Large Employer

Over 50 employees

School Zones Made Me Late

Another update from the Jungle….
image001Jane is the HR manager for a company with about 200 employees. The company runs a lean operation which means that Jane is the sole HR person and handles pretty much every situation that arises. Jane likes the variety of issues that she faces because it keeps everything fresh and interesting.

A major problem for the company is time and attendance. The owner of the company is obsessive and compulsive about details and it drives him nuts to see a few employees chronically showing up late. He told Jane to fix the problem.

Jane reviewed the time and attendance policy which clearly states that chronic tardiness may subject an employee to progressive disciplinary action. The policy is included in the employee handbook. Jane checks the personnel files for each laggard employee and finds that each of them has signed the acknowledgement form. That means that each employee received a copy of the employee handbook and promptly tossed it aside without actually reading it.
image004This week, Jane began meeting individually with each employee who is chronically late. Jane tries not to yawn as she hears the usual excuses. One employee says she was stuck in traffic due to an accident. Another says his dog got out of the fenced-in backyard and he had to find the mutt and lock him in the garage before leaving for work.

Jane’s favorite excuse of the week is the employee who says she was late due to the school zones. The employee recently moved so that her children could attend a more highly rated school. This means the employee must now travel through three more school zones on her route to work. That caused her to be late.

What should Jane do next?

  1. She can explain to each employee that the excuse du jour doesn’t make up for chronic lateness. She can then move to the next step in progressive discipline.
  2. She can encourage each employee to make a greater effort to arrive on time and let them off with a verbal warning.
  3. She can ask herself why she never thought up so many creative reasons for being late to work.

Time and attendance issues are a perennial problem. Perhaps it’s time to think about the underlying reasons for tardiness. Employees who enjoy their work tend to show up on time.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

Download my FREE eBook today! Click here! 

Click here to join the HR Compliance Jungle today.

Follow us on Facebook & Twitter!

The Right Person for the Job

Another update from the Jungle….
image013Wanda owns a small company and she’s preparing for her next round of job interviews.  She hates the interviewing and hiring process. It takes a lot of time away from running her business and the results can be iffy.

The last few batches of job applicants she interviewed left much to be desired. One job applicant said that if he was hired, he would need to take time off to fix a “mix up” about his probation. Another asked if a job offer was contingent on passing a drug test.  Another applicant candidly admitted he didn’t want the job but had to perform a job hunt in order to keep his unemployment benefits.  After that interview, Wanda tottered home and had an extra-large glass of wine
image016 with her dinner.

In the last batch of job applicants the only one showing real promise was a biker dude with prison tattoos. Heshowed up on time, was polite and actually asked relevant questions about the job duties.  Even though the biker dude lacked many of the job skills she was seeking, she immediately offered him the job because he seemed willing to learn.

But Wanda knows that she can’t continue such a hit or miss process. She needs to find a better method for hiring new employees.

What are Wanda’s options?

  1. She can reconsider what she’s looking for by ensuring the job description accurately reflects the job duties. It’s difficult to hire the “right” employee with the wrong job description.
  2. She can outsource much of the hiring process which will save her time. Of course, the staffing agency will need an accurate description of the job duties in order to find appropriate applicants for the job.
  3. She can rely more on referrals from friends, family and current employees as they understand her business are more likely to refer suitable candidates for job openings.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

Download my FREE eBook today! Click here! 

Click here to join the HR Compliance Jungle today.

Follow us on Facebook & Twitter!

The ACA is DOA.

Another update from the Jungle….

April Fools!

kicking-clipart-11949865171205221945blueman_306_01.svg.medThe ACA is alive and kicking. That means employers must comply with the ACA when offering a group health plan to their employees.  Unfortunately, about 30% of employers have no idea what is required of them, according to a recent insurance industry survey. Consider Tony’s situation.

Tony runs a company with about 30 full-time employees who work in the office. His company also has 80 part-time employees who work at various jobsites as needed. Tony has never offered health coverage to the part-timers because it was not financially feasible. Besides many of his part-timers wanted cash and not health coverage while others had health coverage from another source, often a spouse’s employer’s coverage.

Tony recently woke up to the fact that he must include his part-time employees in the headcount to decide if his company is a large employer subject to the employer penalty.  A quick estimate that two part-timers equal one full-time employee means that Tony’s workforce is clearly over the 50 employee line at which the employer penalty begins to apply.

What should Tony do next?

  1. He can decide to continue his current practice of not offering coverage to the part-timers. He may calculate that any penalty he owes for not offering them coverage is less than the cost of covering them in the group health plan.
  2. He can decide to offer coverage to his part-timers. If they reject his company’s group health plan, he will not owe the employer penalty.
  3. Before he chooses either of the above options, he can talk to a consultant who can explain the steps his company needs to take to comply with the ACA. Armed with this information, he can make a business decision on what is financially best for his company.

The above scenario is a composite of actual situations faced by clients. In those situations, the clients chose to offer health coverage to their part-timers because it was financially feasible and it boosted employee morale (after employees learned there is an individual penalty for not having health insurance). If you’re confused by the ACA, Corporate Compliance Risk Advisor can help your company understand its obligations and make informed decisions on ACA compliance.

Join the HR Compliance Jungle today. Click here!

Follow us on Facebook & Twitter!

