Press "Enter" to skip to content

Posts published in “Insurance”

Reimbursing Employees for Health Insurance Can Be a Costly Mistake

0

As we get into the health insurance renewal season, there are some smaller, non-ACA mandated businesses (less than 50 FTEs) that may consider dropping their small group health plan all together.  An average of 20-30% group rate hikes year after year do take a toll on the bottom line, so it would not be surprising. In lieu of carrying a group health plan, some employers may even decide to simply reimburse their employees a set amount for them to obtain individual coverage, or maybe even pay for the employees individual health insurance costs directly.   Unfortunately, 2013 guidance from the IRS…

Legal Insurance. What is that?

0

We carry health insurance for routine ‘maintenance’ and unforeseen events, auto and home insurance for unexpected property losses, but what about protection and assistance with the day to day situations that could require legal assistance? Review of an agreement or contract ♦ securing a mortgage ♦ collecting or settling a debt ♦ credit report issues ♦ probate ♦ bankruptcy ♦ immigration ♦ divorce ♦ preparing a will ♦ traffic citation ♦ marriage ♦ purchasing faulty merchandise/consumer protection ♦ notary services ♦ these are all situations where having an attorney would be of great value, but sometimes the cost can be discouraging from having the much needed legal assistance.  Studies have shown that 7 out of 10 people have experienced some sort of legal event in…

Pre-tax or Post-tax Deductions (aka Pay Now or Pay Later)

0

Under regulations of Section 125 of the Internal Revenue Code, an employer can implement various Plans which allows employees an opportunity to receive certain benefits on a pre-tax basis.   In this article, we will look at the Premium Only Plan (POP), where employees can elect to pay their portion of insurance premiums on a pre-tax basis, creating a savings for both the employee and the employer. Setting up a POP is simple and you just need to have a Plan Document and Summary Plan Description in place that describes all benefits and establishes the rules for eligibility and elections.  (If…

NY Implements Mandatory Paid Family Leave Policy

1

Effective January 1st, 2018, employers in New York State will be required to offer Paid Family Leave coverage for their workforce.  Employer’s should prepare now for this new coverage and can even voluntarily comply and start the coverage earlier.   Do not wait until December 31st. New York will become the fourth state requiring family leave coverage, following California, New Jersey, and Rhode Island.  This coverage provides wage replacement and job protection to employees who need time off to bond with a new born, adopted, or fostered child, care for a family member with a serious health condition, or assist…

IRS Extends Due Date for 2016 ACA Reporting

0

Yesterday, November 18, the IRS issued Notice 2016-70, which extends the due date for the 2016 requirement to furnish ACA-related statements to individuals for insurers, self-insuring employers, and certain other providers of minimum essential coverage under I.R.C. § 6055, and for applicable large employers under I.R.C. § 6056, and extends good-faith transition relief from section 6721 and 6722 penalties to the 2016 information-reporting requirements under sections 6055 and 6056.  The due date is extended from January 31st, 2017 to March 2nd, 2017. The notice also provides guidance to individuals who, as a result of these extensions, might not receive a…

Florida Workers’ Comp Rate Increase 14.5%

0

On October 6th, the Florida Office of Insurance Regulation issued a final order approving a 14.5% increase to its workers’ compensation insurance rates.  This increase apples to both new and renewed policies effective in Florida as of December 1st, 2016.   On the bright side, this is better news than the proposed increase by the National Council on Compensation Insurance (NCCI) of 19.6%. The underlying reason for the majority of this increase is due to a Florida Supreme Court ruling this past April (Castellanos v. Next Door Company) which found the mandatory attorney fee schedule per the Florida Statutes being unconstitutional as a…

Are group health insurance, minimum participation requirements legal?

0

I have a client with a very interesting scenario in regards to Affordable Care Act (ACA) compliance and their desire to abide by the law. This client is defined as an Applicable Large Employer (ALE) by having greater than 50 Full-time Equivalent employees, therefore is bound by the Employer Shared Responsibility provisions under 4980H of the Internal Revenue Code. If they do not offer affordable health coverage to their full-time employees, they may be subject to a penalty of $2,000 per employee. In this case, the company, not wanting to be penalized, sought a health insurance agent to obtain a…