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What does FSA stand for?
Flexible Spending Account
What does HSA stand for?
Health Savings Account
What is 401k?
Pre- tax retirement account.
What is a Roth 401K?
Post-tax retirement.
What is Aflac?
Supplemental insurance carrier
Critical Illness
Accident
Cancer
Pet Insurance
How many deduction periods for FSA/HSA are allowed in Prism
48
What is the age limit for dependents to qualify for coverage?
They are no longer eligible after 25.
What states cover employees with STD insurance?
CA, HI, NJ, NY, RI and Puerto Rico
What's the difference between a pre-tax and post tax deduction?
Pre-tax is deducted before taxes are calculated and post-tax is deducted after taxes have been calculated.
At what number of employees does ACA mandate employers to offer medical insurance?
If they have 50 or more full time employees.
Name 3 different types of retirement accounts.
401K, Roth, 403(B), IRA, Simple IRA, Simple 401k
What are some reasons benefits are not being deducted?
Employee not enrolled.
If employee is not getting paid enough to cover deductions or if the employee is being paid with a noncash pay code.
Special batch
Pay period - 48 vs 52
When did the Affordable Care Act first begin?
March 23, 2010.
What is the difference between FSA and HSA?
To enroll in HSA you need to be enrolled in a HDHP medical plan, but not with an FSA
FSA funds do not remain with the employee after the plan year ends, HSA funds always remain with the employee
You can use the full amount of your FSA election before contributing the entire amount, with HSA you can only use what you have contributed
HSA can carryover funds from year to year
In Prism, where do you go to verify benefits are set up for a client?
Benefit plan overview/ Benefit groups
What is COBRA?
COBRA is a law under ERISA that mandates employers with 20 or more employees to offer a continuation of benefits coverage, if an employee loses their coverage. The COBRA member will pay the total cost of the coverage plus a 2% admin fee.
How do you figure out if a deduction is pre-tax or post-tax?
Look up the deduction code in Prism.
OR
Do the math - If pre-tax deduct the deduction amount and then multiply the remaining gross amount by FICA (1.45/6.2)
If post-tax multiply gross by FICA (1.45/6.2) then deduct the deduction.
What is one of the ways an employer decides what benefits to offer their employees?
-Depends on company size if they have to offer benefits and what kind they have to offer.
-They work with a benefits broker.
What is the difference between a medical plan and a supplemental plan (Hospital insurance, Critical illness, etc)?
The medical plan is the primary insurance, and the supplemental insurance works along side the medical insurance, it does not replace it.
How are employer paid benefits handled for S-corp employees?
They are added to the employees wages so that they can pay taxes on it.
What is Employee Retirement Income Security Act of 1974 (ERISA)
A federal law that protects the interests of employee benefit plan participants and beneficiaries. ERISA is administered and enforced by:
US Department of Labor- responsible for administering and enforcing the provisions set by ERISA
Internal Revenue Services (IRS) – the IRS determines that a plan meets tax qualifications and sets limits for pretax plans
What are some ERISA guidelines?
•Provide employees with important plan information
•Plan features and coverage
•Establish a grievance and appeals process for employees
•Notice of Plan Changes
•Employees must be notified of any changes to the plan 30 to 90 days before the effective date of the change
•Opportunity to Enroll
•All employees who are eligible must be given the opportunity to enroll. They must receive all necessary forms and summary plan descriptions at the time of enrollment
Can an employee change or cancel their benefits at anytime?
No, outside of new hire eligibility or open enrollment, an employee must experience a qualifying life event to make changes to their benefits enrollment?