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Issue: # 125
July 29, 2015
  
 

Dear  :     

 


We continue to inform our clients about the Mass. Wellness Credit because it applies to all types of businesses under 200 employees.   All of you can qualify for this credit.  The key is if you are spending money on any of the above items you should take a closer look.  Many of our groups are spending a significant amount of money on OSHA training, and this expense falls under the "Wellness" umbrella.    So, we encourage you to check out the info and video below.  Here is an article from the Worcester Telegram last December featuring Vanessa and our CPA, John Andrews, discussing this credit. 

If you work with us and install a wellness plan, you are able to take 25% of the costs associated with the Wellness Plan as a tax credit.  More importantly you are also able to claim 25% of any of the expenses listed above as well, to a maximum credit of $10,000.

This Wellness Tax Credit has two benefits for you.  First, a healthier workforce will lead to lower claims and lower health insurance premiums.  Second,  it enables you to get a tax credit on other expenses you are already incurring.  Another item is that we try to remind employees and showcase the benefits you provide them.  Having an outside third party act as your cheerleader helps to communicate and reinforce the benefits you help pay for.

Click this lick to review the program guideline or email us with any questions.
 
Wellness Fairs can be fun

We have learned that initially employees are skeptical at these types of events, but it does not take long for them to embrace and actually look forward to the next one.   In addition, we usually find employees who are very surprised and concerned after they received their blood pressure or cholesterol readings.  Hopefully they see this as a warning and are takings steps to manage the problems.

 

So, everybody wins in an event like this.   Advantage Benefits will provide a survey after the event and provide you with feedback.   Check out this video from one of our Wellness Fairs. 

 

 

Click on picture for video
Earned Sick Leave Law Training Sessions Available
Attorney General Maura Healey's office is offering online training sessions for Massachusetts employers, to provide guidance for implementing the new earned sick leave law, which went into effect on July 1. Important information regarding the rights and responsibilities of both employers and employees is discussed.

Each session is about two hours long, and consists of a quick review of the law by representatives from the AG's office, with the remaining time spent answering specific questions via an online chat session. These sessions continue through the month of August, and they also are conducting in-person sessions as well.  

 

Information for attending these can be found here and click on the "Info Session RSVP" tab to register.   You can also find the summary of the law and the final regulations on this page.

 

This has been a frustrating process for some employers. This law was approved by voters on November 4, 2014. The AG's office released the final regulations on June 19 after six public hearings, and considerable feedback from employers affected by the law.

Questions? Comments? Please email Mary Ellen.   

 


Healthy Actions from Blue Cross

Many of our clients are aware of the Healthy Actions from Blue Cross wellness incentive program.  If you have Blue Cross, you should seriously consider adding it. It is a great program for both Employer and Employee, but it does take work.  It can be a tedious process, but once again, employees can earn up to $300 per year, and the maximum premium rebate for Employers has increased to 7.5%

 

This is a material amount of money for Employers.  We even see some employers who provide an additional incentive to all those that participate.  Once again, if an employer hits the 80% participation level they can receive a premium refund of 7.5%. 

 

The first year is the toughest, but we see that there is typically improvement the 2nd year of the program.  Advantage Benefits is there to help you qualify with service and support.

 

Employee Rewards:   

 

1) Doctor determines the employee is healthy = $300 to employee.

2)  Doctor determines the employee needs improvement =  $100 to employee.

The doctor then sets a goal for employee so they can come back within the 12 month cycle and re-qualify to earn the other $200. 

 

Employer Costs

 

1 employee = 2.5% of premium

2-9 employees = 1.25% of premium

10-99 employees = .4% of premium

 

Employer Rewards   

 

20-49% participation = 1.25% of the annual premium

50-79% participation =  2.50% of the annual premium

80-100% participation = 7.50% of the annual premium

 

We are always looking for ways to help our clients lower their health insurance costs.   Recently many of these ideas were published in Central Mass Health.
 
Big problem the new Sick Pay Law has created

went into effect. Employees of all sizes must  credit 1 hour of sick leave for every 30 hours worked to a maximum of 40 hours, unless they have a current sick pay plan in force that is equal to or better.  Employers with 10 or fewer employees, will not have to pay when an employee utilizes the sick hours, however, employers with 11 or more must compensate at their regular rate.

 

The best way to understand the problem this law has created is to give you an example with the following assumptions:

  • Company has 20 employees
  • All 20 employees have worked enough hours to earn 40 hours of sick pay
  • The company plan year is from July 1st of this year thru June 30th of next year
  • You are a full-time employee at this company

 

Flash forward to the last couple weeks of June, 2016, the weather is great and you are sitting on 40 hours.  You have two choices:

 

  1. Call in sick 5 days during the last two weeks and get paid for all 5 days.  On July 1, 2016, you start earning sick hours again receiving 1 hour for each 30 worked. (yes, employees need to provide documentation if out more than 3 days in a row - so they will spread it out over 2 weeks).
  2. Don't call in the last two weeks and carry the 40 hours over into the next plan  year.  On July 1, 2016, you can't earn any more sick hours since the maximum is 40 hours and if you were to quit, the company does not have to pay you for any unused sick hours.

You know your employees better than us  What choice will they make?

Be prepared.  Some employers are thinking about giving an incentive to those who do not use their sick time to prevent everybody calling in sick the last 2 weeks of the plan year!!