FAQ HR Service

FAQ – Regarding HR Management, Benefits Administration, and Compliance

FAQ Explained by HR Service, Inc.

Why should I use an HR consultant?


Laws and updates happen in a blink of an eye with the U.S. Government. In addition to changing Federal Laws, you need to pay close attention to Local and State Laws as well. 
Are you 100% sure you are meeting these guidelines?
The size of your company does not matter.
Employers must meet the demands of ever-changing technology platforms.
Technology can help play a role in meeting these expectations. 
More often, employers are offering work from home perks to obtain and retain top talent. 
Implementing technology designed to improve the employee experience is essential to a successful strategy.
Employers can make arbitration a condition of employment if your employees sign an agreement to that effect. You can also require employees to agree that they will not join class action suits against you.
Being able to offer a competitive benefits plan can make all the difference when it comes to hiring top talent.
However, gaining access to these types of benefits can be a challenge for small businesses. 
Working with a PEO can help small employers gain access to large-group level benefits. We have the best industry experts that can help you with benefits administration.
Employers in individual states must meet the requirements at both the federal and state level to remain compliant.
Failure to do so could lead to major fines and penalties in many states. Are you in one of these states?
Hiring the best talent is more challenging and competitive today than ever before.
Employers need to review existing recruiting strategies and be able to meet the high expectations of digitally savvy talent.
Ensuring you are meeting all local, state, and federal laws are also crucial to your organization’s success.
Workplace harassment is an issue that all employers, regardless of size that is one of the highest potential compliance nightmares a company and their employees can face.
There are more regulations today than ever before. Focusing on diversity in the workplace has strict compliance standards that must be met to avoid penalties.

What is a leadership compliance training department?

extraordinary Leadership

What supervisors say and do either creates a risk to the organization or positively impact it. All supervisors need training in critical people practices and duties like conducting interviews, making employment decisions, engaging employee performance, managing performance, and employment law 101.
Compliance training for supervisors guides them in the does and don’ts of how to make employment decisions such as hiring, firing, promotions, pay, and discipline. It further helps them conduct daily people management without violating employee rights or creating a discrimination lawsuit or harassing work environment, both of which could cost employers millions of dollars, if not handled correctly. HR Service trains supervisors on how to respond to any risky situation, how to make employment decisions, and to conduct all people management duties to engage an employee best and create a great place to work.

Do I have to have health insurance to have an ICHRA?

what is ICHRA?

Yes, to receive the monthly contribution from your employer toward your ICHRA, you must have medical insurance purchased on the private market. If you have medical insurance through your employer or your spouse’s employer, you cannot participate in the ICHRA.

What is an Individual Coverage Health Reimbursement Arrangement (ICHRA)?

what is ICHRA?

An ICHRA is a program that is fully funded by your employer and is designed to help you pay for your individually purchased medical insurance premiums. Now, more than ever, healthcare dollars need to go further. With an ICHRA, they can.
Through an Individual Coverage Health Reimbursement Arrangement (ICHRA), you receive tax-free money from your employer to help cover medical insurance premiums for insurance plans you purchase on the individual market. That means fewer out-of-pocket healthcare costs for you and more money in your pocket.

How it Works Your employer puts money into your ICHRA when you chose to waive coverage through the group medical insurance plan, are not covered under your spouse’s or parents’ insurance plan(s), and you do not have received any tax stipend through the Affordable Care Act for your insurance premium. If you meet those requirements, your employer will contribute their set contribution amount towards your monthly premium bill. Because the money contributed by your employer doesn’t count as income, there are no tax implications. It’s kind of like getting a raise. Check with your Human Resources department or Plan Administrator for more information about your plan design.

What is TPA Administration?

insurance, contract, shaking hands

TPA Administration is where an employer outsources the administration of various benefits such as Health Savings Accounts (HSAs), Health Reimbursement Accounts (HRAs), Flexible Spending Accounts (FSAs), 401(k) retirement plans and COBRA administration. HR Service can be your benefit plan administrator with our sister company, B3PA, for HSAs, HRAs, FSA, and COBRA.

