| Even with the vote in Massachusetts in January | | | | PEO's services (depending on credit size). |
| 2010, there is a thought throughout the country | | | | Reason #3 - Wellness program equals win-win. |
| that health care reform is inevitable. In fact, there | | | | The government will provide credits and/or |
| are many states looking at doing something | | | | subsidies to employers that provide access to a |
| themselves as a cost-cutting measure - providing | | | | wellness program. The goal is that this will reduce |
| greater access to medical insurance reduces their | | | | health care costs overall. So, in addition to medical |
| costs on programs for the uninsured. Ironically, | | | | benefits, the PEO will provide access to these |
| we believe that the PEO is the original health care | | | | types of programs, allowing you to take |
| access reformer, by providing small business | | | | advantage as soon as the law takes affect. In |
| employers with access to affordable benefits, not | | | | fact, the PEO will help assist you on reporting |
| to mention help with compliance on many | | | | requirements to take advantage of the savings. |
| government regulations. Still, with reform comes | | | | Reason #4 - Tax changes, HSA changes and tax |
| greater employer burden. Today we will review 5 | | | | reporting of employers providing benefits. Need |
| items that were recently in the Senate version in | | | | we say more? A PEO helps you with payroll and |
| December 2009 and how a PEO will help you to | | | | tax reporting, they will do this for all of their |
| comply. | | | | clients once it's enacted, so why worry about it - |
| Reason #1 - Companies with 50 or more | | | | it will be automatic. |
| employees will be assessed a fee for having an | | | | Reason #5 - You will be more competitive then |
| employee on the payroll that is using a tax credit | | | | ever before. Quite honestly, there will be a |
| for the health insurance exchange (we will review | | | | number of employers that will throw their hands |
| exchanges in a future article). The PEO is ideally | | | | up and take the hit on penalties and other |
| made for the tracking, reporting and remittance | | | | ramifications. However, overall this increases the |
| of this type of fee. Look for PEOs to provide this | | | | costs for many of your employees and as we |
| as part of their service offering for their larger | | | | know, the #2 reason employees stay with an |
| clients. | | | | employer is medical benefits. So, while your |
| Reason #2 - The language states that providing | | | | competitors are losing employees, your PEO will |
| employers with 25 employees or less, and an | | | | be helping you keep the good ones, now more |
| average salary of $40,000 or less that provide | | | | then ever. |
| health insurance for employees will get a tax | | | | No matter what happens with Health Care |
| credit. This is perfect for your PEO. By providing | | | | Reform in 2010 and in the future, a PEO can help |
| access to insurance, the PEO ensures you can | | | | you today. Not only will they provide access to |
| receive the credit, but better yet, the PEO will | | | | benefits that may be more affordable, but they |
| also be helping you to get the correct paperwork | | | | will help you with understanding how the changes |
| together for this credit - in effect paying for the | | | | affect your business. |