Supreme justice ruling on Same-Sex marriage may mean a loss of benefits for Domestic Partners

Employco USA

Friday’s ruling by the Supreme Court overturned all bans of Same-Sex marriage across the nation and afforded gay and lesbian spouses equal rights under both state and federal law. For many this is a victory of human rights and a landmark that will pave the way for further equality. It was only a few years ago when public sentiment was quite the opposite. 2012 marked the defining year when public opinion swayed in favor of gay and lesbian marriage and since then that favor has grown to a strong majority. ‘Gallup Gay & Lesbian Rights Statistical Poll – 1977-2015’

While it is clear that the majority of Americans are in favor of the ruling passed down, it is fair to say that the long term affects will be significant, especially for employers in states where gay marriage was banned previously. Employers in all states should take this time to review their handbooks and company policy and update any terminology around spousal relationships especially where it refers to employee benefits and legally protected rights such as FMLA.

It is still unclear as to how companies will handle the upcoming surge of spousal inclusions to their healthcare plans, whether some will offer early open enrollments, if the ruling from the Supreme Court will, in effect, create a “qualifying life event,” or if employers will simply allow for longer enrollment periods to sort out the changes. You can expect guidance from healthcare carriers to arrive soon.

Companies that adopted a domestic partner policy to their healthcare plans and corporate policy will most likely begin phasing those out over the next year. For most states, even where gay marriage was legal, companies were given the option of allowing a domestic partner clause onto their healthcare – essentially allowing individuals with long term live-in partners to gain health benefits. While the tax benefits were not the same as they were for married individuals, it afforded the employee the ability to give his or her partner coverage and allowed the employer to support their own personal beliefs without the concern of state legality.

As of the ruling on Friday, 5 states have ceased to offer civil unions and domestic partnerships* and that list is expected to grow. According to the 2010 census, 6.8 million households are unmarried, opposite-sex partners (5.9 percent of all households), compared with about 650,000 households with unmarried, same-sex partners (0.6 percent of all households). What does this mean? The vast majority of individuals receiving domestic partner benefits are opposite-sex couples.

This “curb-cut” effect (when an accommodation or law is passed to support one group of people but becomes beneficial to the population at large) will quickly become void for many individuals as employers and states move to discontinue benefits to unmarried domestic partnerships. Many rights were afforded the gay and lesbian population on Friday, but for those individuals taking advantage of the domestic partner/civil union benefits their employer provided, it may be time to look at a more formal and legal option to the relationship.

*Connecticut, Delaware, New Hampshire, Rhode Island and Vermont

Why Obamacare Means Americans Need 2 Jobs to Stay Afloat

Employco USA

Employment Expert Explains Why Obamacare Has Led To Job Losses And Slashed Hours

Under the Affordable Care Act, companies with 50 or more employees are required to provide health insurance to their staff if these employees work 30 hours or more a week.

Rob Wilson, President of Employco USA, says, “Since many companies cannot afford to provide health insurance for their staff, employers have instead opted to cut their employees’ hours so that they can limit their number of full-time staff and avoid costly health insurance plans. That means that many families will be forced to have working parents with not one but two jobs…and still no insurance!”

The bad new doesn’t end there, according to Wilson. As companies hunt for the most affordable plans and try to juggle all these new costs, something has to give.

Wilson explains, “To save money, employers might select an insurance plan that has higher out-of-pocket spending or even an insurance plan that does not place a cap on individual spending. This means that employees might now get stuck with a high-cost insurance plan for the next year, potentially spending thousands of dollars out-of-pocket on their healthcare.  Numerous organizations have already seen their out-of-pocket expenditures skyrocket, and everyone from college students to families have seen their healthcare costs become an expensive luxury…if not completely unaffordable.”

The Job Hunting Secret Every New Graduate Needs to Know

Employco USA

Employment expert reveals how new grads can transition into the working world

As recent college graduates flood the job market, competition for prime positions will be steep. It can be a difficult transition for young people, especially if they have no prior experience in the professional sphere.

Rob Wilson, employment expert and president of Employco USA, says, “Finding a job is always stressful, but if it is your first job post-college, the anxiety is even greater. With no professional job history to boast of and little experience with interviews and corporate networking, recent college graduates can feel very overwhelmed as they start pounding the proverbial pavement.”

Luckily, there is an easy way for young people to gain experience and professional clout. Wilson says, “A recruitment agency is a genius solution for college grads. Recruiters have the connections that these young people desperately need, and they can connect recent grads to a plethora of employment opportunities. When working with a recruiter, their main goal is to launch your career or take you to the next best opportunity professionally.”

