IRS Begins Preparing Cadillac Tax Regulations; Public Input Requested
Originally posted February 24, 2015 on www.ifebp.org.
In Notice 2015-16, the Internal Revenue Service (IRS) outlines potential approaches for future proposed regulations regarding the excise tax on high cost employer-sponsored health coverage under section 4980I, also known as the Cadillac tax.
The notice is intended to initiate and inform the process of developing regulatory guidance regarding the excise tax on high cost employer-sponsored health coverage under section 4980I of the Internal Revenue Code. Section 4980I, which was added by the Affordable Care Act, applies to taxable years beginning after December 31, 2017.
Under this provision, if the aggregate cost of “applicable employer-sponsored coverage” provided to an employee exceeds a statutory dollar limit, which is revised annually, the excess is subject to a 40% excise tax.
The issues addressed in this notice primarily relate to:
- the definition of applicable coverage,
- the determination of the cost of applicable coverage, and
- the application of the annual statutory dollar limit to the cost of applicable coverage. The Department of the Treasury (Treasury) and IRS invite comments on the issues addressed in this notice and on any other issues under section 4980I.
This notice describes potential approaches on a number of issues which could be incorporated in future proposed regulations, and invites comments on these potential approaches.
Treasury and IRS intend to issue another notice before the publication of proposed regulations under section 4980I, describing and inviting comments on potential approaches to a number of issues not addressed in this notice, including procedural issues relating to the calculation and assessment of the excise tax.
After considering the comments on both notices, Treasury and IRS anticipate publishing proposed regulations under section 4980I. The proposed regulations will provide further opportunity for comment, including an opportunity to comment on the issues addressed in the preceding notices.
Know the Minimum Wage in Your State? You Might Want to Check Again
Originally posted on January 5, 2015 by Rick Montgomery, JD on ThinkHR.com.
2014 was an odd year in regards to minimum wage. Although Congress failed to pass any legislation regarding the federal minimum wage, nearly half the states had minimum wage increases that went into effect on January 1, 2015. In addition, at least 20 states will have minimum wage increases in 2016 (due to scheduled minimum increases or annual minimum wage calculations). Employers, especially those with multi-state operations, should review the minimum wage of the state(s) in which they operate and make preparations for the changes.
Breakdown of Minimum Wage Increases
There are currently 10 states that adjust their minimum wage annually: Arizona, Colorado, Florida, Missouri, Montana, Nevada, New Jersey, Ohio, Oregon, and Washington. Of all of these states, with the exception of Nevada, the new minimum wage rate goes into effect on January 1stof each year. In Nevada, the new minimum wage rate goes into effect on July 1st of each year.
In November 2014, there were four states that passed ballot initiatives increasing the state minimum wage: Alaska, Arkansas, Nebraska, and South Dakota. With the exception of Alaska, the new minimum wage rates in these states went into effect on January 1, 2015. While South Dakota limits their minimum wage increase to 2015, Alaska, Arkansas, and Nebraska have increases in subsequent years.
The minimum wage increases in the remaining jurisdictions were the result of legislation passed in either 2014 or previous legislative sessions. These jurisdictions include: Connecticut, Delaware, the District of Columbia, Hawaii, Maryland, Massachusetts, Michigan, Minnesota, New York, Rhode Island, Vermont, and West Virginia. Many of these states also have scheduled minimum wage increases in years following 2015.
The New Rates
The following is a summary of the minimum wage increases.
Alaska. Alaska’s minimum wage is scheduled to increase as follows:
- On February 24, 2015, the minimum wage will increase to $8.75 per hour.
- On January 1, 2016, the minimum wage will increase to $9.75 per hour.
Arizona. Effective January 1, 2015, Arizona’s minimum wage is $8.05 per hour.
Arkansas. Effective January 1, 2015, Arkansas’s minimum wage is $7.50 per hour. Arkansas’s minimum wage is scheduled to increase as follows:
- On January 1, 2016, the minimum wage will increase to $8 per hour.
