Section 1.09-1.12 Flashcards
Legally Mandated Benefits
COBRA, Family Leave, potential sick time
Benefit Taxability
IRS considers employee benefits taxable unless specific regulations state differently
Free For Service Plans
Patients visit the physician of their choice and are reimbursed. Largely obsolete
HMO
Health Maintenance Organization - patients visit physicians and facilities within the HMO “network”. Typically, the plan requires the patient to visit their primary care first, who will then refer them to others in-network when appropriate.
PPO
Preferred Provider Organization - blend of Fee For Service and HMO. They do not require a primary care visit to see a specialist, but they do have a network that is cost beneficial to stay within.
POS
Point of Service plan - similar to HMO but patients do not need a referral to a specialist.
Section 125 Plans
Tax savings plan for both employer and employee. 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 savings in payroll taxes for employers
HSA
Health Savings Account - to be used in conjunction with high deductible health plans for individuals and families. Can be used to lay for a variety of medical services and supplies. Your HSA is owned by you.
FSA
Flexible Spending Accounts - used to pay for a variety of health care services and supplies. FSA is owned by the employer. Does not need a high deductible plan.
PPACA
Patient Protection And Affordable Care Act - a complex act signed into law in 2010. Typically for business with >50 FTE. Requires business to provide group insurance or be penalized. If <50 FTE (does not need to have group health insurance) employees will need to obtain health insurance individually to avoid penalty. Act places certain caps/conditions on HSA/FSA
Retirement Plan
Highly regulated by gov through ERISA
ERISA
Employee Retirement Income Security Act
ERISA
Employee Retirement Income Security Act
Simple IRA
Short Incentive Match Plan for Employees Individual Retirement Plan - Estab. By employer to allow eligible employees to contribute pre tax dollars to the plan. Employer is required to make a specific contribution. Simple to administer and low cost.
401K
Established by employer to allow employees to contribute pre-tax dollars to the plan. Employers are not required to contribute. Optional profit sharing component. Requires a professional admin and can be costly to administer.
SEPs
Simple Employee Pension Pans - similar to profit sharing plans. Funded by tax deductible employer contributions. Employees cannot contribute.
Pet Health Care Discounts
Any discount over 20% on services is considered a taxable fringe benefit and must be reported in payroll.
Employee Total Compensation/Benefit Statement
Detailed breakdown of the value of the toal compensation and benefits package.
Personnel Files
I-9 forms should be stored in a separate file and can be stored with other employee I-9 forms
Personnel File don’ts
Documents that have no weight on hiring, firing, promotions. Documents with info on gender, race, religion, veteran status, disability or national origin. Garnishment orders or credit reports. Investigative documents for potential criminal action until the case is closed.
5 potential employee files
- Job related docs
- Docs with no legal role in employment decisions
- Medical
- Payroll
- I-9 folder
Maintaining Confidential Employee Records
1 year from termination- Title VII of the Civil Rights Act, Americans with Disabilities Act, and Age Discrimination Act
3 years from termination - Family Medical Leave Act & Fair Labor Standards Act
*State laws with longer standards take precedence
