by admin | Sep 21, 2022 | Blog
A number of key tax figures are adjusted each year for inflation based on the average chained Consumer Price Index (CPI) for all-urban customers for the 12-month period ending the previous August 31. The August 2022 CPI summary has been released by the Labor Department. Using the chained CPI for August 2022 (and the preceding 11 months), here are the calculated 2023 indexed amounts.
Qualified transportation fringe benefits: For 2023, an employee will be able to exclude up to $300 ($280 in 2022) a month for qualified parking expenses, and up to $300 a month ($280 in 2022) of the combined value of transit passes and transportation in a commuter highway vehicle.
Long-term care premiums: Amounts paid for insurance that covers qualified long-term care services are treated as medical expenses up to specified dollar limits that vary with the age of the taxpayer at the end of the tax year. For 2023, the dollar limits will be:
- $480 for a taxpayer age 40 or younger ($450 in 2022)
- $890 for a taxpayer age 41-50 ($850 in 2022)
- $1,790 for a taxpayer age 51-60 ($1,690 in 2022)
- $4,770 for a taxpayer age 61-70 ($4,510 for 2022)
- $5,960 for a taxpayer age 70+ ($5,640 in 2022).
Payments received under qualified long-term care insurance: Amounts received under a qualified long-term care insurance contract are generally excludable as amounts received for personal injuries and sickness, subject to a per diem limitation, which will be $420 in 2023 ($390 in 2022).
Archer MSAs: For Archer medical savings account (MSA) purposes, in 2023, a “high deductible health plan” will be a health plan with an annual deductible of:
- $2,650 – $3,950 in the case of self-only coverage ($2,450 – $3,700 for 2022)
- $5,300 – $7,900 in the case of family coverage ($4,950 – $7,400 for 2022)
- If annual out-of-pocket expenses are required to be paid (other than for premiums) covered benefits cannot exceed $5,300 for self-only coverage ($4,950 for 2022) and $9,650 for family coverage ($9,050 for 2022).
Limit on health FSA salary reduction contributions under a cafeteria plan: For purposes of determining whether a health FSA benefit will be a “qualified benefit” for the 2023 plan year, the cafeteria plan must provide that an employee may not elect to have salary reduction contributions exceeding $3,050 made to the health FSA ($2,850 for 2022).
Small employer health insurance credit: An eligible small employer may claim, subject to a phaseout, a credit equal to 50% of non-elective contributions for health insurance for its employees. The credit is reduced under certain circumstances, including if the average annual full-time equivalent wages per employee are more than $30,700 ($28,700 for 2022).
Qualified small employer HRA: For 2023, a qualified small employer HRA is an arrangement which, among other requirements, makes payments and reimbursements for qualifying medical care expenses of an eligible employee that does not exceed $5,850 ($5,450 for 2022), or $11,800 in the case of an arrangement that also provides for payments or reimbursements for family members of the employee ($11,050 for 2022).
Property exempt from levy: The value of property exempt from levy (fuel, provisions, furniture and other household personal effects, as well as arms for personal use, livestock, and poultry) may not exceed $10,810 for levies in 2023 ($10,090 for 2022). The value of property exempt from levy (books and tools necessary for the trade, business, or profession of the taxpayer) may not exceed $5,400 for levies issued in 2023 ($5,050 for 2022).
Wage levy. The weekly amount of an individual’s salary, wages, etc. exempt from levy for 2023 is $4,700 ($4,400 for 2022) multiplied by the number of the taxpayer’s dependents for the tax year of the levy, plus the taxpayer’s standard deduction, divided by 52.
Source: Thomson Reuters
by admin | Sep 20, 2022 | Blog
A Health Care Flexible Spending Account (FSA) is a popular option for nearly everyone. This account allows you to set aside pre-tax dollars for eligible expenses, which means you don’t have to tap into your checking account when you have medical, dental, and vision expenses for you or your dependents
The following is a brief list of expenses Health Care FSA funds do and do not cover.