- On January 1, 2017, the minimum wage will increase to $8.50 per hour.
California. Effective January 1, 2016, California’s minimum wage will increase to $10 per hour.
Colorado. Effective January 1, 2015, Colorado’s minimum wage is $8.23 per hour.
Connecticut. Effective January 1, 2015, Connecticut’s minimum wage is $9.15 per hour. Connecticut’s minimum wage is scheduled to increase as follows:
- On January 1, 2016, the state minimum rate will increase to $9.60 per hour.
- On January 1, 2017, the state minimum rate will increase to $10.10 per hour.
Delaware. Effective June 1, 2015, Delaware’s minimum wage will increase from $7.75 to $8.25 per hour.
District of Columbia. The District of Columbia’s minimum wage is scheduled to increase as follows:
- On July 1, 2015, the minimum wage will increase to $10.50 per hour.
- On July 1, 2016, the minimum wage will increase to $11.50 per hour.
Florida. Effective January 1, 2015, Florida’s minimum wage is $8.05 per hour.
Hawaii. Effective January 1, 2015, Hawaii’s minimum wage is $7.75 per hour. Hawaii’s minimum wage is scheduled to increase as follows:
- On January 1, 2016, the minimum wage will increase to $8.50 per hour.
- On January 1, 2017, the minimum wage will increase to $9.25 per hour.
- On January 1, 2018, the minimum wage will increase to $10.10 per hour.
Maryland. Effective January 1, 2015, Maryland’s minimum wage is $8 per hour. Maryland’s minimum wage is scheduled to increase as follows:
- On July 1, 2015, the minimum wage will increase to $8.25 per hour.
- On July 1, 2016, the minimum wage will increase to $8.75 per hour.
- On July 1, 2017, the minimum wage will increase to $9.25 per hour.
- On July 1, 2018, the minimum wage will increase to $10.10 per hour.
Massachusetts. Effective January 1, 2015, Massachusetts’ minimum wage is $9 per hour. Massachusetts’ minimum wage is scheduled to increase as follows:
- On January 1, 2016, the minimum wage will increase to $10 per hour.
- On January 1, 2017, the minimum wage will increase to $11 per hour.
Michigan. Michigan’s minimum wage is scheduled to increase as follows:
- On January 1, 2016, the minimum wage will increase to $8.50 per hour.
- On January 1, 2017, the minimum wage will increase to $8.90 per hour.
- On January 1, 2018, the minimum wage will increase to $9.25 per hour.
Minnesota. Minnesota’s minimum wage is scheduled to increase as follows:
For large employers (employers that have at least $500,000 in annual gross sales or business done) the minimum wage will increase as follows:
- On August 1, 2015, the minimum wage will increase to $9 per hour.
- On August 1, 2016, the minimum wage will increase to $9.50 per hour.
For small employers (employers that have annual gross sales or business done of less than $500,000) the minimum wage will increase as follows:
- On August 1, 2015, the minimum wage will increase to $7.25 per hour.
- On August 1, 2016, the minimum wage will increase to $7.75 per hour.
Missouri. Effective January 1, 2015, Missouri’s minimum wage is $7.65 per hour.
Montana. Effective January 1, 2015, Montana’s minimum wage is $8.05 per hour.
Nebraska. Effective January 1, 2015, Nebraska’s minimum wage is $8 per hour. Nebraska’s minimum wage is scheduled to increase to $9 per hour on January 1, 2016.
Nevada. Effective July 1, 2015, Nevada’s minimum wage will increase; however, the state does not announce the new effective minimum wage rate until April 1st of each year.
New Jersey. Effective January 1, 2015, New Jersey’s minimum wage is $8.38 per hour.
New York. Effective January 1, 2015, New York’s minimum wage is $8.75 per hour. New York’s minimum wage is scheduled to increase to $9 per hour on January 1, 2016.
Ohio. Effective January 1, 2015, Ohio’s minimum wage is $8.10 per hour.