Visit us: http://www.complianceriskadvisor.com/

Can My Company Live With the ACA?

Another update from the HR jungle….

Bob owns a company with 60 employees. He’s always offered health insurance to his headquarters employees but not to employees in the retail locations. The retail location employees tend to quit often, work varying schedules each week, and may have health coverage via a spouse’s employer’s plan. Bob decided long ago that it was a hassle to handle all the paperwork adding and terminating employees from the group health plan. So it was easier to not offer health insurance to the retail location employees.

Bob’s a sharp guy (that’s why he owns a company) and he’s tried to keep up with all the changes under the Affordable Care Act (ACA or Obamacare). He knows that his company is a “large” employer under the ACA because he has more than 50 employees. He knows that means his company could pay a penalty if the employee group health plan doesn’t meet the minimum standards set in the ACA, including offering coverage to most full-time employees.

Bob is concerned that some of the retail location employees may actually be full-time employees, meaning that they should be offered health insurance for calendar year 2015. Bob has also heard that there is transitional relief for employers with 50 – 99 employees. The transitional relief applies only to the 2015 calendar year but if his company meets the requirements, he gets another year penalty-free while he sorts out what he must do.

What options are available to Bob?

1. He could read the IRS regulation explaining the transitional relief requirements. (Bob’s tried reading IRS regulations before and he’d rather get his teeth drilled than go through that again.)
2. He could ask for assistance from the insurance agency or broker that sold the group health plan to his company, assuming they provide human resources assistance to clients.
3. He could take a quick look at the employer summaries on the IRS website and then wing it and hope it all works out.

Is your company struggling to understand how the ACA will affect the employee group health plan? Corporate Compliance Risk Advisor can help you grasp the basics of the ACA and how it affects an employer of your company’s size.

Join the HR Compliance Jungle today. Click here!

Follow us on Facebook Twitter!

Visit us: http://www.complianceriskadvisor.com/

How Many Employees Do We Have?

Another update from the HR jungle….

David is the HR director for his company. He’s attended seminars about the Affordable Care Act (ACA or Obamacare) but found most of the presentations confusing. He wasn’t sure what his company needed to do to comply with the law and, with all the delays in implementation, he moved this topic down his list of priorities.

Now David needs explain to the company owners what needs to be done to comply with the ACA. He knows the first step is to verify whether they are a “large” or a “small” employer. A large employer has at least 50 employees and is subject to an employer penalty if it doesn’t offer health insurance to its employees.

David’s company has 40 employees that work an average of 30 hours per week and so are full-time employees under the ACA. But his company also has 15 part-time employees.

How should David count the part-time employees under the ACA?

1. Add up the total hours worked during the month by the 15 part-time employees. Let’s assume that during the past month they collectively worked a total of 1260 hours.
2. Divide their aggregated hours by 120 (30 hours/week x 4 weeks = 120 hours per month). So David divides 1260 hours by 120. (1260 ÷ 120 = 10.5)
3. Round down to the nearest whole number. So David rounds down 10.5 to 10. During the past month the part-timers worked hours that are equivalent to 10 full-time employees. (That’s why part-time employees are called “full-time equivalents” or FTE’s).
4. Add the 10 FTE’s to the 40 full-time employees for a total of 50 employees. That means that in the past month, his company was a “large” employer under the ACA.

David should select 6 consecutive months in which to use the above formula to verify his company’s employer size. If during this 6 month counting period, the company has 50 employees, it is a “large” employer.

Is your company struggling to understand how the ACA will affect the employee group health plan? Corporate Compliance Risk Advisor can help you understand the basics of the ACA and how it affects an employer of your company’s size.

Join the HR Compliance Jungle today. Click here!

Follow us on Facebook & Twitter!

Visit us: http://www.complianceriskadvisor.com/

Complying With the ACA Is Making Me Feel Sick!

Another update from the HR jungle….

Marilyn is the HR director for her company. She’s spent a couple of years trying to figure out what the Affordable Care Act (ACA or Obamacare) means for her company. They have 80 employees so she knows they are a “large” employer and could be subject to the employer penalty if the employee group health plan doesn’t meet the minimum standards set in the ACA.

Trying to sort through the details of the ACA, while keeping up with her regular duties is making Marilyn feel sick. She knows that she has to track each employee’s weekly hours to verify who is eligible for the group health plan. Under the ACA, a full-time employee works an average of 30 hours a week.

She knows that the ACA allows employers to use two different counting methods to count employee hours. The counting methods are the Monthly Measurement Period and the Look Back Measurement Method but she isn’t sure which method to use.

What options are available to Marilyn?

1. She could read the IRS regulation explaining how to count each employee’s weekly hours using the Monthly Measurement Period and the Look Back Measurement Period.
2. She could ask for assistance from the insurance agency or broker that sold the group health plan to her company, assuming they provide such assistance.
3. She could hope that the employer penalty will be delayed yet again so that she has another year to figure out what to do.

Is your company struggling to understand how the ACA will affect the employee group health plan? Corporate Compliance Risk Advisor can help you grasp the basics of the ACA and how it affects an employer of your company’s size.

Join the HR Compliance Jungle today. Click here!

Follow us on Facebook & Twitter!

Visit us: http://www.complianceriskadvisor.com/