You might recall that in 2009 an update to the FMLA regulations was implemented providing for new military family leave entitlements which grants caregiver rights to service members' families. This is just a reminder that President Obama recently announced the deployment of 30,000 additional troops to Afghanistan by summer.

JorgensenHR suggests that you make sure you are on top of your obligations including how to calculate the amount of available leave time under the Uniformed Services Employment and Re-employment Rights Act (USERRA) of 1994, FMLA or California leave laws as well as taking steps to prevent adverse employment actions during the reinstatement period.  

Patient Protection and Affordable Care Act (PPAC) AKA "Health Care Reform"

Health care for 2010 has taken a big leap forward as employers quickly move to redesign their health care plans so they comply with probably the most sweeping piece of social legislation passed in many decades. Part of the challenge is that rules for implementing this new law haven't been written yet. However, here are some of the basic changes that employers will need to contend with over the next several years.

• In 2010 small businesses that offer health care coverage to their employees are eligible for tax credits of up to 35 percent of premiums. The smallest firms, ten or fewer employees, will receive the full credit, while larger small employers will see a lesser credit. This tax credit will increase to 50 percent for the smallest employers in 2014.
• By January 1, 2011, employers with calendar-year plans will have to redesign their health care plans to extend coverage to participants' children up to age 26, eliminate lifetime dollar limits and remove pre-existing condition exclusions for children up to age 19. In addition they will need to narrow allowed spending from flexible spending accounts to eliminate reimbursement for nonprescription, over-the-counter drugs.
• In 2012, employers will be required to report on W-2 income statements the cost of employer-provided health care coverage and amend Flexible Spending Accounts (FSAs) to cap employees' pretax contributions at $2,500. Currently, there is no federally imposed limit on FSA contributions.
• Effective in 2013, a provision which affects employers that offer prescription drug coverage at least equal to Medicare Part D to Medicare-eligible retirees will change. Currently these employers are eligible for tax-free government reimbursement of 28 percent of prescription drug expenses within a certain range. In 2013, employers collecting the cash will not be able to take a tax deduction for retiree prescription drug costs equal to the subsidy.
• In 2014, waiting periods exceeding 90 days for coverage will be barred, pre-existing condition exclusions for any employee will no longer will be allowed and annual dollar limits on covered expenses will have to be eliminated.
• By 2018 health insurance premiums which exceed $10,200 for individuals and $27,500 for families will face a 40 percent excise tax.

While there appear to be some ambiguities regarding some of the legislation, the Obama administration expects to resolve any issues in the near future.  It is very important to work closely with your broker, accountant or third party administrator in these matters. 

Source: Workforce Week, March 2010