Oregon. Effective January 1, 2015, Oregon’s minimum wage is $9.25 per hour.
Rhode Island. Effective January 1, 2015, Rhode Island’s minimum wage is $9 per hour.
South Dakota. Effective January 1, 2015, South Dakota’s minimum wage is $8.50 per hour.
Vermont. Effective January 1, 2015, Vermont’s minimum wage is $9.15 per hour. Vermont’s minimum wage is scheduled to increase as follows:
- On January 1, 2016, the minimum wage will increase to $9.60 per hour.
- On January 1, 2017, the minimum wage will increase to $10 per hour.
- On January 1, 2018, the minimum wage will increase to $10.50 per hour.
Washington. Effective January 1, 2015, Washington’s minimum wage is $9.47 per hour.
West Virginia. Effective January 1, 2015, West Virginia’s minimum wage is $8 per hour. West Virginia’s minimum wage is scheduled to increase to $8.75 per hour on January 1, 2016.
'Cadillac' Tax Could Diminish Union Health Plans
Originally posted by Bob Herman on March 3, 2015 on businessinsider.com.
Health plans obtained through union collective bargaining agreements often include much more generous benefits than other employer-sponsored plans. But such benefits are likely to be pared down as the Affordable Care Act's excise tax nears, a new study in Health Affairs contends.
That excise tax, often called the “Cadillac” tax, will go into effect Jan. 1, 2018. A 40% tax will be levied on every dollar of total premiums paid above $10,200 for individual health plans and $27,500 for family plans.
Policymakers included the Cadillac tax in the ACA as a way to raise revenue to fund the law. The Congressional Budget Office estimates it will bring in $120 billion between 2018 and 2024. Most of that will come from higher taxes on employees' taxable wages instead of the tax-exempt insurance benefits.
But the tax also was viewed as a way to reduce the number of health plans that have little cost-sharing and premium contributions, which some argue contribute to the overuse of healthcare. President Barack Obama has been quoted as saying the excise tax will discourage “these really fancy plans that end up driving up costs.” Lavish executive-level health plans and collegiate benefit packages, like Harvard University's, have been oft-cited targets. However, many collectively bargained policies fall into the Cadillac bracket as well.
The Health Affairs study, published Monday, sought specifics about what kind of health benefit packages unions provide for employees. People with union plans have lesser out-of-pocket obligations and don't pay as much per month toward their premium as others with employer-based insurance, but the surprise was “the magnitude of the differences for certain things,” said Jon Gabel, a healthcare fellow at NORC at the University of Chicago and one of the study's authors.
For instance, families in collectively bargained plans paid about $828 per year toward their premium, or about $69 per month, according to the study's surveyed data. That compared to $4,565 for the average employer-sponsored family plan, or about $380 per month, according to 2013 data from the Kaiser Family Foundation.
Cost-sharing requirements also were less onerous in union health plans, the study found. The average annual in-network deductible for an individual in a collectively bargained plan was $203. The average deductible at other employer-based plans was almost six times higher at $1,135.
Although the federal government is considering some flexibility for “high risk” unionized occupations such as miners and construction workers, many employers are looking to get ahead of the excise tax by slimming down benefits.
“For those who are fortunate to have a Cadillac plan right now, it's probably not going to be so comprehensive in the future,” Mr. Gabel said. However, he said, reduced benefits should lead to increased wages to offset higher cost-sharing.
Tom Leibfried, a health care lobbyist for the AFL-CIO, a federation of 56 unions, calls the Cadillac tax “a misnomer” because union plans apply to middle-class Americans with modest wages. The issue should not be about the generosity of health coverage, but rather whether the coverage is appropriate for people based on the health care costs in their geography, he said.
“Trying to control utilization in that way really does amount to a cost-shift,” Mr. Leibfried said. “This is really a middle-class problem.”
