It’s that “open enrollment” time of year, and for companies with 50 or more employees it’s also time to plan for the requirements that will start in 2015 and 2016 as the result of Health Care Reform.
As of January 1, 2015, employers with 100 or more full-time employees must provide health benefits to at least 70% of those employees (this increases to 95% starting in 2016) or be fined $2,000 annually for each full-time employee (except the first 30 employees). Employers with 50 – 99 employees have until January 1, 2016 before they have to comply with the requirement. Companies with fewer than 50 full-time employees are not affected by the requirement. A full-time employee is defined as someone who works at least 30 hours a week. However, it’s important to note that for the purposes of the Affordable Care Act, two people working half-time count as one full-time employee.
Companies with fewer than 50 employees who offer their employees health care coverage and contribute at least 50 per cent of employees’ premium costs may be eligible for tax credits. Find out more on the Covered California website.
Open enrollment is also a good time to think about additional, non-healthcare related benefits you might want to offer your employees. If you are planning to hire after the first of the year, a good benefits package can be a great recruiting tool. Here are some ideas:
- Direct deposit. Providing your employees with the option of having their check automatically deposited to their bank account saves them time and often results in additional perks from their bank for them.
- Credit union membership. There’s no cost to the company and many benefits to the employee.
- Amusement park/local attraction discounts. You can sign up at no charge as a company for employee discounts.
- Community hours. Offer your employees a certain number of paid hours off to spend in community service at their favorite charity or their child’s school.
- Wellness programs. Weight-loss challenges, group walks at lunch, activity-tracking competitions.
- Lunch & Learn events with guest speakers. For example, financial planners, estate planners, nutritionists, etc.
- “Green” initiatives. Ride your bike to work day, eWaste recycling, contests for the best “green” ideas.
- Service Awards. Recognize and reward employees with 5, 10, and 20 years of service.
- Paid membership for professional organizations related to the job.
Benefits over and above those required by law contribute to the company culture, show the employees you care, and help in attracting and retaining talent.