Forsite Benefits - Blog #COBRAForsite Benefits - Blog #COBRAhttps://www.forsitebenefits.com/blogs/tag/cobraSat, 20 Dec 2025 17:31:41 -0800http://zoho.com/sites/<![CDATA[June 2021: Stay Informed of the Latest HR News]]>https://www.forsitebenefits.com/blogs/post/june-2021-stay-informed-of-the-latest-hr-news
IRS FAQs and COBRA Subsidies
IRS Releases Updated 720 Form For PCOR Fees
Protecting Employees From Burnout
Hiring and Managing Seasonal Employees

IRS Issues Guidance on Taxability of DCAP Benefits for 2021 and 2022

On May 10, 2021, the Internal Revenue Service (IRS) released guidance >> on the taxability of dependent care assistance programs (DCAPs) for 2021 and 2022, clarifying that amounts attributable to previously issued carryover and extended grace period relief >> generally are not taxable.


Specifically, if these dependent care benefits would have been excluded from income if used during taxable year 2020 (or 2021, if applicable), these benefits will remain excludible from gross income and are not considered wages of the employee for 2021 and 2022. They will also generally not be taken into account for purposes of applying the exclusion limits of Internal Revenue Code Section 129.

Here is an Example

IRS Notice 2021-26 clarifies the interaction of this standard with the one-year increase in the exclusion for employer-provided dependent care benefits from $5,000 to $10,500 for the 2021 taxable year under the American Rescue Plan Act.


Here are the Facts

Employee elects to contribute $5,000 for DCAP benefits for the 2020 plan year but incurs no dependent care expenses during that plan year. The employer amends its plan to allow the employee to carry over the unused $5,000 of DCAP benefits to the 2021 plan year. The employee elects to contribute $10,500 for DCAP benefits for the 2021 plan year, incurs $15,500 in dependent care expenses for that plan year, and is reimbursed $15,500 by the DCAP.


In Conclusion

The $15,500 is excluded from the employee’s gross income and wages because $10,500 is excluded as 2021 benefits and the remaining $5,000 is attributable to a carryover permitted by the previously issued coronavirus-related relief.

​​IRS FAQs on COBRA Subsidies

The Internal Revenue Service (IRS) has published frequently asked questions (FAQs) on the application of the American Rescue Plan Act (ARP) subsidies for continuation health coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). The FAQs cover a wide range of topics.


Background

The ARP subsidy covers 100% of COBRA and State mini-COBRA premiums from April 1–Sept. 30, 2021, for certain Assistance Eligible Individuals whose work hours were reduced or whose employment was involuntarily terminated. The subsidy is funded via a tax credit provided to employers, insurers or group health plans, according to the terms of the statute.


Frequently Asked Questions

Among the topics covered are how to calculate and claim the tax credit, including when a third-party payer is involved. According to the guidance, employers must document individuals’ eligibility for COBRA premium assistance to claim the credit. The FAQs further clarify that:

  • The subsidy is available for extended periods of COBRA coverage between April 1 and Sept. 30, 2021, due to a disability, second qualifying event or extension under State mini-COBRA.
  • Involuntary termination includes constructive discharge and termination for cause, but not gross misconduct.
  • Health reimbursement arrangements, dental-only plans and vision-only plans are covered by the subsidy.


Action Steps

Employers should review the IRS FAQs in their entirety to ensure compliance with the ARP, especially with respect to notice and documentation obligations.

Did you know the average Human Resources professional spends 25 hours a month simply doing research? There's a resource for that! 

Visit the Forsite Resource Lounge >>

​IRS Releases Updated Form 720 for PCOR Fees​

The IRS has released a revision to IRS Form 720, which is used to pay the Patient-Centered Outcomes Research (PCOR) fees due July 31, 2021.


Each year, employers must wait for the IRS to update Form 720 to pay their PCOR fees using the correct form. The PCOR fee is used to fund research on patient outcomes. As part of the Affordable Care Act, employer-sponsored health plan(s) are subject to PCOR fees. 


The PCOR Fees due by July 31, 2021 include plan years ending in 2020.

  • For plan years ending on or after January 1, 2020 through September 30, 2020 the fee is $2.54 per covered life.
  • For plan years ending on or after October 1, 2020 through December 31, 2020 (including calendar year plans) the fee is $2.66 per covered life.

