by admin | Jul 16, 2026 | Blog
Many employers use cafeteria plans to allow employees to pay their share of group health insurance premiums with pre-tax dollars. Health Flexible Spending Accounts (FSAs) and Dependent Care Assistance Programs (DCAPs) are also common offerings. But these aren’t the only benefits that can be included.
Employers looking to enhance their benefits package may be able to add several other options to their cafeteria plan.
Health Savings Account (HSA) Contributions
Employees who are eligible for a Health Savings Account (HSA) can generally make pre-tax HSA contributions through a cafeteria plan. This can be an attractive option for employees enrolled in a high-deductible health plan who want to save for current or future healthcare expenses.
Group-Term Life Insurance
A cafeteria plan may also include employer-sponsored group-term life insurance. However, employers should be aware that the value of coverage exceeding $50,000 may be taxable to the employee, unless paid for with after-tax dollars.
Disability Coverage
Short-term and long-term disability insurance can also be offered through a cafeteria plan. These benefits help provide income protection if an employee is unable to work due to an illness or injury.
Dental and Vision Benefits
Coverage under other employer-sponsored health plans, such as dental and vision insurance, may also be included. Offering these benefits through a cafeteria plan can help employees access important preventive and routine care while enjoying tax savings.
Paid Time Off (PTO) Programs
Some employers choose to allow employees to buy or sell vacation, sick leave, or personal days through a cafeteria plan. While these arrangements can provide greater flexibility, they are subject to specific IRS requirements and should be carefully structured to ensure compliance.
Contributions to a Dependent’s Trump Account
Beginning July 4, 2026, cafeteria plans may also permit contributions to a dependent’s Trump account. However, contributions cannot be made to an employee’s own Trump account through the cafeteria plan.
Keep Compliance in Mind
Before adding new benefits, employers should understand that each option comes with its own tax and legal considerations. In addition, cafeteria plans generally cannot be used to pay or reimburse premiums for individual health insurance policies that provide major medical coverage. A limited exception may apply in certain situations involving an Individual Coverage HRA (ICHRA).
The Bottom Line
Health insurance premiums, Health FSAs, and DCAPs may be the most familiar cafeteria plan benefits, but employers have several additional options available. Expanding your cafeteria plan can provide employees with greater choice and flexibility, provided the plan is structured to comply with applicable tax and benefits rules.
Source: Thomson Reuters
by admin | Jul 9, 2026 | Blog
The middle of the year is the perfect time to pause and check in on something important: your health.
Many people don’t think about their healthcare benefits until they need medical care. But your HRA, FSA, and HSA benefits can help you take a proactive approach to your well-being by covering a wide range of eligible healthcare expenses, preventive services, and routine health screenings.
If it’s been a while since you’ve reviewed your health, scheduled a preventive appointment, or checked your available account balances, now is a great time to make the most of the benefits available to you.
Why Mid-Year Is the Right Time for a Health Check-In
Preventive care is one of the most effective ways to maintain your health and identify potential concerns before they become more serious.
Whether it’s an annual physical, preventive screening, dental visit, eye exam, or another routine healthcare appointment, staying current on recommended care can help you:
- Detect health concerns early
- Better manage chronic conditions
- Support long-term wellness
- Avoid more costly healthcare expenses later
- Improve your overall quality of life
Your healthcare benefits are designed to support these goals, making it easier and more affordable to prioritize your health throughout the year.
Use Your HRA, FSA, and HSA Benefits to Invest in Your Health
Many employees have access to healthcare spending accounts that can help reduce out-of-pocket costs for eligible medical expenses.
Health Savings Account (HSA)
An HSA allows eligible individuals to save and use pre-tax dollars for qualified healthcare expenses. Funds can typically be used for a variety of eligible medical, dental, and vision services, helping you manage healthcare costs while supporting your overall wellness.
Flexible Spending Account (FSA)
An FSA helps employees pay for eligible healthcare expenses using pre-tax funds. Using your FSA for preventive care, screenings, and other qualified expenses can help maximize the value of your healthcare benefits.
Health Reimbursement Arrangement (HRA)
An HRA is employer-funded and may reimburse eligible healthcare expenses based on your plan’s guidelines. Reviewing your HRA benefits can help ensure you’re taking full advantage of available healthcare resources.
Health Services You May Be Overlooking
Mid-year is a great opportunity to review whether you’ve completed important healthcare appointments and preventive services.
