In a world where we have such exciting "pay as you go" options like cell phone plans and bicycle rentals, something like Pay as you Go Workers' Compensation Insurance might seem a bit less exciting to the average person.
But as a business owner or Payroll and HR leader, pay-as-you-go Worker's Compensation should pique your interest. That's because it offers some major benefits over traditional Workers' Compensation Insurance policies.
As we all know, Workers' Compensation Insurance is mandatory for most employers (although there are slight differences in requirements by state). Generally speaking, Workers' Compensation Insurance protects the employer from lawsuits brought by injured employees. It also ensures the employee gets benefits regardless of who was at fault.
Here are 3 benefits of opting for pay as you go Workers' Compensation Insurance, rather than a traditional policy:
Employers often wonder if they are required to reimburse employees for mileage.
If we go by the Fair Labor Standards Act (FLSA), the answer is no - the FLSA does not explicity require employers to reimburse employees for mileage (although the state of California does require it).
Even though mileage reimbursement is not required by federal law, most employers choose to do so anyway. It's an attractive benefit and, for employees who do a lot of driving like deliverymen and salespeople, an expected benefit.
"Equal pay for equal work" is more than just a political rallying cry.
On January 29, 2016, President Obama took executive action to require businesses with 100 or more employees to report employee wage and hour information broken down by gender, race, and ethnicity. This action will manifest in the form of new Equal Employment Opportunity (EEO) reporting requirements.
In fact, we copied the idea of tipping. During the Gilded Age, wealthy Americans traveled to Europe and witnessed aristocrats tipping wait staff.
Not to be outdone, these Americans came home and began doling-out tips like Dukes and Duchesses (anti-tipping campaigns even sprang up that labeled the practice demeaning to workers)!
Now, tipping is entrenched in American culture as well as our minimum wage laws: owners know that in most states, they can pay a tipped employee a lower wage as long as that employee’s tips supplement their income enough to equal at least the state hourly minimum wage.
But just like the regular minimum wage, the minimum wage for tipped employees is on the rise.
Under the ACA, Applicable Large Employers – or those with 50 or more full-time employees or equivalents – must file information returns with the IRS as well as distribute copies of the returns to their full-time workers.
You may have heard this referred to as Sections 6055 and 6056 reporting, a reference to those sections of the Internal Revenue Code that require Applicable Large Employers to complete and submit IRS Forms 1094-C and 1095-C.
Let’s take a look at the differences between ACA Forms 1094-C and 1095-C: