Tag Archives: Benefit Plans

How To Evaluate The Right Benefits Broker: 6 Important Questions To Ask Yourself

Choosing the right broker can be a daunting task. While all benefits brokers have access to the same carriers and rates, there are value-added services that a skilled benefits broker will also provide; usually at little, or no additional cost. It’s important to take the time to find the right benefits broker for your company’s needs.

To get the most out of your broker partnership, ask yourself these 6 important questions:

1.)  Are you up-to-date on the latest health care reform regulations, receive guidance and the latest developments?

Compliance concerns continue to increase for businesses. Between ERISA and payroll taxes, maintaining compliance is becoming more difficult and frustrating for companies. Here, a benefits broker can become the compliance officer for its clients.

2.)  Do you have support during your open enrollment that includes educational materials, meetings, and other communications?

There is a lot that can go wrong during open enrollment periods and things can get hectic, especially in the coming years as health care reform and political turmoil spiral. Benefit brokers are there to help guide you through the process to make as seamless as possible.

3.)  Who do you call when you’re faced with a complex question from a former employee about COBRA coverage?

 Sure, you can try calling the U.S. Labor Department or the Internal Revenue Service office, but the most effective way to handle their questions, would be to consider calling upon insurance brokers. These skilled and certified professionals will eliminate the painful task of navigating COBRA coverage for existing and former employees.

4.)  Do you know how other companies of your size and demographics are providing benefits to their employees so that you can remain competitive?

In many cases, employers must offer health care in order to remain competitive with other businesses for the most talented employees and avoid fines imposed by health care reform. The Patient Protection and Affordable Care Act requires employers with 50 or more full-time employees to offer adequate health coverage or be subject to assessment if their employees receive premium tax credits to purchase their own insurance.

5.)  Are you aware of voluntary and workplace benefits that you can offer without adding significant cost on your end?

Be strategic about cost saving voluntary benefits. Voluntary benefits have long been a relatively simple and inexpensive way to expand the benefits a company can offer employees. With out-of-pocket medical costs growing into the tens of thousands of dollars, voluntary benefits can extend this type of financial protection to health care.

6.)  How do you educate employees about how to make the most out of their benefits and do you have an online platform to access?

Education, especially when it comes to ones’ health is especially important. By explaining and guiding your employees on the different benefit plans offered, it can help them appreciate having access to coverage in the first place. But to really help employees feel comfortable with their benefit plans, we strongly suggest providing ongoing and consistent education throughout the year.

The above is only a sliver of the value-added services your benefits broker should offer. If your current broker isn’t providing all the above, feel free to reach out to us. We’re a full-service brokerage firm offering insurance, technology, and compliance solutions for all facets of your business

 

Ask us how you can spend less time on the broadening workload of benefits enrollment, payroll, & compliance and more time on growing your business. Contact us today, or learn more about CorpStrat HR and CorpStrat Payroll.

 

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.

ERISA Compliance – What Every Employer Needs to Know About Plan Documents

Imagine an agent from the Department of Labor walks in your office and asks for your ERISA documents. For 90% of employers, the answer would be “what is that?”. Yet for every employer, maintaining ERISA documents is essential – and here is why:

ERISA is a federal law that sets minimum standards for employee benefit plans maintained by private-sector employers.

ERISA includes requirements for both retirement plans (for example, 401(k) plans) and welfare benefit plans (for example, group health plans). ERISA has been amended many times over the years, expanding the protections available to welfare benefit plan participants and beneficiaries.

The Department of Labor (DOL), through its Employee Benefits Security Administration (EBSA), enforces most of ERISA’s provisions. Violating ERISA can have serious and costly consequences for employers that sponsor welfare benefit plans, either through DOL enforcement actions and penalty assessments or through participant lawsuits.

All welfare plans are subject to ERISA (medical, dental, vision, life, disability, certain employee assistance and wellness programs, for example) and are required to have a plan document that is memorialized in writing. ERISA further required that the plan document contain specific, express provisions. This means if you deliver any type of benefit program to employees, it’s likely you need a current ERISA document.

How does the DOL enforce ERISA?

