M2:

Question 1

What 3 elements define HCEs for nondiscrimination purposes?

Answer 1

1. The 5 highest paid officers
2. An owner of more than 10% of the ER’s stock
3. Top-paid 25% of EE’s

Question 2

Employer-Provided Health Insurance Offer and Coverage Information Return

Answer 2

1095-C (large employers)

Question 3

Prior to the ACA, employers could structure health insurance plans offered through a third-party insurance company to favor them

Answer 3

Highly Compensated Employee (HCE)

Question 4

Transmittal of Health Coverage Information Returns

Answer 4

1094-B (small employers)

Question 5

A 6% tax on excess contributions to HSAs

Answer 5

Excise tax

Question 6

A type of benefit plan permitted by IRS §125 in which the employer offers employees a choice of benefits

Answer 6

Cafeteria plan

Question 7

A small employer that does not offer major medical coverage may offer these

Answer 7

QSEHRAs

Question 8

An Internal Revenue Service (IRS) tax form used to report distributions made from various types of savings accounts, such as Health Savings Accounts (HSAs), Archer Medical Savings Accounts (MSAs), and Medicare Advantage Medical Savings Accounts (MSAs).

Answer 8

Form 1099-SA

Question 9

When employees suffer a workrelated injury or illness

Answer 9

They may receive workers’ compensation benefits

Question 10

Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns

Answer 10

1094-C (large employers)

Question 11

Retirement plan contributions that are not deductible from employee income

Answer 11

Roth IRA

Question 12

Any deferred comp plan that does not meet the requirements of IRC 401(a) for qualified pension and profit sharing plans.

Usually offered to executives or other highly compensated employees as there is no discrimination or limitations to apply.

Answer 12

Nonqualified Retirement Plans

Question 13

Defined contribution plans that give EE’s the chance to own shares of the ER’s stock

Answer 13

Employee Stock Ownership Plan (ESOP)

Question 14

The diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body, or for insurance covering such medical care.

Answer 14

IRC definition of Medical Care

Question 15

United States vs. Windsor (2013)

Answer 15

Court case that was overturned by US Supreme Court, that allowed for federal benefits to same-sex couples.

Question 16

Two individuals lawfully married to each other

Answer 16

IRS genderneutral definition of spouse

Question 17

Return of Certain Excise Taxes Under Chapter 43 of the IRC 4980D form

Answer 17

Form 8928 (self assessed)

Question 18

Describe the differences between the following:

1095-C
1094-C
1095-B
1094-B

Answer 18

1095-C: Large company (50+) proof of coverage
1094-C: Large company transmittal
1095-B: Small (<50) company proof of coverage
1094-B: Small company transmittal

Question 19

These were made obsolete (although existing ones were grandfathered) by the MMA Act of 2003 with the creation of HSAs

Answer 19

MSAs

Question 20

Annual Third Party Sick Pay Recap form

Answer 20

Form 8922

Question 21

Employer’s Quarterly Federal Tax Return form

Answer 21

Form 941

Question 22

Health Coverage Information Return

Answer 22

1095-B (small employers)

Question 23

Wage and Tax Statement form

Answer 23

Form W-2

Question 24

Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts etc. form

Answer 24

Form 1099-R

Question 25

Employer’s Annual Unemployment (FUTA) Tax Return form

Answer 25

Form 940

Question 26

Obergefell v Hodges (2015)

Answer 26

Legalized same-sex marriage

Question 27

Extra catch-up contributions can be made to an HSA by individuals of a certain age and older until they are eligible to enroll in Medicare

Answer 27

Age 55

Question 28

Form for Request for Federal Income Tax Withholding From Sick Pay

Answer 28

Form W-4S