What qualifies
- Feminine hygiene products
- Copays, deductible payments, and coinsurance
- Doctor office visits and exams
- Hospital charges
- Prescription drugs
- Dental exams, x-rays, and orthodontia
- Physical therapy
- Over-the-counter medications and first aid kits
- Vision exams, contacts, and glasses
What doesn’t qualify
- Expenses incurred in a prior plan year
- Cosmetic procedures or surgery
- Dental products for general health
- General hygiene products
- Insurance premiums
by admin | Sep 19, 2022 | Blog
NueSynergy offers a smart debit card to provide account holders with a convenient method to pay for qualified out-of-pocket expenses for themselves, their spouse, and/or any dependents. Here are some frequently asked questions about the smart debit card.
Question #1: Where is the smart debit card accepted?
The NueSynergy smart debit card is accepted at any qualified merchant (as determined by the employer’s plan document). In addition, the card can pay for office visit copays, deductible-related expenses, prescriptions, eyeglasses, and dental work – including orthodontia.
Question #2: What are the advantages of using the NueSynergy smart debit card?
Any participant who uses the card at a qualified merchant can pay for their eligible expenses. This means they don’t have to submit a manual claim and wait for their reimbursement. Another advantage of using this card is that participants can view real-time account information, balances, deposits, and payments by logging onto our website or the NueSynergy mobile app.
Question #3: How does NueSynergy verify the smart debit card is used only for qualified expenses?
As long as there’s a sufficient balance in a participant’s account, any qualified purchase will be paid directly from a reimbursement account once the card is swiped. The IRS requires participants to keep all receipts for benefit account expenses for seven years in the event of a tax audit. If there is an error or unusual transaction amount, NueSynergy is required by the IRS to verify the transaction. If a transaction cannot be electronically substantiated, a participant will be sent a notification via email to submit a detailed receipt from the place of purchase. The detailed receipt should show the date of service, description (or type) of treatment along with the amount owed.
Question #4: How do participants send required documentation for substantiation of NueSynergy smart debit card transactions?
Participants can submit documentation via the NueSynergy mobile app, NueSynergy member portal, or by email at CustomerService@NueSynergy.com.
by admin | Sep 14, 2022 | Blog
Health Savings Account (HSA) participants can use their HSA funds to pay for qualified health care expenses such as deductibles and prescription drugs. What many don’t know is that HSA funds can also cover these commonly used products and services:
- Dental treatment
- Pregnancy test kits
- Orthodontia
- Hearing aids and batteries
- Ambulance services
- Contraceptives
- Insulin
- Prescription eyeglasses
- Nursing services
- Physical therapy
To learn even more about HSA-eligible items, check out our extensive list.
by admin | Aug 29, 2022 | Blog
You probably know that NueSynergy offers Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), and Health Reimbursement Arrangements (HRAs). But did you know we also administer Lifestyle Spending Accounts (LSAs)?
An LSA is sponsored and funded by a participant’s employer and is designed to support health and wellness activities in their lives. Similar to HSAs, FSAs, and HRAs, the difference is an LSA provides funds specifically for health and wellness products and services, often determined by the employer.
LSAs are unique because employers can tailor them specifically for their employees. The employer contribution is taxable as income when spent, unlike HSAs, FSAs, and HRAs which removes many of the regulatory constraints associated with tax-advantaged accounts.
Lastly, NueSynergy LSAs allow employee participants and their dependents to use annual employer contribution amounts for any eligible items that promote health and wellness. Typical expenses include health club and spa memberships, fitness classes, athletic apparel and equipment, student loan reimbursement, tuition reimbursement, and nutritional counseling and supplements.
Setting up an LSA is simple. Once a NueSynergy LSA is chosen, there are three decisions an employer should make:
- How much does the employer choose to contribute annually?
- Which health and wellness products and services will be considered eligible expenses?
- How will the employer manage unused LSA contributions at the end of the plan year – either by retaining unused funds or rolling over to the next plan year?
For a full breakdown, including a list of typical eligible items, check here.
