IRS Provides FAQ Guidance for Form 1095-C

A new FAQ that addresses the reporting of COBRA coverage on the 1095-C employee statement has been issued by the Internal Revenue Service. The FAQ stresses an offer of COBRA coverage to a current employee due to a reduction in hours is reported differently than an offer of COBRA coverage to a former employee. We … Continued

IRS Form for excluding employer-provided adoption benefits released

The IRS released 2014 Form 8839 for claiming employer sponsored adoption benefits. Plan sponsors providing a qualified adoption assistance program should note: Maximum adoption credit and exclusion amounts adjusted to reflect 2014 values ($13,190 per eligible child). The credit and exclusion begin to be phased out for individuals with modified adjusted gross incomes greater than … Continued

IRS Allows Additional Election Changes for Health Coverage Under Cafeteria Plans

The IRS has expanded its mid-year election change rules to permit two additional situations in which participants can drop their employer’s health plan coverage. As of September 18, 2014, Cafeteria Plans (or Section 125 Plans) may be amended so that employees are permitted to drop their group health coverage in the following situations: Reduction in … Continued