Best of all, says Wilson, recruiters can help young people learn how to interview and how to excel at these professional interactions. “From assisting with resumes to helping people polish their interview skills, a recruiter is invaluable for anyone trying to break into the professional world.”

Obamacare Could Lead to Hefty Premium Increases in Illinois and Other States

Employco USA
Employment expert explains what Illinoisans can expect in 2016
Numerous health insurers are seeking approval for rate increases in 2016. Illinois will certainly be one of the states that are affected by these premium hikes. In fact, Blue Cross and Blue Shield of Illinois is asking for an average 29 percent increase for their plans. Pennsylvania, New Mexico, Tennessee, Maryland and Oregon will request similar increases.
Rob Wilson, CEO of Employco USA, says, “It is no wonder that so many health insurers are seeking rate increases. This is the major concern that people had when Obamacare was first introduced to the nation. The reality is that money doesn’t come from nowhere: Someone was going to have to pick up the tab for the millions of Americans who are newly insured under the Affordable Care Act, and sadly, that is going to be the American people.”
The new rates will not be approved and finalized until early October. “Currently, the new premiums are still up in the air,” says Wilson, “We don’t yet know how much rates will go up or which insurers will offer the most cost-affordable plans. November 15 is the date when people can begin to sign up for new plans, so after the rates are announced, people will have some time to research their options and discover if they can still afford their current plans.”
Wilson continues, “Unfortunately, these increases are exactly why people were strongly opposed to Obamacare from the beginning. It’s not fair that the average American now has to carry the tab for the mistakes made by millionaires on Capitol Hill.”

Five Tips For New Graduates Looking To Land Their Dream Job

Employco USA

Recent statistics show that this is the best job market for graduates in the past decade. However, these graduates also carry more college debt than any other generation before them. Never before has it been more important for young people to find work and start making money as soon as possible.

“College debt can be astronomical,” says employment expert Rob Wilson, CEO of Employco USA, “The weight of this can often pressure new graduates to take any job they can find and start working right away. However, that might not be the best plan of action. It is better to be purposeful and discerning in your job search. Remember, you are building the foundation for a career, not just trying to get a paycheck.”

Here are Wilson’s top tips for how graduates can land a dream job:

1) Don’t be lured by a big paycheck. “Money isn’t everything, even if you do have debt looming down on you,” says Wilson, “It is better to take a job with a smaller paycheck that is in the field you actually desire than to take a job with a large paycheck that has nothing to do with your long-term career goals.”

2) Live at home if you have to. “I know most college graduates want nothing more than to break away and have their own place, but the reality is that an unpaid internship isn’t going to help you get that big city apartment. But that doesn’t mean that the internship isn’t the right choice. Working as an unpaid intern can be stressful, but it can be a very wise move and help you build lifelong connections that will serve you throughout your career.”

3) Make Google work for you. “Everyone knows that an employer is going to Google your name before they decide if they want to hire you,” says Wilson, “So make sure that your internet presence is going to be impressive. Have a personal website or create an online portfolio that features your work. Have a Twitter, Facebook, and LinkedIn account that reflects drive, intelligence and professionalism. Don’t be afraid to show your personality a little bit, but remember: This is about your career, not tweeting about the Kardashians.”

4) Keep attending school. “I know most graduates never want to return to a classroom, but nothing is more impressive to a prospective employer than an applicant who has continuing education credits in their field or someone who attends seminars in their field of interest. Keep learning, even after you have a diploma in your hand.”

5) Consider temp work. “Temporary work can be a great way to keep your resume padded and your bank account full,” says Wilson. “Employers hate to see big blank spots on an applicant’s resume, so prove that you are hard-working even when you haven’t found a full-time permanent position yet. Plus, temping can be a great way to make connections, build experience, and learn more about what it is like to work in a professional environment.”

Play or Pay: Two New Tax Forms Require Extensive New Data from Employers

Employco USA

Employment expert explains what employers need to know about 1094 and 1095 forms

The Affordable Care Act has changed the face of healthcare in this country, and it has also changed the way that employers manage employees’ healthcare. Under the “Play or Pay” or “Shared Responsibility” mandate, companies with over 100 employees are now required to file the new 1094 and 1095 forms with the IRS. Employers who fail to comply will be subject to tax penalties of up to $3,000 per worker.

Rob Wilson, CEO of Employco says, “These new reporting forms are a departure from the norm for most HR professionals and are very detailed and complex. We were hoping that the IRS would find a way to simplify the instructions. Instead of filling out the total amount spent on healthcare on the W2, it is now required to submit a form on behalf of every employee. You must show how many hours employees have worked and how much was spent on healthcare each month. One of these forms (1094) goes to the IRS, while the other (1095) goes to employees like a traditional W2.”

