Small Employer

Under 50 employees

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.

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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.

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Pay Now or Pay Later.

Another update from the HR jungle….

9098832-a-set-of-tools-for-repairs-vector-illustrationBarb owns a small home repair business with six employees. She pays them wages higher than the industry average so that they won’t defect to larger competitors who can offer more benefits. She’d like to add a group health plan as another incentive to remain loyal to her company.

But, once again, the health insurance quotes Barb received gives her sticker shock. There’s no way she can pay the employer’s portion of the premium for a group health plan. She’s already paying a fortune for her worker compensation premiums.

She knows her employees can’t afford the employee’s portion of the premium on a group health plan. Don Juan Smith’s paycheck is subject to the maximum allowed payroll deductions due to the court-ordered child support he owes to two girlfriends. High Risk Randy’s wages are being garnished for old debts and he’s never paid voluntarily for any employee benefit.

What options are available to Barb?

  1. She can remind her employees that annual open enrollment for the Exchange (a/k/a Marketplace) began on November 15th. They can apply for individual health policies or apply for an individual exemption to the requirement of having health insurance.
  2. She can tell her employees to talk to a health insurance agent about coverage options for the employee or for the employee’s family.

Is your business struggling to understand the Affordable Care Act and how it affects your company and employees? Corporate Compliance Risk Advisor can provide an overview of how the ACA affects employers and employees and answer specific questions you may have.

Join the HR Compliance Jungle today. Click here!

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Be Kind, Not Nice.

Another update from the HR jungle….

image012

“Be kind, not nice” is a favorite saying of one of my friends. Consider what that means for employers and their employees.

Leslie’s company has less than 50 employees, so the Family Medical Leave Act (FMLA) does not apply to her company. This fact became important yesterday when Beth revealed that she has breast cancer and needs extended leave while she undergoes treatment. Beth also says that she wants to return to work full-time after completing her initial treatment.

Leslie counts Beth as a personal friend as well as an employee and wants to help. Beth was one of the first employees she hired and has always been a stellar performer. But Leslie knows that if Beth is granted extended leave, other employees will demand the same treatment later. She also worries that her staff is too small to cover for an employee who is absent for an extended period of time.

Leslie considers her situation and how she can be kind, but not nice to Beth. What options are available to Leslie?

  1. She can be kind to Beth by offering support as a friend and accommodating Beth’s treatment schedule as much as reasonably possible without disrupting the company’s work flow.
  2. She can protect her company by documenting the business reasons for making an exception to the leave policy for Beth. For example, Beth’s work performance and length of service could justify making an exception to the leave policy.

Distinguishing kind from nice may not be easy particularly when creating HR policies. Corporate Compliance Risk Advisor can help you separate kind from nice in your employee practices with HR policies that are appropriate for your company.

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Private Exchanges and the Small Employer.

Another update from the HR jungle….

Dorothy runs a small retail business with 8 employees. It’s a low margin business so there’s not much room for employee perks. Dorothy always wanted to offer a group health plan to her employees but could never afford it. She had high hopes of lower premiums under the Affordable Care Act (ACA or Obamacare) but after looking at a couple of quotes she doubts if she can ever afford a group health plan for her employees.

Recently at a business networking event, Dorothy learned that a local hospital chain is teaming up with the largest health insurance company in the area to offer a private Exchange. A private Exchange does not offer premium and cost sharing subsidies like the public Exchange (a/k/a Marketplace). But a private Exchange offers some financial certainty to employers.

A private Exchange allows an employer to contribute a fixed dollar amount toward the cost of health coverage. Employees can then “buy up” to a higher premium level of health plan if they want lower deductibles or co-pays.

What options are available to Dorothy?

1. She can contribute a fixed dollar amount that covers the employee-only premium at a bronze plan level. Employees would be responsible for paying the premium for their family members added as dependents.
2. She can pay employees a bit more in wages and allow them to sort out their health coverage options.
3. She can continue doing nothing monetarily but encourage her employees to apply for individual coverage via the Healthcare Exchange (a/k/a Marketplace) in hopes they may qualify for some of the subsidies it offers to lower income individuals.

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!

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

Doing the Right Thing under the ACA.

Another update from the HR jungle….

Cindy owns a small business that has 6 employees. She would love to offer health insurance to her employees but has found it too expensive in the past. Instead, she raised wages slightly and encouraged her employees to buy individual coverage.

When Cindy first heard about the Affordable Care Act (ACA or Obamacare) she was excited about the possibilities. Early reports were that small employers like her company might finally be able to afford a group health plan. The Small Business Health Option Program (SHOP) would have standardized plans, making it easier to compare coverage. The SHOP was also supposed to allow small employers to offer more than one health plan option to employees.

Alas, the SHOP is part of the Healthcare Exchange or Marketplace. The roll out of the Individual Exchange was such a mess that all the most attractive features of the SHOP were delayed. Another year has gone by and open enrollment in (and outside) the Exchange will soon start. Cindy is pondering her choices.

What options are available to Cindy?

1. She could work with her insurance agent to apply for a group health plan via the SHOP, even though the coverage options are limited.
2. She could work with her insurance agent to apply for a group health plan outside the SHOP where there are more coverage options available from more insurers.
3. She could continue doing what she currently does, which is to increase her employees’ pay and encourage them to obtain individual coverage.

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!

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

Pay Raises v. Health Insurance

Another update from the HR jungle….

Pete has a small company with 12 employees, many of whom are also related to him. Running a business with lots of family is not easy. (Who knew that Aunt Martha’s feud with Uncle Les would still be an issue after 50 years?) Pete figures the best way to keep everyone happy is to offer good pay and benefits.

One of the benefits he’s always wanted to offer is a group health plan. Pete gave up on a group plan for employees after his nephew had surgery and the rates on the group plan shot through the roof. Back when employees were risk-rated based on health factors, his nephew and a couple of other less healthy employees guaranteed that the premium increased dramatically each year.

Pete knows that under the Affordable Care Act (ACA or Obamacare) small group plans with less than 50 employees are no longer risk-rated. Instead, the premium is based on the age of each participant, geographic location, family size (number of individuals covered), and tobacco use. So Pete decides to ask his insurance agent for a quote on a group health plan for his employees.

Pete gets sticker shock again when he sees the amount of the premium. He knows that he simply can’t afford to offer a group health plan. Still, he wants to do something for his employees.

What options are available to Pete?

1. He can tell employees that no pay raises will be given this year so that he can offer a group health plan.
2. He can go ahead with his plan to give pay raises and let his employees buy individual health policies. He hopes some will qualify for the subsidies offered by the Healthcare Exchange (a/k/a Marketplace).
3. He can give each employee a set amount of money, in lieu of a pay raise, that would cover employee-only health insurance on a low cost bronze plan (bought via the Exchange or directly from the insurer).

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/