Health,Care,Reform,Reasons,Beg business, insurance Health Care Reform - 5 Reasons to Begin working with a PEO t


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Even with the vote in Massachusetts in January 2010, there is a thought throughout the country that health care reform is inevitable. In fact, there are many states looking at doing something themselves as a cost cutting measure, providing greater access to medical insurance reduces their costs on programs for the uninsured. Ironically, we believe that the Professional Employer Organization is the original health care access reformer, by providing small business employers with access to affordable benefits, not to mention help with compliance on many government regulations. Still, with reform comes greater employer burden. Today we will review 5 items that were recently in the Senate version in December 2009 and how a PEO will help you to comply. Reason #1 - Companies with 50 or more employees will be assessed a fee for having an employee on the payroll that is using a tax credit for the health insurance exchange (we will review exchanges in a future article). The PEO or Employee Leasing Company is ideally made for the tracking, reporting and remittance of this type of fee. Look for PEO's to provide this as part of their service offering for their larger clients. Reason #2 – The language states that providing employers with 25 employees or less, and an average salary of $40,000 or less that provide health insurance for employees will get a tax credit. This is perfect for your PEO. By providing access to insurance, the PEO ensures you can receive the credit, but better yet, the PEO will also be helping you to get the correct paperwork together for this credit - in effect paying for the PEO Services (depending on credit size). Reason #3 – Wellness program equals win-win. The government will provide credits and/or subsidies to employers that provide access to a wellness program. The goal is that this will reduce health care costs overall. So, in addition to medical benefits, the PEO will provide access to these types of programs, allowing you to take advantage as soon as the law takes affect. In fact, the PEO will help assist you on reporting requirements to take advantage of the savings. Reason #4 – Tax changes, HSA changes, and tax reporting of employers providing benefits. Need we say more? A PEO helps you with payroll and tax reporting, they will do this for all of their clients once it’s enacted, so why worry about it – it will be automatic. Reason #5 – You will be more competitive then ever before. Quite honestly, there will be a number of employers that will throw their hands up and take the hit on penalties and other ramifications. However, overall this increases the costs for many of your employees and as we know, the #2 reason employees stay with an employer is medical benefits. So, while your competitors are losing employees, your PEO will be helping you keep the good ones, now more then ever.

Health,Care,Reform,Reasons,Beg

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