The mandate requires a fair amount of data that employers might not have been tracking up until this point.  “Many traditional HR professionals do not have access to these new forms, resulting in a growing need for companies to outsource this government requirement,” Wilson says, “It is just one of the many ways that this administration has changed the way that American companies do business.”

This new system poses two major problems; companies will have to retrieve all of the data that is required in order to successfully complete these forms; and the compliance costs associated with obtaining this information.  “When companies all over the country begin to realize what exactly is needed and how much outside agencies are charging to complete these forms for them, many will be outraged.”

“We have heard from a number of sources that agencies will be charging extremely high fees to complete the forms on their behalf. We will not be charging our clients for this service because it is a part of what we do. As a full service HR outsourcing agency, we have direct access to this information. This is just one of the many services we provide to help eliminate these tedious, yet mandatory administrative tasks for businesses of all sizes. Companies who outsource their HRO/PEO to a number of vendors and not just one solutions provider, might get hit the hardest under this new mandate. We are aware of the failure to comply penalties, so we will do everything in our power to protect our clients,” says Wilson.

Reviewing Renewal Options

Employco USA

How to approach health benefits plans on a tight budget

Rob Wilson President Employco Group

Rob Wilson
President
Employco USA

The time to renew health benefits plans is upon many businesses. With all the cutbacks and troubling economic news employers have had to contend with lately, the option of varied benefits choices is a welcome one. The variety of plan structures and additional programs that exist allow employers and their employees to take greater control of a system where costs have historically been experiencing double-digit increases for some time now.

“When business owners face a health benefits renewal with an increase of 10 percent, even 20 percent, what can they do?” says Rob Wilson, president of Employco USA. “Neither the business owner nor the employees have discretionary dollars for that now.”

Smart Business asked Wilson about ways to lessen the impact of rising benefits costs by offering employees more choices.

How can business owners approach open enrollment season?

Employers can decide to absorb premium increases if they’re in the financial position to do so. If there’s absolutely no room in the budget for an increase in premium, they may consider passing it along to the employee. Another consideration may be to split the increase between the employer and employee so both parties can shoulder the burden.

Employers can also quote other insurance carriers. It is typical in the industry for carriers to have different sales strategies, depending on where they are in the business cycle. Premiums may be higher at certain times to increase revenue and lower at other times to obtain more market share. Since each carrier has its own approach, it may be possible to find the same coverage at lower premiums if you take the time to look. It is a good idea to compare rates with different carriers at least once a year.

What are different plan structures to consider?

It’s always beneficial to consider different plan structures whether you’re staying with the same carrier or switching. Do a comparison between a preferred provider organization (PPO) plan and a health maintenance organization (HMO) plan or consider offering both.

Conduct a thorough evaluation between plans in terms of co-pay, deductible, coinsurance, prescription drug card and pick the plan that’s best suited for your group and budget. You may be able to significantly reduce your premiums by increasing your deductible, co-pay, co-insurance and/or prescription drug card.

Keep in mind employers have the option to review their policies every year before renewal so changes are not permanent and may just be for the upcoming year.

Aside from the traditional PPO and HMO plans, are there other non-conventional options that can be considered?

The health savings account (HSA) is becoming more popular. It’s a high-deductible plan, so typically the premium would be lower. Other benefits of HSAs are:

  • Tax deductions when individuals contribute;
  • Tax-free withdraws for qualified medical expenses;
  • Portability — the account belongs to the individual.

Another option to help employees with health-related expenses is a flexible spending account (FSA). An FSA account allows employees to put away pretax dollars that can be applied toward employee-chosen medical expenses such as premiums, copays, deductibles, prescriptions, over-the-counter medicines or even day care.

For example, if your employees pay $500 toward health care premiums, deductibles, etc., using an FSA, they can use pretax dollars instead of after tax dollars. That equates to a tax savings of $178 for every $500 of premiums paid.

Are there options specifically for small businesses?

Small to midsize businesses may choose to look into industry associations or partnerships with human resource organizations (HRO). By joining an HRO, businesses that might otherwise be too small to obtain competitive pricing can now get the same buying power as bigger companies. When an employer joins an HRO and bands together with all the other companies comparable in size, the number of the group increases exponentially to hundreds or thousands of employees. The buying power now lies in the hands of a much bigger pool, which, to insurance carriers, is more attractive. The pricing may be more competitive through an HRO than on a stand-alone basis since the insurance is bought in volume at a reduced rate.

How should employers communicate with employees about plan changes?

Employers need to communicate honestly with their employees during open enrollment time, especially if there will be changes in the benefits plans. If, due to the decrease in revenue, the existing PPO plan has to be changed to a HMO plan or the deductible increased, reassure the staff that these changes may not be permanent.

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.