of at least $1,000, plus reasonable attorneys’ fees and other costs.

Interpretation and Application to Employers

As it pertains to employers, the SCA has been interpreted to allow employers to access communications stored on their own wire or electronic communications services (for example, employer-provided email service) so long as the access is authorized under the employer’s own policies, and the employer has a valid business purpose for doing so. That interpretation even applies in situations in which the employee considers such messages to be private. Additionally, even if an employer does not require employees to sign an “electronic communication in the workplace” policy, they still likely have the legal right to read employee email messages transmitted through company email accounts.

But what about situations in which an employee uses a personal email account on an employer-provided device? Typically, in these instances, courts have held that an employer cannot access employees’ private, personal email account communications. Other courts, however, have held that employers may monitor personal email accounts if the employee is using employer-provided technology and has consented in writing to a broad policy that allows for the monitoring of all computer use. Of course, the answer to this developing legal topic will vary court-by-court and state-by-state. In the interim, employers may consider addressing the monitoring of emails on employer-provided devices. If they choose to address this topic, employers should do so with the following in mind:

  • Just because employers are legally allowed to monitor emails in some circumstances, does not mean they should, or that it is a best practice. Remember that, in most instances, personal email use on work technology is common and harmless.
  • Consider drafting a policy or amending a pre-existing policy notifying employees that their use of the company-provided technology may be monitored and that employees have no expectation of privacy on the employer’s technology.
  • Hold a frank discussion with employees regarding the nature and extent of email monitoring and the reasons for its implementation.
  • Be clear regarding the consequences for violations of their email monitoring policy.

Note that employee privacy is a constantly evolving area of law, and legalities will vary state by state. For a more detailed, case-specific analysis, contact your local legal counsel.

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Influenza: Facts About the Flu

Monday, 04 November 2019 by RISQ Consulting

This article is from RISQ Consulting’s MyWave Connect portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.

Most people experience several bouts of influenza throughout their lifetime. According to the Centers for Disease Control and Prevention (CDC), even otherwise healthy people can get sick enough to require hospitalization from the flu.

Influenza

The flu is an infection of the respiratory tract that is caused by the influenza virus. It is spread mainly through airborne transmission, when an infected person sneezes, coughs or speaks. A person can infect others one day before having flu symptoms and up to five days after becoming ill.

Flu Symptoms

Influenza is most often associated with the sudden onset of fever, headache, fatigue, muscle aches, congestion, cough and sore throat. Most people recover within a few days to less than two weeks. Occasionally, complications such as pneumonia, bronchitis or other infections can occur.

Prevention

The flu vaccine is your best chance of preventing the illness. Currently, the CDC recommends that anyone over 6 months of age receive an annual flu shot. Nasal sprays and egg-free vaccines are also available. While there are many different types of flu virus, the shot protects you against the viruses that experts believe will be most common that year.

Doctors highly recommend that those at high risk for flu complications—young children, pregnant women, people with certain chronic conditions (asthma, diabetes, etc.) and those 65 years or older—should get the vaccine each year.

Other tips for preventing the flu include the following:

  • Avoid close contact with people who are sick and stay away from others when you feel under the weather.
  • Cover your mouth and nose when coughing or sneezing. To avoid contaminating your hands, cough or sneeze into the inside of your elbow.
  • Wash your hands often using soap and warm water to protect against germs.
  • Avoid touching your eyes, nose and mouth.
  • Clean and disinfect surfaces that may be contaminated with germs (counter tops, shared phones at work, etc.).
  • Get plenty of sleep, stay physically active and drink plenty of water to keep your immune system strong.
  • Manage your stress and eat a nutritious diet rich in healthy grains, fruits, vegetables and fiber.

If You Get Sick

If you get the flu, stay home from work or school for at least 24 hours after your fever goes away to avoid spreading the illness to others. To ease your symptoms try the following strategies:

  • Stay hydrated and get plenty of rest.
  • Try gargling saltwater made from dissolving ¼ to ½ teaspoon of salt in an 8-ounce glass of warm water to relieve a sore throat.
  • Drink warm liquids, such as tea and chicken noodle soup, and add moisture to the air with a vaporizer or humidifier to help ease congestion.

The flu is usually manageable with rest and over-the-counter medicine. If your symptoms are severe, though, your doctor can prescribe antiviral drugs to help shorten your sick time. Avoid asking your doctor for antibiotics, however, since they only fight bacteria and will be of no use against the flu virus.

Be sure to seek immediate medical attention if you display any of these warning signs:

  • Difficulty breathing or shortness of breath
  • Pain or pressure in chest or abdomen
  • Sudden dizziness
  • Confusion
  • Severe or persistent vomiting
  • Flu-like symptoms that improve but then return with a fever and worse cough

By following the tips in this article and getting your annual flu shot, you can reduce your chances of getting the flu and stay healthy this winter.

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