In this episode, Chase Cannon and Suzanne Spradley look at recent DOL FFCRA guidance. Chase outlines new DOL FAQs on how the FFCRA impacts coverage of COVID-19 testing without cost sharing and expansion of telehealth coverage. Chase and Suzanne dig in on some new guidance for wellness programs in the pandemic environment. The two discuss a new DOL field assistance bulletin on whether summer camps can be considered “places of care” for purposes of FFCRA-protected leave. Chase closes with a short recap of a recent New York order denying state-protected COVID-19 leave for individuals who take personal trips to COVID-19 hot spots.
Every other week, NFP's legal experts make the subject of compliance personal for a wide audience. By breaking down the daunting details of emerging policies and bridging the gap between legislation and what it means for the listener, Chase Cannon and Suzanne Spradley make compliance issues relatable and relevant. Visit our Soundcloud page every two weeks for the most up-to-date episode.
NFP's Benefits Compliance team is hosting its next webinar on July 15, 2020, from 2:00 to 3:00 p.m. CT (3:00 to 4:00 p.m. ET). The topic is “FSAs, HSAs and HRAs: Compliance Nuances and COVID-19 Considerations.”
Can’t make a live webinar? A recording of each session will be posted to the NFP Client Learning Portal within 48 hours of the live webinar. Those listening to a recorded webinar aren’t eligible for recertification credit.
The moderator will answer as many questions as possible during the webinar. If your question isn't answered by the end of the webinar, reach out to your advisor for assistance.
FSAs, HSAs and HRAs: Compliance Nuances and COVID-19 Considerations
July 15, 2020
Register Now »
All programs are pending approval for 1.0 (general) recertification credit hour toward PHR, SPHR and GPHR recertification through the HR Certification Institute. For more information about certification or recertification, visit the HR Certification Institute website at www.hrci.org.
Applicable plan sponsors must file Form 5500-series returns on the last day of the seventh month after their plan year ends. As a result, calendar-year plans generally must file by July 31 of this year (reporting on the 2019 plan year). Plans may request a two-and-a-half-month extension to file by submitting Form 5558, “Application for Extension of Time to File Certain Employee Plan Returns,” by that plan's original due date.
As a reminder, group health plans sponsored by a governmental or church entity aren’t required to file a Form 5500, as those plans aren’t subject to ERISA. Additionally, unfunded, insured or combination unfunded and insured health plans with fewer than 100 participants on the first day of the plan year are also exempt from the filing.
NFP has vendors available to assist with filings. Please contact your advisor if you need assistance.
Forms and Instructions »
Form 5500 EFAST2 »
Form 5558, Extension of Time »
The ACA imposed the PCOR fee on health plans to support clinical effectiveness research. The PCOR fee applies to plan years ending on or after October 1, 2012, and before October 1, 2029. The PCOR fee is generally due by July 31 of the calendar year following the close of the plan year.
PCOR fees are required to be reported annually on Form 720, “Quarterly Federal Excise Tax Return,” for the second quarter of the calendar year. Plan sponsors that are subject to PCOR fees but no other types of excise tax should file Form 720 only for the second quarter. No filings are needed for the other quarters for such employers.
The PCOR fee is generally assessed based on the number of employees, spouses and dependents that are covered by the plan. For plan years ending in 2019 on or before October 1, 2019, the fee is $2.45 multiplied by the average number of lives covered under the plan. For plan years ending between October 1, 2019, and October 1, 2020, the fee increased to $2.54. Form 720 and corresponding instructions were revised to reflect the increased fee.
The PCOR fee can be paid electronically or mailed to the IRS with the Form 720 using a Form 720-V payment voucher. According to the IRS, the fee is tax-deductible as a business expense.
As a reminder, the insurer is responsible for filing and paying the fee for a fully insured plan. The employer plan sponsor is responsible for filing on a self-insured plan, including an HRA. A stand-alone dental or vision HRA would be excepted and wouldn’t be subject to the PCOR fee.
Form 720 »
Form 720 Instructions »
The Benefits Compliance team has provided a number of resources that are available for assistance during the COVID-19 crisis. Information presented through our resources is subject to change pending additional guidance from the DOL, IRS or other state or federal regulatory agencies.
FAQs on Benefits and Compliance and COVID-19 »
Families First Coronavirus Response Act (FFCRA) Flowchart »
COVID-19 State Quick Reference Chart »
DOL Issues COVID-19 Relief via Certain Notice Extensions for Employee Benefit Plans »
Compliance Considerations on Insurance Carrier Refunds in the COVID-19 Environment »
IRS Announces New Guidance for Section 125 Cafeteria Plans and Related High Deductible Health Plans, and IHCRAs »
(Also refer to NFP’s Latest Insights page for the archived webinars from March 24, March 31, April 7, April 14, April 21, April 28, May 5, May 12, May 19 and May 26, 2020.)
COVID-19 – State Leave Provisions: New York »
COVID-19 – State Leave Provisions: New Jersey »