State FUTA Credit Reductions and Minimum Wage Increases

The last 60 days of each year present two predictable payroll changes: FUTA credit reductions and minimum wage increases. Recent announcements have clarified what those changes will be.

FUTA Credit Reduction States

Here is a summary of the 18 states (plus the U.S. Virgin Islands) with a credit reduction because they failed to repay outstanding federal loans by the November 10, 2012, deadline: 

• First year, employers in these three states will pay an increase of .3% in FUTA tax (maximum $21 per employee):  Arizona, Delaware and Vermont.
• Second year, employers in these 14 states will pay an increase of .6% in FUTA tax (maximum $42 per employee):

Arkansas	California	Connecticut	Florida
Georgia	Kentucky	Missouri	Nevada
New Jersey	New York	North Carolina	Ohio
Rhode Island	Wisconsin

• Third year, employers in Indiana will pay an increase of .9% in FUTA tax (maximum $63 per employee)
• The Virgin Islands extra credit reduction is 1.5%.
• These states dropped off the list for 2012 after being on the list for 2011:       

Illinois	Michigan	Minnesota	Pennsylvania
South Carolina	Virginia

Employers pay FUTA taxes at 6% on the first $7,000 of covered wages for each employee in a calendar year. This tax may be offset by credits of up to 5.4% (i.e., the “normal credit”) against FUTA tax liability for amounts paid to a state unemployment fund. A .3% credit would reduce that credit to 5.1%, thus making the net FUTA rate .9% (i.e., 6.0% – 5.1%). Affected employers must pay the additional taxes by January 31, 2013.

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EEOC unveils its plan of attack for 2013 and beyond

The Equal Employment Opportunity Commission has released its final Strategic Enforcement Plan. Here’s a brief look at the issues the agency will be targeting in the future.

The final version of the SEP is slightly modified from the draft plan the agency released last fall. A look at the priorities laid out in the final plan, which covers the years 2013-2016:

1. Eliminating Barriers in Recruitment and Hiring. The EEOC will target class-based intentional recruitment and hiring discrimination and facially neutral recruitment and hiring practices that adversely impact particular groups.
   Racial, ethnic, and religious groups, older workers, women, and people with disabilities continue to confront discriminatory policies and practices at the recruitment and hiring stages, the agency maintains.  These include exclusionary policies and practices, the channeling/steering of individuals into specific jobs due to their status in a particular group, restrictive application processes, and the use of screening tools.
2. Protecting Immigrant, Migrant and Other Vulnerable Workers. The EEOC will target  isparate pay, job segregation, harassment, trafficking and other discriminatory practices and policies affecting immigrant, migrant and other vulnerable workers, who are often unaware of their rights under the equal employment laws, or reluctant or unable to exercise them.
3. Addressing Emerging and Developing Issues. As a government agency, the EEOC is responsible for monitoring trends and developments in the law, workplace practices, and labor force demographics. The EEOC will continue to prioritize issues that may be emerging or developing.

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Assessing your health plans for 2013: A checklist

Hate to put a damper on your holiday spirit, but HR pros are going to have to get ready to make some decisions about where their health plans are going in the coming year. Here’s a quick checklist to help you prioritize the process.

The short list of what employer health plan sponsors need to keep top-of-mind going into the New Year, according to Mercer HR health benefit consultants:

