by Afilliated HR & Payroll | Dec 8, 2022 | HR Administration, Regulatory Compliance
As explained on the official government health care site, the law has three goals:
- Make affordable health insurance available to more people. The law provides consumers with subsidies (“premium tax credits”) that lower costs for households with incomes between 100% and 400% of the federal poverty level.
- Expand the Medicaid program to cover all adults with income below 138% of the FPL. (Not all states have expanded their Medicaid programs.)
- Support innovative medical-care delivery methods designed to lower the costs of health care generally.
The law affects both individuals and companies. For example, according to Healthcare.gov, the law:
- Requires insurance plans to cover people with preexisting health conditions, including pregnancy, without charging more.
- Provides free preventive care.
- Gives young adults more coverage options.
- Ends lifetime and yearly dollar limits on coverage of essential health benefits.
- Helps you understand the coverage you’re getting.
- Holds insurance companies accountable for rate increases.
- Makes it illegal for health insurance companies to cancel your health insurance just because you get sick.
- Protects your choice of doctors.
- Protects you from employer retaliation.
Business rules and benefits
As noted on the IRS site, small companies — typically those with fewer than 50 employees — can purchase insurance through the Small Business Health Options Program.
Such companies:
- Must withhold and report an additional 0.9% on employee wages or compensation that exceeds $200,000.
- May be required to report the value of the health insurance coverage they provided to each employee on his or her Form W-2.
- Must file an annual return reporting certain information for each employee they cover if they provide self-insured health coverage to their employees.
Companies may be eligible for the Small Business Health Care Tax Credit if they cover at least 50% of their full-time employees’ premium costs and have fewer than 25 full-time equivalent employees.
Larger employees, based on their size, may also be able to purchase insurance through SHOP. And they must either offer affordable minimum essential coverage that provides minimum value to their full-time employees (and offer coverage to the full-time employees’ dependents) or potentially owe an employer shared responsibility payment.
The latest updates
In mid-2022, the IRS announced annual adjustments to the ACA. According to the Society for Human Resource Management, the “2023 health plan affordability threshold—used to determine if an employer’s lowest-premium health plan meets the Affordable Care Act’s (ACA’s) affordability requirement—will be 9.12 percent of an employee’s ‘household income,’ down from the 2022 limit of 9.61 percent.”
As explained in the ACA Times, this means that “employers extending health plans to their ACA full-time workforce beginning January 1, 2023, must ensure the contribution amount is no more than 9.12% of their household income.”
Of course, this is just an introduction to a complex series of provisions. Whether you have questions about yourself or a company you manage, work with qualified tax and legal experts to make sure you are following the ACA’s provisions — and getting everything you’re entitled to.
by Afilliated HR & Payroll | Nov 8, 2022 | Benefits & Compensation, HR Administration
A 2021 survey by the Kaiser Family Foundation found that high-deductible health plans are the second-most common plan type among workers, behind only preferred provider organization plans. Per the survey, 28% of workers have an HDHP with a savings option — such as a tax-advantaged health savings account or health reimbursement arrangement.
Studies show that employees often do not have a firm understanding of how their health insurance works. This is especially true for HDHPs, as these plans are not only consumer driven but also typically paired with a savings option. Therefore, if you offer an HDHP, it’s important to educate employees about the plan, as this is essential to participation and engagement.
Next are tips for accomplishing this.
Explain in simple terms how an HDHP works
The key to effectively communicating about an HDHP is to keep it simple yet sufficiently informative. Provide vital information about how the plan works but avoid overwhelming employees.
For example, explain the following attributes of the plan:
- Higher annual deductibles.
- Lower monthly premiums.
- Higher out-of-pocket limits.
- Coverage options and services.
- Enrollment periods.
Consider placing the information in an easy-to-read chart or a similar type of graphic. Be sure to include minimum and maximum cost limits.
Address specific scenarios that employees may encounter
For example, explain how the HDHP works with doctor visits, trips to the emergency room, specialty providers and prescription drugs.
