Affordable coverage under the ACA means that the employee’s required contribution for self-only coverage (meaning the amount to acquire coverage for only oneself, and not the cost for dependents) does not exceed a certain percentage of their household income. Plan Year Beginning Affordability Percentage 2020 9 .78% 2021 9 .83% 2022 9 .61% 2023 9 .12% All of the plans offered by the employer do not have to meet this affordability threshold — for purposes of the ACA we just look at the self-only employee contribution for the “best p ..read more

The City of Seattle, Washington will impose a new employer-only Payroll Expense Tax effective 1 January 2021. The filing of this tax was optional until Q4 2021and Zenefits is supporting this tax starting Q4 2021. The full amount due for 2021 must be paid by January 31, 2022. This tax applies to businesses operating in Seattle (with some exceptions). An employer is subject to this tax if they paid at least $7 million in annual payrolls in their previous year, and they have at least one employee with an annual compensation of $150 ..read more

Employees who experience one of the qualifying life events (QLE) in this list can either enroll in an FSA outside of the normal eligibility window (if they don’t already have one), or make changes to their FSA contributions (if they have one). Change in legal marital status (i.e., marriage, legal separation, divorce, or death of employee’s spouse). Change in employment status (for employee, their spouse, or dependent) that affects eligibility for health insurance benefits. Change in number of tax dependents. Birth or date an employee adopts a child, or place ..read more

Imputed income amounts for Basic and Voluntary Life plans are calculated using the volume of coverage on the plan (V) and an age-banded rate (r), which is determined by the IRS using the employee’s age on the last day of the employee’s tax year. IRS Regulation 79 Table 1: Rates for Group Term Life Age Bracket Monthly Cost per $1000 of Coverage over $50,000 (r) <25 $ 0 .05 25 to 29 $ 0 .06 30 to 34 $ 0 .08 35 to 39 $ 0 .09 40 to 44 $ 0 .10 45 to 49 $ 0 .15 50 to 54 $ 0 .23 ..read more

Finding the right payroll provider for your small business can be a daunting task, especially when you’re working within a limited budget. However, with careful consideration and a strategic approach, you can save money while ensuring your payroll needs are met. In this listicle, we present seven effective ways that small businesses can potentially save money when searching for payroll providers. Assess Your Business Needs: Before embarking on the search for a payroll provider, take the time to assess your business’s specific payroll requirements. Determine the number of employees, complexity ..read more

After a worker is terminated, in most cases, the worker’s benefits coverage will extend to the end of the month in which they were terminated. Some companies may have same-day or mid-month termination policies. Upon termination, two types of insurance become available to terminated workers. COBRA (Continuation of Health Coverage), which continues to provide health insurance to the terminated worker. Unemployment Insurance (UI), which provides temporary financial assistance to the worker while they look for work. UI benefits are based on the worker’s previous wage ..read more

Account Number(s) Needed: Companies who pay employees in NH must register with the NH Department of Employment Security (NHES) for an Employer Account Number. NH Dept of Employment Security Employer Account Number: 000-999999 (9 digits) Find an existing Employer Account Number or apply online at the NHES WebTax portal to receive the number in 7-10 days. Third Party Access /POA Needed: No Local Income Taxes Imposed:   No State Resources: Visit state resources for specific tax rates and wage details Employment Security Registration Bo ..read more

Account Number(s) Needed: Companies who pay employees in Montana must register with the MT Department of Revenue (DOR) for a Withholding Account Number and the MT Department of Labor and Industry (DLI) for a Unemployment Insurance (UI) Account Number. Department of Revenue: 9999999-999-WTH (7 digits, 3 digits, “WTH”) Apply online at the DOR’s to receive the number within 2 days. Find an existing Withholding Account Number: on Form MW-1, Montana Withholding Tax Payment Voucher by contacting the DOR. Department of Labor and Industry: Format: 999&nbs ..read more

For businesses bogged down by human resources requirements, partnering with a certified professional employer organization (CPEO) is an option. Outsourcing HR functions like payroll administration offers business owners more time to focus on customer service and growth. Potential cost savings are another benefit. According to the National Association of Professional Employer Organizations (NAPEO), 180,000 small and midsize businesses use professional employer organizations (PEOs).¹ Larger companies are also increasingly turning to PEOs. Some may prefer a certified PEO because they offer certai ..read more

Many small businesses decide that human resources outsourcing is a winning choice. An estimated 37% of small businesses outsource a business product.¹ It helps them scale, is cost-efficient, and gives many of them a compliant way to manage a vital HR function. Landing on the type of HR outsourcing that best fits your business can be challenging. After all, there are several options. If you’re wondering which would serve your organization better, a PEO vs. HRO, read on for our in-depth comparison. What is a PEO? PEO is short for a professional employer organization. It’s a company that offers v ..read more