• Prepare for the health reform law’s 2014 requirements.  In 2014, employers will be required to offer qualified health coverage to all employees working 30 or more hours per week – so in 2013 they need to determine who those employees are and whether their health plan qualifies. They also need to inform employees about the new state exchanges.
• Evaluate the level of benefits provided.  As employers are asked to cover more individuals, they are reconsidering the level of benefits they provide and how much they contribute to the cost. Providing employees with a low-cost plan (like a consumer-directed health plan) as the core benefit and giving them the option to pay more for richer coverage is one approach gaining momentum.
• Examine whether private health exchanges have a place in the health benefits strategy.  While relatively few employers expect to drop their medical plans entirely, some are considering  rivate exchanges for retirees, active employees or both. Exchanges reduce the administrative burden for employers and can give members more flexibility in selecting insurance products to meet their needs.
• Ramp up health management programs for long-term savings.  Most employers have some type of wellness or health management program, but is it achieving all it can? Employers should consider offering employees incentives to participate – the pay-off is a healthier, higher-performing workforce. Social media’s networking capabilities offer new ways to build engagement.
• Rethink where and how care is delivered.  Market innovations like telemedicine, surgical centers of excellence and medical homes are starting to transform the health care delivery system.

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Tip Tuesday! Natural Ways to Prevent Cavities

BY DR. AXE

Conventional wisdom tells us that cavities are caused by the sugary residue left on our teeth after eating. Bacteria that live in the mouth thrive on these foods and produce acid as a result. Over time the acids destroy the tooth enamel and lead to cavities and decay. We brush after every meal, rinse our mouths with antibacterial solutions and we have even added fluoride (which should be avoided in the first place) to our municipal drinking water. And after all of these preventative measures, we still get cavities.  

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Cheers! Low-calorie sips for the season

By Melanie Polk, M.M.Sc., R.D., F.A.D.A.
Holiday drinks can be warm and steaming or cool and sparkling. And, they can bring comfort and joy. 

But, even if you're just sipping, calories can add up quickly. So, here are some ideas for beverages that are low in calories — while still fun and festive. 

Winter warm-ups 
Heavenly hot chocolate. Choose a low-fat, low-sugar product. You might perk up your cocoa with a little instant espresso, a dash of sugar-free hazelnut syrup, or two or three drops of vanilla extract. 

Coffee with a twist. Give your morning brew a cheery lift. Add a cinnamon stick, a little grated nutmeg and a bit of crushed peppermint candy. You can also spice up ground coffee before brewing — try sprinkling it with cinnamon, ginger or nutmeg. 

Toasty spiced tea. Take the chill off with a cozy mug of herbal, black, green or chai tea. For extra flavor, try steeping your tea water with added spices first. For example, simmer plain water for a few minutes with cardamom pods, cinnamon sticks, whole cloves, anise seeds or black peppercorns. Strain the water — then make your tea as you normally would. 

Are you hosting a holiday brunch or open house? See "Cinnamint green tea" for a tasty and timely recipe that serves six — just double it, as needed. 

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COBRA and Medicare: Five Areas of Compliance

COBRA has existed since 1986, however when it is combined with Medicare, confusion still reigns.

Should you offer COBRA to someone on Medicare?  How long should they be on COBRA?  COBRA requires numerous date tracking, but which ones are most important when Medicare is involved?

In addition to knowing these answers, employers should understand five primary issues when dealing with COBRA and Medicare: 

• Offering COBRA to individuals on Medicare
• Measuring the initial COBRA period
• Medicare as a second qualifying event for COBRA
• Who is the primary and secondary payer
• Medicare as a COBRA event 

On Wednesday, December 12, Infinisource released a webinar that reviewed these confusing issues and provided additional resources.  If you were unable to attend and would like to listen to this free webinar, register today to receive a link to the recording.

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Agencies Release Proposed Rules on Wellness Programs, Essential Health Benefits, and Health Insurance Market Reforms

By Ilyse Schuman

Now that the 2012 elections are over, federal agencies are finally releasing long-awaited healthcare rules. On Tuesday, the DOL’s Employee Benefits Security Administration (EBSA), U.S. Department of Health and Human Services (HHS), and the Treasury Department issued three proposed rules crucial to the implementation of the Affordable Care Act (ACA). The proposals include regulations regarding incentives for nondiscriminatory wellness programs in group health plans; (pdf) standards related to essential health benefits, health plan actuarial value, and accreditation; (pdf) and regulations regarding rate review and other health insurance market reforms. (pdf) While a more detailed analysis of these new proposed rules will soon be provided by Littler attorneys, the following is a brief overview of each proposal:

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Tip Tuesday! Speedy relief: 5-minute stress busters

By Arleen Fitzgerald, L.I.C.S.W.

