Capitol Benefits Group News & Updates
January 2025 National Health Observance: National Blood Donor Month
January has been designated as National Blood Donor Month to encourage people to give or pledge to give blood at least two or more times a year. Blood is typically in short supply during the winter months—especially January—due to the holidays, travel schedules, inclement weather, and illness. A reduction in donor turnout can cause blood shortages around the country.
To take the first step to learn more about donating blood or determine where you can donate blood locally, click here.
IRS 2025 Annual Benefits Maximums
The IRS published the 2025 limits for several types of benefits that have maximums subject to annual change. You can find the full list of the new amounts in the IRS Revenue Procedure 2024-40.
The most commonly asked about limits are below and are applicable to taxable years starting in 2025.
Health Flexible Spending Account (HFSA):
The HFSA contribution limit is $3,300. For HFSAs that include a carryover feature, the maximum carryover is $660.
Qualified Small Employer Health Reimbursement Arrangement (QSEHRA):
The maximum total for all QSEHRA reimbursement and payments is $6,350 for single coverage and $12,800 for family coverage.
Adoption Assistance Programs:
The maximum employee tax credit and amount an employer can provide for adoption assistance is $17,280. The tax credit begins to phase out for individuals with a modified adjusted gross income above $259,190 and is completely phased out at $299,190 and above.
Qualified Commuter Plans—Mass Transit and Parking:
The monthly limits for both qualified parking and mass transit is $325.
IRS 2025 Retirement Plan Maximums
On November 1, 2024, the IRS released the 2025 limits for retirement plans and individual retirement accounts. A few of the notable changes include the following:
The annual contribution limit for 401(k) plans will increase nominally to $23,500 (from $23,000)
The annual catch-up contribution limit remains the same at $7,500 for participants age 50 and over
A new category of catch-up contributions, introduced by the SECURE Act 2.0, allows participants between ages 60 to 63 to contribute up to $11,250 annually
You can find the full list of the new amounts in IRS Notice 2024-80.
Alternative Distribution Methods for Form 1095-B and 1095-C
Beginning with the 2024 reporting year, applicable large employers (ALEs) and insurance carriers will be able to use an alternative method for distributing Affordable Care Act (ACA) Form 1095-C or 1095-B to employees. Guidance for using the alternative method has not been provided yet.
The Paperwork Burden Reduction Act was signed on December 23, 2024.
The new flexibilities increase the time allowed to respond to IRS notice of audit, Letter 226-J, from 30 days to 90 days. This applies to letters received after December 23, 2024.
The Employer Reporting Improvement Act was signed on December 23, 2024. The passed legislation accomplishes several key wins for ALEs.
Allow employers to substitute an individual's full name and date of birth in place of a taxpayer identification number in certain circumstances, starting with tax returns due in 2025.
Provide certain large employers at least 90 days to respond to the first letter from the Treasury Department outlining a proposed shared employer responsibility payment, beginning in the taxable year after the date of the bill's enactment
Specify that information that would be reported would include name and employer identification, who has been extended an offer of minimum essential coverage, whether coverage meets minimum value and the affordability safe harbor, and months that coverage is available without waiting periods.
Allow employers to deliver reports to employees electronically without another consent form.
Limit the time horizon for IRS lookback for prior compliance period in accordance with current regulatory and statutory guidelines.
IRS Releases 2025 PCORI Fee
The IRS has announced that the 2025 PCORI fee will be $3.47 per covered life, an increase of $0.25 from the previous year. This will apply to plan years ending on or after October 1, 2024, and before October 1, 2025.
The Patient-Centered Outcomes Research Institute (PCORI) was established under the Affordable Care Act (ACA) and imposes a fee on insurers and self-insured and level-funded health plans to help fund the institute. The fee—required to be reported only once per year during the second quarter on Form 720, Quarterly Federal Excise Tax Return, and paid by the July 31 due date—is based on the average number of lives covered under the policy or plan.
HR Topics Webinar by Mineral HR: Know Before They Go: Employee Leaves 101
An employee just told you they need eight weeks off. What do you do now? In this hourlong webinar, our experts will cover the fundamentals of employee leaves—including which leaves might apply, what paperwork you should be looking for, and how to manage their return to work.
You'll learn:
When the FMLA (likely) applies
When to consider the ADA
How to approach documentation
What rights employees generally have while on leave
Our presenters are Kara Govro, JD, SPHR and Victoria Hayhurst, SHRM-SCP, SPHR.
This program is valid for 1 PDC for the SHRM-CP® or SHRM-SCP®.
This program has been approved for 1 HR (General) recertification credit hour toward aPHR®, aPHRi™, PHR®, PHRca®, SPHR®, GPHR®, PHRi™, and SPHRi™ recertification through the HR Certification Institute.