Section 1.09-1.12

Question 1

Legally Mandated Benefits

Answer 1

COBRA, Family Leave, potential sick time

Question 2

Benefit Taxability

Answer 2

IRS considers employee benefits taxable unless specific regulations state differently

Question 3

Free For Service Plans

Answer 3

Patients visit the physician of their choice and are reimbursed. Largely obsolete

Question 4

HMO

Answer 4

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.

Question 5

PPO

Answer 5

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.

Question 6

POS

Answer 6

Point of Service plan - similar to HMO but patients do not need a referral to a specialist.

Question 7

Section 125 Plans

Answer 7

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

Question 8

HSA

Answer 8

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.

Question 9

FSA

Answer 9

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.

Question 10

PPACA

Answer 10

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

Question 11

Retirement Plan

Answer 11

Highly regulated by gov through ERISA

Question 12

ERISA

Answer 12

Employee Retirement Income Security Act

Question 13

ERISA

Answer 13

Employee Retirement Income Security Act

Question 14

Simple IRA

Answer 14

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.

Question 15

401K

Answer 15

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.

Question 16

SEPs

Answer 16

Simple Employee Pension Pans - similar to profit sharing plans. Funded by tax deductible employer contributions. Employees cannot contribute.

Question 17

Pet Health Care Discounts

Answer 17

Any discount over 20% on services is considered a taxable fringe benefit and must be reported in payroll.

Question 18

Employee Total Compensation/Benefit Statement

Answer 18

Detailed breakdown of the value of the toal compensation and benefits package.

Question 19

Personnel Files

Answer 19

I-9 forms should be stored in a separate file and can be stored with other employee I-9 forms

Question 20

Personnel File don’ts

Answer 20

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.

Question 21

5 potential employee files

Answer 21

1. Job related docs
2. Docs with no legal role in employment decisions
3. Medical
4. Payroll
5. I-9 folder

Question 22

Maintaining Confidential Employee Records

Answer 22

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