What is 5500?

form 5500

The Form 5500 Series is an important compliance, research, and disclosure tool for the Department of Labor, a disclosure document for plan participants and beneficiaries, and a source of information and data for use by other Federal agencies, Congress, and the private sector in assessing employee benefit, tax, and economic trends and policies. The Form 5500 Series is part of ERISA’s overall reporting and disclosure framework, which is intended to assure that employee benefit plans are operated and managed in accordance with certain prescribed standards and that participants and beneficiaries, as well as regulators, are provided or have access to sufficient information to protect the rights and benefits of participants and beneficiaries under employee benefit plans.

Who is supposed to file the 5500 form?

what is an hsa?

Organizations that have 100 or more participants in a given health and welfare benefit plan at the beginning of the plan year or that offers a 401(k) retirement plan.

Who files form 5500?

Annual Benefit Compliance Concerns

Organizations that have 100 or more participants in a given health and welfare benefit plan at the beginning of the plan year or that offers a 401(k) retirement plan.

When is form 5500 due?

Form 5500 annual return or report filing is due on the last day of the seventh month after the plan year ends, with an optional two-and-a-half-month extension. For plans that follow a calendar year, Form 5500 for the prior year is due on July 31, with an extension available to Oct. 15.

What is a premium-only plan –  POP?

section 125 pop plan

It contains a limited language of the Section 125 Plan that only allows for eligible benefit premiums and HSA (health savings account) contributions to be withdrawn from payroll on a pre-tax basis.

What is a Section 125 Cafeteria Plan?

aca full service reporting

Allows for FSA (Flexible Spending Accounts) and dependent child care to be deducted from payroll on a pre-tax basis for eligible out of pocket expenses, but also most commonly includes the Premium Only Plan language with the eligible benefit premiums.

What is ERISA?

what is erisa?

ERISA – Employee Retirement Income Security Act –

Passed to protect employees from employer practices that might hinder their retirement income and protect them against acts of fraud and dishonesty. This law has extended to include group health and welfare benefit plans such as medical insurance, dental insurance, vision plans, life insurance, disability insurance, FSAs, HRAs, HSAs, and other allowable employer benefit plans. The law further makes sure that participants’ rights and best interests are protected, requiring various employee notices such as a Summary Plan Description (SPD) or SPD Wrap document. It further requires organizations with 100 or more participants in a plan at the beginning of the plan year to submit form 5500 and provide participating employees with a Summary Annual Report (SAR).
HR Service helps organizations comply with ERISA providing the needed SPD Wrap, Summary of Material Modifications, and other applicable notices to participants. We provide you with a simplified tool that allows you or your broker to create the SPD Wrap and all-in-one annual employee notices quickly. We further offer you with a mechanism to store, deliver, and ensure participants receive these requirements. In essence, we give you peace of mind to not receive huge fines, and to be audit-ready with the DOL comes knocking at your door.

What is ERISA an Insurance Plan?


Some organizations that can access or impact funds related to retirement or health and welfare benefit plans are required to have a fidelity bond to insure against acts of fraud and dishonesty and is sometimes called ERISA Insurance.

Why is HR outsourcing important?


Many organizations are too small to warrant having their HR Professional, yet experience many of the same challenges as larger organizations. Many organizations with less than 150 employees find outsourcing their HR Manager duties or various HR tasks helps keep them compliant with the many employment laws and provide them with experienced HR professional help, without the high cost of hiring your HR professional. Other organizations look to outsource HR tasks or functions such as FMLA administration, handbook design, or supervisor training.

HR Service is the premier HR outsourcing organization across the country, providing various HR Support Packages to fit anyone’s budget. We provide you with the needed HR Solutions to help attract and retain talent, engage and motivate employees, improve employee productivity, and hence grow sales and profitability.
HR Outsourcing sought outside assistance with all or some of your human resource functions such as recruiting, performance management, employee relations, employment law compliance, supervisor training, employee training, employee handbook design, compensation, benefits, and more.

