The next great HR challenge: 4 ways to prep

By Christian Schappel

The recent economic upswing has created an unwelcome, and unexpected, consequence for HR — and no, it’s got nothing to do with employees fleeing into a healthier job market. 
The real estate market is on the rebound — especially the commercial real estate market, according to the latest figures from CoreNet Global, a commercial real estate association.
Result: The increased demand for commercial space has not only caused real estate purchase prices to club, but also caused rent to go shooting skyward.

The effect on HR

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3 things HR needs to about Supreme Court’s Obamacare case

By Jared Bilski

The Supreme Court has begun hearing arguments in King v. Burwell, a highly anticipated challenge to the cornerstone of the ACA, the federal subsidies. Here are three things HR needs to understand about the stakes in this case.

This entire case hinges on one phrase in the law, which says that subsidies — in the form of tax credits — would be offered in health insurance exchanges “established by the state.”
Despite this language, more than 30 states passed on setting up their own exchanges, so the feds stepped in to do so.

The original plaintiffs in the case, four Virginia residents, claim that the subsidies are illegal in the states where only federal exchanges have been established.

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Giving new hires benefits info before they start streamlines onboarding

By Justyn Harkin

Employers are faced with a challenge when it comes to presenting benefits materials to new hires: The content is too important to gloss over, yet the complexity of the subject matter and personal needs of new hires can create strenuous demands for the time and resources of HR pros.
Certainly basic orientation activities like reviewing benefits information and taking the office tour are a necessary part of good onboarding. After all, people need to know about their healthcare options and where to find the bathrooms.
Yet, orientation activities shouldn’t dominate a new hire’s time on his or her first day, and many employers make the mistake of missing the onboarding forest for the orientation trees.
Because unwieldy benefits orientation programs can intrude upon these bigger organizational goals, HR professionals and benefits administrators should consider adopting new, more flexible benefits orientation strategies and tools like the one adopted by Baylor College of Medicine (BCM).

Interactive, pre-start date system

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Tip Tuesday! Feds offer a first look at the upcoming ‘Cadillac Tax’

By Jared Bilski

Even though the “Cadillac Tax” doesn’t take effect until 2018, it’s one of HR pros’ biggest concerns regarding the entire Affordable Care Act. Now, for the first time, the feds are offering guidance on how this tax will be calculated.  
Starting in 2018, employers will be required to pay a 40% excise tax on the value on any healthcare coverage that exceeds $10,200 for single coverage or $27,500 for families in premium costs.
Many firms have already determined they’re likely to be impacted by this tax in 2018 or soon after.
But even though they’ve been making decisions in anticipation of that tax, until now, the feds haven’t given any details on what to expect.

1. Pretax HSA contributions

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Alert: Same sex-spouses now covered under FMLA in all states

By Tim Gould

HR pros should review their firms’ FMLA policies — as well as any other related materials — ASAP.  
That’s because the DOL just updated the definition of “spouse” for FMLA purposes to reflect the Supreme Court’s ruling in United States. v. Windsor.
As HR pros likely know extremely well at this point, the High Court’s ruling essentially struck down the federal Defense of Marriage Act (DOMA) that limited the definition of marriage for federal purposes as an institution between members of the opposite sex.
Since that ruling, a majority of states have passed legislation of their own to legalize same-sex marriage.

‘Place of celebration’ provision

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4 ways managers can build trust with their team members

By Tim Gould

You’re probably sick of hearing it: “Employees don’t leave companies, they leave bad bosses.” But it’s true. And the reason people leave bad managers? A lack of trust.  
Here’s what Carolyn O’Hara, writing on the Harvard Business Review blog, identifies as four ways managers can prove their trustworthiness in their charges’ eyes.

Trustworthy Trait 1: Be transparent

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Tip Tuesday! Obamacare: IRS gives small firms break from costly penalty

By Jared Bilski

The feds are still warning firms that offering employees stand-alone health reimbursements (HRAs) to purchase coverage on their own won’t satisfy the health reform law’s employer mandate.
But the feds are giving small firms a little bit longer before they will get penalized for such a move.

Relief until July 1

In Notice 2015-17, the IRS and Treasury department announced that this “transitional relief” from enforcement for standalone HRAs will be extended until July 1, 2015.
After this date, employers with these arrangements could once again face stiff penalties.
The recent notice from the feds also addressed certain other arrangements. Specifically, the guidance offers relief if the payment arrangement is:

• sponsored by an employer with 50 or fewer employees that is not an “applicable large employer” subject to the employer mandate (e.g., a stand-alone HRA)
• a healthcare arrangement sponsored by an S-corporation for 2% shareholder employees
• a Medicare premium reimbursement arrangement, or
• a TRICARE-related health reimbursement arrangement.

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