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Key dates March 15, 2026: FSA grace period ends for the 2025 plan year, allowing additional time for eligible expenses. Dependent eligibility audits are essential for maintaining adherence to insurancecarrier requirements and minimizing potential litigation. Employers must communicate these deadlines clearly to employees.
While employers (for self-insured plans and multi-employer plans) or insurancecarriers (for fully insured plans) are responsible for the COBRA subsidy, the paying entity is entitled to take a federal tax credit against payroll taxes. It is recommended that notices are not updated until the model notices are issued.
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