Health reimbursement arrangements (HRAs) enable small businesses to contribute to employee health care expenses, including premiums, deductibles and other out-of-pocket costs. Unfortunately, up until now, employers with HRAs have faced the threat of potential hefty penalties of up to $36,500 per employee per year because the arrangements violate the rules for group health plans under the Affordable Care Act.
The law exempts qualified small employer HRAs as long as the employer is not already subject to the ACA’s employer mandate and doesn’t offer an employee group health plan. Qualifying HRAs must also be funded only by an eligible employer and reimburse medical expenses that don’t exceed $4,950 a year ($10,000 for families). HRAs can help small companies attract and retain great people because they demonstrate their commitment to employees. If you would like more information about HRAs or other health care coverage options for your business, be sure to contact us today.
Just days before the implementation date, a federal judge in Texas put the brakes on the Department of Labor’s (DOL’s) new federal overtime rule, which was to take effect December 1, 2016 and would have doubled the Fair Labor Standard’s Act’s (FSLA’s) salary threshold for exemption from overtime pay. This threshold would have been the first significant change in four decades. The entire article can be found here.
Business owners, large and small, are left with uncertainty and where to go from here. A preliminary injunction isn’t permanent, as it simply preserves the existing overtime rule—which was last updated in 2004—until the court has a chance to review the merits of the case objecting to the revisions to the regulation.
In the meantime, business owners and HR professionals will have to consider what to do now. Click here for an excellent FAQ article with the highlights.
As always, if you have any concerns or questions, please feel free to contact our office 417-881-6919.
HTSG was recently featured in a Springfield Business Journal Article showcasing the merger of Tucker and Company, PC with O'Dell, Hagan & Company, LLP to form our new firm Hagan, Tucker, Schmitt & Gintz, LLC. Click here to read article.
Please come by and visit us at our offices at 1609 S. Enterprise Avenue. We would love to see you! (Please note that Google is incorrectly listing our office at 636 W. Republic Road - we are working with Google to correct this discrepancy.)