SERVICES

Affordable Care Act (ACA)

Under Healthcare Reform, employers that are “applicable large employers” (ALEs) and employers with self-insured group health plans have to comply with new reporting requirements beginning in 2015 (reporting due in 2016). If an employer employs 50 or more full-time employees (including equivalents) on average during the prior calendar year, the employer qualifies as an ALE for purposes of the new reporting requirements.

Healthcare Reform added two new sections to the Internal Revenue Code, which impose significant IRS reporting requirements to ALEs and employers sponsoring self-insured group health plans. Section 6055 requires entities that provide Minimum Essential Coverage (MEC) to report coverage information to the IRS (Form 1094-B) and furnish a statement to covered individuals (Form 1095-B). Section 6056 requires ALEs to report information about their coverage offerings to the IRS (Form 1094-C) as well as full-time employees (Form 1095-C). These forms are a key component to the IRS tracking and administering both the employer shared responsibility and the individual coverage mandate.

The reporting requirements are very complex and the penalties for noncompliance are significant. To successfully meet these obligations, it’s imperative employers have a strong reporting infrastructure in place to monitor and track the various requirements.

That’s where we can help. We have the expertise to assist employers in determining whether they are subject to the new reporting requirements and if so, what information is necessary to complete the required forms.

COBRA Administration

Generally, employers with more than 20 employees must comply with COBRA and offer certain former employees, retirees, spouses and dependent children the right to temporary continuation of health coverage at group rates. McGregor & Associates, Inc. provides comprehensive administration services ensuring compliance with the complicated COBRA rules and regulations allowing employers to concentrate on their core business. Our services include notification services, premium collection and maintaining records of all federally mandated documentation.

Cafeteria Plans (Flexible Spending Accounts)

Cafeteria Plans allow insurance premiums to be deducted from employees’ salary PRE-TAX, decreasing federal, state and FICA income taxes and increasing spendable income. The plan also DECREASES the employer’s FICA and payroll tax obligations. Flexible Spending Accounts (FSA) can also be included as a benefit option allowing employees to pay for out-of-pocket medical and/or childcare expenses with TAX FREE dollars. McGregor & Associates, Inc. offers services including plan design and consulting, plan implementation, claims adjudication, daily payment processing, and online web access for both the employer and employee.

Direct Bill/Retiree Billing

Many employers offer employees the ability to continue health coverage under their group medical plan upon retirement or during a leave of absence. McGregor & Associates, Inc. provides services aimed at streamlining the administration functions associated with the billing and collection services resulting in lower costs for the employer and improved services to the participants. Our services include billing and collection of premiums, past due notices, notification of rate and/or benefit changes and monthly employer reporting.

ERISA Compliance

ERISA is a federal law that regulates retirement and welfare benefit plans, Employers who establish these plans must meet certain requirements under ERISA. Many employers do not fully understand the obligations and are at risk for costly government penalties and potential employee lawsuits. McGregor & Associates, Inc. provides services assisting employers in meeting their responsibilities under ERISA. Our services include bundling separate benefits into a single ERISA Plan through a wrap document , preparation of the Summary Plan Description (SPD), Form 5500 preparation and electronic filing, and preparation of other required disclosures.

Health Reimbursement Arrangements (HRA)

Health Reimbursement Arrangements are a great incentive for employees to become cost-conscious healthcare consumers. HRAs allow both the employer and the employee to spend less on health insurance and SAVE on premium dollars! HRAs are flexible and can be designed to meet specific employer and employee needs. McGregor & Associates, Inc. offers services including plan design and consulting, plan implementation, claims adjudication, daily payment processing, and online web access for both the employer and employee.

