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2019 BENEFIT ACCOUNT LIMITS AND EMPLOYER PENALTIES

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2019 BENEFIT ACCOUNT LIMITS AND EMPLOYER PENALTIES

The IRS has changed the annual contribution limits on many of the tax-free benefit accounts available for your employees to enroll in for 2019.  Make sure your employees know the contribution limits for any accounts they may be enrolledd in this coming year and that they can take full advantage of the benefits package you are offering and can save the most on their taxes.  

Account Limits

2019

2018

Health Care Flexible Spending Account (FSA)

$2,700/year 

$2,650/year

Dependent Care Flexible Spending Account (FSA)

$5,000/year

$5,000/year

Health Savings Accounts (HSA)

High Deductible Health Plan Annual Deductible Minimums

Self-only:  $1,350/year
Family:    $2,700/year

Self-only:$1,350/year
Family: $2,700/year

Annual Out-of-Pocket Maximums

Self-only: $6,750/year
Family:$13,500/year

Self-only: $6,650/year
Family: $13,300/year

Maximum Contribution

Self-only: $3,500/year
Family: $7,000/year

Self-only: $3,450/year
Family: $6,850/year

Transportation Fringe Benefits

Parking

$265/month

$260/month

Mass Transit

$265/month

$260/month

Qualified Small Health Reimbursement Arrangements (QSEHRAs) limits

Individual Coverage

$5,150/year

$5,050/year

Family Coverage

$10,450/year

$10,250/year

 

Penalties for Employers

The ACA requires applicable large employers (ALEs) to provide affordable, minimum value healthcare coverage to substantially all full-time employees and their dependents.  Affordable coverage is defined as the employee-paid portion of the premium that is no more than a specific percentage of their compensation.  Employers may use one of three methods, called safe harbor methods, to determine an employee’s compensation: W-2, rate of pay, or the Federal Poverty Line (FPL).  For 2019, the safe harbor percentage for employees is 9.86%, up from 9.56% in 2018.


If an employer fails to comply with the ACA requirements, they will be mandated to pay penalties, broken into two different tiers depending on the violation. 

  • Tier 1- Failure to offer to substantially all full-time employees. 
  • Tier 2- Failure to provide coverage that is affordable or meets minimum value (plan reimburses at least 60% of the cost of essential health benefits).   

The penalties for 2019 are:

Employer Mandate Penalties

2019   

2018

Tier one: Failure to offer coverage or to offer to 95% of employees 

$2,500     

$2,320     

Tier two: Failure to offer coverage that is affordable and meets minimum value

$3,750

$3,480

 

We're Here To Help

With more than 20 years of experience in the industry, Berg Andonian is a team of healthcare brokers that takes pride in helping our clients find the right coverage options for their employees.  We will gladly work with your team to clarify their benefit accounts and options or help you design new benefit plans and account offerings that meet ACA requirements for next open enrollment season. Call us today to see what we can do for you!


Published December 13, 2018.