As the second half of 2016 begins, it is important to look at the benefits industry trends that have emerged thus far. Acknowledging and responding to these trends can help you recruit and retain talented employees and help you position yourself for a more productive 2017.
The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping and child labor standards affecting full-time and part-time workers in the private sector and in federal, state and local governments.
On May 18, 2016, the U.S. Department of Labor (DOL) announced a final rule regarding overtime wage payment qualifications for the “white collar exemptions” under the Fair Labor Standards Act (FLSA).
On April 29, 2016, the Internal Revenue Service (IRS) released Revenue Procedure 2016-28 to announce the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2017. These limits include:
• The maximum HSA contribution limit;
• The minimum deductible amount for HDHPs; and
• The maximum out-of-pocket expense limit for HDHPs.
Employers have new challenges to contend with in 2016, resulting from Supreme Court decisions, federal and state legislation, and actions by federal regulatory agencies. There is a real cost for employers who fail to comply with new laws. For example, the most recent Performance Accountability Report for the Equal Employment Opportunity Commission (EEOC), states that victims of discrimination received more than $525 million from private and government workplaces in 2015.
The Affordable Care Act (ACA) requires most individuals to obtain acceptable health insurance coverage for themselves and their family members or pay a penalty. This rule, which took effect in 2014, is often referred to as the “individual mandate.” Individuals may be eligible for an exemption from the penalty in certain circumstances. This Legislative Brief provides an overview of the ACA’s individual mandate.
In early 2016, many employees will receive two important new tax forms. In general, you will receive a Form 1095-B if you were enrolled in your employer’s health plan in 2015. You will receive Form 1095-C if you were a full-time employee of a large employer at any time during 2015.
Remaining competitive in the hunt for the right job candidates who will propel your business to success is a struggle. Once you find the people you need, you have to convince them that your company is a better place to work than your competitors. A strategic, quality benefits package can help you attract and retain those top employees.
Open enrollment can be an extremely stressful and overwhelming time for both you and your employees. It is typically the only time during the year in which employees can make changes to their benefits choices, such as adding or dropping coverage, adding or dropping dependents, or enrolling in benefits for the first time.
