If you’re an employer with fewer than 50 full-time employees or equivalents, there’s a new law that passed just a few months ago that allows you to fund employee Health Reimbursement Arrangements (HRA) in lieu of offering a group health plan.
The 21st Century Cures Act – which passed with bipartisan support in December 2016 – creates a new type of HRA called the Small Business HRA. For qualified employers, Small Business HRAs can provide tax benefits for both employer and employee as well as offer greater flexibility and choice for workers.
On March 1, thousands of independent school leaders, staff, and educators gathered in Baltimore for the annual National Association of Independent Schools (NAIS) Conference.
Representatives from CheckWriters’ Sales, Marketing, and Human Resources teams were thrilled to exhibit at the event.
It was a great opportunity to interact with attendees and learn more about the top issues school leaders care about and the technology solutions that can make their jobs easier (particularly in the business office!).
Here are two of our top takeaways from the workshops we attended:
Do you have employees who serve food and drinks, open doors, carry luggage, clean hotel rooms, or provide other services?
If so, they’re likely presented with tips from all your happy customers.
And as the employer of workers who receive tips as a significant portion of their income, you’re allowed to pay tipped employees a lower direct wage – as long as the employee’s tips combined with their direct wage equals at least the minimum wage in your state.
But what happens when your tipped employees work overtime?
While the federal minimum wage rate will not change in 2017, there are a number of local minimum wage increases set to take effect for the new year. Some states, like Massachusetts, Connecticut, New York, Maine, Arizona, Colorado, and Washington state will see significant increases to the minimum wage.
It’s important for you to monitor minimum wage increases in your state. It’s equally important for some employers – like those in the restaurant industry – to monitor the minimum wage increases for tipped employees.
Even if you didn't have to comply with the ACA last year, there's one question you need to ask yourself every year.
Am I an Applicable Large Employer (ALE)?
Of course, the answer to this question depends on the size of your workforce in the previous year - which, for most businesses, varies! That's why you need to look at your workforce every year in order to determine whether you're an ALE. Because if the answer is yes, you'll need to comply with the law to avoid costly penalties and fines.