4 Point Compass: Spring 2018

Under Chicago train tracks

Stumm is committed to providing you quarterly updated on the ever-changing health care landscape. Here is our 4 Point Compass for Spring 2018:

  • 2018 Contribution Limit Change (& Name Change for SelectAccount) – An unexpected IRS announcement (to conform to the new tax law passed at the end of 2017) was made March 5th lowering the 2018 HSA family maximum contribution limit to $6,850 from the previously announced limit of $6,900 – https://www.irs.gov/pub/irs-irbs/irb18-10.pdf. The change takes effect for the 2018 year but did not impact the individual limit of $3,450 for self-only coverage. Employers should make employees aware of this revised contribution limit and any individual that had already made the $6,900 contribution for 2018 should contact their HSA vendor/bank to determine how to initiate an excess contribution removal. Speaking of HSAs, for those employers/individuals with an HSA established with SelectAccount, note that SelectAccount has announced they will be changing their name as of April 2 to FurtherSM (no action needed on your part and no account changes).

  • FREE Payroll & HR Technology Advice – Need help looking for a new Payroll vendor, or maybe just looking to improve the relationship with your current vendor? Millson James is an independent HR & Payroll Technology consultant that can help you search for and/or evaluate IT vendors associated with your company’s HR functions such as Payroll / HRIS / Benefits Admin / Time & Attendance. Stumm Insurance continues to offer this service that several our clients have already utilized and saved countless hours and dollars, as all services are paid for by Stumm Insurance. Feel free to contact your Stumm Insurance rep to learn more about how Millson James can assist your company in its HR/payroll vendor search.

  • Benefit related impacts of “The Tax Cuts and Jobs Act” – This act was passed by Congress on Dec. 20, 2017 and signed into law by President Donald Trump two days later. Attached is a brief summary of the ten tax law changes related to benefits and fringe expenses. The most debated piece of the new law was the elimination of the individual mandate starting in 2019, which means individuals will no longer be tax penalized if they do not have health insurance. Also in the law, but starting in 2018: commuter FSA programs cannot include bicycle expenses; no employer deduction for company paid employee transportation expenses; a potential employer credit for paid wages to employee’s while on family & medical leave; and no employer deduction for company paid entertainment expenses (e.g. sports tickets for business, client, vendor, etc.). Please note this bullet point and the attached are only general interpretations, and they should not be construed as tax advice. If further questions, please consult with your licensed tax advisor.

  • Additional Employee Benefit Offerings – Many employers try to offer robust & comprehensive benefit plans to stay competitive in the marketplace. In addition to a Medical plan offering, employers will provide other benefit plans to their employees, sometimes on a Voluntary basis in which the employee pays the full cost via payroll deductions. Some examples of this are Dental, Vision, Additional Life Insurance, & Short/Long Term Disability. A new, growing demand in the marketplace are “Worksite products” (i.e. Accident, Critical Illness, Hospital Indemnity plans) that are individually owned and paid for by the employee, but offered via an employer. If you would like more information about adding additional plans, feel free to contact your Stumm service team to discuss further and have a proposal put together for you. Again, contact your Stumm service team if you would like to discuss these or any topics in more detail.