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Recent Cafeteria Plan questions

Can an employer offer money to an employee who opts out of a

Can an employer offer money to an employee who opts out of a group medical or dental plan . I thought with ACA there were some restrictions.

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John

Attorney

Doctoral Degree

7,480 satisfied customers
Is a company REQUIRED to disclose that pre-tax wages used

Is a company REQUIRED to disclose that pre-tax wages used per Section 125 cafeteria plans will result in a lower unemployment benefit in the event of a layoff?I was recently laid off (Colorado) and was advised that per 26 USC Section 125, my benefit is reduced because pre tax deductions are not considered wages. I don't agree with this law; however, had I been aware of it, I would definitely have chosen to insure my family on my husband's employer medical/dental plans. Instead the company really pushed the tax savings and dangled an extra $1000/yr (paid proportionally each month) to entice selecting the HSA. Incidentally, job security is very low at the company with frequent layoffs.I have an appeal which will probably lose; however, I'm hoping that if I can show the company didn't disclose the effect on unemployment benefits and I had the right to know, perhaps a compromise can be made.

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Marsha411JD

Doctoral Degree

18,804 satisfied customers
My employment was terminated and now they are using my paid

My employment was terminated and now they are using my paid time off to pay for my cafeteria plan. can they do that?

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Legalease

Attorney At Law

Doctor of Law w/ highest honors

14,904 satisfied customers
My employer offers a cash incentive who opt out

My employer offers a cash incentive for employees who opt out of health insurance coverage. It's counted as salary and all payroll taxes are paid on it, both employer and employee. Is this legal under Obamacare?

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Marsha411JD

Doctoral Degree

18,804 satisfied customers
I am taking FMLA job protected medical leave. My benefits include

I am taking FMLA job protected medical leave. My benefits include free health insurance, paid for by the company owner. Now that I am officially on FMLA medical leave my job says I will have to pay my insurance premiums as long as I am off work. Is this legal? Please provide a citation for proper credits and best answer. Thank you.

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Patrick, Esq.

Doctoral Degree

17,412 satisfied customers
Is it legal for a Alabama government entity to pay the premium

Is it legal for a Alabama government entity to pay the premium of an employees family health insurance in lieu of a pay raise. The premium is paid for by the company in exchange for labor performed.

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Law Educator, Esq.

Attorney At Law

Doctoral Degree

106,576 satisfied customers
Hello,I have a very unusual (I think!) question. And urgent

Hello,I have a very unusual (I think!) question. And urgent because my husband was let go at his job a week ago, with all benefits terminating that day, and no severance. Needless to say, we are overwhelmed financially. This sounds incredibly stupid, but we discovered that we had accidentally signed him up for dependent-care FSA at his last benefits enrollment, thinking it was a medical-expense FSA. The company changed its health benefits drastically last year, and it was all very new to us. In any case, there is a $1,300 balance in the FSA account from his paycheck deductions. There would have been no reason for us to sign up for a dependent-care FSA as our only child is well over 12 years old. But the company is saying there is no way for us to get that $1,300 back, or to apply it toward our daughter's orthodontic expenses, which was our intention. They have already been incurred, as have some surgical expenses for me.Do you know of any way we can access our $1,300?Thank you very much,Beth Taylor

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Law Educator, Esq.

Attorney At Law

Doctoral Degree

106,576 satisfied customers
IRS Regulation Sec. 1.125-1(o)(4)(ii) Question

Hello, I have an IRS Regulation Sec. 1.125-1(o)(4)(ii) question for you. My Employer, major US Defense Contractor, is quoting this IRS Reg, stating that all purchased time off (PTO) "cannot be used until all non-elective time off is used first". The sticking point here is that we accrue our non-elective time off monthly. They're saying we can't have used 'All' our non-elective time off, monthly accrued leave, until 31Dec of that year. We don't have access to it until each month. That basically makes it impossible for us to use the purchased time off. Is that the way this is supposed to be interpreted? I spoke with the IRS Complex Tax Law Unit, who said this was really out of their scope, but that 'accrued' leave was what you had in your balance at that exact time you were looking to take time off, not was available in the future. Example, if I were to buy this week of leave offered, and it was put into my PTO balance 1Jan13. I then used that 40hrs in addition to my 14hrs of accrued 'non-elective' PTO for Jan, taking my balance to 0. In my mind, and that of the Complex Tax Law Unit, I've used my purchased time off. However, in my companies thinking, even though my balance was at 0, they're still going to buy back 40hrs of PTO at the end of November if I have a balance available. They'll either take the full 40hrs purchased, if available, or my available balance if less than 40hrs, leaving me at 0. I have other examples if you need them. I'm looking for something in writing from the IRS saying the Company is doing this wrong. So far I haven't been able to find an office within the IRS that would put that in writing. Can you help with that? Put me in contact with someone in an Official capacity that could put something in writing that I can pass to my HR? Thanks, Todd

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Law Educator, Esq.

Attorney At Law

Doctoral Degree

106,576 satisfied customers
Can "Cafeteria Plans" have an "Application Process"? OR Does

Can "Cafeteria Plans" have an "Application Process"? OR Does the presence of an "Application Process" disqualify a Benefit Plan from being a "Cafeteria Plan" even if the Plan premiums paid premiums are paid by the Employee Only. If it matters, the plans in question are "Indemnity Plans" offered by Aflac.Please provide an example and corresponding legislation (likely from Section 125 of IRS Code) to get credit for answer.

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37,824 satisfied customers
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