Employee Leasing Quotes : PEO Blog

Tax credits

From 2010 to 2013, businesses with fewer than 25 employees with average annual wages of $50,000 or less are eligible for tax credits of up to 35 percent of the employer’s health insurance premium.

Beginning in 2014, eligible employers can get a tax credit of up to 50 percent for two years for insurance purchased through health insurance exchanges.

New taxes

A 40 percent excise tax will be imposed in 2018 on employer-sponsored health premiums that are above $10,200 for single coverage and $27,500 for family coverage.

In 2013, the Medicare payroll tax will be increased by 0.9 percentage points for individuals earning more than $200,000 ($250,000 for married couples filing jointly). Tax also will be applied to net investment income.

Annual flat fees will be imposed on pharmaceutical companies in 2011, medical-device manufacturers in 2013, and health insurers in 2014

Health insurance exchanges

State-based exchanges will start in 2014, with Web portals that will allow individuals and small businesses to comparison shop for insurance.

All insurers in exchange must provide core set of benefits.

Insurers in exchange can’t deny coverage based on pre-existing conditions, selectively refuse to renew coverage or charge different premiums based on gender, occupation or pre-existing conditions

Shared responsibility

All individuals will be required to obtain insurance, except for those who obtain hardship waivers.

Employers with more than 50 workers that do not offer health insurance will pay $2,000 per full-time worker (not including the first 30 workers) if any of their employees purchases government-subsidized coverage through an exchange.

Employers with more than 50 workers that offer unaffordable coverage or coverage that does not cover at least 60 percent of allowable costs will pay $3,000 for any employee that receives a tax credit in the exchange

Source: House Energy and Commerce Committee

www.EmployeeLeasingQuotes.com

Some important legislation has moved quickly through Congress. It will provide your company with
financial incentives for hiring unemployed workers and keeping them on the job. Below is a brief
description of this legislation.

The HIRE Act encourages the hiring of unemployed workers and provides incentives to promote long term employment. On February 24, the Senate passed HR 2847 with an amendment creating the Act. The House passed a modified version of the bill on March 4, retaining the HIRE Act provisions. The bill was signed by the President on March 18.

The Hiring Incentives to Restore Employment (HIRE) Act contains two key employment provisions:

1. Hiring incentive - Payroll tax exemption.
Exempts qualified employers from the employer share of the payroll exemption tax for the remainder of
2010 on qualified new hires. At 6.2%, the maximum value is $6,621 for a qualified employee with wages
equal to or exceeding the wage base limit.

A qualified new hire is someone that has not been employed for more than 40 hours during the 60-day
period ending on date of hire and has a hire date of February 4 – December 31, 2010. The qualified new
hire must sign an affidavit.

The payroll tax forgiveness does not apply to wages paid in the first quarter of 2010. However, any
amount that would have been allowed in the first quarter (i.e., wages on or after March 18, 2010) would
be credited against the employer’s OASDI liability for the second quarter. Beginning for new hire wages
paid beginning April 1, 2010, the employer would take the OASDI forgiveness into account for regularly
deposited payroll taxes.

2. Retention incentive - Federal tax credit
If your company retains HIRE qualified employees, you can also earn a federal tax credit equal to the
lesser of $1,000 or 6.2% of the wages paid to the retained worker. To earn the retention credit, the
worker must work 52 consecutive weeks and wages paid during the last half of that period must equal at
least 80% of wages paid during the first half.

Who is a “qualified employee?
Answer: A qualified employee…

• Must start work after February 3, 2010 and before Jan 1, 2011.

• Must not have been an employee for more than 40 hours during the 60 days before his or her
  start date.

• Must not replace a current employee (unless that employee was separated from employment
  voluntarily or for cause.)

• Must not be related to the employer or directly or indirectly own more than 50% of the business.

• May be previously laid-off employees.