Higher compensation supplanting lost benefits is not a sure thing either, Mr. Leibfried said. Indeed, wages and salaries have been mostly stagnant the past decade, barely edging out inflation even as health benefits shrink.
Protecting Vision in the Workplace
Originally posted by Sandy Smith on February 10, 2015 on ehstoday.com.
The use of digital devices, including personal computers, tablets and cell phones, continues to increase. The impact of prolonged usage often can be felt in the eye.
According to a report from the Vision Council, extended use of these devices have caused as many as 70 percent of American adults to experience some form of digital eyestrain.
"By protecting our eyes at work and at home, we can help stay healthy and productive for years to come," said Hugh R. Parry, president and CEO of Prevent Blindness.
Prevent Blindness, the nation's oldest volunteer eye health and safety group, provides employers and employees with free information on topics ranging from eyestrain to industrial eye safety in order to promote eye health at work. The group even has declared March as Workplace Eye Wellness Month.
Steps You Can Take
Employers and office workers can take a few simple steps to help prevent eyestrain and fatigue from digital devices. Prevent Blindness suggests:
- Visit an eye doctor for a dilated eye exam to make sure you are seeing clearly and to detect any potential vision issues.
- Place your screen 20 to 26 inches away from your eyes and a little bit below eye level.
- Use a document holder placed next to your computer screen. It should be close enough that you don't have to swing your head back and forth or constantly change your eye focus.
- Adjust the text size on the screen to a comfortable level.
- Change your lighting to lower glare and harsh reflections. Glare filters over your computer screen can also help.
- Use a chair you can adjust.
- Choose screens that can tilt and swivel. A keyboard that you can adjust also is helpful.
And the Vision Council recommends the 20-20-20 break: every 20 minutes, take a 20-second break and look at something 20 feet away.
Prevent Blindness strongly recommends the use of eye protection in the workplace, especially in industries such as construction, manufacturing or any profession where eye accidents and injuries may occur. The U.S. Bureau of Labor Statistics reported that in 2012, there were 20,300 recorded occupational eye injuries that resulted in days away from work.
The organization offers two workplace programs:
The Healthy Eyes Educational Series (https://www.preventblindness.org/healthy-eyes-educational-series) is a free program that provides user-friendly, downloadable modules to conduct formal presentations or informal one-on-one sessions, including one titled "Work Safety." Each module includes a presentation guide and corresponding PowerPoint presentation on a relevant eye health topic such as adult eye disorders, eye anatomy, healthy living, low vision and various safety topics. Fact sheets can be downloaded at any time from the Prevent Blindness web site for use as handouts to accompany the presentation.
Prevent Blindness also offers Eye2Eye (https://www.eye2eyeprogram.com), a web-based educational resource that trains employees to communicate the importance of eye health and safety to each other, increases eye safety compliance and builds a stronger culture of safety in the workplace. The program features a peer-based, interactive curriculum and community-oriented forum enabling end users to share their learnings and best practices with each other.
Eye Injuries in the Workplace
More than 2,000 people injure their eyes at work each day. About one in 10 injuries require one or more missed workdays for recovery. Of the total number of work-related injuries, 10-20 percent will cause temporary or permanent vision loss. Experts believe that the right eye protection could have lessened the severity or even prevented 90 percent of eye injuries. The common causes of eye injuries in the workplace are:
- Flying objects (bits of metal, glass)
- Chemicals
- Tools
- Harmful radiation
- Particles
- Any combination of these or other hazards
3 Ways to Prevent Eye Injuries
- Know the eye safety dangers at work by completing an eye hazard assessment.
- Use engineering and administrative controls to eliminate hazards before employees start work. Use machine guarding, work screens or other engineering controls, create policies that require 100 percent compliance with eye safety protective equipment use.
- Use proper eye protection.
Tips for Handling Employee Pay Issues Caused By Mother Nature
Originally post February 9, 2015 by Laura Kerekes on www.thinkhr.com.
