Becker & Associates
|Posted on July 10, 2015 at 1:35 PM||comments ()|
As if Employers in California are not burdened enough already....the past 3 years has brought huge increases in healthcare costs for their employees, huge TAXES on healthcare costs for their employees....now the minimum wage is going to $10.00 per hour on January 1st, 2016.
Don't get me wrong, I'm all for folks earning more money, but I beleive in making it the old fashioned way...making yourself presentable, have a great attitude with a smile on your face, honing your skills, being the best you can be to get a raise and make yourself indespensible and getting a good job that you DESERVE...leave the McDonalds to the highschool kids like it used to be.
Today, all one needs to do is "show up" to get $10.00 per hour.
Of course, those getting the $10. hr. are happy about it...especialy from the rich guy who owns the business. But he fact is,the cost and the regulations, etc. it takes to have a small business in California is at the breaking point! Most business owners are not "rich" and are stuggling to make ends meet. This ONE DOLLAR is on top of increased insurance costs, increased taxes, increased workers comp, etc. This ONE DOLLAR...on top of everything else is another political move to spread the wealth, this administration's agenda from the beginning. The hard working are paying for the "hardly working".
In the end, we ALL pay that dollar...as we all know, it gets passed on into the cost of the goods and services we need.
|Posted on July 7, 2015 at 6:10 PM||comments ()|
January 1st, 2016 is just around the corner with the "Employer Mandate" finally kicking in.
Employers with 50 or more Full Time employees must now offer mandated coverage to at least 95% of their employees and their children up to age 26. "Mandated" coverage is coverage that provides minimum essential coverage and is affordable (affordable means employee cost cannot exceed 9.5% of their income).
Employers who do not offer coverage will be penalized to the tune of $2000. per full time employee (minus the first 30). This penalty applies if just ONE full time employee receives federal premium subsidy for marketplace coverage. Employers must treat all employees who average 30 hrs. per week as Full Time.
How is coverage determined to be "Affordable"?
Coverage is considered affordable if employee contributions for the employee ONLY do not exceed 9.5% of an employees household income.
The three safe ways to determine whether an employees coverage is affordable:
- 9.5% of the employees monthly wages using the hourly wage times 130 hours per month.
- 9.5% ofthe FPL for a single employee (FPL=Federal Poverty Level).
- 9.5% of the employees W-2 income reduced byany salary reductionsunder a 401K plan or Cafeteria plan.
Who is considered to be a "Dependent"?
Children up to age 26 are Dependents. This excludes step children and foster children. The legislation did not consider spouses as "dependents", so employers are not requered to offer coverage to spouses.