Does your business offer a Flexible Spending Account (FSA) or a Health Reimbursement Arrangement (HRA)? If so, the IRS requires you to perform non-discrimination testing on these plans. This is done to ensure there is no discrimination between the highly paid employees and everyone else at the company. All businesses should ensure their benefits are spread evenly for all employees.
This testing becomes even more important during the pandemic as your workforce and the way your employees engage with their benefits may have changed.
The changing employee population can impact the compliance of your employee benefits. During COVID-19, around 40 million Americans have filed for unemployment benefits. The decision to furlough or lay off employees will also impact your employee population number.
With employee population and regulation changes, consider testing your plans at least twice per year to ensure compliance at all times. Many employers have made the decision to turn to a subscription-based non-discrimination testing platform so they can test as often as they wish.
The right group policy will protect your employees as they work hard throughout the pandemic. Contact Donald Weiss Insurance Services today for help on getting started. Our team can shop coverage options and put together the best group insurance for your business.