Q: Does an employer’s cash-out option (i.e., cash-in-lieu of benefits) have any impact on the coverage’s affordability under the employer mandate? A: Yes. As background, under the employer mandate, the employer must offer at least one affordable, minimum value plan to all full-time employees, or risk a penalty. Affordability is based on the cost to the full-time employee for single-only coverage. Generally speaking, coverage is affordable if the cost of single-only coverage does not exceed 9.5 percent of that employee’s W2 wages or 9.5 percent of that employee’s rate-of-pay. (There is also a way to determine affordability based on the federal poverty line.)
Risk Management | Benefits | Employee Relations
By now you are probably overloaded with all the changes and deadlines that fall under the Affordable Care Act. As we muddle through all these rulings, there always seems to be a new regulation associated with it that we either did not know about or the information is vague. One that recently came to my attention was the fines businesses can incur if they reimburse employees for individual non-group health plans.
As an HR Business Partner, I am often working with clients to ensure their benefits and 401(k) administration is both in compliance and following HR best practices. One key aspect of benefits and 401(k) administration is tracking your employee beneficiaries. Ensuring that your employees have designated and up-to-date beneficiary information is both a way to mitigate risk for your organization and help your employees be prepared to protect their plans and help their families in the event of an unexpected tragedy. Below are five common questions that I hear from clients and employees about beneficiaries:
Benefits | Business Management & Strategy | Best Practices | Employee Relations
We all need time away to recharge our batteries and momentarily forget what we are currently working on. Ensuring that your employees are taking their personal time is important not only for their sanity, but for the betterment of the department and organization that they support. Organizations evolve positively when employees focus on the day-to-day tactical and operational tasks, and also when they provide creative and passionate solutions or ideas to the opportunities and challenges facing the organization. Without this creativity and passion for work, employees will start ignoring and resenting their responsibilities. As leaders in your organization, there is an important tool in your management tool belt for helping an employee retain their passion and creativity for their role – encouraging them to use their personal time.
Benefits | Best Practices | Employee Relations
Many of my clients are interested in starting a wellness program, but tend to shy away. They are always surprised when I tell them that it is not difficult to implement a wellness program, and better yet, they don’t have to have a large budget to get started! Wellness programs are said to increase employee engagement and retention, reduce absenteeism, raise awareness of health issues, and drive down health care costs. If you are thinking of implementing a wellness program, here are some low-cost tips to help you get started.
Have you ever taken the time to evaluate your leave policy? Do you feel as though you it is costing too much money to pay out employees separating from employment? Well, as an alternative have you considered an unlimited vacation policy? Before you make any swift and quick decisions, let’s weigh out the pros and cons of this option for you and your organization.