Consider whether you’ve scheduled:
- Annual wellness visits
- Preventive health screenings
- Dental checkups
- Vision exams
- Recommended vaccinations
- Follow-up appointments for existing health conditions
These services can play an important role in helping you maintain your health and may be eligible for reimbursement or payment through your HRA, FSA, or HSA.
Don’t Let Your Benefits Go Unused
Too often, employees leave valuable healthcare benefits on the table simply because they forget to use them.
Taking a few minutes to review your benefits now can help you:
- Understand available healthcare resources
- Plan upcoming appointments
- Determine how much you have available in your HRA, FSA, or HSA
- Budget for future healthcare expenses
- Maximize your employee benefits before year-end
A proactive approach today can make a meaningful difference in your health and financial well-being tomorrow.
Make Your Health a Priority
Your healthcare benefits are more than just a safety net when you’re sick—they’re tools that can help you stay healthy all year long.
This mid-year reminder is the perfect opportunity to review your healthcare needs, schedule any overdue appointments, and make the most of your HRA, FSA, and HSA benefits. By investing in preventive care and routine health services, you’re investing in your future health and well-being.
by admin | Jun 18, 2026 | Blog
Adding a High-Deductible Health Plan (HDHP) paired with a Health Savings Account (HSA) is a popular way for employers to enhance their benefits offerings. One common question that arises during implementation is whether employers must verify each employee’s eligibility before making HSA contributions.
Here’s what HR teams and employers need to know.
Are Employers Required to Verify HSA Eligibility?
The short answer: No—employers are not required to verify an employee’s HSA eligibility.
Instead, the responsibility largely falls on the employee. According to IRS guidance and informal commentary, employees are primarily accountable for ensuring they meet the eligibility criteria to contribute to an HSA.
✅What Employers Are Responsible For
While employers are not responsible for full eligibility verification, they must determine a few key factors:
- Health Plan Coverage
Employers must identify whether the employee is enrolled in:
- A qualifying HDHP, or
- A non-HDHP plan (such as a general-purpose FSA or HRA offered by the employer)
- Employee Age
This determines eligibility for catch-up contributions (age 55+).
Employers may rely on employee-provided information for birthdates.
The “Reasonable Belief” Standard
Even though verification isn’t mandatory, employers must have a reasonable belief that their HSA contributions are excludable from the employee’s taxable income.
If this standard isn’t met:
- Contributions may become subject to federal employment taxes
- This includes income tax withholding and FICA
👉 In other words, while you don’t need to audit employees, you shouldn’t ignore obvious eligibility concerns either.
What Makes an Employee HSA-Eligible?
Employees enrolled in your HDHP are generally eligible to receive HSA contributions if they:
- ✅ Have no disqualifying coverage (e.g., coverage under a spouse’s non-HDHP plan)
- ✅ Are not enrolled in Medicare
- ✅ Cannot be claimed as someone else’s tax dependent
These factors are often outside the employer’s visibility, which is why the responsibility rests with employees.
💡 Best Practices for Employers
Even though verification isn’t required, many employers take proactive steps to reduce risk and educate employees:
✔️ 1. Use Employee Certifications
Ask employees to confirm that they meet HSA eligibility criteria.
This helps:
- Prevent improper contributions
- Increase employee awareness
✔️ 2. Provide Educational Resources
Offer:
- Simple eligibility checklists
- Decision tools
- FAQs about HSAs
✔️ 3. Communicate Clearly
Explain that:
- Eligibility is the employee’s responsibility
- Incorrect contributions could result in tax consequences
📊 Why This Matters
Making HSA contributions for ineligible employees can lead to:
- Unexpected tax liabilities
- Payroll correction issues
- Administrative headaches
Taking light precautionary steps—like certifications and education—can go a long way in avoiding these problems.
✔️ Key Takeaway
Employers do not need to verify HSA eligibility, but they must:
- Ensure proper plan classification
- Maintain a reasonable belief in tax exclusion
A balanced approach—combining minimal oversight with employee education—helps protect both the organization and its workforce.
If you’re planning to roll out an HDHP/HSA option, putting a simple process in place now can save time, cost, and confusion later.
Source: Thomson Reuters
by admin | Jun 11, 2026 | Blog
If your employer offers help paying for education, it’s often through something called a Qualified Educational Assistance Program (QEAP). But what exactly does that mean—and what can you have reimbursed?
This guide breaks it down in simple terms so you can take full advantage of this valuable benefit.
