WorkforceTactix Blog

Ways to Boost Employee Morale

2012-03-08T14:11:00.039-06:00

It is becoming increasingly common to offer nontraditional benefits, or "perks," to employees. As companies struggle with the cost of traditional benefits such as medical and dental plans, offering additional perk-type benefits are intended to boost employee morale.

Employers sign up to offer the perk to their employees, and in turn their employees will receive a discount if they enroll in the service. It's a win-win all around: The employee wins by saving money, the service provider wins by gaining more business and the employer wins by increasing employee morale. The best thing about perk programs are that they are free to the employer.

Some popular perk programs to consider are:

Home and Auto Insurance Programs: These programs allow employees to gain coverage for homeowners, renters or automobiles at group discounted rates.
Fitness Center Programs: These programs offer a discount to employees if an employer partners with a fitness center. Employees are able to receive a discount when joining just for being an employee of the company.
Mobile Phone Discount Programs: Mobile phone carriers are offering group discounts to to employers that can save as much as 17% off their employees' monthly bills.
General Discount Programs: These programs offer discounts on things such as movie tickets, sporting even tickets, rental cars, theater tickets, and more. They are designed to help employees save money on family and recreational activities.
Banking Programs: These programs allow for your employees to receive discounts and special benefits such as lower loan and account fees.
Travel Assistance Programs: These programs provide employees with assistance while traveling, including help with lost documents and luggage, obtaining medical care, providing travel information and more.
Identity Theft Assistance Programs: These programs provide employees with assistance in cleaning up the problems that occur when your identity is stolen.
Health Discount Programs: These programs offer discounts on health-related services such as chiropractic care, acupuncture, vision services and more.

Reference: Yaccarino, C. (2012) 8 discounted perks programs that can boost employee morale. Retrieved from: http://ebn.benefitnews.com/news/perk-discount-christy-yaccarino-voluntary-fitness-banking-2721681-1.html?ET=ebnbenefitnews:e3344:2181934a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=EBN_inBrief_022912.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Maryland amends guidelines for military personnel, civilian spouses

2012-03-06T11:59:00.010-06:00

The Maryland Comptroller of the Treasury has updated its release concerning the personal income tax treatment of military personnel and their civilian spouses located both within and outside of Maryland.

Changes include new Maryland Form MW507M (Exemption from Maryland Withholding Tax for a Qualified Civilian Spouse of a U. S. Armed Forces Service member) to be used beginning with tax year 2011. Affected taxpayers who have already filed Form MW507 (Employee's Maryland Withholding Exemption Certificate) for 2011 should contact their employers to obtain and complete Form MW507M, which will be effective retroactive to the date that Form MW507 was filed.

Administrative Release No. 1, Maryland Comptroller of the Treasury, September 2011, posted February 6, 2012.

Same-sex Benefits & Taxes

2012-03-04T10:27:00.023-06:00

Health plans that provide coverage to same-sex couples and domestic partners require some special consideration for tax purposes so let's review some of the key issues.

The first is verification of status. Some employers voice concerns over asking for marital status for fear that requiring enrollees to identify potential same-sex partners is equivalent to discrimination. But it is OK to ask (and in many instances, you are required to). You just can't treat enrollees differently once they are determined to be eligible for coverage. As more states define their respective positions with regard to same-sex marriage or domestic partnerships, plan sponsors are under specific tax rules that require that benefits to these spouses and partners be properly taxed at a federal and state level. So the employer must, as a function of tax law, inquire about status and an employee who enrolls a same-sex spouse in a state that recognizes same sex marriage can be asked to differentiate between "marriage" and "same-sex marriage" for plan enrollment and tax purposes.

However, a plan sponsor cannot require different verification standards. If someone enrolls their same-sex married partner, they cannot be required to produce a marriage certificate unless you are prepared to require all married couples to produce a certificate. So it is not the asking that creates the issue, it is the verification process.

Plans seeking verification of domestic partnership status would need to require all domestic partners to verify that status, regardless of gender, but making that a requirement for domestic partners might also trigger an obligation to verify marital status for married partners as well. Remember, marital status can be a protected class. Essentially plans have to balance the obligation to verify eligibility and properly report income against the obligation to treat participants equally, regardless of marital status and sexual orientation.

A lot of plans simply require the employee to sign an affirmation of accuracy at the time of enrollment confirming they are making true statements. This might eliminate the need for actual verification and certainly there can be stated penalties for fraud. How a plan verifies eligibility is a process the plan administrator has to develop and administer so there is no automatic answer for every situation. But when it comes to enrollment, plans have to ask so that benefits are treated properly for tax purposes. Just make sure you ask properly.

Resource: McMurdy, K. (2012). It's OK to ask: Same-sex benefits & taxes. Employee Benefit News. Retrieved from: http://ebn.benefitnews.com/news/same-sex-domestic-partner-taxes-2721997-1.html?ET=ebnbenefitnews:e3182:2181934a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=EBN_Legal_Alert_021312

Tax Deductible Bonuses for Employers

2012-03-01T14:34:00.000-06:00

If you plan to pay out bonuses in 2013 for exemplary work employees do this year, that could complicate your organization’s tax planning.

The problem: The bonuses are based on achievement of end-of-year performance goals. You know how much you’re going to pay out; you just won’t know exactly who is going to get how much until you tally up the year-end financials.

Now the IRS has clarified that employers can take a current-year tax deduction for a fixed amount of bonuses that will be paid to employees during the following year, even though the amount that each employee will receive, and even the identity of employees, aren’t known until after the tax year ends.

The catch: Your company has to use the accrual method of accounting and allocate money to a bonus pool.

How it works

The IRS used this hypothetical scenario to show how the deduction would work out:

Mega Corp. pays bonuses to a group of employees. The minimum total amount of bonuses payable to all eligible employees is set before the year end and is based on a formula that considers Mega’s financial data as of the end of that year.

Bonuses are paid after the year ends and before March 15. Employees forfeit their bonuses if they terminated employment before the date bonuses are paid. Any forfeited amounts go back into the bonus pool and are split among the remaining participants.

Mega can claim a deduction for the full amount of the bonus pool, as long as the entire amount goes to employees to reward services rendered during the tax year.

The pertinent IRS rule is Rev. Rul. 2011-29, IRB 2011-49.

Resource: IRS tells how to make bonuses tax deductible for employers. (2012) HR Specialist. Retreived from: http://www.thehrspecialist.com/article.aspx?articleid=41000&cigx=d.nac,stid.9464,sid.143373,lid.11,mid.4760

Reemployment Rights of Returning Vets

2012-02-28T14:01:00.000-06:00

Employers must reemploy a service member returning from military duty if he or she meets five criteria:

The employee must have held a civilian job,
He or she must have given your proper notice of the impending military service, unless notice was unreasonable or impossible,
The cumulative period of service must not have exceeded five years, unless it falls within an exception,
The employee must have received an honorable discharge, and
The employee must have reported back to the preservice position in a timely manner or submitted a timely application for reemployment. Applications for reemployment can be either oral or written.

The time spent away from the employer in military service controls when an application for reemployment must be submitted:

Period of service for less than 31 days or for a fitness examination - The employee must report to the employer not later than the beginning of the first full regularly scheduled work period on the first full calendar day following the completion of the period of service, and following the expiration of 8 hours after a period allowing for safe transportation from the place of that service to the employee's residence.
Period of service for more than 30 days but less than 181 days - The employee must submit an application for reemployment (written or verbal) with the employer no later than 14 days after completing service. If it is impossible or unreasonable for the employee to apply within 14 days through no fault of his or her own, the employee must submit the application no later than the next full calendar day after it becomes possible to do so.
Period of service for more than 180 days - The employee must submit an application for reemployment (written or verbal) no later than 90 days after completing service.

These limits may be extended for up to 2 years if an individual is hospitalized or recovering from an injury caused by active duty. This period for recuperation and recovery extends the time period for reporting to or submitting an application for reemployment to the employer and is not applicable following reemployment.

Resource: BLR HR Daily Advisor. (2012). Reemployment rights of Returning Vets.

Payroll Tax Cut Extended to the End of 2012

2012-02-26T14:45:00.013-06:00

The Internal Revenue Service released revised Form 941 enabling employers to properly report the newly-extended payroll tax cut benefiting nearly 160 million workers.

Under the Middle Class Tax Relief and Job Creation Act of 2012, workers will continue to receive larger paychecks for the rest of this year based on a lower social security tax withholding rate of 4.2%, which is two percentage points less than the 6.2% rate in effect prior to 2011. This reduced rate, originally in effect for all of 2011, was extended through the end of February by the Temporary Payroll Tax Cut Continuation Act of 2011, enacted Dec. 23.

No action is required by workers to continue receiving the payroll tax cut. As before, the lower rate will have no effect on workers’ future Social Security benefits. The reduction in revenues to the Social Security Trust Fund will be made up by transfers from the General Fund.

Self-employed individuals will also benefit from a comparable rate reduction in the social security portion of the self-employment tax from 12.4% to 10.4%. For 2012, the social security tax applies to the first $110,100 of wages and net self-employment income received by an individual.

The new law also repeals the two-percent recapture tax included in the December legislation that effectively capped at $18,350 the amount of wages eligible for the payroll tax cut. As a result, the now repealed recapture tax does not apply.

The IRS will issue additional guidance, as needed, to implement the newly-extended payroll tax cut, and any further updates will be posted on IRS.gov.

Resource: IRS Newswire Issue Number IR-2012-27

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Are Employers Legally Required to Give Bereavement Leave?

2012-02-23T11:56:00.001-06:00

When your employees lose a loved one, they might ask for bereavement leave. Employers typically want to assist their employees as much as possible. Allowing them to take time off to bury and grieve their loved ones is something that they can offer.

If you're a small business owner, you might wonder if bereavement leave laws require you to give employees a certain number of days off.

There is no federal law on point. But, many companies still incorporate bereavement time off into their employee policies.

If you do decide to give employees the ability to take bereavement leave, there are some things you might need to consider:

How many days should you provide? As an employer, this is ultimately up to you to decide. Whether it is a few days or a week, make sure to include this into your bereavement policy.
Paid or unpaid? Employees would probably appreciate a paid bereavement policy. Yet, for some small businesses offering too many days of paid time off is simply not feasible. Make your own judgment about what is appropriate, and be sure to let your employees know exactly what to expect should they decide to take a bereavement leave.
Should you put it in the employee handbook? You probably should. Putting details of bereavement leave into your employee handbook can clear confusion and help your workers know exactly what kind of benefits they can receive.
What qualifies under the policy? Should you allow employees to take a bereavement leave only for the death of a family member? Or should you extend the policy to include friends?
What happens if your employee violates the policy? It might be wise to explicitly spell out punishments that employees will incur if they violate the policy.

Resource: Hsu, Esq. C. (2012) Am I legally required to give bereavement leave? Employee Benefit News. Retrieved from: http://ebn.benefitnews.com/news/bereavement-leave-small-business-death-law-2721357-1.html?ET=ebnbenefitnews:e3016:2181934a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=EBN_inBrief_012312

Employee GPS Tracking

2012-02-21T10:37:00.001-06:00

On 1/23/12, the Supreme Court ruled that the use of GPS tracking devices by law enforcement was a warrantless search in violation of the fourth amendment.

Physical intrusion is now unnecessary to many forms of surveillance. With increasing regularity, the government (and employers) will be capable of duplicating the monitoring undertaken in this case by enlisting factory- or owner-installed vehicle tracking devices or GPS-enabled smart phones.

An employer is on safer ground using GPS devices to track employees if it has a policy that instructs employees that it may use tracking devices to monitor employees’ whereabouts during work hours and will not monitor them outside work hours. In addition, having employees sign an agreement permitting the installation of the GPS device on the employee’s personal vehicle or activation of the GPS capability on an employee’s personal smart phone that is issued for work would offer more protection for the employer.

Employer should emphasize the benefits of GPS program to employees – for example the location records could corroborate a service person’s assertion that he or she went to the customer’s house for a service appointment in the face of a customer’s denial, could locate an employee in case of an emergency, or help recover a stolen vehicle.

Reasons for an employer to utilize GPS tracking could include:

Track location of company vehicles
Reduce fuel costs by efficiently routing vehicles
Improve dispatch times based on location
Improve customer service by decreasing response times
Recover stolen vehicles
Ensure appropriate provision of meal and rest breaks
To properly manage overtime
To prevent loss

Employers must be aware of legal difficulties such as common-law invasion-of-privacy claims if it is checking an employee’s whereabouts off the clock.

Individual and workers’ rights groups, such as the American Civil Liberties Union, have seized on the Supreme Court’s opinion to push for privacy legislation that would address employers’ use of GPS technology. Pending GPS bills include H.R. 2168, the Geolocation Privacy and Surveillance Act; S. 1212, the GPS Act, and S. 1223, the Location Privacy Protection Act of 2011.

Resource: Smith, A. (2012) Impact of Supreme Court's GPS Ruling Weighed. Society for Human Resource Management. Retrieved from: http://www.shrm.org/LegalIssues/FederalResources/Pages/GPSRuling.aspx

Final Ruling on Summary of Benefits And Coverage

2012-02-19T15:01:00.022-06:00

The Departments of Health and Human Services, Labor, and the Treasury have released the final rule and glossary implementing the Summary of Benefits and Coverage (SBC) requirements of the Patient Protection and Affordable Care Act (PPACA). As provided in the final rule, starting September 23, 2012, health insurers and group health plans will be required to provide the SBC and the uniform glossary to consumers.

The SBC must be a concise summary (limited to 4 pages) of the key benefits and coverages provided through the health plan, the costs to the participant, lists of excluded services, and other significant conditions or limitations. These documents also must be prepared in a standardized format, type style, font size, and terminology so that comparisons can readily be made between different coverage offerings. The SBCs must be distributed in connection with any initial, special, or open enrollments, and any new plan coverages.

To see a sample SBC, click here.

Penalty for Failure to File 1099 Doubles for 2012

2012-02-15T07:46:00.001-06:00

For the Form 1099s that are due on February 28, 2012, the penalty for failure to timely file Form 1099s is doubling from $50 per Form 1099 to $100 per Form 1099. If you do not have all the information needed to complete a Form 1099 (such as the Social Security number), you can still file it incomplete by February 28. As long as you secure the missing information and file the amended Form 1099 before August 1, 2012, then no penalties will apply.

If you file the Form 1099 within 30 days after February 28, the $100 penalty is reduced to $30. If you file Form 1099 more than 30 days after February 28 but before August 1, 2012, the penalty is reduced to $60 per Form 1099.

The IRS is projecting to collect big bucks from these penalties over the next few years. You should be checking and double checking that you are issuing a Form 1099 to all unincorporated businesses providing services to you and you paid them at least $600 during 2011. This would include sole proprietorships, partnerships and LLCs. You can verify the business information via Form W-9.

IRS Releases Guidance on How to Claim Expanded Veterans Tax Credit

2012-02-13T10:44:00.000-06:00

The IRS released the guidance and forms that employers can use to claim the newly-expanded tax credit for hiring veterans. The IRS also announced that employers will have more time to file the required certification form for employees hired on or after November 22, 2011, and before May 22, 2012. The VOW to Hire Heroes Act of 2011, enacted Nov. 21, 2011, provides an expanded Work Opportunity Tax Credit (WOTC) to businesses that hire eligible unemployed veterans and for the first time also makes the credit available to certain tax-exempt organizations.

The credit can be as high as $9,600 per veteran for for-profit employers or up to $6,240 for tax-exempt organizations. The amount of the credit depends on a number of factors, including the length of the veteran’s unemployment before hire, hours a veteran works and the amount of first-year wages paid. Employers who hire veterans with service-related disabilities may be eligible for the maximum credit.

Employers have until June 19, 2012, to complete and file the newly-revised Form 8850 for veterans hired on or after Nov. 22, 2011, and before May 22, 2012. The 28-day rule will again apply to eligible veterans hired on or after May 22, 2012.

Notice 2012-13, posted 2/9/12 on IRS.gov, and the instructions for Form 8850 provide further details.

Businesses claim the credit on their income tax return. The credit is first figured on Form 5884 and then becomes a part of the general business credit claimed on Form 3800.

This credit is also available to certain tax-exempt organizations by filing Form 5884-C. The guidance released today also provides instructions and a new set of forms for tax-exempt organizations to claim the credit. For more information, including how to claim the credit, go to IRS.gov.

Resource: IRS Newswire, Issue Number IR-2012-17

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Employment Costs Rose 2.2% in 2011

2012-02-09T10:23:00.000-06:00

Employment costs (including wages/salaries and benefits) for private-sector workers in the U.S. increased 2.2 percent in 2011, up just slightly from the 2.1 percent increase in 2010, according to the U.S. Bureau of Labor Statistics (BLS).

According to the BLS's Employment Cost Index—December 2011 report, released in January 2012:

• Wages and salaries (which make up about 70 percent of compensation costs) increased 1.6 percent in 2011, down from the 1.8 percent increase logged in 2010.
• Benefit costs (which make up the remaining 30 percent of compensation) increased 3.6 percent in 2011, outpacing the 2.9 percent increase in 2010.

Private-Sector Employment Cost Increases For the 12-month period ending Dec. 31, 2011:
Employment Costs	+2.2%
— Wages and salaries	+1.6%
— Benefits	+3.6%
Source: U.S. Bureau of Labor Statistics, Employment Cost Index—December 2011.

In addition, the BLS reported that:

• Private-sector employer costs for health benefits increased 3.5 percent in 2011, lower than the 2010 increase of 5 percent, the BLS found.
• Among occupational groups, employment cost increases in 2011 ranged from 1.7 percent for service occupations to 2.4 percent for production, transportation and material moving occupations.
• Among industry sectors, employment cost increases ranged from 1 percent for leisure and hospitality to 2.8 percent for manufacturing.

Retrieved from: http://www.shrm.org/hrdisciplines/compensation/Articles/Pages/EmploymentCosts.aspx

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Act Eliminates OFCCP Jurisdiction and Affirmative Action Requirements

2012-02-07T15:12:00.001-06:00

Employers in the healthcare industry may find that they no longer have affirmative action obligations as of 2012 as a result of the National Defense Authorization Act, signed into law on December 31, 2011.

TRICARE is the Department of Defense healthcare program for active duty and retired military personnel and their families. Prior to the National Defense Authorization Act, the Office of Federal Contract Compliance Programs (OFCCP) took the position that hospitals, pharmacies, and other healthcare providers providing care under TRICARE contracts had affirmative action obligations as “subcontractors” pursuant to Executive Order 11246, Section 503 of the Rehabilitation Act, and the Vietnam Era Veterans’ Readjustment Assistance Act. The National Defense Authorization Act expressly excludes hospitals, pharmacies, and other healthcare providers providing healthcare services to TRICARE participants from OFCCP jurisdiction, effectively overruling a 2010 Department of Labor decision holding that a hospital providing services under TRICARE was a federal subcontractor and related OFCCP guidance.

However, healthcare providers should not immediately abandon their federal affirmative action obligations without any other review of their contracts. It is possible that other contracts could subject them to affirmative action obligations (and OFCCP jurisdiction) as federal contractors or subcontractors, including those regarding contracts with the Veterans Administration, healthcare benefits for other federal workers, and receipt of Medicare Part C or D funds, which were not addressed by this legislation and which OFCCP has already asserted create affirmative action obligations.

Laplante, J. (2012, January 17). Act Eliminates OFCCP Jurisdiction and Affirmative Action Requirements Based on TRICARE Program. Retrieved from: http://www.employerlawreport.com/2012/01/articles/traps-for-the-unwary/act-eliminates-ofccp-jurisdiction-and-affirmative-action-requirements-based-on-tricare-program/index.html#axzz1lGE9ll92

Three circumstances when employees must be paid not to work

2012-02-05T10:18:00.000-06:00

Wage laws are tricky. But it is an area of law all employers need to familiarize themselves with. It's necessary to compensate employees —sometimes even when you least expect it. In fact, there are times when employees need to be paid for...not working.