If you are inclined to believe “Punxsutawney Phil,” we’re in for another six weeks of wintry weather. When the groundhog emerged from his dwelling at Gobbler’s Knob in west-central Pennsylvania on February 2nd, he did not see his shadow. Let’s all hope for an early spring while we stay vigilant for more bad weather. Super storms packed punches in the Midwest and Northeast to start the New Year and continue adding to the area’s already taxed weather relief efforts. While your business may not have been affected by the recent superstorms, it is a great wakeup call to think through how businesses should handle the employee relations and pay issues that arise when they are forced to close due to inclement weather and/or when employees simply cannot get to work due to transportation or personal difficulties.
What should an employer do? Pay employees to stay at home? After all, in most cases, they are not at work through no fault of their own. Many businesses, however, do not have the financial resources to pay employees not to work. What follows are the rules regarding paying employees who miss work due to Mother Nature, along with some practical tips. From an employee relations perspective, the more generous you can afford to be to your employees who are suffering as a result of a weather-related disaster, the better. Employees (and their families) do pay attention to how they are treated, and a little extra time off and compassion for individual circumstances can go a long way towards enhancing employee loyalty.
If the company has no power and sends employees home for the day, should they be paid? And does it matter if the employee is exempt or nonexempt?
In general, there are two sets of rules for paying employees depending upon their classification under the Fair Labor Standards Act (FLSA) as it relates to eligibility for overtime. With nonexempt employees (those eligible for overtime pay), there is no obligation under federal or state law to pay for time not worked. However, under certain state laws, employers may have an obligation to compensate nonexempt employees under call-in/reporting pay laws, especially if the employees were not advised that they should not report to work and were denied work upon arrival at the workplace.
These pay obligations vary by state. With respect to salaried exempt employees who must be paid on a “salary basis” under the FLSA, employers may not make salary deductions for absences that result from an employer’s partial-week closing of operations, including closings due to weather-related emergencies or disasters. The bottom line is that exempt employees must be paid their full salary if they perform any work in a workweek and only miss work time due to the employer’s closure of operations. Closures for a full workweek need not be paid if no work is performed.
Are these rules different if the company can tell the employee not to come to work the next day?
For nonexempt employees, if they are told in advance not to come to work and the employees stay home, then the employer is under no obligation to pay them for the time off. The employer and the employee can choose to use accrued paid time off to compensate the employee for the missed workdays.
For exempt employees, the “salary basis” rule still applies. In some cases the employee may be working from home during the bad weather days. If state laws permit employers to do so, employers may deduct from the exempt employees’ accrued paid time off balances to resolve the issues related to “salary basis” compliance. The employer should ensure, however, that these employees have not done any work from home during the office closure prior to deducting time from the accrued paid time off bank balances.
If an employee is on Family and Medical Leave Act (FMLA) leave, do those “bad weather days” count against the employee’s 12-week allotment of time off?
The FMLA regulations are silent about bad weather office closures. However, the regulations do allow for situations when the employer’s business stops operating for a period of time and employees are not expected to come to work (plants closing for a few weeks to retool, mandatory company-wide summer vacation, etc). In that case, the week the business is closed and no employees are reporting to work would not count against the employee’s FMLA leave entitlement. If the business is closed for a shorter period of time, the general thinking is that the FMLA regulations relating to holidays would likely apply. Under those rules, if the business is closed for a day or two during a week in which the employee is on FMLA leave, then the entire week would count against the employee’s FMLA leave entitlement. If, however, the employee is on intermittent FMLA leave, then only the days that the business is closed and the employee is expected to be at work would count against the leave entitlement.
How do we handle attendance issues where the office is open but public transportation is not available due to the weather and employees cannot come to work?
If the business remains open but employees cannot get to work because of the weather, employers will need to consider their own attendance policies and practices in determining what flexibility to give employees as it relates to attendance. Employers may encourage employees to car pool or assist them in establishing alternative methods of transportation to get to work.
