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

The PEO industry grew a very robust $5 billion in 2008, to $68 billion in gross revenues.

About 700 PEOs are operating in 50 states.

PEOs provide enhanced access to employee benefits for 2-3 million working Americans.

The average employer who uses a PEO saves between 15-40% on their workers’ compensation costs depending on what type of work they do and past claims history.

Employers find PEO services as a great business value! The National Association of Professional Employer Organizations (www.napeo.org) reports that almost 9 of 10 business owners stay with the PEO concept.

The small business administration reports that Between 1980 and 2000, the number of labor laws and regulations grew by almost two thirds and estimates small to mid-sized business owners spend up to a quarter of their time on employment-related paperwork. PEOs assume much of these burdensome responsibilities and help companies comply with all these regulations.

www.EmployeeLeasingQuotes.com

1-888-582-8388

One of the questions I still receive regularly is the person who wants to utilize PEO services for health care because of individual or family pre-existing conditions. Anyone remember Sunshine Companies?

Sure, a PEO can be an opportunity to save on health insurance costs, with a group that may have some pre-existing issues. But not the one, two or three man operation where two of the owners have recently had heart attacks and the other has diabetes. I can’t imagine anyone having a viable option for these employers. If you have ideas on how to help these small business owners, please share. I wish I least had a place to refer them to.

#1
It costs more to use an employee leasing company.
You’ll save money by using these services! The employee leasing company allows you to concentrate on building your business while managing your administrative costs.

#2
I can’t save money on my workers’ compensation costs! My experience rating and the state control my rate.
Wrong! The employee leasing companies buy workers’ compensation for thousands of employees. Bulk buying means favorable discounts that you may not receive outside of an employee leasing arrangement.

#3
If I use an employee leasing company, I’ll lose control of my business.
Not true! You maintain complete control of the day-to-day operations of your company; you’re simply outsourcing the annoying paperwork. Dealing with insurance agents, audits and employee questions take time that you can better spend focused on your business. But it’s not just time. It’s money, too.

#4
Health insurance rates and their yearly increases are pretty much the same with every carrier.
Not true! On average, small business owners pay more for group health than larger companies. By partnering with an employee leasing company, many small business owners have seen savings as high as 35% on their group health costs.

#5
I’ll pay more if I use an employee leasing broker.
You’ll pay less by using our services. You get the best rates when companies compete!

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Health Care and Benefits continue to be a big topic of conversation, especially in this election year. Here are few interesting statistics from the (EBRI) Employee Benefit Research Institute. They have a great site and you can view the entire article at:

Health Insurance: Trends in Availability and Cost

Average premiums for employee-only coverage increased from $28 to $52 per month from 2000 to 2006, an 86 percent increase. Average family-coverage premiums increased from $138 to $248 per month from 2000 to 2006, an 80 percent increase. In contrast, the consumer price index (CPI) increased by 17 percent from 2000 to 2006.

From 2000 to 2007, the cost of employment-based health benefits doubled, while wages and overall inflation increased only 25 percent.

Between 1994 and 2000, the percentage of workers with health benefits through an employer held steady between 73 percent and 75 percent. Since 2000, the percentage of workers with health benefits has fallen to about 71 percent.

I was watching the Presidential debates the other night, and health insurance is still at the top of the “things to do” list. What a mess!

I earned my health insurance license years ago, and began the process of getting appointed with certain life and health insurance carriers. I saw the Aflac commercial and after figuring out what that duck does, decided to include it in my offerings.

For those of you who aren’t familiar with Aflac or supplemental insurance policies, here’s the main benefit. Health insurance makes sure the doctors and the hospitals get paid for the services they provide. But when you’re missing work for treatment on things like sickness, accidents, or even cancer- how do you recoup income lost? The answer is supplemental insurance. These policies pay you cash for unexpected health events like a broken arm, emergency room visits, cancer, even gas and lodging benefits if treatment is out of the area.

An accident policy, for example, pays you a specified cash amount for things like stitches, broken bones, chipped teeth, burns, etc. In fact, about any kind of accident you can imagine going to the hospital, walk-in clinic, or doctor for- they will pay you a specified cash amount.

Yes, it is not health insurance and it usually won’t be enough to pay for that doctor’s visit. But unlike health insurance which costs hundreds of dollars a month, this type of policy will range from just $20-$30 dollars a month. The cash benefits are very good, and once you send in your bill for the service you received, you can expect a check back in matter of days.

I have found over the years these supplemental insurance policies are especially great for small employers who can’t afford the high costs of group health insurance. It’s also a good option for blue-collared employers who deal with employee turnover- which leads to participation issues.

The benefits for employers are significant, as well. First, as the employer you’re not required to contribute to a plan. Second, you don’t have the participation factors - you typically only need as little as three employees who purchase a policy to have a group plan. Third, by offering these supplemental insurance policies, you more likely to experience a drop in workers’ compensation claims.

Why? Statistics show the majority of workers’ compensation claims are filed by noon on Monday. That’s because many claims arise from an accident that happened over the weekend- like an employee jet skiing or playing softball. Without health insurance, a percentage of people wait until they get to the workplace to report the accident as being work-related. With supplemental policies, the insured has an incentive to treat the accident immediately.

The benefits of supplemental insurance are well worth looking into. In addition to costs, participation factors, and ease of use- your employees will be grateful to you for the presentation alone. What experiences have you had with supplemental insurance?

Please call if you have questions regarding employee benefit options for your business. We can be reached at 888-582-8388 from 8:30am- 5:30pm EST. Or log onto Employee Leasing Quotes and get your free, specialized quote for your business.