Wait, wait. "Wages" are supposed to be money employees get for their "work." Right?

There are times when an employee needs to be rightly compensated for well, doing other things besides work. What are they?

When employees are sent off to get trained or educated.
If you require that employees attend seminars, lectures, or other educational sessions, you may need to compensate them. You may also be on the hook for time spent traveling to the location.

When employees are "on-call."
Are some of your employees required to stay on-location? Are they there simply waiting for your call? If so they may need to be paid for their time. Employees may also be entitled to pay if they are on-call at different locations. Restrictions on employee activities may apply. For example, employers may restrict workers from drinking while "on-call." They may also restrict employees from doing work for other employers.

When employees sleep on the job.
Sometimes employees need to sleep on the job if they work long shifts. This may be especially true if employees have 24-hour shifts. This means you might need to compensate employees for taking naps -- as counterintuitive as that is.

You should check your state's wage laws first before making any decisions about paying employees for not working.

Hsu, C. (25 Jan 2012). Three Circumstances When Employees Must Be Paid Not To Work. Retrieved from: http://ebn.benefitnews.com/news/compensation-wage-hour-compliance-2721432-1.html?ET=ebnbenefitnews:e3033:2181934a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=EBN_inBrief_012512

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Watercooler Politics

2012-02-01T12:59:00.002-06:00

It’s the beginning of a heated political year … one that could spill over into your workplace.

What if one of your workers skips a shift to attend a political rally about a minimum wage ballot measure?

What if a different employee starts wearing a big Romney button on the shop floor?

Even though the National Labor Relations Act (NLRA) mostly governs some political advocacy in nonunion workplaces and protects employees from discipline if they engage in conduct relating to their pay, benefits or working conditions.

In 2008, the National Labor Relations Board (NLRB) published a memo that spelled out when political advocacy is protected. Employers need to be aware of two key issues:

1. The subject matter of advocacy. Basically, advocacy related to the employee’s specific job and conditions of employment are protected. In addition, protection is extended to advocacy in which there is “direct nexus between the specific issue” being advocated and “a specifically identified employment concern of the participating employees.” So, for example, supporting a ballot measure on minimum wage issues could be connected to the employee’s pay. Complaints that aren’t related to work issues typically aren’t protected.

2. How the advocacy is carried out. “Employees do not have carte blanche to carry out protected activity in any way they choose,” says Jan Hensel, an attorney at Dinsmore & Shohl in Columbus, Ohio.

The NLRB memo lays out the proper means for employees to perform “protected activities” within the NLRA’s protections. Hensel says three rules apply:

Political activity occurring during nonwork time and in nonwork areas is generally protected.
On-duty political advocacy related to a specifically identified employment concern can be subject to restrictions imposed by your organization’s work rules (as long as they’re lawful and neutrally applied).
Leaving or stopping work to engage in political advocacy can also be subject to your company’s restrictions (again, if legal and applied fairly).

Bottom line: Navigating the NLRA is confusing … and common sense is often left on the sidelines. Be fair and evenhanded, but when in doubt, allow political advocacy when possible (see tips below). Before applying discipline, check your your attorney about the legality of your actions.

5 tips for handling workplace free speech issues

Employers must balance employees’ free speech rights against maintaining workplace order and productivity. Some tips:

Have a business reason for any restrictions. Limit only those political expressions that might affect productivity or customer relations. For example, you can ask a cashier to remove a “Legalize Marijuana” button, but you can’t ask him to remove an “Obama for President” bumper sticker from his car.
Be consistent and evenhanded. Inconsistency is tough to defend in court. For example, don’t make employees take off pro-Romney buttons, while allowing pro-Gingrich ones.
Provide guidelines. Clearly tell employees that all workplace speech—political or otherwise—must be respectful, accommodating and tolerant of others’ views.
Don’t retaliate against off-duty political activity.
Never press employees to vote for a specific candidate.

Source: DiDomenico, P. Watercooler Politics: Can You Disclipline 'Overly Political' Employees? (22 Dec 2011). Retrieved from http://www.businessmanagementdaily.com/29448/watercooler-politics-can-you-discipline-overly-political-workers?cigx=d.nac,stid.8008,sid.151940,lid.51,mid.4072

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Consumer Driven Health Plans Grow in 2011

2012-01-30T08:32:00.003-06:00

The popularity of consumer-driven health plans (CDHP) rose 2% in 2011. Enrollment in a CDHP through a group or individual policy was 5% in 2010, according to the 11th annual EBRI/MGA Consumer Engagement in Health Care Survey, and increased to 7% in 2011.

Individuals in CDHPs were more likely than those with traditional coverage to exhibit a number of cost-conscious behaviors. They were more likely to say that they had checked whether their plan would cover care; asked for a generic drug instead of a brand name; talked to their provider about treatment options and costs and/or prescription drug options and costs; developed a budge to manage their health care expenses; checked the price of a service before getting care; and used an online cost-tracking tool.

In addition, according to a survey performed by Mercer, 2011 established the biggest increase ever in the adoption of high-deductible, account-based CDHPs with large employers. CDHP use with small employers has also jumped from 16% to 20% the past year.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Massachusetts Health Care Reform Act

2012-01-22T10:48:00.004-06:00

The Massachusetts Health Care Reform Act requires Massachusetts residents to have health insurance and penalizes those who do not obtain health care coverage. Massachusetts residents age 18 or order must carry health insurance that meets certain minimum standards known as “creditable coverage.” As a result, covered employees/retirees living in Massachusetts will face penalties if they are unable to demonstrate “creditable” status for their health care coverage.

Employer groups that are subject to the statute are responsible for providing a written notice (MA-1099) to their employees/retirees living in Massachusetts regarding the status of their current health care product no later than January 31st each year. Employers are also responsible for assessing whether or not the current health benefits that are provided to their employees/retirees meet the minimum creditable coverage standard.

Please visit http://www.mahealthconnector.org/ for additional information.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

2012 401(K) Limit Increase

2012-01-19T10:15:00.011-06:00

The beginning of the new year is a good time to communicate to employees that the maximum annual participant contribution to 401(k) plans has increased.

The Internal Revenue Service announced last fall that it was raising the maximum contribution to $17,000 in 2012, up from the $16,500 limit in 2011. Additional catch-up contributions for participants age 50 or older remain at $5,500 per year, in addition to the $17,000.

The increased limit is an opportunity for employees to take advantage of more tax-deferred savings.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

ADA Title III Standards Influence Title I Reasonable Accommodation Obligation

2012-01-17T10:55:00.000-06:00

The new Title III ADA Standards for Accessible Design are influencing Title I reasonable accommodation obligations. Title I of the ADA requires employers to provide reasonable accommodations for qualified individuals with disabilities. Title III requires places that are open to the public—public accommodations—be accessible to people with disabilities.

Up to now, Title I and Title III did not overlap, but the revised ADA Standards for Accessible Design are affecting the interpretation of Title I.

Service Animals. The Title III standards have placed new limits on what can be considered a service animal. Up until now, there was not clear definition on the type of service animal (it could be a monkey, snake or parrot for example). Seeing-eye dogs and retrieval dogs as well as miniature horses clearly are covered now. But other animals, including dogs that are not trained to do specific tasks, are not covered service animals under Title III and likely would not be considered service animals under Title I.
Circulation Path. A new provision in the 2010 ADA Standards for Accessible Design requires accessible common use circulation paths in new or altered employee work areas unless they are subject to exceptions. The exceptions are for work areas that are:

Less than 300 square feet and are elevated seven inches or more above the ground or finished floor, where elevation is essential to the functioning of the space.
Less than 1,000 square feet and are defined by permanently installed partitions, counters, casework or furnishings (e.g., many kitchens in quick-service restaurants and the employee side of service counters).
An integral component of equipment (e.g., some power plants).
Exterior and exposed fully to weather.

Bathrooms. The U.S. Department of Justice, which enforces Title III, has consistently taken the position that barrier removal requirements for existing facilities do not apply to areas used exclusively by employees, because the purpose of Title III is to ensure that access is provided to clients and customers. But if patrons are allowed to use employee restrooms, the Title III accessibility standards apply.
1991 vs. 2010 Standards. Society for Human Resource Management. Retrieved from http://www.shrm.org/LegalIssues/FederalResources/Pages/ADATitlesIandIII.aspx.

If the permitting process is completed or the start of construction requirements are met when no permits are in play for a project between Sept. 15, 2010 and March 15, 2012, the 1991 or 2010 standards may be used. If the 1991 standard is chosen, it must be used for all building elements, not just one element under the 1991 standards and another under the 2010 standards. If a permit becomes final on or after March 16, 2012, there is no choice; the 2010 standards must be used exclusively.
The 2010 standards, for the most part, are more exacting than the 1991 standards. But one exception was in stadiums and arenas. In the 1991 standards, 1% of the seats had to be accessible to wheelchair users. This requirement came under fire because only 1/10th of 1% of wheelchair seats were being used. In response, Justice cut the number of accessible wheelchair seats to approximately 1/2 of 1%.

Resource: Smith, A. (28 December 2011). ADA Title III Standards Influence Title I Reasonable Accommodation Obligation.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Guidance Released on W-2 Reporting

2012-01-15T14:10:00.001-06:00

Still wondering about how to report health coverage on W-2s, which is required by PPACA? More guidance was issued on January 3, 2012 in IRS Notice 2012-9. Under the new rules, employers must report the aggregate cost of "applicable employer-sponsored coverage," which generally consists of employer-sponsored coverage under a group health plan (insured or self-funded) that is excludable from the employee's gross income. The reportable cost generally includes the portion of the cost paid by the employer and the amount paid by the employee, regardless of whether paid through pre-tax or after-tax contributions.

Some additional highlights:

Reporting requirement appears to be suspended for employers with fewer than 250 W-2s issued for the prior calendar year.
Reporting requirements do not apply to coverage under a flexible spending arrangement if contributions occur only through employee salary reductions.
The standard for determining whether a dental plan or vision plan is subject to the reporting requirement is whether the benefits are offered under a separate policy, certificate, contract, or insurance, or if the participants have the right not to elect the dental or vision benefits and if they do they must pay an additional premium or contribution.

The notice also includes some new Q&A's not contained in Notice 2011-28. These Q&As include explanations about employee assistance program, wellness program or on site-medical clinic and also provide guidance about contributions to multiemployer plans. The Notice also provides that this guidance is applicable starting with 2012 W-2s. So your 2103 W-2s will have to comply with these rules.

Source: McMurdy, Keith. "IRS Issues Guidance on Reporting Health Coverage on W-2s." Fox Rothschild, LLP, 6 January 2012. Web. 11 January 2012.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

NLRB Postpones Notice Requirement Again

2012-01-12T10:39:00.009-06:00

The National Labor Relations Board (NLRB) has agreed to postpone the effective date of its employee rights notice-posting rule at the request of the federal court in Washington, DC hearing a legal challenge regarding the rule. This is the second postponement.

The NLRB postponed the effective date of the rule to allow more time to resolve the pending legal challenges. The new implementation date is April 30, 2012.

The notice informs employees of their rights under the NLRA, including:

They are protected if they are or intend to become involved in union organizing activities; and
They are protected if they communicate with other employees to complain about the terms and conditions of their employment—including pay, work hours, supervisors, or anything related to their jobs.

Most private sector employers will be required to post the notice.

For more information & a copy of the poster, please visit https://www.nlrb.gov/poster.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

2012 Health Care Reform Compliance

2012-01-10T10:20:00.000-06:00

There are several tasks for employers in 2012 in accordance with the Affordable Care Act:

Form W2: Employers who filed at least 250 Form W2s in 2011 will need to include information about the value of health coverage through employee's Form W2, beginning with W2s issued for 2012.
Patient-Centered Outcomes Research Trust Fund: For health plan years beginning after September 30, 2012, employers will need to begin paying a $1 fee to the federal government per covered life. Additional details expected to be released.
Non-Discrimination Rules: Regulators have suggested that the nondiscrimination rules that were delayed in 2011 may take effect in 2012, so employers with fully insured health plans should monitor this issue carefully.
FSA Limits: Employers with fiscal year health care flexible spending accounts (FSA) will need to apply the new 2013 $2,500 calendar year limit on health FSA contributions beginning with their health care FSA that starts in the middle of 2012.
Medial Loss Ratio Rebates: The Department of Labor (DOL) has issued detailed guidance on the steps employers must take if they receive "medical loss ratio" rebates from their health insurance carriers. Employers that receive these rebates must be sure to follow this guidance.
Quality of Care Report: For plan years beginning on or after March 23, 2012, employers will need to file with Department of Health and Human Services (HHS) and distribute to health plan participants a new "quality of care report" requored by the health reform act. Additional guidance expected to be released from HHS on this new requirement shortly.
Summaries of Benefits Coverage/Uniform Explanations of Coverage: This requirement which was to become effective March 23, 2012 has been delayed until further notice.

Resource: Smith & Downey, P.A.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Excess HSA Contributions

2012-01-08T10:40:00.000-06:00

An individuals' Health Savings Account limits are set by the IRS. For 2011, they are $3,050 for a single person and $6,150 for a family. The catch up provision which allows individuals over the age of 55 to set aside some extra money is $1,000. This means that a single person over 55 can contribute $4,050 and a family where the owner is 55+ can contribute $7,150. Contributions for the 2011 calendar year can be made until April 15, 2012. (The limit set for 2012 is $3,100 for a single person and $6,250 for a family.)

These limits include employer contributions as well. Therefore, it is the employees' responsibility to keep track of any employer contributions along with their own contributions to ensure they do not go over the limits. But what happens if an employee goes over these limits and contributes more than their maximum allowable contribution? They may withdraw the excess amount and any earnings on the excess amount prior to April 15th of the following year. However, they must pay income tax on the excess contributions and income tax on any of the earnings of the excess contribution. There is no penalty on excess contribtuions.

What happens if the employee does not withdraw excess contributions prior to April 15th of the following year? They must pay a 6% excise tax on the excess contribution and on any earnings of the excess contribution. Unless the employee decreases their maximum contribution by the amount of the excess contribution made the year before, they will not have to pay the 6% excise tax again. If, however, they leave the excess contribution in, and do not decrease their maximum contribution amount, they will have to pay the 6% excise tax each year the excess contributions and earnings are in their HSA.

Source: http://www.opm.gov/insure/health/hsa/faq.asp#5

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

No Texting in Pennsylvania

2012-01-05T10:58:00.000-06:00

Overview
Effective March 8, 2012, drivers, including drivers employed by private employers who drive as part of their job duties, cannot use interactive wireless communications devices to send, read, or write text-based communications while driving on Pennsylvania highways or trafficways.

Coverage
Effective March 8, 2012, drivers, including drivers employed by private employers who drive as part of their job duties, are covered by the wireless communications devices use provisions. This summary is restricted to general coverage of laws and regulations affecting drivers, including employees of private-sector employers; it does not include occupation- and industry-specific legal requirements, such as laws covering wireless communications devices use by commercial drivers.

Prohibited Use of Wireless Communications Devices
Effective March 8, 2012, drivers, including employees of private-sector employers who drive as part of their job duties, cannot use interactive wireless communications devices to send, read, or write text-based communications while driving on Pennsylvania highways or trafficways. Interactive wireless communications devices are wireless telephones, personal digital assistants, smart phones, portable or mobile computers, or similar devices that can be used for voice communication, texting, e-mailing, browsing the internet, or instant messaging. Interactive wireless communications devices do not include devices used exclusively as global positioning or navigation systems and systems or devices that are physically or electronically integrated into vehicles. Text-based communications are defined to include text messages, instant messages, e-mail, or other written communications composed or received on interactive wireless communications devices.

Permitted Use of Wireless Communications Devices
Effective March 8, 2012, drivers, including employees of private-sector employers who drive as part of their job duties, can use interactive wireless communications devices while driving to read, select, or enter telephone numbers or names into a device for the purpose of activating or deactivating voice communications or telephone calls.

Administration/Enforcement
Effective March 8, 2012, the Pennsylvania Department of Transportation administers the wireless communications devices use provisions and state and local law enforcement officers enforce them. These provisions do not authorize seizure or forfeiture of interactive wireless communications devices.

Interaction with other legal mandates: Effective March 8, 2012, the wireless communications device use provisions supersede and preempt ordinances of municipalities regulating use of interactive wireless communications devices while driving.

Penalties/Remedies
There is no penalty for employers of employees who violate the wireless communications devices use provisions.

Effective March 8, 2012, drivers, including employees of private-sector employers who drive as part of their job duties, who use interactive wireless communications devices to send, read, or write text-based communications while driving are guilty of a summary offense and can be fined $50.

Anyone, including employees of private-sector employers who drive as part of their job duties, who fails or refuses to comply with the requirements of a law enforcement officer pursuant to provisions under the Pennsylvania Vehicle Code (which includes, effective March 8, 2012, the interactive wireless communications use provisions) can be fined an additional $500 and can have their vehicles taken into custody.

Reference: http://hressentials.bna.com/hesw/2900/lawsum_display.adp?fedfid=23675569&vname=heswlawsum&fn=23675577&jd=a0c9t5z7m9&split=0#a0c9t5z7m9

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Dept of Labor Wage & Hour Division - Three New Fact Sheets

2012-01-03T10:37:00.000-06:00

The U.S. Department of Labor Wage and Hour Division (WHD) has released three new fact sheets on the topic of retaliation:

Fact Sheet #77A: Prohibiting Retaliation Under the Fair Labor Standards Act (FLSA)

Provides general information concerning the FLSA’s prohibition of retaliating against any employee who has filed a complaint or cooperated in an investigation.

Fact Sheet #77B: Protection for Individuals under the FMLA

Provides general information concerning the Family and Medical Leave Act’s (FMLA) prohibition of retaliating against an individual for exercising his or her rights or participating in matters protected under the FMLA.

Fact Sheet #77C: Prohibiting Retaliation Under the Migrant and Seasonal Agricultural Worker Protection Act (MSPA)

Provides general information concerning MSPA’s prohibition of discrimination against a migrant or seasonal agricultural worker who has filed a complaint or participated in any proceeding under or related to MSPA.

An index of all fact sheets available from the WHD can be found at http://www.dol.gov/WHD/fact-sheets-index.htm.

IRS Releases 2011 5500 Instructions

2012-01-01T10:13:00.001-06:00

The Form 5500 Series is an important compliance, research, and disclosure tool for the Department of Labor, a disclosure document for plan participants and beneficiaries, and a source of information and data for use by other Federal agencies, Congress, and the private sector in assessing employee benefit, tax, and economic trends and policies. The Form 5500 Series is part of ERISA's overall reporting and disclosure framework, which is intended to assure that employee benefit plans are operated and managed in accordance with certain prescribed standards and that participants and beneficiaries, as well as regulators, are provided or have access to sufficient information to protect the rights and benefits of participants and beneficiaries under employee benefit plans.

For more information as well as the 2011 forms, please visit http://www.dol.gov/ebsa/5500main.html.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Payroll Tax Cut Temporarily Extended into 2012

2011-12-28T08:42:00.003-06:00

President Barack Obama signed the payroll tax cut extension in the Oval Office on Dec 23, 2011.
[Photo By Associated Press]

Nearly 160 million workers will benefit from the extension of the reduced payroll tax rate that has been in effect for 2011. The Temporary Payroll Tax Cut Continuation Act of 2011 temporarily extends the two percentage point payroll tax cut for employees, continuing the reduction of their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid through Feb. 29, 2012. This reduced Social Security withholding will have no effect on employees’ future Social Security benefits.

