2024 Pay or Play Affordability Percentage

PCORI Fee Amount Adjusted for 2021

The Affordable Care Act (ACA) imposes a fee on health insurance issuers and plan sponsors of self-insured health plans to help fund the Patient-Centered Outcomes Research Institute (PCORI). The PCORI fee was originally scheduled to expire for plan or policy years ending on or after October 1, 2019. However, a …

2024 Pay or Play Affordability Percentage

2021 Transportation Benefit Limits Remain Unchanged

The Internal Revenue Service (IRS) has released Revenue Procedure 2020-45, which includes cost-of-living adjustments for employee qualified transportation fringe benefits for the 2021 taxable year. The combined 2021 monthly limit for transportation in a commuter highway vehicle and a transit pass remains unchanged at $270. For qualified parking, the monthly limit …

2024 Pay or Play Affordability Percentage

Health FSA Limit Will Remain the Same for 2021

The Affordable Care Act (ACA) imposes a dollar limit on employees’ salary reduction contributions to health flexible spending accounts, or FSAs, offered under cafeteria plans. For 2020, the health FSA limit on employees’ pre-tax contributions increased by $50 — from $2,700 to $2,750. On October 27, 2020, the Internal Revenue …

2024 Pay or Play Affordability Percentage

IRS Extends Forms 5500 Deadline

On April 9, 2020, the Internal Revenue Service (IRS) extended key tax deadlines for individuals and businesses in response to the ongoing COVID-19 pandemic. The new tax relief gives the IRS authority to postpone deadlines for taxpayers affected by federally declared disasters. Form 5500 – Automatic Deadline Extension Notice 2020-23 …

2024 Pay or Play Affordability Percentage

CMS & IRS Take Action

CMS Issues FAQ’s on Essential Health Benefit Coverage & the Coronavirus To remove barriers and financial disincentives to COVID-19 diagnosis and treatment, the Centers for Medicare & Medicaid Services (CMS) recently issued frequently asked questions (FAQ’s) on essential health benefit (EHB) coverage. EHB is a core set of items and …

2024 Pay or Play Affordability Percentage

IRS Announces Benefit Plan Limits for 2020

The Internal Revenue System (IRS) recently announced the 2020 dollar limits for employee benefits including: High Deductible Health Plans (HDHPS), Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), Transportation Benefits, and Adoption Assistance. As cost of living expenses continue to rise due to inflation, the IRS annually adjusts contribution limits …

2024 Pay or Play Affordability Percentage

ACA Affordability Percentages Will Decrease for 2020

On July 23, 2019, the IRS issued Revenue Procedure 2019-29 to index the contribution percentages in 2020 for determining affordability of an employer’s plan under the Affordable Care Act (ACA). For plan years beginning in 2020, employer-sponsored coverage will be considered affordable if the employee’s required contribution for self-only coverage …