Human Resources Pt 3 Flashcards
True or False..
Health Insurance is likely the most expensive employee benefit the practice will offer.
True.
True or False…
Health insurance should be re-evaluated annually since premiums and coverage options change frequently.
True.
True or False…
When it comes to health insurance, and insurance agent or broker is important to help navigate the various providers and options.
True.
The responsibility of Management or The Benefits Administrator when it comes to health coverage for staff are….
*To understand the various types of health coverage available.
*Selecting the best coverage for their practice (Benefit vs Cost)
*Keeping abreast of the rapid changes to benefits and laws.
What is a Fee For Service Plan?
Patients visit the physician of their choice and are reimbursed.
*These plans are largely obsolete now.
What are the three Managed Care Plans?
*Health Maintenance Organization (HMO) - patients visit physicians and facilities within the HMO “network”. Typically, the plan requires the patient visit their primary care physician first, who will then refer them to others in the network when appropriate.
*Preferred Provider Organization (PPO) - PPO’s are a blend of Fee For Service and HMO’s. THIS IS A NETWORK GROUP. They do not require a visit to a primary care provider prior to to visiting a specialist, although they do have a network of preferred providers and it is more costly to go outside that network.
*Point Of Service Plans (POS) - similar to HMO’s except patients are not required to see their primary care physician prior to visiting a specialist. Offer in network and out of network benefits. You can see any in network providers without a referral, but must have a referral to see out of network providers.
Most benefits are not required by law, but they help attract and retain team members. Potential current exceptions include….
COBRA, Family Leave, and Sick Time.
*These are required to be provided to the employee.
What factors should be considered when creating a benefits plan?
*The practice budget - what can the practice consistently afford.
*Definition of full-time vs part time employee.
*The IRS considers employee benefits taxable unless specific regulations state differently.
What is a section 125 Plan?
A tax savings plan for both the employee and the employer. A section 125 plan allows employees to pay certain expenses, including their portion of the medical premium or other contribution before taxes are deducted from their paycheck. **These accounts can equal substantial saving in payroll taxers for employers.
What is a Health Savings Account (HSA) -
A Health Saving Account is to be used in conjunction with high deductible health plans for individuals or families. An HSA can be used to pay for a variety of medical services and supplies. Your HSA is owner by you, the employee.
*In order to qualify, must have a high deductible plan.
*Funds in an HSA roll over from year to year.
What is a Flexible Spending Account (FSA)?
A Flexible Spending Account (FSA) - A high deductible medical insurance plan is not a requirement for a FSA. The FSA account has a use it or lose it rule at the end of the year. The FSA is owned by the EMPLOYER, and unused funds at the end of the year belong to the EMPLOYER.
Patient Protection and Affordable Care Act (PPACA) of 2010 -
*Typically applies to a business with 50 or more full-time employees.
*Requires businesses to provide group insurance or penalized.
* If your practice does not provide group medical insurance (because there are under 50 full-time employees), employees will need to obtain insurance individually or pay a penalty.
**The Act also places certain caps and conditions on Health Savings Accounts Flexible Spending Accounts.
Employee Retirement Income Security Act (ERISA) of 1974 covers funding , vesting, and fuduciary standards applicable to employee benefit plans. ERISA is highly regulated by the government and is inforced by the __________________.
The US Department of Labor.
Short Incentive match plan for Employees Individual Retirement Plan (Simple IRA) -
**Established BY EMPLOYERS to allow eligible employees to contribute PRE tax dollars to the plan.
**The EMPLOYER is required to make a dollar to dollar, or specified percentage contribution to the plan also.
**Relatively simple to administer and costs are low.
401K Plans….
**Established by EMPLOYERS to allow employees to contribute PRE TAX dollars to the plan.
**Employers are not required to contribute to the plan.
**There can be an added profit sharing component.
**These plans can be more costly administer - requires a professional administrator.
Simple Employee Pension Plans (SEPs) -
Think of a profit sharing plan where the EMPLOYER contributes taxed deductible dollars, but the employee doesn’t contribute.
** Similar to profit sharing plans
**Funded by tax deductible employer contributions.
**Employees cannot contribute.
What are something’s to consider when creating an employee discount policy for veterinary services and products?
Who is eligible? (Full time, part time, commission employees)
How many pets are covered?
What services and products are covered?
Any discount services over ______ is considered a taxable (fringe) benefit and must be reported as such on payroll.
20%
True or False…
If a practice offers a larger than 20% discount on services and does not report it, that practice and the employee risks fines and back taxes.
True.
Safest and simplest solution for discounts for employees is….
Discount no more than 20% on services and cost plus 10% on products.
**Can offer larger discount as long as it is included as taxable income on employees W2 form. (If practice offers more than 20% discount and does not report it, that practice and employee risks fines and back taxes.
What are some common memberships and dues covered by employers ?
