Pre and Post Tax Health Insurance Reimbursements

Recently the IRS released guidance on the practice of employers reimbursing employees for health insurance premiums. It is not surprising that the IRS ruled that pre-tax programs are no longer allowed (see guidance about transition relief). 

What was surprising is that employers cannot reimburse employees for health insurance premiums with post-tax dollars. Post tax dollars means exactly that, the IRS has already gotten its share of taxes.   

Why would the IRS care where money is spent after it has been taxed?

2015 Oregon Employers' Legislative Update

The Oregon Legislative has only been in session for a few months and already there has been quite a bit of activity in the labor law category.

Let's begin by reviewing the widely anticipated bills such as Paid Sick Leave and an increased Minimum Wage, which likely will end up on the Governor’s desk, then move on to the unexpected.

 

Large Employers without a Group Health Plan

This year the Employer Mandate went into effect.  
The Employer Mandate is a $2,000 tax per employee per year on large employers that do not provide a group health plan. 

In 2015 a large employer is one that has 100 or more employees - get help calculating your employee count- and in 2016 that number drops to 50 employees.

Is Oregon’s Health Insurance Exchange in Jeopardy?

Recently the United States Supreme Court heard arguments on King v. Burwell. This case is focused on the legality of subsidies in states that did not set up their own exchange. 


In the Patient Protection and Affordable Care Act (more commonly known as the ACA or Obamacare) the law allowed states to decide if they wanted to set up an exchange. If states decline then the Federal government establishes an exchange. The exchange sets up a mechanism for individuals to compare, buy and importantly for this lawsuit, obtain a subsidy (a reduced price) for their coverage by way of means testing. The controversy is over the language in the ACA over states that do not have an exchange.

You won't always be so lucky ...

As a business owner, it takes more than a little luck to be successful. In fact, the odds are that whatever luck you have been dealt will eventually run out. Don't leave your business in the hands of fate. Take a look at our top 13 HR superstitions, and gauge if you are relying on good fortune or good business practices to ensure your companies success.

Human Resources Superstitions

1. Beginner's luck

Beginners luck will run out. Just because you’re a new business – and haven’t had issues yet - doesn’t mean you can’t get fined or have an on the job injury. Don’t bank your business success on a roll of the dice.

2. Find a penny, pick it up …

Picking up pennies may bring you luck but it’s not an efficient way to cut payroll costs. Cash in all those lucky pennies and we’ll turn your pennies into dollars with cost effective payroll services.

3. Don't walk under that ladder!

Don’t test fate. Safety Meetings, Safety Trainings, Safety Protocols are all effective measures we can implement for your business to prevent an accident down the road.

4. Black cats crossing your path

Hire right the first time. Cardinal does employee screening, reference verifications, background checks, drug testing, and more. Just because someone crosses your path doesn’t make them a great fit.

5. An itchy palm means money will come your way

Are you feeling more money coming your way? You’re probably right -- Improve your bottom line and anticipate growth with customizable workplace solutions.

6. Bad luck comes in threes

When bad luck strikes- the situation can spiral out of control. Maintain control, save time, and increase profits with a Professional Employer Organization on your side.

7. Careful with that mirror

Be sure you are sharing the same vision as your staff. It’s hard to see whole picture when pieces missing. Let us create or update your employee handbook. We will put all the pieces in place to reflect your business vision and expectations.

8. Pot of gold at the end of a rainbow

Quit chasing the end of the rainbow— Let us help you navigate the colorful world of Employment. Gain Control of your business today!

9. Knock on wood 

Knocking on wood only gets you so far in protecting your business assets. To ensure you’re covered let Cardinal minimizes your liability and stay in compliance. You can’t be expected to stay on top of the ever changing employment laws yourself.

10. Make a wish on a wishbone

Don't rely on a wish or the luck of the Irish to keep you in compliance. Our experts can help you navigate through the complicated maze of business rules and labor laws.

11. Cross your fingers

Crossing your fingers will not ensure your managers are prepared for what lies ahead. Equip your management team with HR knowledge and training they can access at a click of a button.

12. No umbrellas inside

Don’t wait until you are up to your neck in Workers’ Compensation compliance issues or claims. Come rain or shine we’ll keep you covered. 

13. Find a four-leaf clover

We know you have way too much free time on your hands. Well you could. Time is a precious commodity, let us free up your time by taking on administrative tasks. We’ll give you the time to go looking for your four-leaf clover – or what’s important to you.

Getting Wage and Hour Right

Just because you are paying an employee a salary does not make that employee ineligible for overtime. It is important to correctly distinguish whether the employee is exempt or non-exempt from wage regulations that cover overtime. The employer’s method of payment such as hourly, salary, or commission, is only one element of the exempt classification.

Confused and Dazed in Eugene

If you have employees in Eugene, recent changes in the law can leave you feeling confused. No, this is not another article about dazed employees due to recreational marijuana becoming in legal in Oregon. But it in many ways it is a similar situation due to conflicting laws at different levels of government. 

Sick leave advocates have used municipality elections as a battleground to advance their cause. In Oregon, Portland passed a sick leave ordinance in 2013 and Eugene followed suit the following year. But just days before Eugene was able to pass their law, Lane County preempted it with a series of ordinances that nullified Eugene’s ability to pass laws pertaining to sick leave. Undaunted, the Eugene City Council moved ahead with passage of a leave law and is in the development of rules phase. You can view the particulars of the Eugene sick leave law here.