Under the FLSA rules as it relates to pay, however, employers do not need to pay nonexempt employees if they perform no work. For exempt employees, if the business remains open but an employee cannot get to work because of the weather, an employer can deduct an exempt employee’s salary for a full day’s absence taken for personal reasons without jeopardizing the employee’s exempt status. Employers cannot, however, deduct an exempt employee’s salary for less than a full-day absence without jeopardizing the employee’s exempt status.
Does a company have to allow employees to work from home (exempt or nonexempt) if the office is closed due to bad weather?
No, the employer does not need to allow employee to work from home, regardless of their FLSA status (exempt or nonexempt). The employer can make those decisions based upon the work that can be done remotely and based on the needs of the business. The employer should have clearly communicated policies and expectations regarding working from home during office closures.
The bottom line is that every employer should think about the needs of the business, its financial resources, and employees’ needs and have plans in place to manage business issues due to inclement weather. Thinking through what the wage and hour laws require and developing your policies and then applying them consistently and fairly with all employees can reap huge dividends in employee loyalty and retention.
11 elements of a good enrollment plan
Originally posted February 9, 2015 by Marty Traynor on Benefits Pro.
Spurred by time-saving devices such as smart phones and tablets, our pace of life has sped up. And enrollment is no exception.
In thinking about how to open this column, I took three minutes to look up the fact that Usain Bolt took 9.58 seconds in his world-record 100-meter run; it took Michael Phelps 49.82 seconds to set a world record in the 100-meter butterfly; and Abraham Lincoln delivered the Gettysburg Address in about two minutes. Add that all up and you have six minutes, which is about the time most employees who enroll online will spend making their voluntary benefit enrollment choices this fall.
Employees are making decisions that affect their financial security in six minutes. But how can they be expected to make a good decision in that time, especially when faced with a growing list of options?
We have to plan what we can do to help employees make good choices and provide them with information via a coordinated enrollment communications plan. These elements help:
- Pre-enrollment communications such as email notices and web banners, and on-site promos like posters and table tents
- Informational on-site group meetings and/or webinars covering all shifts
- Access to a call center during open enrollment and a help line for new hires and life event changes during the year
- Evening webinars or access to call/chat services for employees and their spouses
- Engaging tools such as videos and calculators
- Creative approaches such as contests or prize drawings for all who enter the system
- Recommended product bundles based on key demographics of the employee and their family
- Careful product ordering
- Auto enrollment of prior year choices
- Speaking of employees who have already selected a voluntary plan — make any buy-up option as easy as possible to encourage repeat purchases and accommodate growing needs
- Internal response tracking inside enrollment systems so follow-up emails automatically go from HR to those who have not entered the system, and to those who have not completed the process
Employees have to make their benefits elections in a hurried, nearly thoughtless environment. We can help them make better decisions during that six-minute decision process by active support of an enrollment plan.
DOL Updates Definition of Spouse in FMLA Regulations
Originally posted February 24, 2015 by Rick Montgomery, JD on ThinkHR.com.
On June 26, 2013, in U.S. v. Windsor, 570 U.S. 12, 133 S. Ct. 2675 (2013), the U.S. Supreme Court struck down section 3 of the Defense of Marriage Act (DOMA) as unconstitutional under the Due Process Clause of the Fifth Amendment. Immediately following the decision in Windsor, the U.S. Department of Labor (DOL) announced what the then-current definition of “spouse” under the Family and Medical Leave Act (FMLA) allowed, given the decision: Eligible employees could take leave under the FMLA to care for a same-sex spouse, but only if the employee resided in a state that recognized same-sex marriage. This has been commonly referred to as the “state of residence” rule.
In order to provide FMLA rights to all legally married same-sex couples consistent with the decision in Windsor, the DOL issued a Final Rule on February 25, 2015, revising the definition of spouse under the FMLA. The Final Rule amends the definition of spouse in 29 C.F.R. §§ 825.102 and 825.122(b) to include all individuals in legal marriages, regardless of where they live. More specifically, the definition of spouse is now a husband or wife as defined or recognized in the state where the individual was married (“place of celebration”) rather than where the individual resides, and specifically includes individuals in same-sex and common law marriages. The Final Rule also defines spouse to include a husband or wife in a marriage that was validly entered into outside of the United States if it could have been entered into in at least one state.