Employers should implement the new payroll tax rate as soon as possible in 2012 but not later than Jan. 31, 2012. For any Social Security tax over-withheld during January, employers should make an offsetting adjustment in workers’ pay as soon as possible but not later than March 31, 2012.

Employers and payroll companies will handle the withholding changes, so workers should not need to take any additional action.

Under the terms negotiated by Congress, the law also includes a new “recapture” provision, which applies only to those employees who receive more than $18,350 in wages during the two-month period (the Social Security wage base for 2012 is $110,100, and $18,350 represents two months of the full-year amount). This provision imposes an additional income tax on these higher-income employees in an amount equal to 2 percent of the amount of wages they receive during the two-month period in excess of $18,350 (and not greater than $110,100).

This additional recapture tax is an add-on to income tax liability that the employee would otherwise pay for 2012 and is not subject to reduction by credits or deductions. The recapture tax would be payable in 2013 when the employee files his or her income tax return for the 2012 tax year. With the possibility of a full-year extension of the payroll tax cut being discussed for 2012, the IRS will closely monitor the situation in case future legislation changes the recapture provision.

The IRS will issue additional guidance as needed to implement the provisions of this new two-month extension, including revised employment tax forms and instructions and information for employees who may be subject to the new “recapture” provision. For most employers, the quarterly employment tax return for the quarter ending March 31, 2012 is due April 30, 2012.

Reference: IRS Newsire Issue Number IR-2011-124

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Disability Hiring Goal for Federal Contractors

2011-12-26T12:09:00.023-06:00

A new rule proposed by the U.S. Department of Labor (DOL) would require that persons with diabilities have at least 7% of jobs with federal contractors and subcontractors. The DOL invites the public to make comment to the Office of Federal Contract Compliance Programs (OFCCP) through February 7, 2012.

Similar to what has been required to promote workplace equality for women and minotiries, the proposed changes provide detail actions that federal contractors and subcontractors would have to take in recruiting, training, recordkeeping and policy dissemination.

Highlights of the proposed rule include:

Goals: Establish, for the first time, a single, national utilization goal for individuals with disabilities. Federal contractors and subcontractors would be required to set a hiring goal of having 7 percent of their employees be workers with disabilities in each job group of the contractors’ workforce.
Data Collection: Improve collection of data on employment of people with disabilities by modifying the invitation for workers to self-identify by requiring that contractors invite all applicants to voluntarily self-identify as an “individual with a disability” at the pre-offer stage of the hiring process. Contractors also will be required to invite post-offer voluntary self-identification and to survey all employees annually in order to invite their self-identification in an anonymous manner.
Record-Keeping: Require that contractors maintain records on the number of individuals with disabilities applying for positions and the number of individuals with disabilities hired.
Accommodation Requests: Require, for the first time, that contractors develop and implement written procedures for processing requests for reasonable accommodation.
Outreach: Require that contractors engage in a minimum of three specific types of outreach and recruitment efforts to recruit individuals with disabilities.
Job Listings: Require that contractors list job openings with One-Stop Career Centers or other appropriate employment delivery systems.
Annual Reviews: Require previously recommended steps contractors must take to review their personnel processes, as well as their physical and mental job qualifications.
ADAAA Updates: Incorporate updates made necessary by the ADA Amendments Act (ADAAA) of 2008.

Other changes in the proposed rule include alterations to the definition of "reasonable accommodation," addressing the increased use of telecommuting and work arrangements that do not require physical office setting, and changes to the description of types of conduct that would violate the nondiscrimination requirements of Section 503.

Resource: http://www.dol.gov/ofccp/regs/compliance/sec503/Sec503_Media_Release_2011-12-07.htm & http://www.shrm.org/hrdisciplines/Diversity/Articles/Pages/RuleWouldSetDisabilityHiringGoal.aspx

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

The 5 Myths of Wellness

2011-12-22T10:01:00.000-06:00

Myth #1: Health care costs continue to rise because the system is flawed.

As fast as we may believe the health care system may be flawed, health care is improving and our health is declining as Americans. Our need and life expectancy is really a big factor of rising health care costs and we need to address that in a proactive manner.

Myth #2: Wellness programs are just a “touchy feely” ancillary benefit.

A good well designed performance based wellness program is really a risk management tool for a firm. Managing health risks on the employee benefit side.

Myth #3: Employees will not change their behavior.

There is a lot of talk in the industry regarding intrinsic and extrinsic motivators and what it takes for people to change their behavior. Research has shown with the right motivators, right education and awareness people will change behaviors and change them for the better.

Myth #4: Wellness programs cannot provide measurable ROI.

If you can measure it, you can manage it. So design wellness programs with a measurable analytical based foundation. Then over time a good idea of return on investment can be calculated.

Myth #5: You can’t treat your health/wellness plan as you would other business units.

Measure it so you can manage it
Accountability across responsibility
All tools in place for people to make right decisions

With a properly designed wellness program, accountability can be stressed, people can be rewarded for doing the right things, and you can create the dashboards that allow people to manage their individual health and allow businesses to manage the overall direction of the health of their population.

Resource: http://ebn.benefitnews.com/video/jim-wachtel-healthcheck360-wellness-myths2720105-1.html?ET=ebnbenefitnews:e2621:2181934a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=EBN_inBrief_112311

HHS Gives States More Flexibility to Implement Health Reform

2011-12-20T10:20:00.022-06:00

The Department of Health and Human Services (HHS) released a bulletin on Friday, 12/16/11, outlining proposed policies that will give states more flexibility and freedom to implement the Affordable Care Act.

The bulletin describes an inclusive, affordable and flexible proposal and informs stakeholders about the approach that HHS intends to pursue in rulemaking to define essential health benefits. HHS is releasing this intended approach to give consumers, states, employers and issuers timely information as they work toward establishing Exchanges and making decisions for 2014. This approach was developed with significant input from the public, as well as reports from the Department of Labor, the Institute of Medicine, and research conducted by HHS.

Under the Department’s intended approach, states would have the flexibility to select an existing health plan to set the “benchmark” for the items and services included in the essential health benefits package. States would choose one of the following health insurance plans as a benchmark:

One of the three largest small group plans in the state;
One of the three largest state employee health plans;
One of the three largest federal employee health plan options;
The largest HMO plan offered in the state’s commercial market.

The benefits and services included in the health insurance plan selected by the state would be the essential health benefits package. Plans could modify coverage within a benefit category so long as they do not reduce the value of coverage. Consistent with the law, states must ensure the essential health benefits package covers items and services in at least ten categories of care, including preventive care, emergency services, maternity care, hospital and physician services, and prescription drugs. If a state selects a plan that does not cover all ten categories of care, the state will have the option to examine other benchmark insurance plans, including the Federal Employee Health Benefits Plan, to determine the type of benefits that will be included in the essential health benefits package.

The policy proposed by HHS would give states the flexibility to select a plan that would be equal in scope to the services covered by a typical employer plan in their state. States and insurers would retain the flexibility to evolve the benefits package with the market as innovative plan designs are developed and advancements in care become available, and meet the needs of their citizens.

Public input on this proposal is encouraged. Comments are due by Jan 31, 2012 and can be sent to: EssentialHealthBenefits@cms.hhs.gov.

Resource: HHS News Release, December 16, 2011

8 Ways to Use Extra FSA $$

2011-12-18T13:34:00.003-06:00

As 2011 comes to an end, it's time for a lot of employees with health care and dependent care flexible spending accounts to use up their remaining balances before the end of their plan year, when any leftover money is forfeited. Here are 8 ways your employees can spend down their FSAs before 2012, courtesy of Save Smart, Spend Healthy:

Review List of Eligible Expenses: A 2010 survey from Save Smart, Spend Healthy found that nearly 80% of household decision makers had trouble identifying expenses they could purcase with a health care FSA. There may be a number of items employees need to buy or have already purchased that are eligible for reimbursement. Circulate a list of health care and dependent eligible expenses.

Request Prescriptions for OTC Medications: If employees were directed by their doctors to use over-the-counter medications this year to treat an illness or for wellness purposes, they can be reimbursed for these expenses through the FSA as long as they have a prescription from their doctor.

Submit Any Outstanding Receipts: Encourage employees to submit any outstanding receipts for health care expenses such as prescriptions or doctor's appointments or dependent care expenses such as day care or summer camp.

Purchase Medical Supplies: If employees need medical supplies on a regular basis, it can be helpful to have a backup supply on hand. This includes contact lenses and solution, prescription glasses and even band-aids.

Schedule Routine Medical Appointments: Encourage employees to get routine check-ups with their physician, dentist and optometrist. If some employees see specialty providers, such as a chiropractor or acupuncturist, encourage them to get needed care before the end of the plan year as well.

Get Flu Shot and Vaccinations: Encourage employees and everyone in their household to get a flu shot and to ensure dependents are up-to-date with vaccinations.

Invest in Wellness: Smoking cessation is an eligible expense, as is weight loss counseling, as long as receipts are accompanied by a letter of medical necessity.

Log Your Miles: Gas and transportation fees to and from eligible medical, dental and vision appointments are eligible for reimbursement, as are visits to the drug store or pharmacy to pick up medications. The mileage rate for 2011 was 19 cents a mile for January 1 to June 30, and is 23.5 cents a mile for July 1 to December 31.

Resource: Employee Benefit News

2012 Standard Mileage Rates

2011-12-15T10:41:00.005-06:00

The Internal Revenue Service (IRS) issued the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on January 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

55.5 cents per mile for business miles driven
23 cents per mile for medical or moving purposes
14 cents per mile driven in service of charitable organizations

The rate for business miles driven is unchanged from the mid-year adjustment that became effective on 7/1/11. The medical and moving rate has been reduced by 0.5 cents per mile.

Reference: IRS Notice 2012-01

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

VOW to Hire Heroes Act of 2011

2011-12-13T09:50:00.017-06:00

On November 21, President Obama signed into law the VOW to Hire Heroes Act of 2011 (P.L. 112-56) to encourage the hiring of military veterans.

This legislation is an amendment to the Uniformed Services Employment and Reemployment Rights Act (USERRA) to provide further employment protection against hostile work environments by prohibiting discrimination with respect to any of the terms, conditions or privileges of employment. This legislation was passed to encourage the hiring of military veterans.

Key provisions of interest:

Requires individuals separating from the military and their spouse to participate in the Transition Assistance Program (TAP). The current TAP program is voluntary for separating military personal.
Directs the federal government to enter into agreements with private organizations and others to provide job training assistance and develop apprenticeship or pre-apprenticeship programs that provides veterans with the education, training, and services necessary to transition to meaningful employment.
Creates a two-year demonstration program in the Department of Labor on the credentialing and licensing of veterans for specific civilian occupations.
Provides a new hiring credit called the Returning Heroes and Wounded Warrior Credit as an incentive to hire unemployed veterans. The VOW Act provides a credit of 40 percent of the first $6,000 in wages (up to $2,400) for employers that hire veterans unemployed for at least 4 weeks and credit of up to 40 percent of the first $14,000 of wages (up to $5,600) for veterans who have been unemployed for at least 6 months.
Maintains and doubles the existing Wounded Warriors Opportunity Tax Credit, increasing the value of the tax credit from $4,800 to $9,600 for veterans who have been unemployed for 6 months and have a service-connected disability.

In addition, the VOW Act also made changes to the tax code to allow qualified 501(c) tax exempt organizations to claims these credits against the employer portion of the Federal Insurance Contributions Act (FICA) tax.

New Bills in Congress

2011-12-11T13:38:00.000-06:00

There are a number of new bills in Congress right now that would increase FMLA responsibilities for HR Departments:

S. 1358: Parental Bereavement Act of 2011 – A bill to amend the Family and Medical Leave Act (FMLA) to provide leave because of the death of a son or daughter. This amendment would ensure that the death of a child is treated like other life-altering events, allowing parents to grieve.
Status: This bill is in the first step in the legislative process. (as of 12/2/11)http://www.govtrack.us/congress/bill.xpd?bill=s112-1358

S. 1283: Family and Medical Leave Inclusion Act – A bill to amend the Family and Medical Leave Act (FMLA) to permit leave to care for a domestic partner, parent-in-law, adult child, sibling, grandchild, or grandparents who have a serious health condition, and for other purposes.
Status: This bill is in the first step in the legislative process. (as of 7/15/11)http://www.govtrack.us/congress/bill.xpd?bill=s112-1283

H.R. 1440: Family and Medical Leave Enhancement Act of 2011 – To amend the Family and Medical Leave Act (FMLA) to allow employees to take, as additional leave, parental involvement leave to participate in or attend their children’s and grandchildren’s educational and extracurricular activities, and to clarify that leave may be taken for routine family medical needs and to assist elderly relatives, and for other purposes. Under this legislation, the FMLA would apply to employers with 25 or more employees, not 50 as is the current law.
Status: This bill is in the first step in the legislative process. (as of 7/5/11)http://www.govtrack.us/congress/bill.xpd?bill=h112-1440

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Compare Health Insurance Plans Online

2011-12-07T12:18:00.000-06:00

The Department of Health and Human Services (HHS) has announced an online tool for small business owners to obtain information about local health plan benefits and pricing in 2012. The website will contain detailed reviews of health insurance plan choices, including the ability to research locally available products in an unbiased manner. Although you cannot enroll through the website, HHS is hoping this will foster a more transparent and competitive marketplace.

The tool is located at http://www.healthcare.gov/, which was created under the requirements contained in the Patient Protection and Affordable Care Act (PPACA). To access the small business insurance finder, go to the home page and click on the blue tab labeled "find insurance options" at the top of the page.

The new information added gives small business owners access to the following:

Insurance product choices for a given zip code, sorted by out-of-pocket limits, average cost per enrollee, or other factors;
A summary of cost and coverage for small group products that shows the available deductibles, co-pay options, included and excluded benefits, and benefits available for purchase at additional cost; and
The ability to filter product selection based on whether the plans are Health Savings Account eligible, have prescription drug, mental health, or maternity coverage, or allow for domestic partner or same sex coverage.

More than 530 insurers have provided information for more than 2,700 coverage plans across all 50 states and the District of Columbia. In addition, the website provides extensive information about consumer rights, tips for how to navigate the market's complexities, and details on how the PPACA provides new protections for beneficiaries.

While this tool arms small employers with general knowledge of the benefit plans available, business owners should be mindful that it does not assist with the complexities of the group application process (e.g., carrier deadlines and requirements, participation rules, market segment and domiciliary issues, eligibility criteria, etc.). Additionally, legal and tax responsibilities and exposures are vital matters (e.g., cafeteria plan rules, plan disclosures, privacy and security obligations, nondiscrimination testing, etc.) that should be considered during the group coverage process.
The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

H-1B Fiscal Year 2012 Cap Season

2011-12-05T09:59:00.000-06:00

The H-1B Program
U.S. businesses use the H-1B program to employ foreign workers in specialty occupations that require theoretical or technical expertise in specialized fields, such as scientists, engineers, or computer programmers.

Fiscal Year 2012 H-1B Cap Count
On November 22, 2011, U.S. Citizen and Immigration Services (USCIS) received a sufficient number of petitions to reach the statutory cap for FY 2012. USCIS also received more than 20,000 H-1B petitions on behalf of persons exempt from the cap under the advanced degree exemption as of October 19, 2011. USCIS will reject cap-subject petitions for new H-1B specialty occupation workers seeking an employment start date in FY 2012 that are received after November 22, 2011.

This cap does not affect individuals who have already been granted H-1B status and are extending their stay or moving to a new employer. Additionally, certain employers including universities and affiliated non-profit research centers and hospitals, are not subject to the cap. USCIS continues to accept cap-exempt petitions, DOD petitions and Chile/Singapore H-1B1 petitions requesting an employment start date in FY 2012.

Cap Amounts
The current annual cap on the H-1B category is 65,000. Not all H-1B nonimmigrants are subject to this annual cap. Please note that up to 6,800 visas are set aside from the cap of 65,000 during each fiscal year for the H-1B1 program under the terms of the legislation implementing the U.S.-Chile and U.S.-Singapore Free Trade Agreements. Unused numbers in this pool are made available for H-1B use for the next fiscal year.

For instructions on how to properly file a H-1B petition and/or additional information, please click here.

Resource: U.S. Citizenship and Immigration Services, H-1B Fiscal Year (FY) 2012 Cap Season

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Open Enrollment for Child-Only Health Insurance (Maryland)

2011-11-30T12:39:00.001-06:00

CONSUMER ADVISORY

January is Open Enrollment for Child-Only Health Insurance Policies in Maryland
Policies Available for Children 18 and Under With No Exclusions for Preexisting Conditions

January is open enrollment for CareFirst BlueCross BlueShield and Kaiser Foundation Health Plan of the Mid-Atlantic States individual health insurance policies for children. During January, these two companies will offer policies for children age 18 and under with no exclusions for preexisting conditions. This is an opportunity for those families that do not have access to family policies to find coverage for their children.

If an application is received by one of these companies on or before January 15, 2012, the policy will be effective February 1, 2012. If the application is received between January 16, 2012 and January 31, 2012, coverage may be delayed until February 16, 2012. The next open enrollment period will not take place until July 2012.

Information regarding this Open Enrollment period and how to apply for child-only policies will appear on these companies’ websites during the month of January:

CareFirst BlueCross BlueShield – 800-544-8703
www.carefirst.com

Kaiser Foundation Health Plan of the Mid-Atlantic States – 800-245-3181
http://individual-family.kaiserpermanente.org/healthinsurance/

If you have questions about how to shop for health insurance and how to compare plans, please refer to: A Consumer Guide to Health Insurance at www.mdinsurance.state.md.us/sa/docs/documents/consumer/publicnew/consumerguidetohealthinsurance.pdf or contact the Maryland Insurance Administration at 410-468-2000 or 800-492-6116 to requeset a copy.

Posted by the Maryland Insurance Administration on 11/28/11.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Retirement News for Employers

2011-11-28T10:52:00.001-06:00

Mark Your Calendar

Operating a retirement plan can be a time-consuming job. To help you, below are some important dates in the upcoming months. Please note that these deadlines are for calendar-year plans (non-calendar-year plans must adjust the dates):

December 2:

Give 2012 plan year notice to eligible employees for safe harbor 401(k) plans and plans containing an eligible automatic contribution arrangement.
Give Qualified Default Investment Alternative notice to participants/beneficiaries in self-directed defined contribution plans whose contributions defaulted to the QDIA.

December 31:

Distribute 2010 401(k) excess contributions (including income or losses for 2010) and excess aggregate contributions without jeopardizing the plan’s tax-qualified status.
Revoke a single-employer defined benefit plan sponsor’s previous election to use a funding balance to offset minimum required contributions for the 2011 plan year, to the extent the election exceeded the full minimum required contribution for the year (only for plans with valuation dates on the first day of the plan year).
Elect to reduce January 1, 2011, funding balances to avoid or lift benefit restrictions under IRC section 436 for a single-employer DB plan.

January 15: Make the 2011 fourth quarter contributions for DB plans.

January 17: File Form 8955-SSA for both the 2009 and 2010 plan years by the later of (1) January 17, 2012 or (2) the due date that generally applies for filing the Form 8955-SSA for 2010.

January 31:

File Form 945, Annual Return of Withheld Federal Income Tax. If you made deposits timely in full payment of the taxes for 2011, you may file Form 945 by February 10, 2012.
Trustees and custodians must issue Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., to recipients of 2011 retirement plan distributions.
Amend for recent law changes and submit the plan for a determination letter, if desired, for an individually designed plan with an EIN ending in 1 or 6.

Reference: http://www.irs.gov/retirement/article/0,,id=249859,00.html

Prescriptions Covered Under the Preventive Health Services

2011-11-23T08:37:00.000-06:00

The Preventive Health Services portion of the Affordable Care Act (ACA) requires all non-grandfathered helath inusrance plans to cover certain preventive services, some of which are prescription drugs, at no cost to the member effective with the program's first new plan year on or after September 23, 2010. As a reminder, the ACA exempts grandfathered plans from implementing these requirements until 2014.

