HR Management and Compliance
Human resources is comprised of a wide variety of company responsibilities. Each benefit your company provides requires a unique set of paperwork. Strategic Benefits Solutions' administrative services were created to help you simplify processes.
In addition to the services listed here, ask us about general human resource consulting, time and attendance systems, Section 125 administration, premium only plans, reference and background services, and Bureau of Workers Compensation rate pooling.
An ERISA-covered group health plan is an employment-based plan that provides coverage for medical care, including hospitalization, sickness, prescription drugs, vision, or dental.
New healthcare regulations have created an aggressive audit environment. Approximately 16,500 auditors have been hired by the IRS to conduct ERISA audits. Of audited plans,75% violate ERISA, and 70% of plans end up with fines up to $100 per day per affected employee. For a 55 person health group, the fines could total $110,000 in one month after being audited.
Our team will
determine the number of employees affected by your health plan,
create all the required documents, and
provide regular updates about new compliance issues and reviews documents accordingly.
Clear employer-employee communication is the most important factor in smooth business operations. A comprehensive employee handbook is vital. Strategic Benefits Solutions will draft an effective orientation tool that answers questions for all new employees. Employers are able to clearly address expectations in an employee handbook.
When it comes to new hires, what you don’t know can hurt you. The safest way to avoid long term issues or lawsuits is to do thorough background screening of all new hires. Strategic Benefits Solutions will make sure your new employees meet your company’s standards.
The Premium Only Plan is the building block of the Section 125 Plan. It allows for certain employee paid group insurance premiums to be paid with pre-tax dollars. Employees can reduce their taxable income by 20 – 40%. The savings are on city, state, and federal income taxes, including Social Security and Medicare. Employers save the matching Social Security (6.20%) and Medicare (1.45%) taxes, which equates to 7.65% (1.45% for municipalities) of all the dollars put through the plan, a substantial savings.
Health Reimbursement Arrangement
If your company offers a health plan, you may establish a health reimbursement arrangement. An HRA is an IRS-approved, employer-funded, tax advantaged employer health benefit plan that reimburses employees for out of pocket medical expenses and individual health insurance premiums. The employer makes contributions to an employee’s account and provides reimbursement for eligible expenses. A health reimbursement arrangement is an excellent way to supplement health insurance benefits and allow employees to pay for a wide range of medical expenses not covered by insurance.
COBRA provides certain former employees, retirees, spouses, former spouses, and dependent children the right to temporary continuation of health coverage at group rates. Health coverage for COBRA participants is usually more expensive than health coverage for active employees. This is because employers usually pay a part of the premium for active employees, while COBRA participants generally pay the entire premium themselves. We can help you set up your COBRA coverage, or help you find a better health coverage alternative.
Flexible Spending Account
If your company offers a health plan, employees may opt to have a Flexible Spending Account. An FSA allows a fixed amount of pre-tax wages to be set aside for qualified expenses. Qualified expenses may include child care or uncovered medical expenses. The amount set aside must be determined in advance and employees lose any unused dollars in the account at year-end.