DataPath Newsletter July 2005

July 2005 Volume IV, Issue 7

Editor: Melissa Vinson, CFCI

To view the complete articles or the links, you will need to have your browser on. If you do not have this option or you cannot receive email in HTML, you can go to our web site and read the newsletters and articles from there.

Check Out DOL's Compliance Page on the Web.

The Dept. of Labor has a Compliance Assistance page on its website to provide understandable info to both employers and employee on how to comply with the DOL laws and regulations.

Click here to view DOL's Compliance Assistance website.

IRS Releases Info Letter on Egg Donor Fees

Although IRS information letters provide general information only and
are not binding on the IRS, you may find this one useful in determining
the eligibility of egg donor fees and related expenses.

Click here to read the Info Letter.

Upcoming Seminars

DPI 125 Basic Software Training::
October 19-20
December 7-8

DPI 125 Advanced / CMS Software:
October 11-12
November 29-30

Global Claims Processing / CMS:
October 13
December 1

DPI-105 HRA Software
October 14
Decenber 2

DPI COBRA Education/Training:
October 10
November 28

myHSAToday™ Training:
October 18
December 6

Click here to view Event Calendar.

All seminars will be in Little Rock, AR.

Contact Us

Email Sales or call
1-800-633-3841

Email Technical Support
or call 1-501-296-9993

Comments?
Suggestions?

If you have any comments on the articles in this newsletter or suggestions for future newsletters, please email mvinson@dpath.com. We welcome your input.

Register Today for Connections '05!

If you are only going to attend one more conference this year, make it Connections ‘05. At Connections '05, you will the opportunity to:

Get the opportunity to network with other successful administrators,
Get the latest update on the activity in Washington and how new and pending legislation may shake up our industry for better or worse,
Learn the importance of service diversity and how it can affect your bottom line, and
See how DataPath’s new product can eliminate up to 40% of your FSA claims supported by a 100% IRS compliant system.

Click here for online Registration Form,
Click here for PDF Registration Form.

Click here to find more about DataPath's 2005 Annual Conference.

DataPath Develops Robust Solution for New § 125 Grace Period

DataPath, Inc. is pleased to announce that our FSA/DCAP grace period solution will be available on or before October 1, 2005, for licensees of our DPI-125 system.

This update is in response to IRS Notice 2005-42 allowing the deadline for incurring FSA and DCAP expenses to be extended for up to 2 ½ months after the end of the plan year. Medical expenses incurred during this period can be reimbursed from funds remaining in the accounts at the end of the Plan Year. (Click here to read previous newsletter article giving the details.)

This groundbreaking ruling will have far-reaching ripple effects throughout the benefit administration industry, and our programmers have been working diligently to provide you a comprehensive and flexible solution. (Click here to read previous newsletter article on the administrative challenges resulting from the Notice.)

Our programmers' goal in redesigning DPI-125 was to give you a robust and service-packed § 125 solution, and they succeeded. You can differentiate yourself in the marketplace by offering your clients options in administering this new grace period, while other administrators can only offer them one standard method—take it or leave it.

Click here for details of the solution and how it works.

Results of Survey on Notice 2005-42

After IRS released IRS Notice 2005-42 providing an additional two months to incur and receive payments for expenses under a Flexible Spending Account, DataPath surveyed its clients and industry partners in an effort to effectively develop a response. The results of that survey, often expected but also resulting in some surprises.

Although the findings were not that surprising overall, it is apparent that there are enough administrators and employers who want flexibility with regards to run outs, caps, benefit application, and the grace period itself that software vendors will need to make their solutions as dynamic as possible.

Click here to read the complete "Notice 2005-42 Survey and Analysis" including a copy of the survey.

Click here to read some of the interesting findings.

Quality Assurance:
A Look Behind the Scenes

DataPath's Quality Assurance Department has recently been established to bring the testing, documentation, and training of new programs or enhancements under one department. The Department's Quality Assurance Analysts are now responsible for the final testing and system release.

Quality Assurance is also responsible for educating the Sales and Customer Service staff on the new product (whether it is a new program or an enhancement) and supporting DataPath's Maintenance and Customer Service Departments by answering any questions or assisting with client issues.

Click here to find what and how QA Analysts test new products.

DOL Releases Advance Form 5500 for Plan Year 2005

On July 25, 2005, the Labor Department released the Advance Form 5500 for Plan Year 2005 reporting. This release is earlier than previous releases of Form 5500s “By making the forms and instructions available early and streamlining them, the filing process will be more efficient for plans and service providers,” said Ann L. Combs, assistant secretary of labor for employee benefits security.

Click here to read News Release.
Click here to view a copy of the Form 5500 and Instructions for Plan Year 2005.

Click here to read about changes to Form 5500.

House of Representative Passes AHP Legislation

On Tuesday, July 26, the U.S. House of Representatives passed The Small Business Health Fairness Act (H.R. 525). This legislation would allow Association Health Plans (AHPs) to be created allowing e small businesses to band together across state lines through bona fide trade and professional associations to purchase affordable health packages for themselves and their employees. The bill passed overwhelmingly by a vote of 263 - 165.

Similar legislation, S. 406, is expected to be voted on this fall by the Senate. However, it will face opposition by such opponents as the Blue Cross and Blue Shield Association who argue that it will not help small businesses and their workers.

Check out our Products!

myHSAToday DataPath 105-HRA DataPath 125 DataPath 132

DataPath COBRA Max105 myResourceCard^® mySourceCard^™

LEGAL DISCLAIMER: Material contained in this newsletter is not legal advice, and should not be construed as legal advice. If you need legal advice upon which you can rely, you must seek a legal opinion from your attorney.

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© DataPath, Inc. 2005

Check Out DOL's Compliance Page on the Web.

IRS Releases Info Letter on Egg Donor Fees

Upcoming Seminars

DataPath Websites

DataPath Web Services

Check us out!