The 2022 limits for:
IRS Revenue Procedure 2021-45 provides details about the annual inflation adjustments for more than 60 tax provisions, including contribution limits for Health FSAs and reimbursement limits for Qualified Transportation fringe benefit plans and Qualified Small Employer HRAs (QSEHRAs). The limits for all plans addressed in the revenue procedure are increasing for 2022.
Additionally, Revenue Procedure 2021-25 provides that the inflation-adjusted maximum dollar amount that may be made available for Excepted Benefit Health Reimbursement Arrangements (EBHRAs) in 2022 will remain $1,800/year.
With open enrollment season upon us, employers should review their open enrollment materials for accuracy and communicate any updates. Some open enrollment periods may have already ended, therefore, plans adopting the new limits may need to provide a limited special enrollment period to allow participants to make adjustments in light of the updated limits.
Thank you for choosing Paylocity as your Payroll Tax and HCM partner. This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.