If you’re a first-time medical FSA participant, you may not be familiar with FSA definitions and rules. We’ve provided a list of the top things a first-time medical FSA participant should be aware of in order to take full advantage of their FSA. What is a Medical Flexible Spending Account (FSA)? A medical FSA...
A dependent care flexible spending account (FSA) lets participants set aside pre-tax dollars to help pay for dependent care. Contributing to this benefit reduces taxable income and spreads the benefits of pre-tax dollars throughout the year, helping individuals save 30 percent or more (based on their tax rate) on dependent care costs. Dependent Care...
The season for filing taxes is upon us once again. We’re getting closer to the deadline for filing for 2023. We wanted to share a few tips and reminders about health savings accounts (HSA) you’ll need for your tax return. HSA Tax Prep Checklist Check your W-2 for HSA payroll contributions Get your 1099-SA form...
Health savings accounts (HSAs) have become increasingly popular but they often come with misconceptions. To help employees make informed decisions, let’s debunk common HSA myths and shed light on the HSA facts that matter. HSA Fact #1: HSAs are Employee-Owned While employers may choose to contribute to an employees’ HSA, it’s important for employees...
Expanded public transit. The rise and rebound of ridesharing. Increased work-from-home arrangements. The work commute has changed a lot recently, as lawmakers and civic officials grapple with how to effectively support people traveling to and through ever-growing cities. New York City, Washington, D.C., Chicago, Philadelphia and Seattle are among cities that have enacted laws and...
What are pre-tax savings and post-tax savings? Understanding taxes relating to health savings accounts (HSAs), flexible spending accounts (FSAs) and other benefits plans can be time-consuming and difficult to explain. Pre-tax savings are tied directly to FICA taxes. You may be wondering what FICA is and how does pre-tax savings work for HSAs and FSAs?...
In 2023, mental health became a top priority for employees and employers. According to a SHRM study, 41% of U.S. employees said they would likely or would very likely leave their current job if they were offered a new position with significantly improved mental health benefits. While many companies offer employee assistance programs (EAPs), it’s...
Welcome to 2024! As we get ready for another year of sharing the latest benefits trends and practical tips to enhance you and your employees’ benefits experience, let’s look back at our most popular blog posts from 2023. Get the Best Results from Your Benefit Budget Conversations Benefits are critical for attracting and retaining...
As we age, the importance of maintaining safe mobility within our home becomes critical. It is crucial to understand how to save money on common at-home expenses with health savings accounts (HSA) and flexible spending accounts (FSA). From home modifications to adaptive equipment, creating an environment that not only nurtures a person’s well-being but also...
On November 15th, 2018, IR-2018-222 of the Internal Revenue Service (IRS) announced the 2019 annual cost-of-living inflation adjustments, which included increased limits for flexible spending accounts (FSAs), transportation fringe benefits, and qualified parking expenses.
A summary of the 2019 IRS contribution limits and their impacts on health benefit accounts is provided below and is summarized in the 2019 IRS Numbers You Need to Know document, available on Partner Central/Marketing Resources or by clicking here.
Changes announced in the latest IRS announcement are as follows:
IMPACT TO WEX HEALTH CLOUD PLAN SETUP AND RENEWAL
What does this all mean, and what action is required? The good news: WEX Health is handling it for you. Here’s how:
HEALTH FLEXIBLE SPENDING ACCOUNTS
The adjusted health FSA pre-tax salary reduction limit is per employee, per employer, per plan year starting January 1st, 2019.
WEX Health Cloud allows you complete control to configure the FSA maximum by plan, so you can easily make the maximum contribution adjustment at plan design when setting up a new plan.
As of today, when you create new 2019 plans within WEX Health Cloud, the default FSA maximum value will be updated to reflect the new 2019 limit of $2,700.
For pre-existing 2019 plans that have already been set up, the WEX Health Cloud product development team will be running a script to increase the FSA limit to reflect these new changes.
We are currently working to make the following adjustments:
If you do not want your plans updated, please submit a Support Request (SR) with the category of Configuration Data Change > 2019 Opt Out, by December 7th, 2018.
COMMUTER AND QUALIFIED PARKING BENEFITS
WEX Health Cloud does NOT default the monthly contribution maximums, so we will not make any changes to contribution fields for commuter and parking benefits. However, we will be changing the database value to cap reimbursement of these plans to the new maximum ($265) beginning January 1st, 2019.
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