• Providing participants with important information in writing about plan features and funding.
• Establishing an appeals and grievance process for participants to receive benefits from the plan.
• Providing fiduciary responsibilities for those who manage and control plan assets.

The only way for an employer to provide certain benefits tax-free to its employees, such as health, dental or vision insurance, is through a Cafeteria Plan, as defined under Section 125 of the Internal Revenue Code. The only way for an employer to have a Cafeteria Plan is by preparing a written plan document which meets the requirements of Code Section 125. Failure to have a written document, or failure to operate a Cafeteria Plan in accordance with the terms of Code Section 125, disqualifies the plan as a Cafeteria Plan and results in gross income to the participants. In other words, any participant in the plan will lose the tax favorable status of the benefits that he or should would have otherwise received.

1. The Individual Mandate penalties increase to $695 per adult ($347.50 per child) or 2.5% of household income, whichever is greater. 
2. The Employer Mandate expands to include all employers who have 50 or more employees. 
3. The Employer Mandate offer rate increases from 70% to 95%. 
4. Employer reporting related to the offer of coverage is due for the first time during Q1 2016.