Tag Archives: ACA

Stay Prepared And Compliant

Compliance News March 2018

This year is off to a great start for Team CorpStrat! Our newest division CorpStart HR is growing by leaps and bounds. We work diligently to create 21st Century HR for our clients and hope this monthly newsletter helps you keep current with the ever-changing HR compliance laws and HR best practices so that you can be a “best place to work.”

We have a LOT of important compliance issues to cover. Workplace injuries, Department of Industrial Relations required notifications, ACA compliance and much more. Hope you didn’t forget to post your OSHA 300A Summary Form. If so, you still have time to get compliant. Visit https://www.osha.gov/recordkeeping, print, complete, and post.

If 2018 is the year you’d like to get your HR house in order, it’s not too late to give us a call. Just send us a note if you’d like to have a conversation. We’d be happy to partner with you and help you stay compliant. In the meantime, Like us on Facebook and join our newsletter for all things HR.

Are you prepared to navigate workplace injuries?

You get that call that an employee has injured themselves and you go straight into 911 mode. Workers Compensation, medical leave, ADA compliance and not to mention safety protocols flood your mind. While no situation is the same, there are a number of things you can do to make life easier.

Know and understand the leave of absences you are required to provide and how they interact with workers compensation.
Notify OSHA when required. For deaths, OSHA must be notified within 8 hours, hospitalizations, 24 hours. Failure to know and understand the rules and regulations leads to inspections and heavy fines.
Planned Medical Care. Have a concrete workers compensation program that outlines issues like, handling transportation of the employee, healthcare facility, notification of the injury, etc.
Investigate the injury. Have solid tools for investigating an incident thoroughly, as you will need to forward any and all information to the carrier and potential legal counsel.
American Disability Act. If an employee is able to return to work with modified restrictions this would likely fall under ADA regulations. At this point, you would need to provide a reasonable accommodation. Failure to do so could result in EEOC charges, ADA lawsuits, or even retaliation claims.
Review and update your policies often. Proactive measures save time and money in the long run.

Federal Immigration Notification

As mentioned last month, Immigration Enforcement has been updated regarding I-9 inspections of records. Under AB450, the Department of Industrial Relations has released the attached notice that complies with the new law’s notice requirements. If an employer’s I-9 forms are going to be inspected, the following notice must be posted within 72 hours of learning of the inspection. Because the timeframe is so short, it is recommended employers have an established process to respond to Notice of Inspections and avoid penalties up to $10,000 per violation.

2018 I-9 Inspection Notice Notification

Benefits: Complying with ACA Affordability Test

With the reduction for employers in affordability levels in company-sponsored plans from 9.69% to 9.56%, employers should ensure they are providing health coverage that will not cost the employee more than 9.56% of an employee’s salary. As increases in premium occur, this can put some of your employees into an unaffordable designation.

Testing?

The IRS created affordability tests to show that the employer has provided coverage that is considered “affordable” and therefore should not be subject to any fines if an employee manages to get coverage on an exchange and receive a premium tax credit to do so.

These tests set out in the final shared responsibility regulations, provide that employer coverage will be considered affordable for purposes of the employer shared responsibility assessment if the required employee contribution for the lowest-cost option offered does not exceed 9.56% of one of the following:

W-2 – The employee’s wages for the calendar year reported on the Form W-2.
The rate of pay – The amount obtained by multiplying 130 hours by the lower of the employee’s hourly rate of pay as of the first day of the coverage period or lowest rate of pay during the calendar month.
Federal poverty line – An amount equal to the federal poverty line for a single individual, divided by 12. Under the FPL safe harbor, employers use the FPL in effect six months prior to the beginning of the plan year to allow time to establish premium amounts in advance of the plan’s open enrollment period.

The affordability test reduction affects employers who use the W-2 and the rate-of-pay tests. In both cases, you may need to reduce the employee contribution rate for single coverage in your lowest-cost plan.

Top 5 Mistakes that cost employers BIG BUCKS

Daily we see employers pay hefty fines to government agencies for payroll violations that are completely avoidable. Knowing and understanding how these 5 payroll liabilities affect you legally will save you tens of thousands of dollars.

1 – Garnishments and Child Support – Employers are responsible for knowing the proper ways to record wage garnishments/child support, federal and state new hire requirements, responding to wage orders, and forwarding the information to the employee.

2 – Sick Pay Classification – As a reminder, California has sick pay requirements that must be reflective on an employee’s paystubs. If you offer PTO, it must be reflective on the paystub to meet the new requirement.

3 – Employee verse 1099 Contractor – Generally the burden is on the employer to prove the classification of any individual was correct. Using the IRS Independent Contractor test and having a concrete Independent Contractors Agreement that addresses, invoicing, use of time, terms/cancelation notice, the scope of service, ownership of property, proof of insurance, etc. will help you build safeguards and protections in case of an audit.

4 – Exempt verse Non-exempt – One of the chief differences between exempt and non-exempt employees is in how the employee is paid. Exempt employees do not qualify for overtime. To qualify for an exemption under the FLSA, employees generally must meet certain tests regarding their job duties and be paid on a salary basis no less than $455 per week. Job titles do not determine exempt status. In order for the exemption to apply, an employee’s specific job duties and salary must meet all the requirements.

