What is an excepted benefit EAP?
Asked by: Prof. Carlotta Hoeger IV | Last update: May 8, 2025Score: 4.8/5 (3 votes)
What does it mean to be an excepted benefit?
Excepted benefits under ACA are types of coverage that are not included in a traditional health insurance plan. The Affordable Care Act requires that a traditional health insurance plan covers the following health benefits: Ambulatory patient services. Emergency services.
What is an EAP exemption?
Employees who are exempt under the EAP exemption generally must receive the full standard salary level for any week in which the employee performs any work, regardless of how many days or hours they work. However, exempt employees do not need to be paid for any workweek in which they perform no work.
What does EAP mean on my paycheck?
An Employee Assistance Program (EAP) is a voluntary, work-based program that offers free and confidential assessments, short-term counseling, referrals, and follow-up services to employees who have personal and/or work-related problems.
What is the limit for excepted benefit health reimbursement arrangement?
What's an excepted benefit HRA? If you offer group coverage, you may be able to help reimburse your employees for certain health benefits up to an annual maximum of $2,100 for plan years beginning in 2024 (adjusted annually for inflation).
What benefits are you entitled to?
Is there a downside to HRA?
You are not taxed on the money your employer puts in your HRA, but you cannot invest the money, can only withdraw it for eligible medical services, and will lose it if you leave your job unless you choose COBRA continuing coverage.
What is the maximum excepted benefit HRA limit for 2024?
2024 Excepted Benefit Health Reimbursement Arrangement Maximums. The maximum amount that may be contributed into an Excepted Benefit Health Reimbursement (EBHRA) in 2024 is $2,100. For more information on federal wage and payroll tax laws, check out our Federal Payroll Tax Facts & FAQs page.
What is the difference between EAP and FMLA?
FMLA is associated with EAP, the difference being that FMLA is a law protecting Members and EAP is a program for assisting Members who are experiencing difficult times. An EAP coordinator can assist you with applying for FMLA. Here's the most important thing to know about FMLA.
How do I use EAP benefits?
When an employee or their family needs to use the EAP's services, they simply contact their company's in-house EAP team or the external provider via the information provided by their organization's HR team. An EAP specialist will assess their needs and then direct them to the best resource.
Does your employer know if you use EAP?
Your EAP is completely confidential and your employer won't know that you are using your EAP benefit. None of your information – including your name – will be shared with anyone without your written permission.
Is an EAP an excepted benefit?
An EAP will be an excepted benefit (and will be considered supplemental to other coverage offered by the employer) if: (1) it does not provide significant benefits in the nature of medical care (considering the amount, scope and duration of covered services); (2) the benefits are not coordinated with benefits under ...
What is the EAP salary threshold?
While the court's decision means that the minimum salary requirement for highly compensated employees has returned to $107,732 per year and the minimum salary requirement for EAP exempt employees under federal law has returned to $684 per week (equivalent to $35,568 per year) and, as it stands, will not increase to ...
Who pays for EAP?
Employers generally bear the full cost of an EAP, meaning that employees can take advantage of the program for free. The cost to employers depends on the number of employees they have and the depth of services made available. Most businesses pay a fixed rate per employee, per month.
What does excepted employee mean?
Excepted service positions are any federal or civil service positions which are not in the competitive service or the Senior Executive service. Excepted service agencies set their own qualification requirements and are not subject to the appointment, pay, and classification rules in title 5, United States Code.
Is short-term disability an excepted benefit?
Certain benefits are always treated as excepted benefits because they are not considered health coverage, such as: Accident Only. Disability Income Insurance.
What is a required employee benefit?
According to the U.S. Bureau of Labor Statistics, "legally required benefits provide workers and their families with retirement income and medical care, mitigate economic hardship resulting from loss of work and disability, and cover liabilities resulting from workplace injuries and illnesses."
How is EAP different from insurance?
The EAP is an employee benefit that is separate from any other benefit and is provided by the employer. There is no charge to the employee for the assessment process that the EAP provides. At the first interview, called the assessment, you will describe your problem(s) to a licensed trained specialist.
How many times can I use EAP?
You may use the EAP more than once in a year if it's for a different problem. Our role is not to provide ongoing counseling or therapy, but to help you sort things out, develop an action plan, and provide targeted referrals for ongoing or specialized services if needed.
When should you activate EAP?
Activate your EAP if the assessor isn't sure how severe the injury is or there is nobody with first- aid training present.
What are the cons of EAP?
How do EAP benefits work?
Typically, an EAP grants employees access to a set number of sessions (usually less than six) with a therapist, and the employee would not accrue any co-pay, deductible, or other out-of-pocket costs for the service. Some larger companies might have providers on staff to offer therapy sessions through the EAP.
Can you be fired for missing work due to mental illness?
The Americans with Disabilities Acts (ADA) protects employees from discrimination based on a disability—including mental health conditions like depression or anxiety.
What is excepted benefit in HRA?
An excepted benefit HRA allows employers to finance additional medical care, like vision or dental coverage, coinsurance and copayments for individual health insurance coverage, short-term limited-duration insurance, or other health care costs not covered by their primary group plan.
What is considered a high-deductible health plan in 2024?
For calendar year 2024, a “high deductible health plan” is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,600 for self-only coverage or $3,200 for family coverage, and for which the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not ...
What is the maximum employer contribution for excepted benefits?
2025 excepted-benefit HRA maximum new-contribution amount:
The 2025 excepted-benefit HRA maximum new-contribution amount is $2,150 (up from $2,100 in 2024). Plan sponsors offering HDHP plans will find the updated figures useful in plan design for the 2025 plan year.