What Is a Qualified Educational Assistance Program?
A Qualified Educational Assistance Program (QEAP) is an employer-sponsored benefit that helps pay for your education. Under IRS rules, it allows your employer to provide tax-free education assistance up to $5,250 per year.
✅ What makes it special?
- You don’t pay federal income tax on eligible reimbursements (up to the limit)
- Your employer can cover a wide range of learning opportunities
- The education does not have to be job-related in most cases
What Expenses Can Be Reimbursed?
Depending on your company’s plan, a QEAP may cover:
- Tuition and required fees
- Books and course materials
- In some cases, student loan payments
✅ The education does not have to be related to your current job, so you have flexibility to pursue different interests or career goals.
What Is Not Covered?
Some expenses are not eligible, including:
- Meals, transportation, and lodging
- Most hobby or recreational courses (unless required for a degree or job-related)
- Supplies or equipment you can keep after completing the course (except textbooks)
Important Rules to Remember
- Up to $5,250 per year is tax-free
- Your employer may set requirements, such as:
- Getting course approval in advance
- Attending approved schools or programs
- Earning a minimum grade
Bottom Line
A QEAP is a valuable benefit that helps you save on education costs while growing your skills. To make the most of it, review your company’s specific rules and get any needed approvals before enrolling.
Source: Thomson Reuters
by admin | Jun 9, 2026 | Blog
June is Men’s Health Month—a time dedicated to raising awareness about preventable health issues and encouraging men to take proactive steps toward living healthier, longer lives. From routine screenings to mental health support, prioritizing wellness is essential. The good news? If you have a Flexible Spending Account (FSA), Health Savings Account (HSA), or Health Reimbursement Arrangement (HRA), you may already have tax-advantaged funds available to support your health journey.
Why Men’s Health Matters
Many common health risks for men—such as heart disease, high blood pressure, and certain cancers—can often be prevented or managed with early detection and lifestyle adjustments. However, studies consistently show that men are less likely than women to visit a doctor regularly or seek preventive care.
Men’s Health Month serves as a reminder to:
- Schedule annual physical exams
- Monitor key health metrics (blood pressure, cholesterol, glucose)
- Address mental health concerns
- Stay active and maintain a balanced diet
What Are FSA, HSA, and HRA Accounts?
Before diving into how these accounts can support men’s wellness, let’s break down what they are:
- FSA (Flexible Spending Account): Employer-sponsored account that allows you to set aside pre-tax dollars for eligible medical expenses.
- HSA (Health Savings Account): A tax-advantaged savings account available with high-deductible health plans; funds roll over year to year.
- HRA (Health Reimbursement Arrangement): Employer-funded account used to reimburse qualified healthcare expenses.
Each account helps you save money while investing in your health.
Eligible Men’s Health Expenses You Can Cover
Your FSA, HSA, or HRA can be used for a variety of services and products that directly support men’s health.
Preventive Care & Screenings
Early detection saves lives—and these accounts can help cover:
- Annual physical exams
- Prostate cancer screenings
- Colonoscopies
- Blood pressure monitoring
Fitness & Lifestyle Support
While gym memberships themselves may not always qualify, certain items and programs may be eligible with medical necessity:
- Weight-loss programs prescribed by a doctor
- Smoking cessation programs
- Nutritional counseling
Mental Health Services
Mental wellness is just as important as physical health. Eligible expenses may include:
- Therapy or counseling sessions
- Psychiatric services
- Telehealth mental health visits
Everyday Health Products
You can also use your funds for:
- Over-the-counter medications
- Pain relievers
- First-aid supplies
- Sunscreen (SPF 15+)
Pro Tips for Maximizing Your Benefits
Make the most of your FSA, HSA, or HRA this Men’s Health Month with these simple tips:
✅ Schedule checkups early: Don’t wait until the end of the year—stay proactive.
✅ Track your expenses: Use your plan’s portal or app to monitor spending and receipts.
✅ Know your deadlines: FSAs often have “use-it-or-lose-it” rules.
✅ Check eligibility: Not all items qualify—review your plan or use an eligibility tool.
Take Charge of Your Health Today
Men’s Health Month is the perfect opportunity to prioritize your well-being—and your FSA, HSA, or HRA makes it easier and more affordable to do so. Whether it’s scheduling a routine screening, addressing stress, or investing in healthier habits, every step counts.
Your health is one of your most valuable assets—make the most of it.