The Final Rule goes into effect on March 27, 2015.
To assist employers, the DOL has released a Fact Sheet and Frequently Asked Questions about the Final Rule.
IRS Offers Relief for Small Employer Premium Reimbursement Arrangements
Originally posted February 25, 2015 by Laura Kerekes on ThinkHR.com.
On February 18, 2015, the IRS announced transition relief for certain small employers that subsidize the cost of individual health insurance policies for employees. Notice 2015-17 provides short-term relief from the $100 per employee per day excise tax that otherwise would apply to the employer.
Starting in 2014, employers of all sizes have been prohibited from making or offering any form of payment to employees for individual health insurance premiums, whether through reimbursement to employees or direct payments to insurance carriers. Employers also are prohibited from providing cash or compensation to employees if the money is conditioned on the purchase of individual health coverage. Employers that violate the prohibitions against these so-called “employer payment plans” are subject to an excise tax of $100 per day per affected employee. Exceptions are allowed for limited-scope dental or vision policies, supplemental plans, or retiree-only plans.
Small businesses in particular have been affected by the prohibition since many of them had subsidized individual policies for workers instead of offering a group health plan. Notice 2015-17 now offers short-term relief from tax penalties to give small employers additional time to comply with the prohibition. This relief applies only to small employers. Employers who are defined under the Affordable Care Act as applicable large employers (ALEs) — generally those with 50 or more full-time and full-time-equivalent employees — are not eligible for relief.
Specifically, the IRS will not impose excise taxes on employers that provide pretax reimbursement or payment of individual health insurance premiums as follows:
- For 2014, employers that are not ALEs (based on employer size in 2013).
- For January 1 through June 30, 2015, employers that are not ALEs (based on employer size in 2014).
Starting July 1, 2015, excise taxes may apply regardless of the employer’s size.
Note: This transition relief applies only to pretax reimbursement or payment of insurance premiums. It does not apply to after-tax reimbursements. It also does not apply to stand-alone health reimbursement arrangements (HRAs) or other arrangements to reimburse employees for expenses other than insurance premiums.
Additional Relief Provisions
Notice 2015-17 also provides relief for certain arrangements that reimburse premiums for 2-percent-or-more shareholders in Subchapter S corporations, and for certain employers that reimburse Medicare premiums or TRICARE expenses. These provisions are complex and affected employers should refer to their legal and tax advisors for guidance.
Responding to Flooding When Snow and Ice Melt
Originally posted January 15, 2015 by Insurance Institute for Business & Home Safety (IBHS).
Insurance Institute for Business & Home Safety - If temperatures begin to rise after severe winter weather, flooding due to snow and ice melting could result in widespread property damage.
The Insurance Institute for Business & Home Safety (IBHS) urges property owners who have experienced significant snowfall and freezing temperatures during the winter to evaluate their flood risks as warmer weather arrives.
“The most important things home and business owners can do from a safety perspective is to pay close attention to local weather reports and alerts from the National Weather Service,” said Julie Rochman, IBHS president and CEO. “In addition, we urge residents to follow the instructions of local emergency officials when flooding is imminent, and we especially caution everyone to obey all evacuation orders from local authorities.”
When temperatures rapidly increase, so does the rate at which snow and ice melt. This can be a serious problem for areas that have received large amounts of snow and ice throughout this severe winter season. Frozen soil also increases the risk of flood as water from melting snow and ice is not able to seep into the ground.
“If you still have snow piles surrounding your home, try to move those away from your foundation to avoid water from leaking into your home,” said Rochman. “Also, keep in mind that rain can cause snow to melt faster, which can contribute to possible flooding in your area.”
