FSA rules have changed — here’s how to explain them to clients
What Do Employers Need to Know?
Employers need to know about one change in particular: the bill temporarily amended FSA guidelines to provide employees with another cashflow source. Executives at financial services company, HealthEquity, said it's in advisers' best intersts to bring their clients up to speed on the changes now.
Under the changes, employees with FSA accounts, have until the end of 2021 to spend their funds. That includes employees who were laid off during the pandemic. The one-year extension provides employers with two options: unlimited carry-over of funds; or a 12-month grace period. Employers should choose based on whether or not their workforce also has access to an HSA.
Watch for Growing Threats
Cybercriminals use many tactics, from phishing schemes to malware, but ransomware and business email compromise (BEC) stand out as particularly pressing threats right now.
According to Insurance Thought Leadership, ransomware attacks are becoming more pernicious. A variant called Maze doesn’t just encrypt data; it threatens to release the stolen data to the public. Meanwhile, Ryuk, another ransomware variation causes complete network shutdowns.
The IC3 says that BEC schemes resulting in more than $1.7 billion in losses in 2019. In these schemes, emails that appear to come from an executive or legitimate business partner make requests, often for wire transfers. Some BEC schemes also aim to divert payroll funds, and the FBI says reports of this variation are becoming more common.
Get the Resources
CISA and NCSA are providing resources to help raise awareness of cybersecurity.
- CISA's Cybersecurity Resources include telework guidance, cybersecurity assessments and more.
- CISA’s National Cybersecurity Awareness Month Resources include tip sheets and a cybersecurity presentation.
- The National Cybersecurity Awareness Month Sample Social Media Posts and Graphics include sample posts for Facebook, LinkedIn and Twitter.
October is also a great time to meet with your Heffernan Insurance Brokers’ agent to review your cyber liability coverage and to verify if your coverage addresses your increased remote work exposure.
Contact us for more information at 818-217-5493 or fill out the form here.