COBRA is the federal law that applies to employers with 20 or more employees. If you lay off an employee, you as an employer are subject to COBRA laws and are required to give laid-off employees written notice that explains their COBRA rights. The employee must decide whether to continue their health care coverage and notify you as the former employer of their decision within 60 days of receiving the written notice. Under COBRA law, the employee and their family have the right to remain on whatever health plan you as their former employer had provided for up to 18 months. The former employee must continue paying the full premium, which includes both the former employer’s share and the employees share plus a 2 percent administrative fee.

ERISA, which stands for the Employee Retirement Income Security Act, is a federal law regulating employer-sponsored group benefits. Nearly every employer, regardless of their size, is subject to ERISA if they offer even one employer-provided group benefit such as health, dental, vision, accidental death & dismemberment, disability, or group term life insurance; medical flexible spending account or health reimbursement account; wellness and employee assistance program; or any other benefit for which the employer contributes to the cost.

The employer is solely responsible for ERISA compliance. Penalties may be enforced for failure to comply with ERISA regulations, including DOL enforcement actions and penalties as well as employee lawsuits. Certain infractions can entail up to $100/day penalty for every employee that is affected by a violation until the violation is corrected. The penalty for late delivery of SPD or Wrap can be as much as $110/day per plan. Late filing of form 5500 can result in fines as high as $1,100 per day. The DOL estimate three out of four plans they audit have an ERISA violation, and about 70 percent of audits with violation have resulted in monetary fines to the employer. AUDIT PREPARATION Knowledge and familiarity of compliance requirements, complete documentation, and policies that show good faith efforts to comply are the best way to be prepared for an audit (as well as to avoid one in the first place). Wall 2 Wall Benefit Services can guide you and ensure you are within the compliance rules

HSAs, HRAs and FSAs are accounts used to save on taxes and pay for qualified medical, prescription, dental and vision expenses. … HSA is health savings account. HRA is health reimbursement account or arrangement. FSA is flexible spending account or arrangement.

Wall 2 Wall Benefit Services works with Employers to create benefits programs consisting of health savings accounts (HSAs), flexible spending accounts (FSAs), health reimbursement arrangements (HRAs), and other tax-advantaged benefits that make it easy for employees to manager their care – resulting in benefits adoption, higher satisfaction rates, and lower costs for Employers.

ERISA, which stands for the Employee Retirement Income Security Act, is a federal law regulating employer-sponsored group benefits. Nearly every employer, regardless of their size, is subject to ERISA if they offer even one employer-provided group benefit such as health, dental, vision, accidental death & dismemberment, disability, or group term life insurance; medical flexible spending account or health reimbursement account; wellness and employee assistance program; or any other benefit for which the employer contributes to the cost.

The employer is solely responsible for ERISA compliance. Penalties may be enforced for failure to comply with ERISA regulations, including DOL enforcement actions and penalties as well as employee lawsuits. Certain infractions can entail up to $100/day penalty for every employee that is affected by a violation until the violation is corrected. The penalty for late delivery of SPD or Wrap can be as much as $110/day per plan. Late filing of form 5500 can result in fines as high as $1,100 per day. The DOL estimate three out of four plans they audit have an ERISA violation, and about 70 percent of audits with violation have resulted in monetary fines to the employer. AUDIT PREPARATION Knowledge and familiarity of compliance requirements, complete documentation, and policies that show good faith efforts to comply are the best way to be prepared for an audit (as well as to avoid one in the first place). Wall 2 Wall Benefit Services can guide you and ensure you are within the compliance rules.