Describe how the savings options work
If you offer an HDHP, you’ll likely pair it with an HSA or HRA. It’s critical that employees understand the tax benefits of the savings option plus any other advantages. For example, an HSA belongs to the employee and they can take it with them when they leave the company. It can also be used as a retirement savings tool.
Be clear about how the HDHP functions with the HSA or HRA
Provide hypothetical examples of how the HDHP works with the HSA or HRA so employees can see the hard-dollar savings they stand to gain. Also show them how the money in the HSA or HRA can help them pay for their health care bills.
Develop side-by-side comparisons of the HDHP and other plans
Create a chart that shows employees how the HDHP stacks up cost-wise against any other health insurance plans that you offer. Stick to the basics by comparing only the up-front costs, such as deductibles, out-of-pocket limits and premiums.
Use various communication channels
Make the information easily accessible by utilizing different communication methods, such as a website, digital booklets, print and email. These channels can also be used to keep employees updated on changes to their HDHP and savings options.
Give employees a reliable point of contact
It’s almost guaranteed that employees will have questions regarding their HDHP on a continuous basis. Make sure they know whom to contact for more information.
by Afilliated HR & Payroll | Oct 21, 2022 | Benefits & Compensation, HR Administration, Regulatory Compliance
Election Day is almost here, so as an employer, now is a good time to brush up on voting leave laws.
Most states require that employers provide at least a few hours off to vote, and many of those require at least some of that time off to be paid. The advance notice that may be required from employees is often minimal, so employers should be prepared to grant last-minute requests to leave work to vote.
California, DC, and New York also require that a notice about employees’ voting rights be posted in a conspicuous location in the workplace. Employees who work from home or don’t report to the workplace regularly should be provided with these notices electronically.
California
California requires the notice to be posted at least 10 days before the November 8 election—which is October 29, a Saturday. If you’re closed on Saturdays, we recommend posting or sending this notice by Friday the 28th. California’s notice can be found in English here and in other languages here.
The District of Columbia
DC requires that employers post a voting leave notice created by the DC Board of Elections (DCBOE). The law doesn’t set a deadline, so we recommend posting it immediately if you haven’t yet. This election’s notice can be found in English here and in other languages under the Time Off to Vote link on the DCBOE’s webpage.
New York
New York requires the notice to be posted at least 10 working days before the November 8 election (this would be October 25 in a Monday-through-Friday workplace). New York’s notice is available here.
Voting Leave Logistics
Employers in states with early voting may want to encourage employees to take advantage of that option—by offering the same time-off benefit—to reduce the number of absences on Election Day. The availability of early voting and absentee ballots, however, doesn’t change an employee’s right to vote on Election Day if that’s their preference.
We encourage employers to visit the laws pages on the platform to learn about the voting leave law in their state. We also have a guide, Managing Political Conversations and Supporting Employee Voting Rights, available on the platform.
by Afilliated HR & Payroll | Oct 5, 2022 | HR Administration, Regulatory Compliance
Can I require applicants to have a high school diploma?
We recommend that you not require applicants to have a high school diploma unless you can demonstrate that the requirement is job-related and consistent with business necessity. Requiring a diploma when it’s unrelated to the position can be discriminatory under both Title VII of the Civil Rights Act of 1964 (Title VII) and the Americans with Disabilities Act (ADA).
While federal law doesn’t explicitly prohibit employers from requiring applicants to have a high school diploma, the Equal Employment Opportunity Commission (EEOC) has cautioned employers about the use of such policies. According to EEOC guidance, “a high school diploma requirement is discriminatory under Title VII if it has a disparate impact on a protected group and is not job-related and consistent with business necessity.” A disparate impact occurs when a policy or rule appears to be neutral but results in a disproportionate impact on people within a protected class (e.g., race, sex, or religion). Diploma requirements may also violate the ADA if they tend to screen out individuals with disabilities when a diploma isn’t required to do the job.
When assessing the qualifications of job applicants, it’s best to focus on essential job functions and previous experience.