• May be part-time or less than full time employees.

www.EmployeeLeasingQuotes.com

Workers’ Compensation Insurance Differences:

• Costs.
• States that each provider has coverage in.
• Rated and non – rated work comp carriers.
• Risk acceptance. Each company has dramatic differences in the industries they approve.
• The ability to approve high experience modifiers or a bad claims history.
• Some have per claim deductibles - others don’t.
• True risk management services or just a handbook?

Health Care Plan Differences:

• Costs.
• Blue Cross & Blue Shield, Aetna, Human, United Healthcare – which best fits your needs?
• Annual renewal history is critical, so you’re not shopping year after year.
• Deductible options, co-pays and plans.
• Will leasing provider apply credits to deductibles paid in if moving during the plan year?
• Management carve-outs, choice of plans for employees.
• Do you have employees in several states?
• Will provider show up for group enrollment or expect you to do the work?

Payroll Administration Differences:

• Costs.
• Per check charge or payroll driven percentage.
• Charges or no costs for: employee enrollment, garnishments, new hires, etc.
• Delivery costs can vary dramatically from $0 - $25 per payroll.
• Payment options: Automatic withdrawal (ACH), wire transfers, company check, cashiers’ check.
• Remote check printing options.
• Pay cards options.
• Secure, 24 hour online access to your company information.

Other Differentiating Services:

• 401(K) costs and annual fees. Some leasing companies actually contribute to your plan!
• Employer Practices Liability Insurance (EPLI). Charges and deductibles.
• Employee Assistance Programs (EAP). Very useful and powerful counseling and support programs provided at no cost through some providers.
• Long and short term disability insurance.
• Life insurance options.
• Multiple Dental & Vision plans.

How We Can Help

At Employee Leasing Quotes.com, our #1 goal is to make you the most
competitive business in your market by providing you with an employee leasing solution
that fits the needs of your business.

Each employee leasing company is different (just like your business), and unique in their offerings. Their workers’ compensation rates and employee benefit plans have very distinct differences in coverage and costs. Each employee leasing company will service different industries, markets and states. Providing an immediate impact that you’ll notice, in the specific areas of your business that require attention is how we can help.

With over 1000 professional employer organizations to choose from, we make it simple to bypass the research, appointments, sales interviews and follow-up phone calls associated with searching for a PEO organization who can deliver the benefits you need. For over a decade now, our experience working with PEO providers make it easy for you relax while multiple employee leasing services - compete for your business.

The Bottom Line
Employers have looked to us for HR outsourcing guidance for over 10 years. Join our list of success stories that have saved over $42 million dollars in health and workers’ compensation premiums and more importantly, taken control of their business. You’ll feel comfortable when you talk to us. We listen, ask questions and simplify the process. We’re here to help.

1-888-582-8388

www.EmployeeLeasingQuotes.com

I wish I had a list of every business out there who has been forced to get their workers’ compensation insurance through a state fund - or “pool” as otherwise known. Last week just completed service on a small masonry business out of North Carolina that has been getting drilled on their workers’ comp rates through the state fund, by saving them over 50% on their annual premiums.

We receive these calls fairly often because the costs through these pools just aren’t maintainable for a small business to be competitive. I’m not sure what the formulas are either with the voluntary market not able to service these clients. We’ve had as high as a ten employee business with no claims to companies with just a little over a one experience modifier that can’t access reasonable coverage. Whatever the reason, keep’em coming - we’ll help!

Mike Burgelin
1-888-582-8388
www.EmployeeLeasingQuotes.com

How can employee leasing services impact your business? How about an annual work comp savings of $15,000 for a company with less than ten employees! What an easy decision for this local Wisconsin moving company that will pay 47% less on their workers’ compensation insurance rates now by connecting with an employee leasing provider. In this economy, there’s never been a better time to look at the benefits of employee leasing services.

Mike Burgelin
1-888-582-8388
www.EmployeeLeasingQuotes.com