Maybe it's just your average day. You've got places to be, people to see and a to-do list a mile long. Really, who has time to relax? 

You're on the go, go, go. But, while you're at it, stress can be zapping your energy. And, over time that strain can take a greater toll. It can contribute to burnout and a host of health problems, including anxiety, depression and high blood pressure. 

So, when you feel the tension building, take a few minutes and slow it down. You'll feel better right away — and you'll be caring for your long-term peace of mind and health, too. 

Five quick fixes 
You can take yourself from keyed-up to calmer with any of these steps:

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Health reform beat goes on: New rules on wellness, ‘essential benefits”

The health reform wheels continue to grind: The feds have issued new guidance on wellness program incentives and the “essential health benefits rule.”

The guidance on wellness incentives does clear up some of the confusion about just what’s acceptable and what’s not. The info on the “essential health benefits”? Not so much.

Maximum incentive jumps by 10%

The Department of Health and Human Services (HHS), the DOL and Treasury Department recently released the new proposal for wellness incentives, which would apply to plan years beginning on or after Jan. 1, 2014.

The proposal’s just that — a proposal. But it does give employers a pretty good picture of what the final rules are likely to be.

Here are the highlights:

• The maximum incentive for “standards-based” wellness programs will jump to 30% of the cost of coverage (currently it’s 20%).
• The maximum incentive for programs designed to prevent or reduce tobacco usage can be up to 50% of the cost coverage.
• Reasonable alternatives must be provided to employees with medical conditions – or conditions where it’s medically inadvisable to comply the wellness program’s requirements.
• Employers can get physician verification from an employee to prove that a reason alternative to a wellness program is necessary – unless that employee’s medical condition is obvious or known to the plan or insurer already.

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Five Things you Must Know About ACA's W-2 Reporting

When large employers prepare W-2 forms at the end of this year, the Affordable Care Act (ACA) has added an additional requirement. Are you prepared to handle this new requirement?

The newest ACA requirement is to include the cost of health care coverage on the W-2 Form, Code DD on Box 12. What does this mean when you put this information on the W-2 Form? How does this impact the employee or the employer?

Infinisource provided a webinar on this new requirement on Wednesday, December 5, that reviewed:

• Basic rules
• Small employer exception
• Special COBRA rule
• Incidental coverage rule
• What’s in and what’s out
• Employer action plan

If you are required to comply, the time to learn more is now. To view this free 30-minute webinar at any time for the next 30 days, register today to receive a link to the recording.

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Managing diabetes: Tips for travelers

By Tanise Edwards, M.D.

If you have diabetes, you know that it requires daily care — often at home. But, that doesn't have to stop you from traveling. 

Whatever your destination, you can enjoy your trip with greater confidence. Just be sure to take wise steps for your diabetes care — before and during your travels. 

It's all about planning 
Before you leave home, here are some important ways to prepare: 

Check in for a checkup. Try to see your doctor about four to six weeks before your trip. Be sure to ask for:

• A medical record or letter that you can carry with you. It should list your diabetes medications, supplies, and any food or drug allergies.
• Prescriptions for extra insulin or diabetes pills. You can take the prescriptions along — and fill them in case of an emergency.
• Advice on what travel activities are OK for you — and what you should avoid.

If you're traveling abroad, you may also need certain immunizations — depending on where you're going. 

Tip Tuesday! Sleep: Break the six-hour threshold!

By William Weese, M.D.


Who averages six hours or less of shut-eye a night? The answer: Thirty percent of working adults in this country. 

That's according to the Centers for Disease Control and Prevention (CDC) — which calls this an "important public health concern." For overall well-being, adults generally need seven to nine hours of sleep daily, say the CDC, as well as other health experts. 

