Understanding the 'Ineligible' Status in the Take Command Portal
The 'Ineligible' status in the Take Command admin portal is a key feature for managing employee eligibility concerning Health Reimbursement Arrangements (HRA). This article explains the meaning of the 'Ineligible' status, specific scenarios for its use, and step-by-step instructions for managing it effectively. Let’s also cover important compliance considerations to ensure your employee records meet reporting standards.
What Does the 'Ineligible' Status Mean?
Marking an employee as 'Ineligible' indicates that the individual is not eligible to participate in the HRA program. Common reasons for ineligibility include:
The employee’s ownership status within the company (e.g., owner-employees who cannot qualify for participation).
A failure to meet company-defined eligibility criteria.
Employees marked as 'Ineligible' cannot participate in the HRA or receive reimbursements. This designation ensures that your records remain compliant for IRS and internal reporting purposes.
Guidelines for Using the 'Ineligible' Status
Employees on Unpaid Leave
Employees should not be marked as 'Ineligible' simply because they are on unpaid leave unless they no longer meet the HRA eligibility criteria. It's important to:
Keep eligible employees on the roster even if they aren’t currently submitting reimbursements.
Offer these employees the option to waive coverage during their leave instead of marking them as ineligible.
Use the waiver process available through employee self-service or administrator intervention to ensure compliance with IRS requirements. This ensures benefits are properly documented as having been offered.
Marking Owner-Employees as Ineligible
In situations involving owner-employees, follow these steps to change their status to 'Ineligible Owner':
Log in to the HRA Admin Portal using admin credentials.
Navigate to the Employees/Participants list.
Open the owner-employee’s profile and choose "Edit/Update."
Locate the eligibility field and designate their status as 'Ineligible Owner.'
Save changes to exclude them from HRA participation and reimbursement.
For cases where the portal does not prompt you to enter a termination date, identify whether the HRA can be directly canceled (if the owner-employee is the sole employee).
Removing Ineligible Employees
If you wish to remove an ineligible employee from the roster, take the following steps within the Take Command admin portal:
Log in and access the employee roster via the "People" tab.
Click the three dots next to the employee’s name.
If available, select “Remove Employee.”
Enter the employee’s termination date—if it is in the future, the removal will be processed automatically on that date.
For employees who never qualified for the HRA, set the termination date to match their hire date.
This process ensures roster accuracy and compliance with company policies.
Compliance Considerations
Maintaining compliance is essential when managing employee statuses:
The IRS requires you to document all eligible employees as being offered the benefit, even if they decline or waive coverage temporarily, such as during unpaid leave.
Marking "Ineligible" should strictly adhere to policy guidelines to avoid inadvertent non-compliance.
Use the waiver options and roster update features as directed above to remain compliant.
Conclusion
The 'Ineligible' status is a valuable tool for properly managing your employee roster and ensuring compliance with HRA regulations. By understanding when and how to use this status effectively—whether for owner-employees, employees on leave, or roster removals—you can maintain accurate records and uphold regulatory standards. Follow the detailed procedures outlined in this guide to manage your employee participation within the Take Command system confidently.