What you don’t know about about your Employee Insurance Coverge can hurt you.

What don’t you know (or you are just ignoring)?

 

We have all heard the old bromide about what you don’t know really can hurt you. Well today more than ever that is the case and ignoring things just because there is so much to consider is still not a good idea.

 

Here is the problem! In every area of your business somebody  specializes in some small aspect of what you do. The people who specialize in selling things you need are essentially partners in your   success. They are not the problem. People who specialize in regulations and legal issues will be the problem.

 

Here are a few areas you might look into.

 

Fiduciary liability – Retirement plans have generally been thought of as a good thing for employees. But today there are whole cadres of attorneys and regulators sitting around looking for your plan. It is not enough to establish a plan with a variety of investment opportunities and a desire to help your employees. Plan management needs to be active and timely and you need highly qualified advice and an understanding (contractually) of who accepts liability for decisions.

 

Employee medical plans – not only is coverage mandated, the regulations are like the Gordian knot with multiple overlapping laws and regulations administered by a plethora of agencies. And these agencies do not exist to make your life easier.

 
 Plan documentation – SPD, SBC, SMM, Plan corporate resolution, Section 125, and Section 105, to name a few. If any of those are not familiar to you call your broker and see that you have them documented as required. (They need to be updated every year)

 
Agencies – DOL, IRS, and Homeland security are now connected and referring to each other. And they are “employee representatives” asking employees to turn you in as a business owner. This is not to say employers who take advantage of employees should not be investigated because they should, but, what used to be an occasional event is becoming commonplace. (ex. Has anybody explained to you that calling an employee at home is considered on the job? Auditors tell employees and they verify by getting phone records.)

 

Davis Bacon – (Dol.gov) “The Davis-Bacon Act applies to contractors and subcontractors performing work on federal or District of Columbia contracts.” Davis Bacon regulators are auditing employers and reassigning job classifications. That means you might become liable for back taxes and wages for somebody who has worked in management for several years and is reassigned to labor in an audit. And you might be surprised at what constitutes a Federal Contract! (The Davis Bacon Act — 40 U.S.C. 3141 et seq.) Look at “Sec. 3142. Rate of wages for laborers and mechanics subsection (a)” and see that it denotes contracts for more than $2,000.

 

These are by no means all of the land mines laying in wait for employers and what I am trying  to get across is the importance of your HR departments, your Payroll companies, your insurance  brokers and your legal and financial (CPA) outlets. Each of these bring real value if you chose them for their capability rather than their Golf score.

 

Do not run your life or your business on fear! Get good advice and plan for changing events.


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