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How the Pandemic Changed Benefits Strategies

Employee benefit strategies have been changing rapidly for years, to adapt to evolving work environments. Then, as Americans navigated the pandemic, there were even more levels of complexity. The almost immediate quarantine and shift in work environments shook our sense of security; not just of job security but of financial security and health security as well. As part of that, it has become evident that the pandemic has changed the way both employers and employees

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How Work Furloughs Affect FSA Accounts

Nearly 6.2 million workers were on furlough from their jobs in August 2020, according to the U.S. Bureau of Labor Statistics (BLS). While that number decreased to 1.25 million by August 2021, between 15-22% of all unemployed persons throughout 2021 were on furlough. A Flexible Spending Account (FSA) is a financial tool that helps workers cover out-of-pocket healthcare expenses. In 2021, there are 31.7 million FSA accounts in force. FSAs are sponsored by employers and

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Emergency Savings Accounts Boost Employee Financial Wellness

For many employees, the COVID-19 pandemic has added financial stress that can harm their ability to stay motivated and productive in their jobs. Employers can help ease the burden by including emergency savings accounts (ESAs) in their benefits package. ESAs are funded by employees through automatic payroll deductions, just as they do with healthcare spending and retirement accounts. Unlike those other accounts, however, ESA contributions are made post-tax. How well are Americans saving for their

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Cafeteria Plans Let Employees Choose Benefit Options

What is a cafeteria plan? Cafeteria Plans are an employer-sponsored benefit that lets employees pay certain qualified medical expenses – such as health insurance premiums for medical, dental, and vision coverage – on a pre-tax basis.  They are sometimes called Section 125 Cafeteria Plans. “Section 125” refers to the portion of the Internal Revenue Code (IRC) that regulates these pre-tax plans. “Cafeteria Plan” reflects the fact that, similar to a lunch cafeteria, you can choose

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Dependent Care FSA vs. Dependent Care Tax Credit: Which is Best?

Families with young children can face enormous childcare costs. It’s not uncommon for daycare fees to add up to one of the family’s largest recurring expenses each month. Fortunately, there are several ways to offset a portion of childcare expenses, including Dependent Care Flexible Spending Accounts ( DCFSA ), also known as Dependent Care Assistance Programs (DCAP), and the Dependent Care Tax Credit. Dependent Care FSA The DCFSA does for childcare expenses what the Healthcare

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Ready to quit smoking? Your FSA or HSA can help

Although COVID-19 was a top health story in 2020, another disturbing health trend also emerged with fewer people quitting smoking. The health dangers of smoking cigarettes have been well-documented since the U.S. surgeon general’s groundbreaking report in 1964. The number of adults who smoke was down to an estimated 14 percent in 2019, and cigarette sales steadily continued declining year after year until 2020, when they increased slightly. 1-800-QUIT-NOW, a national portal connecting callers to local

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HSA Growth: Now’s the Time to Invest Your HSA Balance

Opening a Health Savings Account (HSA) can be a great investment in your personal healthcare and financial future. Owned by the participant-employee (rather than the employer), the HSA is a versatile spending and savings account that can be used for many healthcare expenses. Since they can keep the account for life, HSA owners should adopt strategies for building their account balance and using the account to its maximum potential. Should you just save and earn

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IRS Issues More ARPA Guidance on Premium Assistance for COBRA

On July 26, the Internal Revenue Service (IRS) issued Notice 2021-46, which provides further guidance on premium assistance for COBRA continuation coverage under ARPA. Topics covered include extended coverage periods, dental and vision coverage, state continuation, and who may claim the COBRA Premium Assistance credit.

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Did Your Family Have a Change of Status? How a Mid-Year Update Could Impact Your HSA Contributions

When a Health Savings Account (HSA) owner has a change of status during the year, it affects how much he or she can contribute to their HSA. Learn how a mid-year change of status affects HSA contribution limits below. When a person with a qualified High Deductible Health Plan signs up for an HSA, the account comes with a ton of advantages. Account owners can enjoy pre-tax contributions, tax-free distributions for eligible health expenses (for

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