Modern Tools

What are the tax implications for the premiums paid by the employer?

What are the tax implications for the premiums paid by the employer?

Employer-paid premiums for health insurance are exempt from federal income and payroll taxes. Additionally, the portion of premiums employees pay is typically excluded from taxable income. The exclusion of premiums lowers most workers’ tax bills and thus reduces their after-tax cost of coverage.

Is the employer obligated to tell employees about the Beck right?

Unions are obligated to tell all covered employees about this option, which was created by a Supreme Court ruling and is known as the Beck right. An employee may object to union membership on religious grounds, but in that case, must pay an amount equal to dues to a nonreligious charitable organization.

What happens when an employer declares an impasse with a union?

If after sufficient good faith efforts, no agreement can be reached, the employer may declare impasse, and then implement the last offer presented to the union. However, the union may disagree that true impasse has been reached and file a charge of an unfair labor practice for failure to bargain in good faith.

When is an employer required to bargain with a union?

After employees choose a union as a bargaining representative, the employer and union are required to meet at reasonable times to bargain in good faith about wages, hours, vacation time, insurance, safety practices and other mandatory subjects.

What happens to employees who object to union membership?

Even under a security agreement, employees who object to full union membership may continue as ‘core’ members and pay only that share of dues used directly for representation, such as collective bargaining and contract administration. Known as objectors, they are no longer full members but are still protected by the union contract.

When is the employer entitled to recovery of benefit costs?

If the employer elects to maintain such benefits during the leave, at the conclusion of leave, the employer is entitled to recover only the costs incurred for paying the employee’s share of any premiums whether or not the employee returns to work.

Where is employer liability in the administration of benefit plans?

Employer Liability in the Administration of Benefit Plans. Employers are facing increasing claims as a result of their failure to provide employee benefits and/or their negligence in the handling of benefit issues. Summarized below are some of the areas where liability may arise.

What happens if an employee is excluded from EPCR?

If the error is discovered in an audit, the DOL and IRS may levy retroactive employer contributions, elective deferrals and earnings for employees that were wrongfully excluded. Excluding eligible employees from participation is a mistake that may be corrected under EPCRS.

Can a former employee be rehired after completing the eligibility requirements?

Also, former employees who are rehired who had completed the plan’s eligibility requirements before terminating may begin participating immediately upon rehire, unless the employee’s original entry date would have been later, in which case the later entry date applies.