Are you one of the working weary? You may be missing out on more than sweet dreams. 
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IRS ISSUES GUIDANCE ON $2,500 FSA LIMIT FOR 2013

IRS Issues Guidance on $2,500 FSA Limit for 2013

The U.S. Internal Revenue Service issued Notice 2012-40, with guidance on the $2,500 limit on pretax employee contributions to health care flexible spending accounts (FSAs) under the Patient Protection and Affordable Care Act (PPACA). The reform law limit on the amount that employees can set aside in FSAs is scheduled to take effect in 2013.

If you are beginning an FSA for this year or need to adjust to comply, do you have all the information that you need to do this?

·         How do you process short plan years?

·         What does this mean for Health Reimbursement Arrangements, Health Savings Accounts or Dependent Care FSAs?

·         Does this change what can be funded by employers?

·         How do you correct an error?

·         What do you do with married couples that work for you?

·         What’s going on with the use-or-lose rule?

Among the points clarified in the notice:

• The $2,500 limit is effective for plan years starting January 1, and not the taxpayer’s tax year. Employers with fiscal year health care FSAs may keep higher reimbursement limits in effect through the end of their 2012-2013 plan year.
• Employers may adopt retroactive amendments to impose the $2,500 limit before Dec. 31, 2014.
• The $2,500 limit applies only to salary reduction contributions under a health care FSA and does  not limit the amount permitted for reimbursement under an FSA for dependent care assistance or adoption care assistance. Nor does it apply to salary reduction or any other contributions to a health savings account (HSA) or to amounts made available by an employer under a health reimbursement arrangement (HRA).
• The $2,500 limit also does not apply to employer nonelective contributions — sometimes called flex credits — nor to salary reduction contributions to a cafeteria plan that are used to pay an employee’s share of health coverage premiums (or the corresponding employee share under a self-insured employer-sponsored health plan) — sometimes referred to as “premium conversion” salary reduction contributions.
• Relief is provided for certain salary reduction contributions exceeding the $2,500 limit that result from a reasonable mistake and not willful neglect and that are corrected by the employer.

For more answers to your questions visit www.irs.gov and search Notice 2012-40.

6 Nautral Remedies for Bone and Joint Pain

I’ve written previously about safe alternatives to aspirin, but today I want to focus on some great natural remedies specifically for bone and joint pain. While it can feel like the pain is originating from the bones, it is most likely coming from the joints and surrounding soft tissues.

There are several potential causes for the pain: osteoporosis, repetitive movements, injuries, inactivity or poor posture. Whatever the cause, sharp pain with each move can make something as simple as carrying groceries a daunting task. Some resort to medication to cope with the aching and throbbing, but there are some really good natural remedies to consider trying. Below are six of my favorite.

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High Court to decide legal definition of ‘supervisor’: Why that matters to employers

The Supreme Court is currently mulling over one of the most basic questions in today’s workplace: Who fits the legal definition of “supervisor”?

The high court’s ruling could have a substantial impact on employee discrimination lawsuits.

Here’s why:

Under the law, an employer is liable for the behavior of a supervisor who’s guilty of discrimination or harassment.

But if a worker discriminates against or harasses a co-worker, the employer is not at fault — unless the behavior was reported and the employer failed to act to address it.

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Tip Tuesday! Best Times to Eat for Weightloss

What is the Best Time to Eat for Weight Loss?
If you’ve ever dieted, you’ve probably asked yourself this question at least once. What is the best time of day to eat in order to lose weight?
Some experts believe eating small portions of food every two – three hours throughout the day will keep your metabolism active, and therefore you will burn more calories. This thinking could be true, except the success of this reasoning’s effectiveness would depend on a number of factors.
What you’re eating, your age, your overall health, your oral health, portion size, your body’s chemistry makeup, the amount of exercise you get and your family health history can all play a role in how your body functions relative to what you do to, and with it as you try to lose weight.
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