Compliance & Regulatory
The legal requirements of proper benefits compliance are complex and constantly changing. At Compass Benefit Solutions, we give you the resources and information you need to understand the regulatory requirements of your benefit plans. Our commitment to compliance with both state and federal regulations ensures that our clients are audit ready and continuously aware of the impact of all laws and the onset of regulation implementation dates.
Consolidated Omnibus Budget Reconciliation Act (COBRA), this law passed in 1986 provides certain past employees, spouses, former spouses, dependent children, and retirees the right to continue their health coverage at group rates for specific durations.
Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that governs employee health and pension plans in the private industry. ERISA strives to protect the participants of those plans by establishing standards and requirements with which the plan sponsors must comply.
Health Insurance Portability and Accountability Act of 1996 (HIPAA) places certain requirements on group health plan sponsors and insurers in the areas of portability, privacy, and security.
Family and Medical Leave Act of 1993 (FMLA), this law provides eligible employees with up to 12 work weeks of unpaid job-protected leave a year, and requires the group health benefits to be maintained during this time off.
Federal and State Mandates
Compass Benefit Solutions compliance department ensures compliance with federal and state mandates, and provides details and support for plan updates.
The Internal Revenue Code Section 125 Cafeteria Plan enables employees to pay for qualified benefits on a pre-tax basis. Section 125 Plans can be limited to a premium only plan, which allows a company’s employees to pay for health and other qualified insurance premiums before tax basis, which saves both the employer and employee on payroll taxes remitted.
Flexible Spending Arrangement (FSA)
An FSA funded by pre-tax employee contributions through a Section 125 Cafeteria Plan.
Health Reimbursement Arrangement (HRA)
An HRA is funded by employer contributions. An HRA may not be funded directly or indirectly by employee contributions.
Health Savings Account (HSA)
HSA’s can be funded by employer and or employee contributions.
Medicare Part D
Group health plans and individual health insurance policies that offer prescription drug coverage to Medicare-eligible individuals must comply with the following requirements:
• Disclosure Notice to the Centers for Medicare and Medicaid Services (CMS)
• Disclosure Notice to Medicare Part D Eligible Individuals
Employer-sponsored retirement plans are almost a requirement for any employer looking for a competitive advantage when hiring employees.
One of the most popular retirement plans, a 401(k) plan can be offered by companies of all sizes. 401(k) plans can be structured to include a wide variety of employer contributions.
403(b) plans function in similar ways as 401(k) plans, with the exception that 403(b) plans are designed for employees of public schools, employees of certain tax-exempt organizations through IRS Code 501(c)(3).
The Form 5500 and its related schedules satisfy the requirements of specific employee benefit plans that are subject to ERISA and are required to file an annual report with the federal government.
Compass Benefit Solutions will navigate through the ever-changing world of state and federal mandates and provide you with the necessary details to make sure your plans continue to be compliant.