Health Savings Accounts (HSA)

Health Savings Accounts are the newest benefit option in the Consumer Driven Health Care (CDHC) revolution aimed at reducing the cost of healthcare. HSAs allow employees who are covered under a qualified High Deductible Health Plan (HDHP) to benefit from TAX-FREE contributions, distributions and earnings to pay for out-of-pocket medical expenses. Unlike FSAs, these accounts are not subject to the “use-it-or-lose-it” rule and unused funds rollover from year to year. Account holders are able to save for current and future healthcare costs. HSAs serve as a supplemental retirement investment fund from which withdrawals can be made without penalty and taxes as long as they are used for eligible medical expenses. McGregor & Associates, Inc. provides a full range of administration services including a claims vault to electronically store receipts, employer and employee consulting, voluntary expense certification, and tax reporting.

Features:

• All contributions are tax-exempt

• Withdrawals are never taxed if used for eligible medical expenses

• Accounts earn income tax-free

• Unused funds always rollover from year to year

• Accounts are individually owned and portable

• Individuals gain choice over how to spend their health care dollars

• Accounts can be used to save for future health care costs

McGregor & Associates, Inc. provides a comprehensive HSA solution that is versatile and tailored to meet the needs of the employer as well as the employee. McGregor & Associates, Inc. provides the nation’s most service-driven HSA solution.

Employer Solutions

• Dedicated Account Manager

• Customized enrollment and educational materials

• Group enrollment meetings

• Contribution processing

• Online access for employer to view and manage employee information

• Quarterly reporting

• Monitor contributions to ensure employees do not exceed the applicable IRS contribution limits

• Debit Card with MCC restrictions and IIAS integration, preventing tax penalties for ineligible withdrawals

• Contact employees who reach Medicare eligibility age to educate about the potential effects on their HSA

Employee Solutions

• Dedicated Account Manager

• Online access for complete account management

• Receipts can be uploaded and store electronically through an online Claims Vault

• Optional claims certification process

• Debit card with MCC restrictions and IIAS integration, virtually eliminating the need to save receipts

• Investment options available for balances in excess of $1,000

• Annual Statements

• Tax forms 5498-SA and 1099-SA

• Tax form 8889 is prepared as a courtesy for each account holder to file with their personal income tax return

Qualified Small Employer Health Reimbursement Arrangement (QSEHRA)

Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs) are the newest benefit plan offering for small businesses with fewer than 50 full-time employees that do not offer any group health plan. The QSEHRA can provide employees and their families with reimbursement for eligible healthcare expenses, including premiums. In addition to a more attractive benefits package and caring for your staff, a QSEHRA offers employers a 100% tax deduction on all contributions.

Features:

• QSEHRAs can reimburse healthcare expenses under IRC Section 213(d), individual insurance premiums, or both.

• Employees must submit proof of coverage to the employer, verify eligibility under the QSEHRA for reimbursements and verify Minimum Essential Coverage (MEC)

• Employer determines maximum contribution for single employees and families (limits adjusted annually by IRS)

• Employer provides written notice to workforce 90 days before the start of the plan year with the following:

– Amount of the QSEHRA benefit

– Explanation that employees must notify the Exchange of the QSEHRA if they apply for a subsidy

– Consequences of not obtaining MEC, which may result in taxes and the inclusion of premium reimbursements in their gross income.

• Employer must include the amount of available QSEHRA benefits on the employees W-2s at the end of the plan year.

• Employer must file Form 720 and pay the Patient-Centered Outcomes Research Institute (PCORI) fee for each plan year (deadline: July 31)

Retirement Plan Administration

A Retirement Plan is an integral part of an employer’s employee benefit offering. Because of the tax advantages, most retirement plans are designed to ensure a present deduction to the employer while the employee is permitted to defer taxation of the income until retirement. McGregor & Associates, Inc. specializes in 401(k) Plans, Profit Sharing Plans, ESOPs, Safe Harbor and Cross Tested plan designs. Our services include plan design and consulting, recordkeeping, and compliance services for both daily valued and balance forward plans.

Transportation Fringe Benefit Plans

Transportation Fringe Benefit Plans allow employees to use TAX-FREE dollars to pay for qualified parking, mass transit and van pooling expenses. Employers also benefit from reduced FICA and payroll obligations. McGregor & Associates, Inc. offers services including plan design and consulting, plan implementation, claims adjudication, daily payment processing, and online web access for both the employer and employee