*State veterinary medical association membership - VMS
*National Organizations - AVMA, AAFP
*License fees for degrees and certification - such as DVM - CVPM
* Specialty Organization - such as “Fear Free” or whatever your policy covers. Must important make sure it is written down so there is no confusion.
It is recommended that practices budget ____ % of gross revenue annually for team development (CE = continuing education).
5%
True or false….
Practices that require CE are required by federal law to pay for the time incurred in attending CE programs for all non-exempt employees. Those hours must also be counted in overtime calculations.
True.
True or False…
Disability insurance (an employee benefit worth considering) is maintained to protect an employee against an injury or illness that results in the inability to earn a living.
True.
Which and are a blend of Fee For Service and HMO medical plans. They do NOT require a visit to a primary care provider prior to visiting a specialist, although they do have a network of preferred providers and it is more costly to go outside that network.
Preferred provider organization plan (PPO).
Which addition to medical insurance is owned by the employer.
A.)Health savings account or
B.) Flexible Spending Account
B. Flexible spending account (FSA) - Also can be used to pay for a variety of health care services and supplies. The FSA is owned by your employer.
The patient protection and Affordable Care Act requires employers with _____ or more employees to provide group medical insurance or receive a penalty.
A) 20 Full time employees
B.) 50 full time employees
C.) 50 total (part time/ full time) employees
B.) 50 Full-time Employees (per the 2010 Affordable Care Act)
What should be included in personnel files?
*Employment Application, Resume, Interview Notes, Background Checks
*Job Description
* Offer of Employment Letter
*Performance Evaluations, Education and Training.
*Disciplinary Documents
*Various federal and state mandated forms EXCEPT the I-9
*Copy of degrees, diplomas, certifications.
*Contracts, agreements, non-compete agreements
*Employee action forms such as change of wage, position, department.
*Leave of absence and attendance records (except FMLA - Fair Medical Leave Act)
*Employee record form showing date of hire, hire on salary, raises, promotions, demotions, emergency contact and other employment details.
Payroll files should include ….
*Employees full name, address and social security number.
*Birth date if employee is a minor.
*Work schedules, pay rate, earnings records, and wage deduction.
*Benefit records
*time clock records for each pay period (handwritten “honor system” time records are discouraged.)
Access to the payroll file should be limited and ideally stored in a separate folder.
** A thorough review of record keeping policies and potential federal or state changes should be reviewed with the practice attorney annually.
Why should I-9s be stored in a separate file?
If you ever were to have your records audited and your I-9s were requested - you must turn over the folder that contains the I-9 for each employee. **Better to hand over 1 folder containing only I-9s (employee I-9s can all be stored together in one folder) than a pile of folders of everyone’s employee records. There is no sense giving any agency a reason to want to dig deeper into your perfectly created employee files is there?
What should not be included in personnel files?
**Any document that cannot be legally used to make a decision in hiring, firing, promotion, demotion, or any other employment decision.
**Documents that contain information about an employees gender, race, religion, veteran status, disability, or national origin
*Garnishment orders or credit reports.
*Investigative documents for any potential criminal action until the case has been concluded.
Medical records should be stored in their own file and access limited strictly to those who need to know, records should include…..
*Health and life insurance forms.
*Physician notes, return to work notice, limited duties notice or accommodations.
*Insurance or workers compensation claims.
*Physical exam results.
*Family And Medical Leave Act documentation.
What are the five potential employee files used for maintaining confidential employee records
1.) The true personnel file for job related documents
2.) A file for any documents relating to garnishments, background check results, credit checks, and similar documents that have no legal role in hiring, firing, promotion, demotion or other employment decisions. *Background results should NOT BE KEPT IN THIS FILE. It only has a one time hiring or not hiring potential and that is at the beginning of employment.
3.) The employee medical file including Family and Medical Leave Act documentation * Employee medical records should be stored in their own file with extremely limited access to those who NEED to know only. (This file would include Dr. Notes, Health and life insurance forms, Claims, FMLA documents, physician correspondence)
4.) Payroll files
5.) The I-9 folder which can hold of the I-9s together.
Our recommended reading list recommends that there be a written policy for employee request to view their file/ personnel records. What is a reasonable time frame to allow that employee to view their file after the request is submitted?
A reasonable time frame to allow an employee to view their file is within 2-5 days of the request.
True or False….
It is recommended to have all employees sign an authorization form to release information for future inquires such as employment and wage verifications.
True!
Also remember to release ONLY what the employee has authorized.
What is the recommended number of years to keep personnel file documents related to basic employee information such as I 9’s, hiring records, results from tests, employment actions such as hires , separations, re-hire, demotion, lay-off, etc.
3 years from the date of employee termination.
What is the recommended number of years to keep personnel file documents related to Tax records, payroll records such as social security card number, pay rate, pension payments, payroll deductions and overtime?
4 years (rolling 4 year basis not related to termination date).
What is the recommended number of years to keep personnel file documents related to job injuries or illness?
5 years.
