So, you offer benefits. Whether it is required of your company, using it to attract talent, or you just want to provide it for your beloved employees – there are some rules and regulations that you should be aware of. It’s not as easy as just offering health insurance that you can afford anymore. There are compliance complications, reporting requirements, and plan provisions that you will need to consider. We have narrowed a few things down for you to review as you offer benefits. We like to call this post: 10 Things Every Executive Should Know about ACA with Benefit Offerings! I’ll give you the first three things, and then head over to our company website to read the rest!
- No Premium Discrimination – Under ACA, an employer that sponsors an insured plan that discriminates in favor of highly compensated individuals is subject to at least a $100 per day penalty multiplied by the number of those individuals “discriminated against.”
- Employee Premium Participation Cannot Exceed 9.5% of Gross Wages – This can be checked two different ways:
- Employee’s W-2 income Box 1
- Hourly rate of pay x 130 hours or monthly salary
- Eligibility May Not Exceed 30 Hours a Week – The maximum number of hours used to calculate full time status of an employee is 30 hours a week. However, an employer can elect fewer hours based upon the insurance contract, i.e. Full time status is 24 hours a week.
Want to know more? Head over to our website to keep reading! In using a PEO like Solution Services, we help you and your company figure out all these intricacies that can be overwhelming and can have potential financial implications to your business. Call us today for a free consultation with one of our experienced and educated advisors!