M1: US EE Benefits and Insurance

Employee Benefits

benefits offered by employers in addition to employees salary.

Internal Revenue Service

US Government Agency responsible for enforcing tax law related to EE Benefits.

Internal Revenue Code (IRC)

is an official master list of federal tax laws in the US.

IRC Section 125

a federal tax rule, enabling employers to offer "cafeteria plans," which allow employees to choose from list of benefits using pre-tax dollars to lower their taxable income.

IRC Section 152

this section provides the definition and list of tax dependents for the Cafeteria Plans.

Health Insurance Portability and Accountability Act (HIPAA)

is a law that provides guidelines to protect health information of individuals - Protected Health Information (PHI).

It provides punishments for violations to the privacy and security of PHI.

Consolidated Omnibus Budget Reconciliation Act (COBRA)

is a law that allows employees to continue their health care coverage after termination.

Affordable Care Act (ACA)

is a law that created an

ONLINE MARKETPLACE - where INDIVIDUALS can purchase AFFORDABLE health insurance with no EXCEPTIONS.

MANDATED Applicable Large Employers (ALE) to offer minimum essential health care coverage to all FTE (Full-Time Equivalent) Employees and extend medical coverage to the DEPENDENT CHILDREN until they TURNED 26 unless DISABLED

Employee Retirement Income Security Act (ERISA)

is a law that set standards and rules on VOLUNTARY ESTABLISHED RETIREMENT and GROUP HEALTH PLANS

Family Medical Leave Act

this law allows EMPLOYEES to take UNPAID, JOB-PROTECTED LEAVE for family and medical reasons up to max 12 work weeks within a 12-month period.

Benefit Plan

benefit offered by employers to its employees

Employer

Who is the policy owner of the insurance policies?

Plan Participant

Who is an individual that benefits and enrolls in a benefit plan despite eligibility?

Dependent

someone who is related and can claim on your taxes.

dependent who is also a “Tax Dependent”.

Beneficiary

an INDIVIDUAL who RECEIVES the life insurance benefits when the EE dies.

Family are just “preferred”.

Cafeteria Plans

menu of benefits that can be offered tax-free to employees.