HR policies

Boxed in by Box 12 on the W-2

Another update from the HR jungle….
image013Maryann handles payroll questions for her employer. She and her coworkers have been scrambling for a couple of years to ensure they comply with the Affordable Care Act (ACA). Last year was all about finding a software program that would allow the company to track the hours of its temporary employees.

This year, Maryann is looking at box 12 on the W-2. That’s the box where employers need to plug in the cost of the medical plan for the employee. Filling in this information is mandatory only for employers who filed at least 250 W-2’s in the previous tax year, meaning in 2013. Maryann’s company filed 170 W-2’s in 2013, so they aren’t required to complete box 12 for the 2014 tax year.

She knows that this January her company will issue 200 W-2’s covering the 2014 tax year. She thinks that number will rise to 250 during 2015. Maryann wants to get a head start on figuring out box 12 after some of the past fiascos in trying to comply with the ACA.

What should Maryann consider?

  1. Maryann knows that the “cost” or “value” of health coverage refers to the premium paid for medical coverage in the health plan, known as “major medical”. She needs to verify what other costs, such as FSA contributions and dental and vision premiums, may need to be included.
  2. Maryann can consult her company’s CPA firm for assistance on completing box 12.
  3. Maryann can do some research in the ACA section of the IRS website during her spare time.

Need help 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 when the policies are implemented.

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Can a Screw Up be Fixed?

Another update from the HR jungle….

mistakeBob recently bought a business that has one small retail location. He spent weeks fixing up the store to make it more visually appealing. He also researched the store’s records to identify former customers and then contacted them to introduce himself as the new owner.

While he will sell products to anyone with money, he really wants to build sales to other businesses since that will generate more revenue in the long run. So when he’s not behind the counter, he’s at a business networking event. Since he can’t afford to hire an assistant yet, a retired friend babysits the store while he’s at an event or running errands.

Two weeks ago, Bob invited another business owner that he met at one of the B2B networking groups to stop by the store so they could get better acquainted. Today, the other business owner showed up at the appointed time and was greeted by Bob’s friend. When Bob returned to the store hours later he realized he’d screwed up; he forgot the appointment.

What options are available to Bob?

  1. He can wait for the other guy to contact him, but that’s not really fair since Bob’s the one who forgot the appointment.
  2. He can ignore the screw up leaving a bad first impression on the other business owner who may think all sorts of evil thoughts about Bob’s business acumen.
  3. He can immediately call the other business owner, apologize for screwing up, and ask if it’s possible to reschedule the appointment.

What does this sort of screw up have to do with HR? Imagine how Bob’s employees (when he can afford to hire them) will feel if he blows off obligations that are important to them while holding them to a high standard of performance.

Need help 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 when the policies are implemented.

Join the HR Compliance Jungle today. Click here!

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