PCOR Fees for self-funded major medical plans, HRAs, and non-excepted Health Care FSAs are payable by the employer using IRS Form 720 and are due July 31.

[this information has been provided by Employee Benefits Corporation's Compliance Buzz]

The IRS provided transition relief related to the 2020 PCOR fee calculation, due to the anticipated termination of the PCOR fee prior to its extension. This transition relief allowed issuers and plan sponsors to use any reasonable method for calculating the average number of covered lives for this period, in addition to existing methods, so long as it was applied consistently for the duration of the plan year. However, this transition relief was not extended for the 2021 plan year. As a result, plans and issuers must use one of the existing methods for calculating the PCOR fee for 2021. 

Protecting Employees From Burnout​

Burnout has been a commonly discussed issue amid the COVID-19 pandemic. Oftentimes, it is the Human Resources department's responsibility to help employees cope with burnout and its contributing factors. 


Burnout, in simple terms, is the feeling of mental exhaustion stemming from workplace duties. According to the World Health Organization, burnout may be shown through the following symptoms:


  • Fatigue or energy depletion
  • Decreased engagement at work, or feelings of negativism or cynicism related to one's job
  • Reduced productivity or efficacy
  • As these examples show, burnout doesn’t always look the same for everyone. Yet, the impacts of burnout are typically uniform—lower-quality work and detrimental health effects.


4 Steps You Can Take to Help Your Team Recover From or Avoid Burnout Altogether

  • Meet regularly with team members and peers to gauge their emotional states and discuss individual work duties as needed.
  • Recognize and celebrate individual and team achievements.
  • Train other managers on how to keep employees engaged and motivated at work, and how to spot signs of burnout.
  • Clearly communicate that employees should reach out if they are experiencing burnout, and that there will be no punishment for seeking help.


Your team is made up of many unique individuals, each with different needs that should be met in order to recover from or avoid burnout. Consider what actions you can take as a team leader and mentor to meet their diverse needs and build up a supportive and productive workplace culture.

Keep Employees Connected & Encourage Healthy Habits with Forsite EXP >>

Forsite EXP is the ultimate employee experience platform. This customizable app helps employers reach employees on their smartphone with important company updates and healthcare education, and provides benefits support as they navigate unique healthcare needs.


   LEARN MORE ABOUT FORSITE EXP >>   

Hiring and Managing Seasonal Employees​

With the summer hiring season underway, employers should begin thinking about how best to hire and manage seasonal employees. Employers who do not dedicate time to these critical steps risk having to face disgruntled employees, unhappy customers, and even legal violations. 


To learn some best practices for hiring and managing seasonal employees, please watch this video >>>.


Read May's HR newsletter >> for 4 virtual recruitment strategies.


The content herein is provided for general information purposes only, and does not constitute legal, tax, or other advice or opinions on any matters. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy.

Copyright © 2020 HR 360, Inc. All rights reserved.

]]>Tue, 01 Jun 2021 11:54:19 -0500<![CDATA[Webinar: The American Rescue Plan Act (ARPA) COBRA, FSA and Other Adjustments]]>https://www.forsitebenefits.com/blogs/post/webinar-the-american-rescue-plan-act-arpa-cobra-fsa-and-other-adjustments

The following webinar was recorded Tuesday, April 20th, 2021. Sue Sieger, Senior Compliance Consultant with Employee Benefits Corporation joins Forsite benefits to answer how the American Rescue Plan Act or ARPA, will impact important areas of healthcare.


AUDIENCE: Wisconsin Employers, HR Professionals, and leadership Teams


CONTENT: In this webinar, Sue covers COBRA subsidies and changes, FSA adjustments and additional questions brought by listeners including;

1. Who is eligible for the subsidy?

2. Which plans are eligible for the subsidy?

3. How do you recoup the subsidy from the federal government?


About Sue Sieger: Sue has over 25 years of experience in the employee benefits industry and is a frequent speaker on employee benefits. As Senior Compliance Consultant at Employee Benefits Corporation, she has worked with hundreds of employers and has become a leading specialist in Section 125 and Section 105 Plan design and administration.


