Gallagher

CXC Solutions, an industry leading Nondiscrimination testing compliance vendor, will be providing services for employers who have a need for Nondiscrimination Testing as a partner of Gallagher

THE NONDISCRIMINATION TESTING LANDSCAPE

The IRS requires that cafeteria plans, self-insured health plans (including health flexible spending arrangements), and dependent care assistance programs must not discriminate in favor of highly compensated or key employees. The Federal government has established regulations that specify requirements for each type of benefit plan governed by IRC Section 125, IRC Section 105, and IRC Section 129. In order to document compliance, plans must pass annual tests to ensure that they meet specified eligibility, benefits, and utilization requirements—with results subject to audit by the IRS. If requirements are not met, highly compensated and other key employees would face increased taxable income.