RGL Consultants

As a reminder, the limit for Health Care Flexible Spending Accounts is being reduced to $2,500 effective for taxable years (calendar years) beginning after December 31, 2012. 

This limit applies on a taxable year basis and is not tied to the Plan Year (a number of employers currently utilize a Plan Year which differs from the calendar year, which will complicate administration).  If the employer allows a limit over $2,500 for the 2012 Plan Year that is not the calendar year, it should monitor compliance with the limit on a calendar year basis in order to prevent an employee’s salary reductions from exceeding the $2,500 threshold and ensure the Health Care FSA remains a qualified benefit.  Alternatively, the employer may want to set the limit at $2,500 or less for the 2012 tax year right away to simplify administration of plan years that span more than one taxable year.

We have always praised the value of managing the performance of employees with a well constructed assessment tool. It is relatively easy to identify and provide documentation of a poor performer.  However, we find that managers often find difficulty when attempting to differentiate between a “good” employee and a “great” employee using a performance management tool.  read more »