For convenience, below is a table that identifies those categories that affect your prescription drug benefits. Preventive care services are covered at a $0 co-pay, certain program beenfit designs still apply. A written prescription is still required in order to obtain these medications.

Uniform Benefit Summaries - DELAYED

2011-11-21T08:41:00.000-06:00

A few weeks ago it was reported that DOL, IRS and CMS were considering a delay in the Summary of Benefits and Coverage (SBC) requirements. Currently, in the proposed regulations, the agencies anticipated an effective date of March 23, 2012.

Last week the DOL announced that the effective date of the SBC requirements would be delayed when the final regulations were issued. However, the DOL did not provide what that effective date would be. Rather, DOL indicated that when the final regulations are released, plans will be given a "sufficient time" to comply. Based on prior informal conversations, it is anticipated that the final regulations will be issued in early 2012 with a potential effective date being in late 2012 or January 1, 2013.

Please note these are unconfirmed expectations. Nothing has been officially released with respect to any of this timing. These are just projections subject to change upon the official release.

A copy of the DOL release can be found here: http://www.dol.gov/ebsa/faqs/faq-aca7.html

Resource: Mark Stember, Kilpatrick Townsend Attorneys at Law

MD 2012 Income Tax Withholding

2011-11-07T10:10:00.002-06:00

Maryland released 2012 withholding tables, effective Jan. 1, 2012, reflecting a 0.75 percent reduction in the top income tax withholding rate and the supplemental wage withholding rate.

You can find the Maryland Employer Withholding Guide here: http://forms.marylandtaxes.com/current_forms/Withholding_Guide.pdf

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

HHS Will Not Implement CLASS Program

2011-11-02T09:53:00.002-05:00

Health and Human Services Secretary Kathleen Sebelius announced on Oct. 14 that the department is suspending its efforts to implement a long-term care program authorized by the health system reform law -- a move that will increase the law's cost. HHS had spent 19 months examining methods to implement the Community Living Assistance Services and Supports program, which would have given Americans the option to buy long-term-care insurance policies not available on the private market.

"Despite our best analytical efforts, I do not see a viable path forward for CLASS implementation at this time," Sebelius wrote in an Oct. 14 letter to congressional leaders. The health reform law required the secretary to launch a program that is actuarially viable for 75 years, fully paid for by enrollee premiums, and offers lifetime and cash benefits, but HHS determined that is not possible.

Republicans and other Obama administration officials, including Centers for Medicare & Medicaid Services Chief Actuary Richard Foster, had said the CLASS Act was financially unsustainable. Sen. Edward M. Kennedy (D, Mass.) advocated for the program's inclusion in the health reform package before he died in August 2009.

Sebelius' decision means that the health reform law will cost more. The Congressional Budget Office estimated in March 2011 that the CLASS Act would reduce federal deficits by $83 billion over a decade, mostly because the program initially would collect more premium dollars than it would need to pay for benefits.

Sebelius' letter and a report detailing HHS' work on the CLASS Act is available online (www.hhs.gov/secretary/letter10142011.html).

Resource: White House discontinues long-term care program. (2011, Oct 31). American Medial News. Retrieved from: http://www.ama-assn.org/amednews/2011/10/31/gvbf1031.htm#1.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Social Security Benefits to Increase

2011-10-31T07:51:00.000-05:00

Monthly Social Security and Supplemental Security Income (SSI) benefits for more than 60 million Americans will increase 3.6 percent in 2012, the Social Security Administration announced on Oct. 19, 2011.

The purpose of the cost-of-living adjustment (COLA) is to ensure that the purchasing power of Social Security and SSI benefits is not eroded by inflation. The COLA is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), as determined by the U.S. Bureau of Labor Statistics. The 3.6 percent COLA for 2012 was based on the increase in the CPI-W from the third quarter of 2008 through the third quarter of 2011.

Social Security Tax Rates. The FICA tax rates in 2012 will remain at the same level as in 2011: 7.65 percent for employees and 15.3 percent for the self-employed. Social Security and Medicare taxes, also known as FICA (Federal Insurance Contributions Act) taxes, must be withheld from employees' wages.

Earnings Limit. The earnings limit for workers who are younger than full retirement age (age 66 for people born in 1943 through 1954) will be $14,640 (SSA deducts $1 from benefits for each $2 earned over $14,640). The earnings limit for workers turning 66 in 2012 will be $38,880 (SSA deducts $1 from benefits for each $3 earned over $38,880 until the month the worker turns age 66). There is no limit on earnings for workers who are full retirement age or older for the entire year.

Higher Medicare Premiums. For some beneficiaries, their Social Security increase may be partially or completely offset by increases in Medicare premiums, according to the SSA. Information about Medicare premium changes for 2012 are expected to be announced in November 2011.The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Miller CEBS, S. (2011). Social Security Benefits to Increase 3.6% for 2012; Higher Cap on Taxable Earnings. Society for Human Resource Management. Retrieved from http://www.shrm.org/hrdisciplines/compensation/Articles/Pages/SocialSec2012.aspx.

IRS Announces Pension Plan Limitations for 2012

2011-10-26T09:57:00.001-05:00

IR-2011-103, Oct. 20, 2011

WASHINGTON — The Internal Revenue Service today announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for Tax Year 2012. In general, many of the pension plan limitations will change for 2012 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, other limitations will remain unchanged. Highlights include:

The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $16,500 to $17,000.
The catch-up contribution limit for those aged 50 and over remains unchanged at $5,500.
The deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) between $58,000 and $68,000, up from $56,000 and $66,000 in 2011. For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phase-out range is $92,000 to $112,000, up from $90,000 to $110,000. For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $173,000 and $183,000, up from $169,000 and $179,000.
The AGI phase-out range for taxpayers making contributions to a Roth IRA is $173,000 to $183,000 for married couples filing jointly, up from $169,000 to $179,000 in 2011. For singles and heads of household, the income phase-out range is $110,000 to $125,000, up from $107,000 to $122,000. For a married individual filing a separate return who is covered by a retirement plan at work, the phase-out range remains $0 to $10,000.
The AGI limit for the saver’s credit (also known as the retirement savings contributions credit) for low-and moderate-income workers is $57,500 for married couples filing jointly, up from $56,500 in 2011; $43,125 for heads of household, up from $42,375; and $28,750 for married individuals filing separately and for singles, up from $28,250.

For additional details visit http://www.irs.gov/newsroom/article/0,,id=248482,00.html.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Payroll Outsourcing Fraud

2011-10-24T15:04:00.000-05:00

The Internal Revenue Service issued advice on in September to employers who outsource their payroll duties to third-party service providers.

In a tax tips email, the IRS referred to recent prosecutions of individuals and companies that pretended to be payroll service providers and instead stole funds intended for payment of employment taxes. The IRS noted that the employer is ultimately responsible for depositing and paying federal tax liabilities.

“Even though you forward the tax payments to the third party to make the tax deposits, you — the employer — are the responsible party,” the IRS cautioned. “If the third party fails to make the federal tax payments, the IRS may assess penalties and interest. The employer is liable for all taxes, penalties and interest due. The IRS can also hold you personally liable for certain unpaid federal taxes.”

The IRS added that if there are any issues with an employer’s account, the agency will send correspondence to the address it has on record. The IRS also strongly recommended that employers do not change the address of record to that of the payroll service provider, as it could limit an employer’s ability to stay informed of tax matters involving their business.

The IRS also urged employers to choose a payroll service provider that uses the Electronic Federal Tax Payment System. Employers are also able to register on the EFTPS system to get their own PIN to verify the payments.

For more information on the responsibilities of employers outsourcing payroll, payroll service providers and EFTPS, visit http://www.irs.gov/.

Cohn, M. (September 6, 2011). IRS warns employers about payroll outsourcing fraud. Retrieved from Employee Benefit News.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Uninsured would rather buy insurance than pay penalty

2011-10-19T13:19:00.002-05:00

According to a new survey, 76 percent of uninsured Americans say they’re ready to buy health coverage—if the price is right.

“If they follow through when the exchanges open, the number of the uninsured will be reduced to about 5 percent of the population—a victory for reform, though possibly a major expense for government,” authors of an Oliver Wyman report say.

Still, the uninsured are extremely sensitive to price. This means that subsidies will play a major role in keeping consumers in the program. “Interestingly, if falling subsidies drive consumers back to the ranks of the uninsured, the ones who suffer most will likely be not the poor, but the middle income,” the authors report.

Oliver Wyman estimates that there are 51 million uninsured Americans. About 18 million have incomes below 133 percent of the Federal Poverty Level; they would be eligible for Medicaid coverage under ACA and would not be purchasing insurance for themselves. If, as the survey suggests, 76 percent of the remaining 33 million uninsured purchase coverage—either through the exchanges or in the individual market—that would represent 25 million newly insured Americans, reducing the number of the uninsured by about half.

Factor in uninsured people who will enroll in Medicaid (about 11 million in the estimate of the Urban Institute), and the number of the uninsured will be reduced from 51 million to about 15 million, or from 16.6 percent of the population to about 5 percent.

“This suggests that ACA may in fact be able to meet its goal of substantially reducing the number of the uninsured,” the authors write. Still, there are additional implications for health care, which include the uninsured entering the health care market potentially represents a critical mass of consumers that could help push insurers and health care providers toward lower costs and higher quality.

These 25 million newly insured Americans represent 8 percent of the population, a segment more than half the size of the Generation X segment (with 45 million). “They will wield something on the order of $100 billion of purchasing power in the health care arena,” the authors write. “We expect them to demand new products and services unavailable in today’s market, where employers make most health insurance decisions.”

Mayer, K. (September 6, 2011). Uninsured would rather buy insurance than pay penalty. Retrieved from http://www.benefitspro.com/2011/09/06/uninsured-would-rather-buy-insurance-than-pay-pena.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Kaiser 2011 Employer Health Benefits Annual Survey

2011-10-17T09:57:00.001-05:00

Last month Kaiser Family Foundation and Health Research & Educational Trust released their 2011 Employer Health Benefits Annual Survey.

Below are some highlights taken from the Summary of Findings:

Annual premiums for employer-sponsored health insurance have increase 8% from 2010 for individual coverage and 9% for family coverage. Since 2001, premiums for family coverage have increased 113%. (Exhibit A)
Covered workers contribute on average, 18% of the premium for single coverage and 28% of the premium for family coverage, similar to the percentages they contributed in 2010.
Overall, PPOs are by far the most common plan type, enrolling 55% of covered workers. 17% are enrolled in an HMO, 10% in a POS plan, and 1% enrolled in a conventional plan. Enrollment in high deductible health plans (HDHP) continues to ruse with 17% of covered workers, up from 13% in 2010.

31% of covered workers are in a plan with a deductible of $1,000 for single coverage, similar to the 27% reported in 2010, but significantly more than the 22% reported in 2009. (Exhibit E)
60% of firms offer health benefits to their workers in 2011 - a significant reduction from the 69% reported in 2010, but much more in line with the levels for years prior to 2010 (Exhibit F).
26% of large firms (200+ workers) offer retiree health benefits in 2011, the same percentage as 2010.
72% of firms had at least one grandfathered health plan when surveyed (January through May 2011).
Among firms with fewer than 50 employees that offer coverage, 29% said they have made an attempt to determine if the firm is eligible for the Small Employer Tax Credit. Of these firms, 30% said that they intend to claim the credit for both 2010 and 2011, 21% said they do not intend to claim the credit for either year, 41% are not sure, and small percentages said they do not know if they will claim the credit for they intend to claim it for only one of the two years.

To download a copy of the entire 225 page survey or certain sections, please visit http://ehbs.kff.org/.

2012 Medicare Part D Standard Plan Cost-Sharing

2011-10-13T13:53:00.001-05:00

Reference: National Center for Benefits Outreach & Enrollment

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

CMS Section 111 Reporting Alert

2011-10-10T15:19:00.000-05:00

An Alert published by the Centers for Medicare & Medicaid Services on 9/27/11 stated the following updates to Section 111 Reporting Provisions:

Change to Annual Benefit Level Reporting Threshold: Effective 10/3/11, only HRA coverage that reflects an annual benefit level of $5,000 or more is to be reported. HRAs of an annual benefit amount of less than $5,000 are exempt from reporting. Funding deposit amounts rolled over from the previous year's coverage must be included when calculating the current year's annual benefit amount.
Effective immediately, a Notice of Termination is to be submitted to the Coordination of Benefits Contractor (COBC) when an HRA insured's HRA benefit coverage is exhausted and no additional funds will be added to the HRA for the remainder for the HRA's current benefit coverage term.

For additional information, please review the alert posted here.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Congress Reconsiders Restrictions on FSA

2011-10-05T14:00:00.000-05:00

St. Paul, Minn. — Bills floating through Congress would lift some restrictions on flexible spending accounts and allow employees to set aside pre-tax earnings to pay for out-of-pocket health care expenses.

Flexible spending accounts have been fixtures of many employer-sponsored health plans for about the past 20 years, used used by small and large companies to keep health care costs down for their employees.

But the federal health care law stopped consumers from using these dollars to cover over-the-counter medicine without a doctor's prescription.

Not everyone realized last January that they could no longer use their flex account dollars for over-the-counter medicines such as vitamin supplements or allergy drugs.

Tim Gallagher who runs the Austin, Minn. based regional drug store chain, Astrup Drug said his staff of about 30 pharmacists were the ones who had to give consumers the bad news.

"When they have a benefit that's been given to them and then it changes, they don't understand why and the patients have not been happy," Gallagher said.

The law does allow consumers to use flex dollars for over-the-counter medicine, but only with a doctor's prescription. And many people weren't shy about doing just that. The change in law caught Roseville family practice physician Jamie Lyn Reinschmidt off guard when suddenly, she began to receive calls from three or four patients each week, sometimes wanting 5 to 10 prescriptions at a time for over-the-counter medicines.

It was a not-so-subtle reminder that the federal health care law was changing health care, Reinschmidt said.

The reason for taxing previously untaxed items was to raise revenue to help expand coverage to 32 million more Americans in 2014.

Jean Abraham, who served on the President's Council of Economic Advisors specializing in health care during the Bush Administration and Obama Administrations and is a health economist at the University of Minnesota, said there are a couple of reasons why flexible spending accounts were targeted. One is that those people who have these accounts tend to have higher incomes.

"There's also an equity issue underlying this rationale, specifically, why should individuals with employer-sponsored insurance get a tax break on over the counter medicines that's not available to individuals who don't have employer-based coverage," Abraham said.

Tapping into consumer frustration and discontent with this rule change, some members of Congress have introduced bills to repeal it. Minnesota Congressman and Republican Erik Paulsen introduced a bill in February that would not only allow consumers to use flex accounts for over-the-counter medicine, it would also remove a $2,500 contribution limit on consumers.

Any legislation repealing the change to flex account spending has a major hurdle to overcome, and that is finding money — about $18 billion — to make up in the federal budget. Congress would have to find the money somewhere else in the budget and the bills' authors have yet to identify where that money will come from, Paulsen said.

Stawicki, E. (2011). Congress reconsiders restrictions on flexible spending accounts for health care. MPR News. Retrieved from http://minnesota.publicradio.org/display/web/2011/08/22/congress-restrictions-flexible-spending-accounts-health-care/.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Tax Treatment of Cell Phones

2011-10-03T20:33:00.000-05:00

The Internal Revenue Service (IRS) issued guidance designed to clarify the tax treatment of employer-provided cell phones.

The guidance relates to a provision in the Small Business Jobs Act of 2010, enacted last fall, that removed cell phones from the definition of listed property, a category under tax law that normally requires additional record keeping by taxpayers.

The Notice issued today provides guidance on the treatment of employer- provided cell phones as an excludible fringe benefit. The Notice provides that when an employer provides an employee with a cell phone primarily for non-compensatory business reasons, the business and personal use of the cell phone is generally nontaxable to the employee. The IRS will not require recordkeeping of business use in order to receive this tax-free treatment.

Simultaneously with the Notice, the IRS announced in a memo to its examiners a similar administrative approach that applies with respect to arrangements common to small businesses that provide cash allowances and reimbursements for work-related use of personally-owned cell phones. Under this approach, employers that require employees, primarily for non-compensatory business reasons, to use their personal cell phones for business purposes may treat reimbursements of the employees' expenses for reasonable cell phone coverage as nontaxable. This treatment does not apply to reimbursements of unusual or excessive expenses or to reimbursements made as a substitute for a portion of the employee's regular wages.

Under the guidance issued today, where employers provide cell phones to their employees or where employers reimburse employees for business use of their personal cell phones, tax free treatment is available without burdensome record keeping requirements. The guidance does not apply to the provision of cell phones or reimbursement for cell-phone use that is not primarily business related, as such arrangements are generally taxable.

Internal Revenue Service. (2011). IRS Issues Guidance on Tax Treatment of Cell Phones; Provides Small Business Recordkeeping Relief [Press Release]. Retrieved from http://www.irs.gov/pub/irs-news/ir-11-093.pdf.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Sexual Harassment Prevention Tips

2011-09-28T09:29:00.001-05:00

Supervisors and managers have to pay special attention to the following rules:

1. REFRAIN from unlawful discrimination, harassment and retaliation against members of any protected group and any other unacceptable conduct, even if not unlawful.

2. REPORT all complaints by an employee of unlawful discrimination, harassment or retaliation or other inappropriate conduct to your HR manager. Even if the employee requests that nothing be done, asks for confidentiality, or if you believe that the complaint does not have merit.

3. RESPOND proactively to all possible unlawful discrimination, harassment or retaliation, or other inappropriate conduct, even in the absence of a complaint. Remember - silence equals unspoken support! You cannot tolerate unacceptable conduct even if there is no complaint.

4. REMEDY unlawful discrimination, harassment and retaliation, and other inappropriate conduct (even if not unlawful). Focus on inappropriateness (not illegality) and consult with the HR manager about appropriate corrective action.

5. (DON'T) RETALIATE against complainants, witnesses and others who participate in the investigatory process. It covers not only tangible employment actions but also other material terms and conditions of employment, and retaliation independent of the workplace.

Segal, J. "Sex Harassment: 5 Things Supervisors Need to Do to Prevent It." HR Daily Advisor. 22 Sept 2011.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Your Worst Nightmare... Open Enrollment!

2011-09-19T14:47:00.000-05:00

When the fall season hits, people often think of the start of school, football, cooler weather, and... open enrollment?! Yup - it's that time again for most employers! But we're here to make this process easier for you! Here are seven steps to an easier open enrollment:

1. Avoid pre-packaged solutions. Work with carriers and brokerage firms that are willing to get to know you and your employees, and your unique needs. Target education and communication efforts to specific pockets of your employee population.

2. Avoid information overload. Most of the time, employees are overwhelmed with their benefits information at enrollment time. This usually has a negative impact on participation. Therefore, use a variety of tools in order to reach your employees, and you'll end up with more educated and more satisfied employees.

3. Highlight benefits through effective communication. Utilize communication media relevant to your employees. Instead of just emails or flyers, consider podcasts, Web-based seminars, intranet articles, employee blog posts, or system-wide voicemail messages. For employees without computers or regular office workspaces, consider staff meetings, or paycheck stuffers as opportunities to deliver benefits messages.

4. Consider your timing. Sending information too far in advance of an enrollment may cause employees to forget. Sending information too close to an enrollment may not allow people to work the enrollment into their schedules - or determine their true benefit needs with their family members. Make sure the timing is just right for your employees.

5. Utilize your broker. Most brokerage firms provide a team to assist you with your open enrollment and daily activities. Ask for your consultant for assistance - someone to attend meetings, prepare communications, or even sit down one-on-one with your employees to help them make more informed decisions.

