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15 Cards in this Set

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  • Back
Group Term Insurance
Master contract between employer and insurer
- no evidence of insurability required.
- conversion is available.
- uniformity is required in term of % of compensation and years of service.
- up to $50,000 Prem, deduction for employer
Group Universal
Subject to ERISA Title I requirements of reporting, disclosure, and fiduciary responsibilities.
Survivor Income
later
Group Term Nondiscrimination requirement (IRC791)
Covering at least 70% employees,
at least 85% of participants are not key employees.
The plan can excludes:
-employess < 3 years
-part time or seasonal employees
-collective bargaining employees
-certain nonresident aliens
Consequence if an employer does not meet the non-discriminatory requirements: Key employees lose the exemption for the cost up to $50,000 of coverage. Taxed on actural premium of table I cost.
Cafeteria Plan
-Must include one cash and one or more statutory nontaxable benifit
-Employee allocates credits and dollars toward relevant benefits
-Qualified non-taxable items, which will not be included in the employee's income:
a. Accident and health benifit (but not medical saving accounts or long term care)
b. Adoption assistance
c. Dependent care
d. Group-term life insurance
e, qualified 401k plan
Flexible Spend account
A Cafeteria plan fund through the employee's salary reduction.
HSA
-contribution is tax deductible for either employers or employee
-Must be covered by high deductible medical insurance.
- Catching up contribution:$700 per year after aget 55.
Group Disability Insurance (short)
-Certain sum or % of salary per week.
-benifit period: 13,26,or 52 weeks.
Long Term disability
Factors affect benifits:
-Benifit: 50% to 70% of base pay.
--Benifit begins: 60,90,or 180 days after total disability.
--Occupation Disability: first 12-24 months vs. Any occupation disablity: after 12-24 months.
Tax consequnce: If the employer pays the cost and the amount paid is deductible to employer, but is not included in the employee's income, the benifit will be taxable to the employee. If the employee pays cost or employee includes the cost
in their income, the benifit will be not taxable to the employee.
Employer purchased disability insurance on a key employee, with the benifit payable to employer
Cost is not tax deductible to employer, but the benifit are excludible.
Long Term Care Insurance
-Qualified long term care insuranc recevies favorable tax treatment.
To get the tax benifit, the long term care insurance must:
a. only provide insurance for long term care.
b. does not duplicate reimbursements provide by medicare
c. is guaranteed renewable
d. does not prvide a cash surrender value or loan provision
e, provides a consumer protection provision.
COBRA
Requirement for employer with 20 or more employees
Qualfying events for COBRA
a. termination or duction in hours: 18 months
b. death, divorce, legal separation and medicare: 36 months.
c. bankruptcy: 36 months
lost of dependent status: 36 months
disability: 29 months
Charge: ER can charge up to 102%.
If disabled, up to 150% of cost after 18 months.
HIPAA (Health insurance portablity and accountability act)
limitation or exclusionary period for preexisting condition can not be more than 12 months.
Non-cash fringe benefits
non-taxable:
-no-additional cost services
-qualified employee discounts
-on-premise athlethic facilities
-meal and lodging for employer's convenience
Education Assistance
IRC 127 allows ER max. $5250 education expensive, tax deductible to ER, and not tax to EE.
Subject to nondiscrimination rules.