How much does HR outsourcing cost?

outsourced hr professional

You know what they say, you tend to get what you pay. HR Service creates various package options that allow you to select a program that best meets your needs and fits within your budget. If you want something simple like an employee help desk and some other online do-it-yourself options, these are very affordable. If you wish to one of our HR professionals to act as your HR Manager, it is a more significant investment, but also provides a higher impact on your organization. In most instances, it is still more cost-effective than hiring your HR Professional with base wage, bonus, benefits, taxes, and office.

Should you outsource HR or go in-house?

we provide world class outsourcing services

You benefit from HR Outsourcing by receiving high quality, professional HR Solutions, and help without having to hire your full-time person. You can obtain just the right amount of HR and compliance help needed to based on the size of your organization. We allow you to select from HR Support packages with targeted times, such as 6 to 40 hours per month, for us to accomplish your highest HR priorities. We manage your targeted time over an entire quarter allowing for some months to be higher and some lower. You can change your support levels anytime with a 30-day notice or terminate our agreement with a 60-day notice. You benefit from getting a high return on investment through hiving the right person when needed, attracting and retaining talent, engaging and motivating employees, improving employee productivity, and increase sales and profitability. Keep in mind, most problems at organizations are people’s problems. We help you prevent and eliminate the people’s issues that can bring you down.

How do I develop a leadership training development program?

leader training

Perhaps a better question is, should I develop a supervisor training program? Unless you are a large organization with the resources and talent to do this, maybe you should consider finding an organization that already has the supervisor training programs you need. HR Service provides training in person, via webinars, and through web-based training videos. Our highly skilled trainers help supervisors learn the critical supervisor skills required to manage employees, build effective teams, improve communications, and make them into a leader that employees want to follow. We help the supervisor take new training and apply it in the workplace, so you get a return on every training dollar invested.

How do I know how much it contributed to my HRA each plan year?

| HR Service, Inc.

At the beginning of each plan year, your employer will notify you of the amount they will contribute to your ICHRA for that plan year.

How to contribute to an HRA?

fsla overtime rule

HRA pays first: You use the funds until gone then you pay expenses your plan doesn’t cover. You pay first: You pay for expenses not covered by your plan until you reach an amount set by your employer, then the HRA pays. https://www.hrserviceinc.com/hra-health-retirement-account.

Do I need to re-enroll each year?


Yes. All eligible employees must enroll each year during the open enrollment period. Your employer will instruct you on how to complete enrollment.

Can I combine 125 POP and 105 Plans?

| HR Service, Inc.

It’s possible to combine 125 and 105 plans, but some specific conditions must be met:
Employees must purchase an off-exchange health plan (that is, a plan purchased outside of healthcare.gov or a state exchange).
Employees can use cafeteria plan funds to pay for insurance premiums and medical expenses their ICHRA allowances do not cover.
Most employees will want to purchase individual coverage from healthcare.gov or a state exchange. These employees would not be able to use both an ICHRA and a cafeteria plan. However, as long as employees are purchasing off-exchange plans and are using cafeteria plan funds to cover premium costs not already covered by the ICHRA, it is acceptable to combine the two.

What is a Flexible Spending Arrangements (FSAs)

fsa hr service inc

A health Flexible Spending Arrangement (FSA) allows employees to be reimbursed for medical expenses. FSAs are usually funded through voluntary salary reduction agreements with your employer. No employment or federal income taxes are deducted from your contribution. The employer may also contribute.
Note. Unlike HSAs or Archer MSAs, which must be reported on Form 1040, 1040-SR, or 1040-NR, there are no reporting requirements for FSAs on your income tax return.
For information on the interaction between a health FSA and an HSA, see Other employee health plans under Qualifying for an HSA, earlier.

What are the benefits of an FSA?
You may enjoy several benefits from having an FSA.
Contributions made by your employer can be excluded from your gross income. No employment or federal income taxes are deducted from the contributions.
Reimbursements may be tax free if you pay qualified medical expenses. See Qualified medical expenses , later. You can use an FSA to pay qualified medical expenses even if you haven’t yet placed the funds in the account.

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