Content courtesy of the HR Support Center – https://affiliatedpayroll.myhrsupportcenter.com
by Afilliated HR & Payroll | Sep 15, 2022 | HR Administration, Regulatory Compliance
Can we require remote employees to inform us when they move to a new city or state?
Yes, you can and should require that remote employees notify the company when they move. There may be compliance and tax obligations when an employee relocates to a new city or state—not only for the employee, but also for you as the employer. For example, a relocated employee may now be owed a higher minimum wage or be eligible for paid sick leave. Workers’ compensation and unemployment insurance may also be affected.
Content courtesy of the HR Support Center – https://affiliatedpayroll.myhrsupportcenter.com
by Afilliated HR & Payroll | Sep 12, 2022 | Benefits & Compensation, HR Administration
Officially called the Family and Medical Leave Act, the FMLA is a federal law that makes it a requirement for employers with at least 50 employees to offer unpaid though job-protected leave to any and all eligible employees.
There are certainly a number of nuances involved with the FMLA, including what this looks like when it comes to covering employees, the approved reasons as to why employees are permitted to take FMLA-covered leave and the process of requesting as well as approving leave under the FMLA.
According to an SHRM article, it has been shown that “legal experts say the [FMLA] law is full of traps that can snag employers that let their guard down.” Below are a few mistakes to watch out for when working within the guidelines of the FMLA.
Not following the FMLA’s notice requirements
Under the FMLA, employers are required to provide their employees with crucial notices regarding the FMLA, including the following:
- A general notice about the FMLA.
- A notice that informs employees of their status regarding eligibility in addition to their FMLA rights and responsibilities.
- A notice telling employees whether a certain type of leave qualifies under the FMLA as well as how much time the employee is allotted within the FMLA leave that said employee is entitled to receive.
Improper handling of FMLA recertifications
If desired, you can require employees who submit requests for FMLA leave, whether for caregiving or recuperation purposes, to also submit valid certification from a medical professional that clearly states the reason behind the request for leave.
Once an employee’s FMLA leave request is approved, employers should ask the individual employees for additional medical certification if necessary. However, these types of restrictions are time-sensitive, so employers need to handle them as carefully and diligently as possible.
Failing to notify employees of their eligibility for FMLA leave
For an employee to qualify for FMLA leave, said employee must adhere to these three requirements:
- Have been an employee with your company for at least 12 months within the past seven years.
- Have worked at least 1,250 hours within the past 12 months.
- Have worked at a location that is within 75 miles of 50 employees, at a minimum, who work for your company.
Although this information can be a challenge to keep track of — not to mention apply to a situation — employers are required to notify both current and rehired employees as soon as they are eligible for FMLA-approved leave. An excellent way of ensuring that you are on top of notifying employees when they become eligible for FMLA leave is by implementing reputable HR software.
Additional dangers
- Lacking an official FMLA policy. A documented policy is key to an organized and consistent FMLA leave process.
- Hiring silent managers. It can be dangerous to employ managers who end up failing to promptly inform the HR department that an employee is out on extended FMLA leave.
- Employing untrained managers. Examples include managers who illegally punish employees for taking FMLA leave, discourage employees from requesting FMLA leave or ask employees to submit prohibited medical information.
- Failing to take FMLA abuse seriously. According to experts, the FMLA is regarded as a minefield in the context of employee abuse. In order to combat the increased potential for abuse, it is wise to request medical certification and documentation.
- Not implementing adequate administration. The proper administration of paid leave taken for FMLA leave purposes is critical.
- Experiencing reinstatement issues. With the exception of specific and limited cases, it is imperative that, upon returning to work after taking an FMLA-approved leave, employees are reinstated to the positions they held prior to their FMLA leave. While this is important, a few potential problems may arise if employers try to reinstate any qualifying employee to a different position, postpone the employee’s reinstatement altogether or simply fail to reinstate the employee’s benefits upon his or her return to work.
Ultimately, employers should ensure that they consider additional laws, such as applicable state, family or medical leave laws, when determining the FMLA eligibility of employees. As an employer, make it a priority to work with qualified professionals who can ensure that, as a business, you are in compliance with FMLA obligations.