If flooding is imminent, find out how you can prevent damage using IBHS resources below. Additional IBHS winter weather resources are available at https://bit.ly/1zA3NTZ or on the IBHS Facebook page at https://on.fb.me/1Aoh2Le
HOW TO PREVENT PROPERTY DAMAGE WHEN FLOODING IS IMMINENT
- Clear drains, gutters and downspouts of debris.
- Move furniture and electronics off the floor, particularly in basements and first floor levels.
- Roll up area rugs, where possible, and store these on higher floors or elevations. This will reduce the chances of rugs getting wet and growing mold.
- Inspect sump pumps and drains to ensure proper operation.
- If a sump pump has a battery backup, make sure the batteries are fresh or replace the batteries.
- A sump pump needs to be away from basement walls to be effective.
- Make sure the sump pump outlet pipe is clear and water flows freely away from your property.
- Shut off electrical service at the main breaker if the electrical system and outlets may end up under water.
- Place all appliances, including stoves, washers, dryers, etc. on masonry blocks or concrete at least 12 inches above the projected flood elevation.
- Seal any cracks in walls, openings, or your foundation using masonry caulk or hydraulic cement.
- Consider installing backflow valves, which are designed to prevent water from flowing into your house through local sewer lines.
- Create an emergency preparedness kit and evacuation plan.
Identity-theft protection benefits boost business, satisfaction
Originally posted January 20, 2015 by Melissa A. Winn on www.ebn.benefitnews.com.
With employee news feeds brimming with headlines about recent computer hacks and data leaks, employers are showing a growing interest in offering identity theft protection services as a benefit to their worried workforce. Benefit industry experts say the relatively inexpensive voluntary benefit is not only highly-appreciated by employees, but it can also act as a differentiator in a benefit adviser’s sales portfolio.
Employer concern about employee identity theft has been on the uptick recently, says Nick Park, voluntary benefits specialist at Corporate Synergies. “It has definitely been a topic of conversation more in the last year,” he says.
Identity theft fraud claims a new victim every two seconds, according to the 2014 Identity Fraud Report issued by financial research firm Javelin Strategy and Research. The Bureau of Justice Statistics, the government research agency for the Justice Department, found that 16.6 million American adults experienced identity theft in 2012 alone.
“In a group of 10 people there’s always at least one or two people who have a personal experience with an identity theft situation in some form or fashion,” says Kelly Fristoe, president and CEO of Financial Partners in Wichita Falls.
Fristoe sells the identity theft product LifeLock, which can be sold to individuals or offered to groups as a value added voluntary or employer paid product.
“[T]here are agents I know that do sell a ton of it,” he says. “Theirs and my experience is that it is a high-value product.”
While some employers choose to add identity theft protection services as a new benefit offering in their voluntary benefit package during annual open enrollment, Park says employers have also approached his firm for information on the benefit throughout the year, particularly if somebody in the organization suffers from an identity theft.
“They don’t want that to happen to any other employee in their organization,” he says.
Employees rely on their employer for “a host of financial needs: planning for retirement, protecting against the costs of health care, or even accidents and illness; not to mention, their paycheck. Identity theft can represent a threat to all aspects of financial security and is right in line with benefits [employer clients] can offer their employees,” according to identity theft protection services provider LifeLock.
Employee satisfaction
“It is a ‘nice to have’ benefit,” says Park. “I don’t know if it would be considered a necessity at this point, but employees like it.”
The monthly premiums are usually pretty affordable, he says and the benefit “typically has very little dissatisfaction once you have placed it in the employee population,” says Park. “It’s not something I hear negative feedback on ever.”
For benefit advisers, identity theft protection can be a good differentiating benefit offering, and “is a simple tool to give your clients satisfaction.”
With some insurance products there is a risk, he says, but not so much with identity theft protection.
“Sometimes, when you introduce a product to an employee population it may be complex or confusing and people don’t understand it, they don’t understand the coverage type. [Identity theft protection] is something everybody understands,” says Park.