5 – Overtime Rules – Many employers get tripped up unintentionally by confusing pay period hours with work week hours. Overtime for non-exempt hourly employees must be calculated based on a specific 7 day period of time regardless of how frequently the employees are paid. Employers that pay piecemeal must ensure they are meeting minimum wage requirements as well when factoring overtime in addition to other factors.

We succeed because our clients succeed and are always here to help.

Managing Employee Benefits Through ACA & AHCA Uncertainty

What Does 2018 Hold For Employee Benefits?

The American Health Care Act (AHCA), or “TrumpCare”, would overturn and relax many if the mandates, reporting and plan designs of the ACA. While there is much left to be negotiated and detailed before we have a change in Federal law, the basics of AHCA are now widely known. In anticipation of these changes, carriers in California have filed several sets of rates for 2017, in anticipation of the law passing and potential overturn of the ACA.

Many states across the nation are facing a challenge with a single, or in some counties, even no choices with respect to carriers. Individual markets are challenged with rising premiums and carriers pulling participation. In spite of the multiple attempts to overturn it, the ACA is still the law of the land.

More Healthcare Uncertainty: Single Payer for California?

The State of California has their own (mysterious) plan: a proposed $400 billion dollar single-payer plan, that would take the place of all federal and state run healthcare systems, including Medicare and MediCal. It’s currently making its way through the State Assembly, and has a long way to go before it becomes law, including a funding structure for the plan’s expense.

With all of this potential upheaval, in the meantime the status quo will continue – plans will change/adapt each year to adjust to the ACA’s annual increases in out-of-pocket costs, rates for individuals will continue to be in flux, companies with 50 or more employees will need robust systems to allow them to comply and report to IRS, and companies will need to continue to manage their healthcare care expenses. Balancing the challenges of rewarding and engaging employees, while managing their bottom line, in an increasingly complex and changing regulatory landscape for all industries.

Health care in the USA, or California, won’t be solved by any one piece of legislation, and will remain a complex task for all participants. CorpStrat is dedicated to helping our clients address the challenges of delivering the most effective employee benefits strategies and products, and to help them deploy integrated solutions for payroll, benefits, HR, and compliance.

How to Tackle Health Benefits in The 4th Quarter

Behind in the game? Here’s how you can finish strong and tackle health benefits in the 4th quarter.

Despite ACA/Obamacare, your health insurance rates are likely slated to increase this 4th quarter, with 90% of small businesses in California due to renew their health insurance plans by December 1st.

Not to mention that deductibles and out of pocket expenses will likely rise for most plans, regardless of the carrier (all of whom by-the-way will be overwhelmed since just about every single health insurance plan will be renewing at the exact same time.) So what can you do to avoid some of the stress?

Prepare Don’t Procrastinate

“A task left undone remains undone in two places — at the actual location of the task, and inside your head. Incomplete tasks in your head consume the energy of your attention as they gnaw at your conscience.” – Brahma Kumari

We are all a bit guilty of procrastinating from time to time, especially when it comes to tasks we think may be unpleasant, but success was never found in procrastination, it was seized through action and in effort. In the long run, and this applies to almost every situation, procrastinating will only drain you of more energy, time, and money than if you had gone ahead and taken care of it, so it’s best to take steps now, however small, before the flood gates open in Q4.

Just imagine if someone dropped a years worth of work on your desk all at once and asked you to complete it ASAP. Do you think you could give every matter it’s full attention? Would you be able to sift through each detail?

That’s what Q4 will be like if you fail to prep, not to mention that some important money saving and even regulatory details may be overlooked, putting you and your business at risk. Those who are unprepared or uninformed can expect rocky times ahead. In other words, it won’t be pleasant for those who procrastinate.

Consult With A Broker To Develop A Game Plan

Not sure where to start? Well that’s where strong, skilled brokers like us come in to play, as seasoned brokers can help clients navigate and review the market, benchmark opportunities, as well as help to build vibrant benefit plans that are perfectly suited for your business.

If you’re looking to hire and retain great employees in 2017 then you need to ensure the plans you put in place are more than just cost effective and within regulation, they should also be designed to help your business attract and retain top talent in order to keep your business moving forward. Experienced brokers can provide you with valuable insight and put together plans that will ultimately lead to improved retention rates and happier employees.

Ask Questions

Don’t ever be afraid to ask questions, a lot of questions. Great brokers love their clients, but most importantly, they love educating them. If you consult with a broker who isn’t happy answering all your questions, then find one who is, because trust and open communication is vital in an industry such as this and you don’t want to get left in the dark.

Own Up and Speak Up

It’s not easy for some to reach out and admit they’ve made a poor decision or that they’ve procrastinated. For some managers and business owners, pride trumps all, but it shouldn’t. Great leaders know that trail, error, and failure are all a part of the game, so if you’re worried about appearances, don’t be. If the plans you have in place now are questionable at best, then say so. Honesty with your broker is an important step when it comes to the success of your business so don’t be afraid to say what works and what doesn’t either.

So in the end, if you’re a bit behind in the game, dreading the final quarter, and not sure where to turn then finding a strong broker to take charge is the best way to win.

* We here at Corporate Strategies are one of the leading employee benefit brokers in CA, ranking as Premier Partner status for most carriers, making us an excellent choice for small and medium sized businesses seeking change and assistance in tackling health benefit plans.