6. Write for the layperson. Having a clear communication campaign - written in a manner that employees understand, without a lot of legal and technical jargon - facilitates their understanding of your benefits. Also consider the multicultural nature of your employees when developing a campaign, in order to ensure that language and cultural issues are considered.

7. Measure results. You won't know if your open enrollment is working well unless you examine how your employees are participating. Use this data to make just-in-time changes to your enrollment strategy, if necessary.

Using these tips can also help decrease the number of support calls made to the HR department, increase employee engagement metrics, meet benefits cost targets, reduce last minute stress, and may even help you get more sleep!

Questions? Comments? Concerns? Email compliance@workforcetactix.com.

Reference: http://www.benefitspro.com/2011/08/24/7-ways-to-make-open-enrollment-easier

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Important Information for Small Businesses Owners

2011-09-13T09:51:00.000-05:00

By Richard Sorian, Assistant Secretary for Public Affairs

If you’re a small business owner, there are a few deadlines approaching that you won’t want to miss in order to help provide health coverage for your employees.

As you might know, if you have up to 25 employees, pay average annual wages below $50,000, and provide health insurance, you may qualify for a small business tax credit of up to 35% (up to 25% for non-profits) to offset the cost of your insurance. This will bring down the cost of providing insurance.

In order to take advantage of these tax credits, you must file by a certain date. Here are two important tax filing deadlines in coming weeks that you should be aware of:

September 15. Corporations that file on a calendar year basis and requested an extension to file to September 15 can calculate the small employer health care credit on Form 8941 and claim it as part of the general business credit on Form 3800, which they would include with their corporate income tax return.
October 17. Sole proprietors who file Form 1040 and partners and S-corporation shareholders who report their income on Form 1040 have until October 17 to complete their returns. They would also use Form 8941 to calculate the small employer health care credit and claim it as a general business credit on Form 3800, reflected on line 53 of Form 1040.

The Department of Health and Human Services (HHS), along with the IRS, wants to make sure that businesses who qualify take advantage of the credit. In order to get the word out, there is a big outreach effort that will include IRS YouTube videos in English, Spanish and American Sign Language.

The goal is to remind employers about the upcoming extension deadlines and also provide details on other important information about the credit, including:

Businesses who have already filed can still claim the credit: For small businesses that have already filed and later determine they are eligible for the credit, they can always file an amended 2010 tax return. Corporations use Form 1120X and individual sole proprietors use Form 1040X.
Businesses without tax liability this year can still benefit: The Small Business Jobs Act of 2010 provided that for Tax Year 2010, eligible small businesses may carry back unused general business credits (including the small employer health care tax credit) five years. Previously these credits could only be carried back one year. Small businesses that did not have tax liability to offset in 2010 should still evaluate eligibility for the small business health care tax credit in light of this expanded carry back opportunity.
Business that couldn’t use the credit in 2010 can claim it in future years: Some businesses that already locked into health insurance plan structures and contributions for 2010 may not have had the opportunity to make any needed adjustments to qualify for the credit for 2010. So these businesses may be eligible to claim the credit on 2011 returns or in years beyond. Small employers can claim the credit for 2010 through 2013 and for two additional years beginning in 2014.

Additional information about eligibility requirements and calculating the credit can be found on the Small Business Health Care Tax Credit for Small Employers page of IRS.gov.

Reference: http://www.healthcare.gov/news/blog/smallbusiness09072011.html

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

1% is the new 401(k) cost ratio threshold

2011-09-12T14:40:00.000-05:00

By: Rich White

Beginning in 2012, the SEC will require all participant-directed retirement plans to provide a detailed quarterly breakdown of all plan cost that participants pay.

That makes the next six months a good time to review investment management cost ratios. The total expense ratios of 1% or less are becoming the new standard for 401(k) stock funds.

According to the 2011 Investment Company Fact Book by the Investment Company Institute, 27% of 401(k) stock funds had total expense ratios below 0.5% and another 49% had expense ratios from 0.5% to 1%. Only 24% of 401(k) stock funds were more expensive. (Total expense ratio includes fund operating expenses and 12b-1s.)

You can view the full 2011 Fact Book here: www.ici.org/pdf/2011_factbook.pdf.

Questions or concerns?? Email compliance@workforcetactix.com.

Reference: http://www.benefitspro.com/2011/08/29/1-percent-is-the-new-401k-cost-ratio-threshold

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Paid Time Off Clarification (FLSA)

2011-09-08T15:38:00.001-05:00

A common question asked by employers is, "Can I require an employee to use paid time off (PTO) if he or she hasn’t requested it? Can I limit when an employee can use PTO?"

In general, yes. The Fair Labor Standards Act (FLSA) does not require pay for time not worked, and paid time off benefits are a matter of agreement between the employer and the employee. Restrictions on the amount of notice required to use PTO and the increments in which PTO must be used are common practice. To ensure consistency, employers should create policies regarding when employees may use PTO and when they can’t.

Many employers have peak operating times during which an employee’s absence can cause a hardship, and employers may apply restrictions regarding the use of vacation leave during these times as long as they do so consistently and without discrimination. Keep in mind, however, that leave protected by law, such as FMLA leave, cannot be restricted due to the operations of the business, and qualified absences under these laws cannot be denied due to company policy.

Alternatively, there may be times when a company’s business operations deem it necessary to reduce staff temporarily through furloughs, plant shutdowns or slow operating periods. During these times, employers may require employees to use their paid time off benefits, again, as long as they do so consistently and without discrimination. Just be sure to not unduly restrict the use of leave; if you offer the benefit of paid time off, employees should have a reasonable opportunity to take advantage of the benefit.

A 2009 U.S. Department of Labor opinion letter regarding forced use of PTO for exempt employees during a plant shut down indicates the Wage and Hour Division’s position as follows:

“Since employers are not required under the FLSA to provide any vacation time to employees, there is no prohibition on an employer giving vacation time and later requiring that such vacation time be taken on a specific day(s). Therefore, a private employer may direct exempt staff to take vacation or debit their leave bank account […] whether for a full or partial day’s absence, provided the employees receive in payment an amount equal to their guaranteed salary.”

What about when an employee takes time off, either in full or partial days, but does not request to use his or her paid time off benefits? The employer’s policy will determine whether time off benefits will automatically be deducted when available. Because exempt employees cannot have their salary docked for partial day absences, many employers will require the use of PTO for these absences as part of their company policy.

A clearly written company policy regarding the use of PTO is key:

Make sure employees clearly understand the company’s expectations and supervisors and managers are trained to properly enforce the policy.
Indicate the periods of time during which vacation leave is restricted, the number of employees that can be out at one time, procedures for requesting leave, process for prioritizing multiple requests (first come/first served, seniority, etc.), whether available leave will be automatically deducted for absences, and the appropriate use of leave without pay.

Employers restricting the use of PTO or forcing employees to use PTO should check state legal requirements prior to implementing such a policy. For instance, in the state of Maryland, the Maryland Flexible Leave Act requires employers to allow employees to use any form of earned PTO to care for a family member due to illness. The law applies to any form of paid leave, including vacation, sick leave, and compensatory time. Employees who earn more than one type of accrued paid leave may choose the type and amount of leave they want to use.

Reference: SHRM

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Earthquakes, Hurricanes & Floods! Oh My!

2011-09-06T14:23:00.002-05:00

The East Coast was hit hard this past month with an earthquake, hurricanes and flooding. Some employees will be working on trying to find money to pay for repairs and clean up and might look to their retirement plan savings as a resource.

Here are some IRS rules regarding Hardship Distributions for 401(k) plans:

The Plan must provide the specific criteria used to make the determination of hardship. In determining the existence of a need and of the amount necessary to meet the need, the plan must specify and apply nondiscriminatory and objective standards.
For a distribution from a 401(k) plan to be on account of hardship, it must be made on account of an immediate and heavy financial need of the employee and the amount must be necessary to satisfy the financial need.
Certain expenses are deemed to be immediate and heavy, including:

certain medical expenses;
costs relating to the purchase of a principal residence;
tuition and related educational fees and expenses;
payments necessary to prevent eviction from, or foreclosure on, a principal residence;
burial or funeral expenses; and
certain expenses for the repair of damage to the employee's principal residence.

A financial need may be immediate and heavy even if it was reasonably foreseeable or voluntarily incurred by the employee.
If a 401(k) plan provides for hardship distributions, the plan will specify what information must be provided to the employer to demonstrate a hardship.
The amount of elective contributions available for a hardship distribution cannot be more than the amount of the employee's total elective contributions, including designated Roth contributions, as of the date of distribution reduced by the amount of previous distributions of elective contributions.
After an employee receives a hardship distribution, generally the employee will be prohibited from making elective contributions and employee contributions to the plan and all other plans maintained by the employer for at least 6 months after receipt of the hardship distribution.
Hardship distributions are includible in gross income unless they consist of designated Roth contributions. In addition, they may be subject to an additional tax on early distributions of elective contributions. Unlike loans, hardship distributions are not repaid to the plan. Thus, a hardship distribution permanently reduces the employee's account balance under the plan.

In addition, there are also Qualified Hurricane Distributions that provides for special relief for victims of hurricanes (specifically Katrina, Rita and Wilma). This distribution is not yet available for victims of hurricane Irene, but may become available in the future.

For more detailed information regarding 401(k) plans, 403(b) plans, and 457(b) plans, please visit: http://www.irs.gov/retirement/article/0,,id=162416,00.html.

End to COBRA Subsidy??

2011-08-31T12:48:00.001-05:00

I’ve heard that the COBRA Premium Reduction (Subsidy) ends on August 31, 2011, is this true?

Not necessarily, some individuals will still be eligible to receive the subsidy beyond August 31, 2011. The American Recovery and Reinvestment Act (ARRA) provided a COBRA premium reduction for eligible individuals who were involuntarily terminated from employment through the end of May 2010. Due to the statutory sunset, the COBRA premium reduction under ARRA is not available for individuals who experience involuntary terminations after May 31, 2010.

However, individuals who qualified on or before May 31, 2010 may continue to pay reduced premiums for up to 15 months, as long as they are not eligible for another group health plan or Medicare even if their COBRA coverage did not start until a later date due to the terms of a severance arrangement, or the use of banked hours or other similar provision that delayed the start of their COBRA coverage. For example if an individual was involuntarily terminated on May 31, 2010 and due to the terms of a severance agreement their COBRA coverage did not start until December 1, 2010, they would still be eligible for the full 15 months of subsidy through February 29, 2012 as long as they are not eligible for another group health plan or Medicare.

Resource: http://www.dol.gov/ebsa/faqs/faq-cobra-premiumreduction.html

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Labor Law Poster Requirements

2011-08-29T10:15:00.004-05:00

Some of the statues and regulations enforced by agencies within the federal Department of Labor (DOL) and each state's labor division, requires posters or notices to be posted in the workplace. Posting requirements vary by statute, so visit the DOL website to ensure your are posting the correct notices for your employees.

Below is a list of mandatory federal labor law posters as well as mandatory posters for surrounding states.

Mandatory Federal Labor Law Posters (click each link for an electronic copy):

USERRA
OSHA
Fair Labor Standards Act (Minimum Wage)
Polygraph Protection
Equal Employment Opportunity
Family & Medical Leave
NLRB Pro-Union - Starting November 14, 2011, employers will be required to place this poster with other mandatory postings. The poster will state that employees have the right to act together to improve wages, to form or join a union and to bargain collectively with their employer - and to choose not to do any of these activities. The National Labor Relations Board (NLRB) said copies fo the poster will be available on their website by November 1st. It will be similar to the notice currently posted on the DOL website.

Mandatory Maryland Labor Law Posters include:

Wage & Hour Fact Sheet - $7.25
Equal Pay for Equal Work
Employment of Minors
Unemployment Insurance
Workers' Compensation
Employment Discrimination
Health Insurance Coverage
Occupational Safety & Health Law - MOSH

Mandatory Delaware Labor Law Poster include:

Minimum Wage - $7.25
Workers' Compensation
Child Labor
Discrimination
Payment of Wages
Breaks

Mandatory Virginia State Labor Law Posters include:

Workers' Compensation
Unemployment Insurance
Occupational Safety & Helath Law - OSHA
Federal Earned Income Tax Credit
Commonwealth of Virginia Income Tax Credit *new*

Mandatory Pennsylvania Labor Law Posters include:

Minimum Wage - $7.25
Employment Provisions
Public Accommodations
Unemployment Compensation
Equal Pay Law
Child Labor Law
Workers' Compensation
Hours for Minors

Mandatory West Virginia Labor Law Posters should include:

Minimum Wage - $7.25
Wage Payment and Collection Act
Human Rights Act
Unemployment Benefit

All state labor law posters must be posted in a conspicuous location!

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

New Rules for Uniform Benefit Cummunications

2011-08-24T15:23:00.001-05:00

Many consumers (including employers) do not have access to information or understand the information given to them in regards to their coverage, or the differences in the coverage and benefits provided by health plans when they shop for a new plan. Under proposed rules announced today, the Affordable Care Act will ensure health insurers and group health plans will provide Americans with private insurance clear, consistent and comparable information about their health plan benefits and coverage. Information that must be provided will include an easy to understand Summary of Benefits and Coverage, and a uniform glossary of terms commonly used in health insurance coverage such as “deductible” and “co-pay”.

Recent studies, including one from Consumers Union, the nonprofit publisher of Consumer Reports, show that forms like the ones proposed will help consumers fully understand their insurance coverage and its value, making it easier to find the coverage that is best for their needs.

Summary of Benefits and Coverage

Under the rules proposed in the guidance, insurance companies and group health plans will provide consumers with a concise document detailing simple and consistent information about health plan benefits and coverage. The proposed regulations contain standards that are intended to ensure that document will help consumers better understand the coverage they have and allow them to compare different coverage options. It will summarize the key features of the plan or coverage, such as the covered benefits, cost-sharing provisions, and coverage limitations and exceptions.

With the information provided in the Summary of Benefits and Coverage, as well as the specific illustrations of how this coverage will work, consumers will have additional resources to find the best coverage for themselves and their families – and employers can find the best coverage for their business and their employees.

Uniform Glossary of Terms

Under the proposed regulations, consumers will have a new tool to help them understand some of the jargon that makes it difficult to figure out what is covered and how insurance plans compare. Insurance companies and group health plans will be required to make available upon request a uniform glossary of terms commonly used in health insurance coverage such as “deductible” and “co-pay.” To help ensure the document is easily accessible for consumers, the Departments of Health and Human Services (HHS) and Labor will also post the glossary on the new health care reform website, www.HealthCare.gov and www.dol.gov/ebsa/healthreform/.

Accessing this Information

Under the rules in the proposed regulations, beginning on March 23, 2012, all health insurance issuers and group health plans will provide the Summary of Benefits and Coverage and the uniform glossary to consumers.

• Information when shopping for coverage: Consumers will have the critical information on their choices upfront, before they buy coverage, allowing them to make a more informed decision. An issuer or health plan will automatically provide a Summary of Benefits and Coverage to a consumer prior to enrolling in coverage and 30 days prior to reissuance or renewal of their health coverage so they are informed about the coverage they have.

• Information when coverage changes: People enrolled in a health plan must be notified of any significant changes to the terms of coverage reflected in the Summary of Benefits and Coverage at least 60 days prior to the effective date of the change.

• Information on demand: A shopper or person enrolled in coverage can request a copy of the Summary of Benefits and Coverage and must receive it within seven days. The uniform glossary will also be made available upon request, as well as in a link provided in the coverage label by the plan or insurance company. The Departments will also post a copy on www.HealthCare.gov and www.dol.gov/ebsa/healthreform/.

Use of Information Technology and Reducing Burden on Employers and Issuers

The proposed rules were developed with the goals of balancing effective communication and ease of comparison for individuals with minimization of cost and duplication. The Summary of Benefits and Coverage may be disclosed to consumers in either paper or electronic form if certain consumer safeguards are met. Therefore, it may be possible for a plan or issuer to post the Summary of Benefits and Coverage on its website or on HealthCare.gov, or provide it by email. Electronic disclosure is expected to reduce costs while consumer safeguards are designed to ensure actual receipt by individuals.

Public Comment

In keeping with the three Departments’ commitment to a transparent rulemaking process, this proposed rule is open to public comments for 60 days from the date of publication in the Federal Register. The proposed rules request comment on how the Summary of Benefits and Coverage and the uniform glossary can be provided to individuals while minimizing undue cost and burden on employers and health insurance issuers. Comments are also requested on different methods of providing the uniform glossary and the Coverage Examples, in the interest of streamlining compliance and making the implementation of these requirements as workable, efficient and user-friendly as possible.

To view the proposed template for the Summary of Benefits and Coverage, visit: http://www.healthcare.gov/news/factsheets/labels08172011b.pdf

To view the Notice of Proposed Rulemaking or learn how to submit public comment, visit:
Summary of Benefits and Coverage and Uniform Glossary
Templates, Instructions, and Related Materials under Public Health Service Act

Other technical information is available at: http://cciio.cms.gov/

Reference: http://www.healthcare.gov/news/factsheets/labels08172011a.html

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Insurance Exchange Regulations

2011-08-22T13:47:00.001-05:00

The Affordable Care Act creates Affordable Insurance Exchanges that will allow eligible individuals, families and small businesses to shop for coverage starting in 2014. More than half the states have already taken action to begin building an Exchange.

The Department of Health and Human Services (HHS) and Treasury released exchange regulations last week to help individuals apply for coverage.

The three proposed rules were designed to streamline the process of applying for coverage. They are:

Exchange, Eligibility & Employer Standards: Details the standards and process for enrolling in qualified health plans and insurance affordability programs, and outlines basic standards for employer participation in the Small Business Health Options Program (SHOP). Small employers participating in SHOP will be able to offer their employees a choice of health plans and cut their costs with new tax credits.
Medicaid Eligibility: Expands & simplifies Medicaid eligibility and promotes a simple, seamless system of affordable coverage by coordinating Medicaid and CHIP with the new Exchanges.
Health Insurance Premium Tax Credit: Lays out how individuals and families can receive premium tax credits to make health insurance coverage more affordable (issued by Treasury).

In the weeks ahead, the Administration will conduct an outreach campaign and ask for public comment on the three proposed rules from employers, consumers, state leaders, health care providers and insurers, and the American people. Comments on the proposed rule are due 75 days after publication in the Federal Register (refer to file code CMS-9974) and should be sent via the Federal Rulemaking Portal at http://www.regulations.gov; or by regular mail to CMS, Department of Health and Human Services, Attention: CMS-9974-P, P.O. Box 8010, Baltimore, MD 21244-8010.

The departments expect to modify the proposed rules issued today based on the feedback received.

Reference: http://www.hhs.gov/news/press/2011pres/08/20110812a.html

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Affordable Care Act: Grants Awards List

2011-08-17T09:02:00.000-05:00

When the Affordable Care Act is fully implemented in 2014, individuals and small businesses will have access to coverage through a private health insurance market - state based Affordable Insurance Exchanges.

On January 20, 2011, the U.S. Department of Health and Human Services (HHS) announced a new funding opportunity for Exchange Establishment grants to help states continue their work to implement this provision of the Affordable Care Act. States can choose when to apply for grant funding based on their needs and planned expenditures, and will have multiple opportunities to apply for funding in years ahead.

On August 12, 2011, 13 states and the District of Columbia were awarded over $185 million dollars in Exchange Establishment grants. Already, 49 states and the District of Columbia received Exchange Planning grants, 7 states received Early Innovator grants, and a number of states have indicated interest for future rounds of Exchange Establishment grants.