The DOL has broad authority to investigate or audit an employee benefit plan’s compliance with the ERISA. The DOL’s EBSA division handles audits of employee benefit plans. To perform these audits, EBSA employs over 400 investigators working out of field offices, many of whom are lawyers or CPAs or have advanced degrees in business or finance. The DOL has authority to assess civil penalties for many different types of ERISA violations.

How can an employer minimize its risk of being audited by the DOL?

As a practical matter, an employer has little control over whether it will be audited by the DOL. However, an employer can take the following steps to help minimize its exposure to a DOL audit:

  • Respond to participants’ benefit questions and requests for information on a timely basis;
  • File Form 5500 on time and make sure it is complete and accurate;
  • Create and distribute participant notices required by law (for example, the summary of benefits and coverage) by the deadline; and
  • Make timely updates to plan documents and summary plan descriptions (SPDs) to reflect legal and design changes.

How can employers be prepared for a DOL audit?

The best way to prepare for a DOL audit is to remain in compliance with the law and establish a recordkeeping system for maintaining all of the important documents relating to your employee benefit plans. Retaining complete and accurate records will help move along the audit process and provide an accurate picture of an employer’s benefit package. As a general rule, these records should be retained for seven years.

Because the DOL has increased the frequency of health plan audits, employers should consider reviewing their health plans for compliance now, before they are selected for audit. It is important for employers to get their health plans’ paperwork in order as part of this process. Don’t be fooled into thinking you are “too small” for ERISA. Employers of every size who provide any type of Employer Sponsored Benefit Plan are subject to ERISA. Ask your broker if you need documents and get them done!

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HR Outsourcing: The Secret Weapon For Today’s Business

More than ever, today’s businesses are running lean and seeking ways to mitigate their risk while increasing efficiency. In a recent survey conducted by SHRM, they identified the most common reasons why companies choose to outsource their HR:

  • Save Money – 26%
  • Focus on Business – 23%
  • Improve Compliance – 30%
  • Lack of In-house Expertise – 20%

Human resources is more than hiring and firing. Much more. With new laws being passed more and more often, compliance, concrete HR systems, and training are key components businesses of every size need. Noncompliance and lack of systems cost businesses 10’s of thousands of dollars every day.

Options For Managing HR

Employers often try to manage HR themselves with little to no expertise. This often leads business owners working in their business versus on their business. To minimize the challenges posed by HR management, many businesses are turning to CorpStrat HR.

Benefits our clients love:

  • Support in navigating complex legal issues.
  • Cost effective solutions.
  • Effective management of performance issues.
  • Reduced pressure on internal HR staff.
  • Updated practices and policies.
  • Increased productivity.
  • Risk Management.

If you haven’t given serious thought to HR outsourcing, the range of support you can have just might surprise you. Contact CorpStrat today to free up your time so you can focus on your business.

 

California Employer Health Benefits: Workers Pay The Price

Heidi Whitmore and Jon Gabel, NORC at the University of Chicago June 2016

A majority of Californians rely on their employers for health insurance, but many with workplace-sponsored coverage are faced with reduced benefits and increased costs.

The percentage of employers offering coverage has continued to decline in California, while coverage rates have remained stable. Only 57% of firms reported providing health insurance to employees in 2015, down from 69% in 2000. Twenty-seven percent of California firms reported that they reduced benefits or increased cost sharing, and 41% of firms reported that they were very or somewhat likely to increase employees’ premium contribution in the next year. This trend will have major implications for household budgets.

California Employer Health Benefits: Workers Pay the Price presents data compiled from the 2015 California Employer Health Benefits Survey. Other key findings include:
• The percentage of firms with many low-wage workers (those earning $23,000 or less) offering health coverage to employees more than doubled between 2014 and 2015, from 18% to 42%.
• Health insurance premiums for family coverage grew by 4.5%, a slower growth rate than in recent years. Family coverage premiums have seen a cumulative 216% increase since 2002, compared to a 37% increase in overall prices.
• The average monthly health insurance premium, including the employer contribution, was $573 for single coverage and $1,554 for family coverage in California, and was significantly higher than the national average.
4 in 10 workers in small firms faced an annual deductible of at least $1,000 for single coverage, compared to 1 in 10 workers in larger firms.

June 2016 Employer Benefits Study