]]>Tue, 20 Apr 2021 16:00:17 -0500<![CDATA[3 Steps For Employers to Help Retirement Ready Employees Make the Best Healthcare Decisions]]>https://www.forsitebenefits.com/blogs/post/3-steps-for-employers-to-help-retirement-ready-employees-make-the-best-healthcare-decisions

From newly hired team members to seasoned employees nearing retirement, every employee will have unique healthcare needs for their stage of life. If you provide employees sufficient education on how they can intelligently navigate healthcare, not only will employees save money, but claims will be mitigated which effect the cost of the employer-sponsored benefit plan.


When it comes to a stage of life and the healthcare education provided for said stage, the largest gap that we see, and employers often attest to, is among retirement ready employees.


Staying on the employer-sponsored benefit plan is rarely in the best interest of a retirement ready employee or the employer. With age, employees typically see more claims and complicated health issues that will weigh heavily on the company’s benefit plan. Alternative health insurance could save an eligible employee nearing retirement some financial strain and equip them with the options they need for their wellbeing. In turn, the employer could be spared high dollar claims that would affect their plan premium.


Because of these truths, your retirement ready employees knowing and understanding all healthcare options available to them is in the best interest of both the employee and the employer.

Three Steps Employers Can Take to Help Retirement Ready Employees Make the Best Healthcare Decisions.

Step 1: Establish an effective communication method with your employees.

A reliable communication method will ensure proper delivery of and engagement with important company updates and healthcare information. Perhaps company email, desktop messaging, or traditional paper notes into office mailboxes has been your communication practice over the years. With the overwhelming use of email today, desktop messaging only being accessible during office hours and traditional paper methods being less than reliable and un-trackable, these outdated communication methods rarely prove effective.


We find the best and most effective avenue to reach employees with important communications is through a device that never leaves their person; smart phones. Consider investing in a customizable smart phone app that would deliver notifications and text messages right to your employees’ phones.

Step 2: Educate your retirement ready population on proper healthcare navigation.

Unfortunately, because of its complicated and frustrating nature, insurance is seldom communicated about. Employees love education, but do not enjoy having to find information for themselves. Reach out to a strategic partner for employee healthcare education or gather educational resources yourself on:


Alert your employees that these resources are available and make them accessible. Use your established, effective communication method to deliver these resources.
Step 3: Empower retirement-ready employees to take action.

Encourage employees to consider their retirement needs 2-3 years before retirement, meet with a Financial Advisor to establish a budget, contact a Life Stage Support Counselor to discuss plan options, and ultimately enroll in a healthcare plan that is best suited for their unique current and long-term healthcare needs as they transition into retirement.

The Results of Proper Healthcare Education and Getting Employees Ready for Retirement.

Retirement ready employees choosing their best health insurance option is a big decision that takes time and is in the best interest of the employee and employer. With proper guidance and continued healthcare education, retirement ready employees will find themselves saving the most money and getting the best coverage for their individual healthcare needs. In turn, employers could mitigate or all-together avoid inheriting claims on the company benefits plan that will affect their population healthcare premiums in the future.


Actions for Retirement Ready Employees to Take Today to Save Money on the Most Common Healthcare Costs and Mitigate Future Claims.


1.  Schedule an annual physical exam or wellness visit. This annual preventive visit is covered at 100% through health insurance and catches chronic, genetic, and other disease early on and keeps treatment costs at bay.

 

2.  Get familiar and comfortable with telehealth services. Virtual doctor visits are a fraction of the cost of in-person visits and can be done from the comfort of your home using any technology device that supports a camera function.

 

3.  Know the resources available for prescription cost savings. Walmart’s $4 drug list, GoodRx and Amazon Pharmacy are just a few that offer tremendous savings on otherwise costly medications.

Check out our series of employee healthcare education newsletters: The Nav Series

Forsite Benefits creates monthly employee healthcare education on relevant topics for all stages of life. We compile useful information into easy-to-read and understand articles, and deliver free content to our email subscribers each month. 

The Nav Series

As a Life Stage Support Counselor for Forsite Benefits & Wellness, Charles uses his health care expertise and ambition to help clients choose the best healthcare plan for their unique individual and family needs along with solving exhausting issues that naturally arise when navigating healthcare. 



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