Following is a list of states in the region that were awarded grants on May 23, 2011:

District of Columbia
Administrator: District of Columbia Department of Health Care Finance
Amount Awarded: $8,200,716
Level of Funding: Level One

Summary: Washington, DC will use its Level One Establishment Grant Funds to continue and complete current planning and implementation efforts that would enable the District to establish a certified and functioning exchange by January 2014. The District estimates that approximately 225,000 of the District’s residents are expected to utilize District Exchange Services. This Level One funding will leverage the data, information and indicators gathered in the preliminary planning effort into a comprehensive project design document to be used to stand up the exchange in Level Two.

Maryland
Administrator: Maryland Department of Health and Mental Hygiene
Amount Awarded: $27,186,749
Level of Funding: Level One

Summary: Maryland will conduct policy development and detailed planning to build on the work of Maryland’s Exchange Planning Grant and Maryland’s Innovator Grant. The Level One Establishment Grant will result in data-driven and intensive policy analysis that will shape the technical and operational infrastructure of the Exchange. In addition, the activities performed with this funding will result in the rapid implementation of the Exchange IT platform, including product licensing, system integration, and independent verification and validation. The IT platform will be flexible to respond to forthcoming federal guidance and ongoing policymaking and input from Maryland stakeholders.

West Virginia
Administrator: West Virginia Offices of the Insurance Commissioner
Amount Awarded: $9,667,694
Level of Funding: Level One

Summary: West Virginia will provide for several consumer quality and effectiveness related studies to ensure an efficient and value driven market transition into the Exchange, including further funding for actuarial services and economic modeling as envisioned under the Planning Exchange Grant. West Virginia will also use funding to: create tools for successful risk adjustment; undertake an Exchange issuer initiative and complete a producer and navigator strategic plan; allow for continued policy integration with constituent state agencies; and, develop a business and operational plan that will ensure financial sustainability by January 2015.

Reference: http://www.healthcare.gov/news/factsheets/exchanges05232011a.html

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

New Information on W-2 Health Care Cost Reporting

2011-08-15T10:50:00.000-05:00

The Patient Protection and Affordable Care Act (PPACA) enacted a new requirement for employers to report the cost of their employer-sponsored health coverage on the W-2 form for informational purposes only. Employers are not required to report this information until January 2013 for the 2012 calendar year.

Recently the IRS released an updated notice with further details regarding the types of employer-sponsored coverage to disclose. Notice 2011-28 can be found here.

Coverage that is not subject to reporting requirements include:

Coverage only for accident, or disability income insurance, or any combination thereof;
Coverage issued as a supplement to liability insurance;
Liability insurance, including general liability insurance and automobile liability insurance;
Workers’ compensation or similar insurance;
Automobile medical payment insurance;
Credit-only insurance;
Other similar insurance coverage, specified in regulations, under which benefits for medical care are secondary or incidental to other insurance benefits;
Long-Term care coverage;
Health Reimbursement Arrangement (HRA);
Flexible Spending Account (FSA) – unless the amount of the health FSA for the plan year exceeds the salary reduction elected by the employee for the plan year;
Dental & Vision plans – unless the plan is integrated into a group health.

Applicable employer-sponsored coverage is coverage under any group health plan made available to the employee by an employer that is excludable from an employee’s gross income. The IRS defines a group health plan as:

“A plan (including self-insured plan) of, or contributed to by, an employer (including a self-employed person) or employee organization to provide health care (directly or otherwise) to the employees, former employees, the employer, others associated or formerly associated with the employer in a business relationship, or their families.”

Non-Discrimination Testing Reminder & Update

2011-08-10T11:59:00.002-05:00

PPACA added Section 2716 to the Public Health Service Act (PHSA) that requires that all fully insured health plans comply with section 105(h)(2) of the Internal Revenue Code (IRC). The code has two requirements: (1) do not discriminate in favor of highly compensated individuals as to eligibility to participate, and (2) benefits provided under the plan do not discriminate in favor of participants who are highly compensated individuals. Please note these nondiscrimination rules do not apply to “grandfathered,” fully-insured health plans.

In January, the IRS put this requirement on hold until further guidance has been issued. It is likely that future guidance will not apply until plan years beginning at some time after the guidance is issued. As of today, no further guidance has been released. However, WorkforceTactix highly encourages employers to use this respite to get their plan practices, classes, and benefits in order. Penalties are likely to be stiff for the employer who fails to comply.

Even though employers do not have to comply with fully insured testing yet, any employer that sponsors a Health Reimbursement Arrangement (HRA), Health Flexible Spending Account (FSA), Premium Only Plan (POP), or Dependent Care Assistance Plan (DCAP) must comply with non-discrimination testing for the appropriate IRC sections (Section 105(h) for HRA & HFSA and Section 125 for POP, DCAP & HFSA). These tests are intended to ensure a plan does not favor certain key and/or highly compensated individuals. Failure to sponsor a non-discriminatory plan will expose certain individuals to additional taxable income.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Is Your Plan Grandfathered?

2011-08-08T10:58:00.011-05:00

It has been over a year since health care reform was passed. Many clarifications and procedures have been released since the passage. As employers reach their plan’s renewal date, they need to be aware of how the laws and updates impact their responsibilities - including evaluating cost sharing, providing certain notices, and performing plan testing.

The Patient Protection and Affordable Care Act established new benefits that increase coverage under many health plans, such as providing preventive services with no cost-sharing or co-pays. This law also creates the option for employers to elect grandfathered status for their existing health plan and be exempted from some provisions under the law.

The employer decides the status of your plan and bears the responsibility for maintaining this status.

To renew a grandfathered plan, a plan must:

Have been in effect on or before March 23, 2010, with at least one enrollee.
Have maintained continuous enrollment.
Not have undergone any changes that would disqualify the plan, including increasing copayments, deductions and employee contributions beyond certain limits.

NOTE: If this is the second renewal since reform’s passage, a plan must have been grandfathered with required disclosures at your previous renewal in order to have grandfathered status. Any new plans sponsored after March 23, 2010 are not eligible for grandfathered status, even if no substantive changes were made to those plans this year.

The federal rules require the plan sponsor/employer to provide notification of a plan’s grandfathered status to plan participants. This is an employer responsibility, regardless of which carrier provides your coverage.

New Insurer Guidelines from HHS

2011-08-03T08:01:00.001-05:00

(CNN) -- The U.S. Department of Health and Human Services announced new guidelines in Washington Monday requiring health insurance plans beginning on or after August 1, 2012 to cover several women's preventive services, including birth control and voluntary sterilization.

According to HHS Secretary Kathleen Sebelius the decision is a part of the Affordable Care Act's move to stop problems before they start. "These historic guidelines are based on science and existing literature and will help ensure women get the preventive health benefits they need," she said in a news release.

Besides contraceptive use, the list includes screenings for conditions such as gestational diabetes and the human papillomavirus (HPV), as well as breastfeeding support and counseling on sexually transmitted diseases. The full list is available on the Department of Health and Human Services website.

The Obama administration released an amendment to the prevention regulation that allows religious institutions offering health insurance to their employees the choice of whether or not to cover contraception services.

However, supporters say the service will help millions of women who struggle to afford prescription birth control.

Reference: http://www.cnn.com/2011/HEALTH/08/01/free.birth.control/

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Updated Mileage Rates from IRS

2011-08-01T10:55:00.004-05:00

Announcement 2011-40 from the IRS revises standard mileage rates for computing deduction costs of operating an automobile for business and medical or moving expense purposes. Effective July 1, 2011, the revised standard mileage rates are 55.5 cents per mile for business purposes and 23.5 cents per mile for medical and moving purposes. Charitable contributions deduction remains unchanged at 14 cents per mile.

Coming Soon - Tax Free Week!

2011-07-27T09:17:00.006-05:00

Maryland's tax free week is scheduled just in time for back to school shopping - August 14-20, 2011.

During Shop Maryland Week, qualifying clothing and footwear priced at $100 or less will be exempt from Maryland’s 6 percent sales tax. For more information, visit http://www.comp.state.md.us/ShopMD_2011/default.asp.

Virginia also offers tax-free shopping for back to school supplies as well! This year it is being held on August 5-7, 2011. During this three-day period, purchases of qualifying school supplies selling for $20 or less per item, and purchases of qualifying clothing and footwear selling for $100 or less per item will be exempt from sales tax. Retailers may also choose to absorb the tax on other items during the holiday period, but they are responsible for paying the tax on those items to the Department of Taxation. For more information, visit http://www.tax.virginia.gov/site.cfm?alias=SchoolSuppliesAndClothingHoliday.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Firing Employee for Eating Hot Dogs Unjustified

2011-07-25T13:48:00.001-05:00

(Reuters) Thu Jul 14, 2011 - It may be strange to read about a hot dog firing, but the case of Nolan Koewler of Evansville, Indiana is an incredible example of why you need to be clear with all of your employees, and post notices so everyone gets the message.

Because, as a result of failing to do just that, a panel of three judges sitting on the Indiana Court of Appeals determined that Mr. Koewler was not justifiably fired from a local Dillard's department store.

Now Dillard's unemployment taxes are going to go up.

The story of the hot dog firing began last Fourth of July, when Dillard's held a cookout for employees, reports the Associated Press. At the end of the event, a manager ordered the leftover food to the break room freezer for use on Labor Day.

Claiming not to hear instructions not to eat the food, on the following day, Nolan Koewler took two hot dogs and ate them.

He was accused of theft, and fired.

And then Dillard's protested his unemployment benefits, claiming that he was fired for just cause.

The court didn't agree, because there was no proof that Koewler knew, or heard, that the hot dogs were not to be eaten.

The lesson here is that you can't expect your employees to pay attention to you, particularly if you're requesting that they do something that may be unusual or uncommon.

So, in the future, in order to avoid your own Nolan Koewler hot dog firing incident, if there is particular behavior in which you do not want your employees to engage, you either need to post instructions in conspicuous locations, hand out fliers or ensure that each employee has heard your instructions.

Resource: http://www.reuters.com/article/2011/07/14/tagblogsfindlawcom2011-freeenterprise-idUS3462200620110714

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

H-1B Violations (PG County Public Schools)

2011-07-20T15:10:00.004-05:00

Prince George’s County Public Schools agrees to pay $4.2 million in back wages for violations of H-1B temporary foreign worker program

WASHINGTON — The U.S. Department of Labor's Wage and Hour Division has obtained an agreement for Maryland's Prince George's County Public Schools system to pay $4,222,146 in back wages due 1,044 workers to resolve violations of the H-1B temporary foreign worker program. Investigators from the department found that PGCPS illegally reduced the wages of the H-1B workers by requiring them to pay fees that the school system was required to pay.

The H-1B program allows employers to hire foreign professionals in certain specialty occupations to work temporarily in the U.S. Workers hired under the H-1B program must be paid at least the same wage rates and benefits as those paid to U.S. workers doing the same job in the same area, so that the wages of similarly employed U.S. workers are not adversely affected.

"The Labor Department has the responsibility for ensuring that employers who use the H-1B program follow the law and do not place U.S. workers at a disadvantage to H-1B workers," said Secretary of Labor Hilda L. Solis. "We are pleased this investigation has been resolved with workers paid all the back wages to which they are entitled."

Due to the willful nature of some of the violations, PGCPS also has agreed to pay $100,000 in civil money penalties and to be debarred for two years from filing new petitions, requests for extensions or requests for permanent residency for foreign workers under any employment-based visa program. Under the statute governing the H-1B program, willful wage violations are subject to a debarment period of at least two years. Violations are willful when an employer knew or acted in reckless disregard for whether its actions were impermissible.

The H-1B visa program requires that employers pay certain fees, including an anti-fraud fee and a filing fee, when they utilize the program. Instead of paying these fees and other costs associated with recruiting H-1B workers and filing their visa petitions, PGCPS required the foreign workers to pay them. As a result, the workers' earnings were reduced below the amount legally required to be paid. The Wage and Hour Division's investigation covered fees associated with the H-1B application process from May 2005 to January 2011.

The agreement is subject to approval by an administrative law judge.

For more information about the requirements of the H-1B visa program, review the Wage and Hour Division's H-1B Web page at http://www.dol.gov/whd/immigration/h1b.htm. For more information on other federal wage laws, call the Wage and Hour Division's toll-free helpline at 866-4US-WAGE (487-9243). Information is also available on the Internet at http://www.dol.gov/whd/

Resource: http://www.dol.gov/opa/media/press/whd/WHD20110996.htm

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

COBRA Dependent Qualifying Events

2011-07-18T10:43:00.001-05:00

Were you aware that COBRA continuation does not always have to be offered to an employee’s dependents?

COBRA is triggered when an employee’s dependent loses coverage due to certain qualifying events (QE).

For a spouse, the QEs are:
- Voluntary or involuntary termination of the covered employee’s employment for any reason other than gross misconduct
- Reduction in hours worked by the covered employee.
- The covered employee becoming entitled to Medicare.
- Divorce or legal separation of the covered employee.*
- Death of the covered employee.

For children, the QEs are:
- Voluntary or involuntary termination of the covered employee’s employment for any reason other than gross misconduct
- Reduction in hours worked by the covered employee.
- The covered employee becoming entitled to Medicare.
- Divorce or legal separation of the covered employee.*
- Death of the covered employee.
- Loss of dependent child status under plan rules.

*The IRS has ruled that a spouse dropped in anticipation of divorce or legal separation will be entitled to COBRA coverage upon the finalization of the divorce or legal separation.

Therefore, since it is difficult to know if there is a QE or if it is just a voluntary choice by the employee to drop his or her dependents from the health insurance plan during open enrollment, it is important to ask for details in order to specify any COBRA-qualifying event influencing the change.

Reference: Patton, E. (2011, July). Dropping Dependents, Investigating the Boss, Salary Feedback. HR Magazine, p. 22.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Local Department of Labor (DOL) Events

2011-07-13T13:50:00.002-05:00

Office of Federal Contract Compliance Program (OFCCP) - Community Outreach & Education Event
Description: The OFCCP Richmond Virginia District Office will host a community outreach and education event allowing Community Based Organization and OFCCP to come together and build relationships in the community with the objective of "How can we work together." OFCCP will give an overview of the mission of protecting workers, promoting diversity, and enforcing the law. Specifically, how OFCCP can asist these organizations in helping their stakeholders.
Date: July 21, 2011
Time: 10:00am - 12:00pm
Location: Richmond Federal Building - Room 466, 400 North 8th Street, Richmond, VA 23219
For More Information: (804) 888.6714

OFCCP - Outreach to Minority and Women's Community-Based Organizations
Description: OFCCP Baltimore/Washington DC office will explain the mission and how OFCCP can assist the minority and women's organizations, and to educate them about their rights under Executive Order 11246, including the complaint process. Specifically, how can OFCCP assist organizations in helping their stakeholders.
Date: July 28, 2011
Time: 10:00am - 12:00pm
Location: Appraisers' Stores Building, 103 South Gay Street, Room 202, Baltimore, MD 21202
For More Information: (410) 962.6480

Occupational Safety and Health Administration (OSHA) Informational Stakeholder Meetings to Discuss Occupational Exposure to Infectious Diseases
Description: OSHA has scheduled two informal stakeholder meetings to solicit comments on exposure to infectious diseases in the workplace. OSHA will use information gathered during these meetings to explore the possible development of a proposed rule to protect workers from occupational exposure to infectious agents in healthcare settings where direct patient care is provided and other settings where workers perform tasks with occupational exposure.
Date: July 29, 2011
Time: 9:00am - 12:00pm or 1:30pm - 4:30pm
Location: U.S. Department of Labor, 200 Constitution Ave., N.W., Room N-4437, Washington, DC 20210
For More Information: Click Here

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Happy Birthday!!

2011-07-11T13:32:00.002-05:00

E-mail turned 40 years old this year! This would be a good time to review e-mail etiquette with your employees:

1. Be informal, not sloppy. Your colleagues may use commonly accepted abbreviations in e-mail, but when communicating with external customers, everyone should follow standard writing protocol. Your e-mail message reflects you and your company, so traditional spelling, grammar, and punctuation rules apply.

2. Keep messages brief and to the point. Just because your writing is grammatically correct does not mean that it has to be long. Nothing is more frustrating than wading through an e-mail message that is twice as long as necessary. Concentrate on one subject per message whenever possible.

3. Use sentence case. USING ALL CAPITAL LETTERS LOOKS AS IF YOU'RE SHOUTING. Using all lowercase letters looks lazy. For emphasis, use asterisks or bold formatting to emphasize important words. Do not, however, use a lot of colors or graphics embedded in your message, because not everyone uses an e-mail program that can display them.

4. Use the blind copy and courtesy copy appropriately. Don't use BCC to keep others from seeing who you copied; it shows confidence when you directly CC anyone receiving a copy. Do use BCC, however, when sending to a large distribution list, so recipients won't have to see a huge list of names. Be cautious with your use of CC; overuse simply clutters inboxes. Copy only people who are directly involved.

5. Don't use e-mail as an excuse to avoid personal contact. Don't forget the value of face-to-face or even voice-to-voice communication. E-mail communication isn't appropriate when sending confusing or emotional messages. Think of the times you've heard someone in the office indignantly say, "Well, I sent you e-mail." If you have a problem with someone, speak with that person directly. Don't use e-mail to avoid an uncomfortable situation or to cover up a mistake.

6. Remember that e-mail isn't private. E-mail is considered company property and can be retrieved, examined, and used in a court of law. Unless you are using an encryption device (hardware or software), you should assume that e-mail over the Internet is not secure. Never put in an e-mail message anything that you wouldn't put on a postcard. Remember that e-mail can be forwarded, so unintended audiences may see what you've written. You might also inadvertently send something to the wrong party, so always keep the content professional to avoid embarrassment.

7. Be sparing with group e-mail. Send group e-mail only when it's useful to every recipient. Use the "reply all" button only when compiling results requiring collective input and only if you have something to add. Recipients get quite annoyed to open an e-mail that says only "Me too!"

8. Use the subject field to indicate content and purpose. Don't just say, "Hi!" or "From Laura." Agree on acronyms to use that quickly identify actions. For example, your team could use to mean "Action Required" or for the Monthly Status Report. It's also a good practice to include the word "Long" in the subject field, if necessary, so that the recipient knows that the message will take time to read.

9. Don't send chain letters, virus warnings, or junk mail. Always check a reputable antivirus Web site or your IT department before sending out an alarm. If a constant stream of jokes from a friend annoys you, be honest and ask to be removed from the list. Direct personal e-mail to your home e-mail account.

10. Remember that your tone can't be heard in e-mail. Have you ever attempted sarcasm in an e-mail, and the recipient took it the wrong way? E-mail communication can't convey the nuances of verbal communication. In an attempt to infer tone of voice, some people use emoticons, but use them sparingly so that you don't appear unprofessional. Also, don't assume that using a smiley will diffuse a difficult message.

11. Use a signature that includes contact information. To ensure that people know who you are, include a signature that has your contact information, including your mailing address, Web site, and phone numbers.

12. Summarize long discussions. Scrolling through pages of replies to understand a discussion is annoying. Instead of continuing to forward a message string, take a minute to summarize it for your reader. You could even highlight or quote the relevant passage, then include your response. Some words of caution:

If you are forwarding or reposting a message you've received, do not change the wording.
If you want to repost to a group a message that you received individually, ask the author for permission first.
Give proper attribution.

Use these suggestions as a starting point to create e-mail etiquette rules that will help your employees stay efficient and professional.

Source: http://office.microsoft.com/en-us/outlook-help/12-tips-for-better-e-mail-etiquette-HA001205410.aspx

Maryland Health Education and Advocacy Unit

2011-07-06T09:56:00.000-05:00

Have you had a health plan refuse to cover a medical procedure or to pay for a medical service that has already been provided? Do you know what to do?

You can contact the Maryland Attorney General's Health Education and Advocacy Unit.

By utilizing the process of mediation, the Unit can:

Assists consumers in resolving billing disputes with hospitals, doctors, insurance companies and other health care providers,
Help consumers negotiate refunds for medical equipment that is defective or was never delivered,
Seek repairs for medical equipment and other health care products.

To file a complaint online, click here. Before beginning, you will need to gather any documents that are relevant to your complaint, i.e. billing statements from your doctor or other provider, an adverse coverage decision from your carrier, correspondence, etc.; and complete a Medical Record Consent form. You will be required to mail in copies of your relevant documents, a copy of your complaint and a completed Medical Record Release form. Receipt of these forms is necessary to begin the mediation process.

For a copy of the consumer complaint form to mail in, click here.

For any additional questions, you can contact the Health Education and Advocacy Unit directly at (410) 528-1840. They are available to assist you Monday through Friday from 9:00am to 4:30pm.

Legal Workforce Act

2011-07-04T12:37:00.000-05:00

The U.S. House Subcommittee on Immigration Policy and Enforcement held an important hearing on June 15, 2011 regarding the Legal Workforce Act (H.R. 2164), which would require all employers to utilize the federal government’s employment verification system, E-Verify, abolishing the paper-based I-9 system. This act is to emphasize that the federal government makes and enforces immigration law in the workplace, not the states. But this act would allow states to utilize their licensing and similar laws to penalize employers not participating.

Mandatory participation would be phased in six-month increments based on the number of employees in a company. For instance, within six months of passing, employers with 20 to 499 employees would have 18 months to comply and employers with under 20 employees would have 24 months to comply.

Employers would only need to utilize E-verify for new hires. In addition, it's important to know that if employers receive an incorrect notice of work authorization from the system and use E-Verify in good faith, they would not be penalized.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Don't forget to fix your plan document!

2011-06-29T14:46:00.000-05:00

Effective January 1st, the Patient Protection and Affordable Care Act (PPACA) passed a rule that Flexible Spending Accounts (FSA) and Health Reimbursement Arrangements (HRA) are no longer reimbursing over-the-counter (OTC) expenses, unless there is a valid prescription or if it is the purchase of certain specific items, such as insulin.

Therefore, if you currently have a FSA or HRA that allowed OTC expenses in the past, you must update your cafeteria plan document to provide for these limitations. The expiration for the extra time granted by the IRS is June 30, 2011.

If you have not updated your documents, have not been operating in compliance, or you do not have plan documents in place, now would be a good time to correct these issues. If you need assistance, please email compliance@workforcetactix.com.

IRS Increases Standard Mileage Rates

2011-06-27T14:26:00.001-05:00

IRS Raises Mileage Reimbursement Rate for Vehicle Business Use
By Andrew Zajac - Jun 23, 2011 10:59 AM ET

Higher fuel prices have prompted the Internal Revenue Service to raise the reimbursement rate for mileage incurred in business use to 55.5 cents, the agency announced.

The IRS said today the change will take effect July 1. The current reimbursement rate for vehicle use is 51 cents. Reimbursement rates for vehicle mileage incurred as a medical or moving expense will rise to 23.5 cents.

The mileage rate for vehicles used as a charitable contribution will remain at 14 cents.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Gender Identity Anti-Discrimination Act (House Bill 235)

2011-06-22T12:00:00.005-05:00

Legislation that bans discrimination in the workplace based on a person's gender identity or expression has been approved for certain states like Hawaii and Nevada. But, in Maryland, House Bill 235, the Gender Identity Anti-Discrimination Act, was killed in the Senate. Gender identity is the way in which an individual identifies (through apperance, expression or behavior) with a certain gender, regardless of the individual's assigned sex at birth.  The term transgender refers to people who live as a gender opposite which they were assigned at birth.

Currently, in Maryland, transgender people are not protected under statewide anti-discrimination laws that include coverage for discrimination based on sexual orientation. Transgender people do have some protection from existing laws dealing with sex and disability, but are not explicitly protected by law.

Although, Baltimore City does provide such protections for the transgender community. Council Bill 02-0857 prohibits discrimination based on gender identity or expression in the areas of employment, housing, and public accommodations. The ordinance provides similar protections to transgender people in Baltimore City as those provided to lesbian, gay and bisexual Marylanders under the statewide Anti-Discrimination Act of 2001.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

ICE Issues Audit Notices to 1,000 Employers

2011-06-20T12:55:00.003-05:00

1,000 firms targeted for audits in illegal hiring crackdown
By Laurie Segall @CNNMoney June 15, 2011: 7:35 PM ET

NEW YORK (CNNMoney) -- In an intensifying effort to battle illegal immigration, the U.S. government sent notices to 1,000 companies on Wednesday alerting them that auditors will be examining their hiring records.

The employers, ranging from small businesses to major enterprises, will be subject to inspections by the U.S. Immigration and Customs Enforcement (ICE) to determine whether or not they are hiring illegal workers. The agency declined to release the names of any of the companies being audited.

"The inspections will touch on employers of all sizes and in every state in the nation, with an emphasis on businesses related to critical infrastructure and key resources," ICE public affairs spokeswoman Gillian Christensen said in a written statement.

The audits are focused on industries considered vital to U.S. domestic security, including agriculture, banking, energy, information technology, health care and transportation systems.

This move brings the the total of so-called "I-9 audits" to more than 2,300 so far this year, topping last year's total of 2,196 audits.

The audit surge is an effort to crack down on employers who hire illegal immigrants, an issue Secretary of Homeland Security Janet Napolitano began focusing on in April 2009, according to Christensen.

"As part of that strategy, we radically stepped up the use of I-9 audits," she said. "Basically they were barely doing them."

The number of I-9 audits rose from 500 in fiscal year 2008 to 1,444 in 2009. Last year's audits resulted in the criminal arrest of 196 employers, and 119 convictions.

Reference: http://money.cnn.com/2011/06/15/news/economy/immigration_ice_audits/?section=money_latest

What are the penalties?

When a violation is found, the Citizenship and Immigration Service will look at a number of factors when imposing a penalty. This includes:

the size of the employer’s business
the good faith of the employer (in for instance, attempting to keep accurate and up-to-date I-9 Forms)
the seriousness and extent of the hiring or recordkeeping violation
the involvement of the unauthorized employee in the verification process
the employer’s history of previous violations.

The civil penalty imposed on the employer for failing to comply with the recordkeeping requirements can be $100 to $1,000 per paperwork violation. The civil penalty imposed on the employer for knowingly hiring or continuing to employ an unauthorized foreign national can be $200 to $2,000 for a first offense and $200 to $5,000 for each offense thereafter.

If the employer engages in a pattern or practice of violating the employer sanction provisions, the employer can be subjected to a criminal penalty of up to $3,000 for each unauthorized employee and be imprisoned for up to six months.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Plain Writing Act

2011-06-15T12:00:00.001-05:00

What does this act accomplish?
The law requires that federal agencies use “clear Government communication that the public can understand and use.”

When is this become effective?
October 13, 2011

What is plain language?
Design, delivery and writing that will increase the ability of readers to understand and use the information.

What does this include?
Health documents, such as summary plan descriptions, and financial documents, such as credit card agreements.

What does this mean to employers?
The Plain Language Action and Information Network (PLAIN) has created guidelines to improve your writing so your employees can find what they need, understand what they find; and use what they find to meet their needs. You can find these guidelines here: http://www.plainlanguage.gov/howto/guidelines/FederalPLGuidelines/FederalPLGuidelines.pdf.

What are some tips to using plain language?
Organized for the reader’s needs, apply useful headings, use “you” and other pronouns, use short sentences, omit excess words, and use lists and tables.

Additional resources can be found at http://www.plainlanguage.gov/.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

SEC New Whistleblower Rules & Rewards

2011-06-13T15:50:00.000-05:00

The Securities and Exchange Commission (SEC) has implemented a new whistleblower program under the Dodd-Frank Act. The new rules were created to reward individuals who act early and provide the SEC with high quality tips that expose violations and lead to successful cases.

To qualify for the reward the following criteria must be met:

The information is voluntarily provided to the SEC

The information is original

The information leads to a successful enforcement action

The SEC obtains monetary sanctions totaling more than $1 million as a result of the action.

“While the SEC has a history of receiving a high volume of tips and complaints, the quality of the tips we have received has been better since Dodd-Frank became law. We expect this trend to continue, and these final rules map out simplified and transparent procedures for whistleblowers to provide us critical information,” said SEC Chairman Mary L. Schapiro.

The SEC’s rules will be effective 60 days after they are submitted to Congress or published in the Federal Register.

For additional information, the SEC Fact Sheet and the Final Rule is available online.

OSHA Survey

2011-06-08T12:00:00.000-05:00

The Occupational Safety and Health Administration (OSHA) is announcing the launch of a survey of private sector employers on current safety and health practices. This survey will allow OSHA to better design future rules, compliance assistance and outreach efforts.

The survey, which may contact as many as 19,000 employers nationwide, will ask questions about employers' current practices with regard to safety and health management in their workplaces. For example, the survey will ask employers if they already have a safety management system, whether they perform annual inspections, who manages safety at their establishment, and what kinds of hazards they encounter at their facilities. Participation in the survey is voluntary.

Respondents will receive a paper copy of the survey which they can fill out and return to OSHA's contractor, Eastern Research Group (ERG), or alternatively respondents can answer the survey's question at a web site. Survey results without employer identities, will be provided by ERG to the Agency. The survey will contact private sector employers across all industries under OSHA jurisdiction and is designed to solicit responses from employers of all sizes.

The surveys will be mailed to employers beginning on May 10 and the Agency expects the data collection phase to be completed by August.

The formal name of the survey is "Baseline Survey of Safety and Health Practices." ERG is using the name "OSHA National Survey of Safety and Health Practices" on the web page http://www.oshasurvey.com./

The Docket, including a copy of the survey and the clearance paperwork can be found at http://www.regulations.gov/#!docketDetail;dct=FR+PR+N+O+SR;rpp=10;po=0;D=OSHA-2010-0033.

Resource: http://www.osha.gov/national-survey/national-survey-announcementbaseline-survey.html

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Are Your Employee’s Designations of Beneficiary Current?

2011-06-06T12:00:00.001-05:00

If possible, everyone should choose a primary beneficiary and a contingent beneficiary. A primary beneficiary is designated to receive 100% of the benefit. A contingent beneficiary is the person who will receive 100% of the benefit if the primary beneficiary cannot be found or if that person has also passed away. If neither can be found, then the benefits will be passed to your estate and subject to taxes and fees.

It is not required that your beneficiary has to be one person. It can be multiple people, a business, a charity, a trustee, or a combination of all the above. If you decide to name more than one person, make sure you indicate a percentage of benefit towards each individual, business, charity or trustee rather than a specific amount.

Tips for naming beneficiaries:

Be specific – Include names and social security numbers (not just “spouse” or “husband”).
Add information – Define the next step if the primary and contingent beneficiaries cannot be found (example: donate to a specific charity).
Do not list minor children – If an employee designates benefits to a minor child, their estate will have to find and name a financial institution as guardian until the child reaches the age of majority (typically 18). Instead choose to set up a trust.
Be careful if choosing parents – Naming parents as beneficiaries is a good idea if someone is married without children; but be careful because the benefits could increase the size of the parents’ estate (which would result in higher taxes on their total benefits).
Review – Periodically check with your employee’s to ensure they have the right people and information named as their beneficiaries.
Update – It’s a good idea to require your employees to update their beneficiaries when they experience life changes (marriage, divorce, adopt or have a child, death, etc.) or when their beneficiary’s life changes (change in name, status, address, etc.).

Doctors prescribe fewer tests for better care

2011-06-01T14:43:00.000-05:00

(Reuters) NEW YORK Mon May 23, 2011 5:58pm EDT - Ordering fewer tests and prescribing fewer antibiotics will not only curb health care spending, but also improve the quality of primary care, a large group of U.S. doctors said Monday.

After soliciting input from more than 250 members, the National Physicians Alliance (NPA) came up with 15 recommendations it believes will help doctors practice medicine more efficiently.

The group's report, published in the Archives of Internal Medicine, follows concerns over the growing use of new technologies, such as CT scans, that in many cases don't have a clear medical value. The report lists five evidence-based recommendations in three areas: family medicine, internal medicine and pediatrics.

The gist of the advice? Leave well enough alone.

For instance, the group discourages the use of blood and urine tests in healthy people because they will probably yield few results and end up costing a lot.

It also cautions against heart tests such as ECGs or CT scans in symptom-free, low-risk individuals because there is scant evidence that spotting cholesterol buildups provides any benefit in these people. In fact, people may end up with side effects from the expensive tests, including kidney problems, anxiety and a slightly increased cancer risk.

The NPA also recommends against imaging tests for lower back pain in the first six months, noting that such tests do not lead to better results.

For kids, the group urges doctors to hold off on antibiotics for a sore throat, unless the strep test comes back positive. Most sore throats are caused by viruses, which don't respond to antibiotics, and using the drugs unnecessarily may fuel the spread of drug-resistant bacteria and expose patients to side effects.

According to the NPA, kids should not use over-the-counter cough or cold medicines because there is little evidence that they work. Despite this, more than 10% of kids use these drugs.

The NPA plans to distribute its recommendations to its 22,000 members across the United States and hopes to gain support from consumer and patient safety groups.

According to the report, "Having such endorsements will help dispel the misconception that these clinical recommendations represent rationing and support the idea that often less is truly more."

© 2010 Thomson Reuters.
http://www.reuters.com/article/2011/05/23/us-doctors-tests-idUSTRE74M6JI20110523

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Employee Record Retention

2011-05-30T10:00:00.004-05:00

Think you know how long to keep an employee application? Payroll records?

Test your knowledge!

1. How long should an employer keep an employee's earnings records on file?
          (a) 1 year
          (b) 2 years
          (c) 4 years
          (d) Until the employee is terminated
          (e) Forever

2. How long should an employer keep an employee's health insurance election and/or waiver form?
          (a) 1 year
          (b) 2 years
          (c) 6 years
          (d) Until the employee is terminated
          (e) Forever

3. How long should an employer keep job applications and/or resumes?
          (a) 1 year
          (b) 2 years
          (c) 6 years
          (d) Until the employee is terminated
          (e) Forever

4. How long should an employer keep an employee's FMLA documents?
          (a) 2 years
          (b) 3 years
          (c) 4 years
          (d) Until the employee is terminated
          (e) Forever

5. How long should an employer keep an employee's W-4 Form?
          (a) 2 years
          (b) 3 years
          (c) 4 years
          (d) Until the employee is terminated
          (e) Forever

ANSWERS:
1. (b) The Equal Pay Act (EPA), regulated by EEOC, states an employee earnings records (such as time cards, schedules, pay rates, wages, deductions, etc.) should be kept on file for 2 years.

2. (c) The Employee Retirement Income Security Act (ERISA), regulated by the DOL, states employee health insurance election forms and deferrals should be kept for 6 years from date of filing.

3. (a) Job applications, resumes or any other form of employment inquiry should be kept 1 year from date of personnel action. This is included in many laws including ADEA, ADA, Civil Rights Act of 1964, and Paperwork Reduction Act of 1980.

4. (b) Family and Medical Leave Act documents should be kept for 3 years from the date of leave.

5. (c) All W-4 forms submitted by employees should be kept on file for 4 years.

** There may be other state or local laws that may impact the length of record retention.

How did you do?

Below is some additional information:

Employee Files
• Demographic Info (name, address, DOB, etc.) – 3 years (ADEA)
• Promotions, transfers, termination – 1 year
• Pre-employment tests – 1 year
• Earnings records (time cards, schedules, pay rates, wages, deductions, etc.) – 2 years (EPA)
• Employment Contracts and Agreements – 3 years
• FMLA documents – 3 years from the date leave
• Form I-9 – 3 years from date of completion or 1 year from termination, whichever is later (IRCA)
• W-4 Forms – 4 years

Employee Applications
• Job applications, resumes or any other form of employment inquiry - 1 year from date of personnel action (ADEA, ADA, Civil Rights Act of 1964, Paperwork Reduction Act of 1980)

Health Insurance Applications
• Election forms (and deferrals) – 6 years from filing (ERISA)
• COBRA notices – recommended 6 years from the date of record (ERISA)

Payroll Data Sheets
• Payroll records – 3 years from termination of employment (FLSA, Davis-Bacon Act)
• Tax and Social Security Records (income tax withholding, social security, unemployment compensation, etc.) – 4 years from date of filing (Internal Revenue Code)

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

NLRB Social Media Advice for Employers

2011-05-19T15:00:00.000-05:00

National Labor Relations Board‘s (NLRB) General Counsel’s Office issued an Advice Memorandum which addresses the social media topic, but this time upholds the employer’s discipline of an employee for posting offensive tweets on Twitter.

In Lee Enterprises, Inc., d/b/a Arizona Daily Star, the charging party was the public safety reporter for the Arizona Daily Star newspaper. The newspaper had no social media policy, but began encouraging its reporters to begin using social media, including Twitter.

In early 2010, this employee posted a tweet that ridiculed a headline in the newspaper’s sports section. He was instructed to discuss his concerns with the HR director, rather than tweeting about them, and a week later was prohibited from airing his grievances or commenting about the newspaper in any public form by the managing editor. He continued his offensive tweets through August and September, with the last straw being a tweet regarding an area TV station.

The TV station took issue with his tweet, and he was told to refrain from any tweeting until the managing editor had an opportunity to meet with the executive editor and human resources. Since the employee’s Twitter screen name and biography referenced the newspaper, they considered this to be a work Twitter account and it was drawing negative attention to the Daily Star. The employee was terminated by the end of September.

The employee filed a charge with the NLRB contending that he was disciplined pursuant to an unlawful rule that prohibited certain Section 7 activities. The General Counsel’s office disagreed with the employee and recommended that the charge be dismissed. The Advice Memorandum states, “In this case, even if the Employer implemented an unlawful rule, the Charging Party was terminated for posting inappropriate and unprofessional tweets, after having been warned not do to so, i.e. for engaging in misconduct. The Charging Party’s conduct was not protected and concerted: it did not relate to the terms and conditions of his employment or seek to involve other employees in issues related to his employment.”

It is believed the NLRB is trying to strike a balance on what constitutes concerted activity and what positions employer discipline in the correct context. They prohibit social media policies that ban virtually any comment on social media, but the fine line is crossed when an employee posts specific comments that violate a company’s code of conduct or other reasonable rules. The key in this case is that the response was incident specific and only aimed at this single employee, and the employer had the right to protect its reputation from its employee’s inappropriate tweets. The employee’s termination did not involve a protected activity and did not violate the National Labor Relations Act, because he was discharged for misconduct.

Employers should review their social media policy to ensure they are not excessively broad. Since determining what is considered protected concerted activity and what is not, employers are encouraged to seek legal advice prior to issuing any discipline to an employee based upon a social media posting.

The Advice Memorandum can be found by clicking here.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

2012 HSA Limits

2011-05-18T08:04:00.002-05:00

2012 Health Savings Account (HSA) Annual Contribution Limits
Individual - $3,100
Family - $6,250

2012 High Deductible Health Plan (HDHP) Definition
Deductible:
Individual – no less than $1,200
Family – no less than $2,400

Out-of-Pocket Expenses:
Individual – do not exceed $6,050
Family – do not exceed$12,100

2012 Catch-Up Contribution Limit
Persons over age 55 - additional $1,000 (unchanged)

http://www.irs.gov/pub/irs-drop/rp-11-32.pdf

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

UPDATE: CMS Creditable Coverage Notice

2011-05-16T15:45:00.002-05:00

The Patient Protection and Affordable Care Act (PPACA) amended the Social Security Act to move the Medicare Part D enrollment period from November 15 through December 31 to October 15 through December 7.

This change is effective for 2012 Part D enrollment, which will occur in the fall of 2011 and will require plan sponsors to update their notices of creditable or non-creditable coverage and most likely will require plan sponsors to provide the notices by October 15, 2011.

**As a result, references to the November 15 through December 31 annual enrollment period in the notices of creditable or non-creditable coverage are no longer accurate!

For updated notices, please visit http://www.cms.gov/CreditableCoverage/Model%20Notice%20Letters.asp#TopOfPage.

For more information and an overview of creditable coverage please visit http://www.cms.gov/CreditableCoverage.

Employer-Provided Health Coverage W-2 Reporting

2011-05-08T13:49:00.003-05:00

The Patient Protection and Affordable Care Act (PPACA) states that employers are required to report the cost of employer-sponsored group health plan coverage on each employee’s W-2 Form. A newly released IRS notice (2011-28) provides interim guidance for W-2 forms for the calendar year of 2012 that employers are required to provide in January 2013. Any information furnished prior to January 2013 is optional and voluntary.

This reporting is for informational purposes only! It informs employees of the cost of their health care coverage and this will not cause health care coverage to become taxable.

Who is required to comply? All employers that file more than 250 W-2 Forms in 2011, and provide applicable employer-sponsored coverage during a calendar year are subject to the reporting requirement.

Who is not required to comply? Employers who provide a self-insured group health plan that is not subject to any federal continuation coverage requirements are not required to report the aggregate reportable cost on the W-2 Form for that employee. In addition, if an employer is not required to issue a W-2 form to an individual, they will not be required report the aggregate reportable cost to an individual.

What is the aggregate reportable cost? The aggregate cost of applicable employer-sponsored coverage is the total cost (employee & employer portion) of coverage under all applicable plans provided to the employee. This is regardless of whether the employee paid for that cost through pre-tax or post-tax deductions.

Where is the aggregate reportable cost reported? The aggregate reportable cost is reported on Form W-2 in box 12, using code DD.

What is applicable employer-sponsored coverage with respect to the aggregate reportable cost? Applicable coverage is any group health plan made available to any employee, by an employer which is excludable from the employee’s gross income under § 106. An employer is not required to include the cost of dental or vision coverage if such plan is not integrated into a group health plan. This does not include money contributed to an Archer MSA, a Health Savings Account (HSA), a Health Reimbursement Arrangement (HRA), and in most cases a Flexible Spending Account (FSA). The amount of a health FSA equals the amount of salary reduction elected by the employee for the plan year, plus the amount of any optional employer flex credits that the employee elects to apply to the health FSA. In determining the aggregate reportable cost, the amount of the health FSA is reduced (but not below zero) by the employee’s salary reduction election. Any amount over an employee’s elected amount of salary reduction for a Health FSA must be included in the aggregate reportable cost.

How does an employer calculate the cost of coverage?*

1. COBRA Applicable Premium Method - The COBRA applicable premium for that coverage for that period. If the employer applies this method, the employer must calculate the COBRA applicable premium in a manner that satisfies the requirements under § 4980B(f)(4).

2. Premium Charged Method - The premium charged by the insurer for that employee’s coverage level for each period as the reportable cost for that period

3. Modified COBRA Premium Method – The subsidized cost of COBRA (the premium charged to COBRA qualified beneficiaries is less than the COBRA applicable premium)

An employer may apply any reasonable method of reporting the cost of coverage provided for an employee who terminated employment, provided the method is used consistently for all current employees and terminated employees.

*The employer is not required to use the same method for every plan, but must use the same method with respect to a plan for every employee receiving coverage under the plan.

For additional details and the entire IRS Notice 2011-28 please visit http://www.irs.gov/pub/irs-drop/n-11-28.pdf.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Fair Labor Standards Act (FLSA) Amended

2011-05-04T11:00:00.012-05:00

Published: April 5, 2011

Effective: May 5, 2011

Fluctuating Workweek: The employer may no longer provide bonuses and other types of incentive pay to its non-exempt salaried employees. The DOL stated that “bonus and premium payments…are incompatible with the fluctuating workweek method of computing overtime” and that payment of bonuses or other premium amounts to non-exempt salaried employees may eliminate the employer’s ability to use the fluctuating workweek method. Therefore, in order to be in compliance, employers must determine whether their non-exempt salaried employees receive bonuses or other premium non-overtime payments and alter their compensation policies if they do.

Federal tip credit: Current maximum an employer can claim is $4.25 per hour. Under the new rule, that credit will be $5.12 per hour. Employees must receive advance notice of the employer’s use of the tip credit & how it is calculated.

Tip pools: Allows mandatory tip pools without a cap on maximum contribution percentage among employees who “customarily & regularly receive tips” and only when the employer notifies employees of required tip pool contribution amount, takes a tip credit only for the amount of tips each employee receives, and does not hold on to any of the employee’s tips for any other purpose.

Employees in fire protection activities: New definition of an “employee in fire protection activities is as follows: “An employee, including a firefighter, paramedic, emergency medical technician, rescue worker, ambulance personnel, or hazardous material worker, who—(1) is trained in fire suppression, has the legal authority and responsibility to engage in fire suppression, and is employed by a fire department of a municipality, county, fire district, or State; and (2) is engaged in the prevention, control, and extinguishment of fires or response to emergency situations where life, property, or the environment is at risk. (29 U.S.C. 203(y))”

The final rule can be found here: http://edocket.access.gpo.gov/2011/pdf/2011-6749.pdf.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

House Bill 1085: Disability Insurance Policies

2011-05-01T13:00:00.000-05:00

A “disability insurance policy may not be sold, delivered, or issued for delivery in the state by a carrier if the policy contains a clause that purports to reserve sole discretion to the carrier to interpret the terms of the policy or to provide standards of interpretation or review that are inconsistent with the laws of the state.”

Approved by the governor on 4/12/11 and applies to disability policies sold, delivered, issued for delivery, or renewed in the state of Maryland on or after 10/1/11.

For a copy of the House Bill, visit http://mlis.state.md.us/2011rs/bills/hb/hb1085t.pdf.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Veterans Benefit Act 2010 (H.R. 3219)

2011-04-28T14:44:00.001-05:00

Uniformed Services Employment and Reemployment Rights Act (USERRA) protects service members from discrimination in employment (including wages & benefits), retaliation due to service, and provides re-employment rights when they return. The Veterans’ Benefits Act (VBA) of 2010 was signed by President Obama to clarify USERRA with amendments to close loop holes by:

Enhancing regulations to prohibit wage discrimination against members of the Armed Forces
Implementing a multi-factor test to determine whether an employer who is a “successor in interest” can be held liable for a previous employer’s USERRA violation. Those factors include:

continuity of operations
similarity of facilities
continuity of work force
similarity of jobs and working conditions
similarity of supervisory personnel
similarity of machinery, equipment, and production methods
similarity of products or services.

For additional information regarding USERRA, visit http://www.dol.gov/elaws/userra.htm and http://www.dol.gov/vets/programs/userra/main.htm.

Summer Hiring?

2011-04-25T08:35:00.000-05:00

Make sure you follow Department of Labor (DOL) and Maryland rules!

Did you know??

A minor under the age of 14 may not be employed or permitted to work
A work permit is required all minors under the age of 17. The permit must be in the employer’s possession before the minor is permitted to work.
A minor 15 years of age may not be employed or permitted to work before 7:00am or after 8:00pm. This is extended to 9:00pm from Memorial Day to Labor Day.
All minors may not be employed or permitted to work more than 5 hours continuously without a non-working period of at least ½ hour.
Certain occupations are forbidden for minors. These include the operation of elevators and other power-driven hoisting apparatus, the operation of certain power driven bakery machines, roofing operations, any distillery where alcoholic beverages are manufactured, bottled, wrapped or packed, and many others.

For more information on DOL rules, please visit http://youthrules.dol.gov/.

For more information on Maryland DLLR’s rules, please visit http://www.dllr.state.md.us/labor/wages/minorfactsheet.shtml

For more information on other state's rules, please visit http://youthrules.dol.gov/states.htm.

Final Rule on Eligibility Verification Issued

2011-04-19T15:36:00.001-05:00

On April 15, 2011, the U.S. Citizenship and Immigration Services (USCIS) published a final rule in the Federal Register that accepted an interim rule to improve the reliability of the employment eligibility verification process. This interim rule, which took effect 4/3/09, made these changes to establish a clear standard for U.S. employers.

First, employers are prohibited from accepting expired documents. USCIS stated that permitting the use of expired documents with Form I-9* would minimize the reliability of the verification process. It noted that expired documents are subject to fraud, might not the correct status of the bearer, and might create confusion among employers.

Second, changes were made to the list of acceptable documents from List A on Form I-9. Form I-688, “Temporary Resident Card,” and Forms I-688A and I-688B, “Employment Authorization Cards,” are removed from the list because these documents are no longer issued by the USCIS and would now have expired. In addition, the new U.S. passport card and the temporary Form I-551, “Permanent Resident Card,” are added to the list.

The final rule takes effect May 16, 2011. The Handbook for Employers, Instructions for Completing the Form I-9 (M-274) was updated on Jan. 5, 2011, and is available for review at www.uscis.gov/files/form/m-274.pdf.

*Form I-9 is used to verify newly hired employees’ identity and authorization to work in the United States. Employers may use either Form I-9 with the revision date of Aug. 7, 2009 or revision date of Feb. 2, 2009. It noted that the expiration date of Form I-9 (Feb. 2, 2009) has been extended beyond June 30, 2009, until Aug. 31, 2012.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Can Employees Terminate Health Coverage Mid-Year?

2011-04-13T14:03:00.001-05:00

Maryland Small Group Reform (MSGR) *New* CareFirst Member Termination Conditions

Throughout the year, an employee might request a coverage change, for instance their spouse gains coverage under a new employer and needs to be removed. As the plan sponsor, you are bound by a number of rules that dictate when you can permit a mid-year change to an employee’s coverage. In the past employees were able to terminate their own coverage and/or their dependent’s coverage as needed.

Now, CareFirst has changed the rules:

EMPLOYER PROVISIONS

1. Groups must terminate employee and/or dependent coverage during the plan year under the following circumstances:

     • The employee is no longer employed

     • The employee or dependent no longer meets the eligibility requirements for coverage

CAREFIRST PROVISIONS

2. Carriers may terminate an employee’s coverage within 31 days with prior written notice if the carrier determines:

     • The employee supplied incorrect or incomplete information on the enrollment form

     • The employee or dependent allowed another person to use his or her ID card, or used another    person’s ID card

     • The employee made falsified statements related to coverage or benefits

EMPLOYEE PROVISIONS

3. An employee may make a mid-year change to reduce and/or terminate coverage if one of the following occur:

     • A change in the employee’s legal marital status (marriage, divorce, death of spouse, legal separation or annulment)

     • A change in the employee’s or dependent’s employment status due to termination or beginning of employment, strike or lockout, an unpaid leave of absence, or change in worksite

     • A change in status of a dependent that results in the dependent’s eligibility or ineligibility for coverage because of age or comparable situations

     • A change in the place of residence for an employee or dependent and such change in residence is outside the HMO area

4. Under certain circumstances, an employee may make a mid-year reduction or terminate coverage for reasons, such as coverage cost or Medicare eligibility:

     • Coverage Events – reduction or elimination of coverage during the plan year and if the spouse’s plan allows an employee and dependents to make an enrollment change during that plan’s open enrollment period

     • Cost Events – significant increase or decrease of the cost of coverage during a plan year and the employer does not offer a similar, but less costly, coverage option. (this includes an employee’s change from part-time to full-time or vice versa)

     • Entitlement to Medicare – eligibility to Medicare for the employee, spouse or dependent may (but is not required to) terminate coverage.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Congress Repeals 1099 Reporting Requirements

2011-04-12T14:15:00.000-05:00

On April 5th, the U.S. Senate voted 87-12 to repeal a tax-reporting provision contained in last year’s Patient Protection and Affordable Care Act (PPACA). The Comprehensive 1099 Taxpayer Protection and Replacement of Exchange Subsidy Overpayments Act of 2011 would have required businesses, charities, and state and local governments to file an IRS 1099 tax form for every payment of $600 or more to vendors beginning in 2012.

The goal was to reduce tax evasion, but many critics said it would have added to the time and cost of tax preparation for businesses, as well as increase the burden on the IRS. Even though the new requirement would have increased their business, the main lobby for accountants opposed the provision.

President Obama is expected to sign the bill, making it the first part of the healthcare reform law to be discarded.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Maryland Job Applicant Fairness Act

2011-04-10T19:32:00.000-05:00

Maryland’s General Assembly sent a bill last week to Gov. O’Malley for his expected signature to limit the ability of employers to run credit checks on job applicants.

With the recession putting record numbers of people out of work, many have had financial issues and the outcome has been lower credit scores. An article in the Baltimore Sun states, “Advocates point to many reasons an applicant might have a low credit score — divorce, medical expenses, a death in the family — none of which, they say, has anything to do with the personal responsibility that employers might think they're assessing by running a credit check.” Employer opposition has helped broaden the categories of employers who could still run credit checks and eliminated the rights of applicants to sue over the issue.

The new bill prohibits employers from using an applicant’s or employee’s credit report or credit history in determining:

     - Whether to deny employment,
     - Termination of an employee,
     - Establish compensation, terms conditions, or privileges of employment.

There are some exceptions to the rule:

     - Employers that are required to obtain an applicant’s or employee’s credit report under federal or state law,
     - Financial institutions that are federally insured or approved by the Maryland Commissioner of Financial Regulation,
     - Employers that are registered as investment advisors with the U.S. Securities and Exchange Commission,
     - Substantial job-related bona fide purpose such as:
            o Managerial (direction or control)
            o Access to personal information (customers, employees, employer, etc.)
            o Fiduciary responsibility and authority
            o Access to expense account or corporate credit card

The new law will go into effect on October 1, 2011. Employers found to have violations can be fined up to $500 for the first violation, and up to $2,500 for each repeat violation.

For more information, visit: http://mlis.state.md.us/2008rs/billfile/hb0087.htm

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Action Required: Adjust your Disability Policy Under Final ADAAA Rule

2011-03-30T08:16:00.002-05:00

On March 25, 2011, the U.S. Equal Employment Opportunity Commission (EEOC) published the final rule implementing the Americans with Disabilities Act Amendments Act (ADAAA). These regulations go into effect May 24, 2011 and apply to all private employers with 15 or more employees. The EEOC release states the new guidelines are “designed to simplify the determination of who has a ‘disability’ and make it easier for people to establish that they are protected by the Americans with Disabilities Act.”

Congress became aware that individuals with many types of conditions or disabilities (including epilepsy, diabetes, multiple sclerosis, major depression, and bipolar disorder) had been unable to bring ADA claims because they did not meet the ADA’s definition of “disability” at the time. However, Congress concluded that individuals with the conditions mentioned above along with other disabilities should be covered under the ADA.

Under the original American with Disabilities Act (ADA), the definition of a disability includes,

“(a) a physical or mental impairment that substantially limits one or more major life activities of such individual;
(b) a record of such an impairment; or
(c) being regarded as having such an impairment. An individual meets the requirement of “being regarded as having such an impairment” if the individual establishes that he or she has been subjected to an action prohibited under this chapter because of an actual or perceived physical or mental impairment whether or not the impairment limits or is perceived to limit a major life activity.” ttp://www.ada.gov/pubs/adastatute08.htm#12102

The new guidelines maintain the previous definition, but now define “impairment” and “life activities” more specifically. For example, “major life activities include, but are not limited to, caring for oneself, performing manual tasks, seeing, hearing, eating, sleeping, walking, standing, lifting, bending, speaking, breathing, learning, reading, concentrating, thinking, communicating, and working.”

For additional information and more details, please visit http://www.ada.gov/pubs/adastatute08markscrdr.htm#12102.

Most importantly, the burden of proof was previously on the individual to prove he or she suffered from a condition or disability that required reasonable accommodations. Now, it will be up to the employer to make certain they have not overlooked any condition or disability that could be covered under the new guidelines.

You can read the entire publication by clicking here.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

Facebook Firing

2011-03-22T09:06:00.001-05:00

Can you restrict, punish or even fire an employee if they disrespect their boss on a social networking site?

Do you think yes? Well you’re wrong…

A settlement has been made by the National Labor Relations Board (NLRB)* in regards to the “Facebook Firing” case. The debate began last year when an ambulance company in Connecticut fired a worker who complained about her manager on Facebook. She used several offensive words to convey how she felt while other co-workers joined the online attack.

The ambulance company had a policy in their handbook that prohibits employees from depicting the company “in any way” on social media sites, and promptly fired her. The NLRB filed an unfair labor practice complaint, arguing for the first time, that workers’ criticisms on social networking sites are “protected concerted activity.” Under the National Labor Relations Act (NLRA), employees have the entitlement to discuss pay, benefits, and other conditions of employment with co-workers and others, even in a nonunion office and even online.

The NLRB noted that, “Whether it takes place on Facebook or at the water cooler, it was employees talking jointly about working conditions…and they have the right to do that.” The NLRB also alleged that the company maintained overly-broad rules in its social media policy.

Under the terms of the settlement, the company agreed to revise its social media rules to ensure that they do not improperly restrict employees from discussing their wages, hours and working conditions with co-workers and others while not at work, and that they would not discipline or discharge employees for engaging in such discussions.

What does this mean for employers?

     • Review your social media policy to ensure you are not liable for interfering with employees’ rights to engage in protected activity.

     • Review your social media policy to ensure it only restricts communications about things you can legitimately restrict (i.e. disclosure of confidential information).

     • Consider training employees on proper use of social media.

     • Think twice before you try to punish employees for messages they send about their co-workers, managers and working conditions. Under the NLRA, employees’ may discuss the circumstances of their employment with co-workers and others.

For more information about this case, please visit http://www.nlrb.gov/category/case-number/34-ca-012576

* The National Labor Relations Board is an independent federal agency vested with the authority to safeguard employees’ rights to organize and to determine whether to have a union as their collective bargaining representative, and to prevent and remedy unfair labor practices committed by private sector employers and unions.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

You're Invited!

2011-03-17T14:10:00.000-05:00

The Dept of Labor invites you to a forum on automatic enrollment in large employer health plans.

Who: Employers with More than 200 Full-Time Employees

            Special Guests: Dept of Treasury & Dept of Health and Human Services

When: April 8, 2011 at 1:00pm – 5:00pm

Where: U.S. Dept of Labor, Frances Perkins Building, Room C55-21 (#4), 200 Constitution Ave., N.W., Washington DC 20210 or via teleconference

What: Forum on Automatic Enrollment Provisions of the FLSA added by PPACA

Employers that cover more than 200 full-time employees must automatically enroll new full-time employees in one of the employer's health benefits plans and continue the enrollment of current employees in the employer's health benefits plan.

The forum will provide interested persons an opportunity to share information and views to assist the department in developing proposed regulatory guidance on compliance with the automatic enrollment provisions of the FLSA.

The forum will feature three panels:

     - Panel 1: Definition of Full-Time Employee for Purposes of the Automatic Enrollment Provisions of Section 18A of the FLSA

     - Panel 2: Selection of Plan, Benefit Package and Coverage (if Employer Maintains More than One) in Which Employees Would be Automatically Enrolled for Purposes of the Automatic Enrollment Provisions of Section 18A of the FLSA

     - Panel 3: The Adequate Notice and Opportunity to Opt Out Requirements Under the Automatic Enrollment Provisions of Section 18A of the FLSA

RSVP: Individuals and organizations may register to participate in the forum via email to e-ORI@dol.gov by March 25, 2011, and indicate whether participation will be, in-person or by teleconference. Anyone wishing to participate on one of the three panels should indicate which panel in their registration.

For a copy of the invitation to the forum, with instructions on registration and participation in the forum and on the panels, click here.

A transcript of the forum will be posted on EBSA's website at www.dol.gov/ebsa.

Additional questions? Please contact June Solonsky in the Office of Regulations and Interpretations, EBSA, U.S. Dept of Labor, (202) 693-8500.

The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.