Enter your email address below
to sign up for our

FREE Newsletter,
The Payroll Advi$or!

Employers Try To Prepare For New ObamaCare Fee in 2014.

Employers are trying to prepare for a little-noticed fee in the Obama administration’s new federal health-care law that will charge them $63 for each person they provide health insurance for in 2014 and beyond. This additional fee is one of the clearest cost increases companies face when the new law takes full effect. It has been calculated that companies and other plan providers will pay $25 billion over three years to create a fund for insurance companies to offset the cost of covering people with high medical bills.

The $63 fee will apply to plans covering millions of Americans in 2014. The ObamaCare program applies to employers that assume the risk for workers’ medical bills, in other words are “self-insured”, and many private plans sold by insurers. The fee is scheduled to be smaller for 2015 and 2016 as the fund balance grows.  However, it is noted that at this time regulators have not set those fee amounts for those years.

The fee was apparently heavily lobbied for by the insurance industry as they claim it will help offset the cost of providing health coverage for those individuals with pre-existing conditions. The new law forbids insurance companies from denying coverage to those individuals. Insurers claim that the fee will help maintain or even lower the cost of health insurance in general.

Many large companies are currently heavily lobbying government officials to postpone or even exempt their business from the fee. They claim it is just one of many projected costs associated with the implementation of ObamaCare

While the Federal government just agreed to take over the collection of the fee, instead of leaving it to the states, it is not clear how it will be collected. While submission of the fee will probably not be a payroll function, HR departments will inevitably be involved as HR administrators  have the best handle on employee counts and status.

Posted in News
A while back, the state came to our office to audit our payroll records. When the auditor found out Time & Pay did our payroll, she stopped, packed her briefcase and informed us there was no need for the audit. She was very confident we were compliant.
-K B – GR&P Co. Bristol, TN

“After working with one of the national firms, the transition to Time & Pay was easy and beneficial. Their products and services exceeded what we were getting, were more cost effective, and their customer service goes above and beyond. We are very happy we made the change.”
-R V – Mountain Treasure Corral, Kingsport, TN

Time & Pay is a  godsend for a small business like mine. I no longer have to worry about paying my employees or my payroll taxes accurately or on time!  Time & Pay takes care of everything for me!
-B M – Stellar Studios, Johnson City, TN

“As a new company to Johnson City, we were glad to find a local quality payroll service provider. We had used a national provider in Florida and were well aware of the advantages of outsourcing. Time & Pay offers all that the big national firms provide and more, including local, prompt and courteous customer service!”
-K H – JD Squared, Johnson City, TN

“We had been doing our payroll in-house. When we reviewed your products and services, we found them to be both affordable and cost-effective. The transition to Time & Pay went very smoothly. We are very confident our payroll tax issues and confidentiality issues are now a thing of the past.”
-S T – D & S Dental, Johnson City, TN

“Time & Pay does a great job handling both our corporate and independent store accounts. The flexibility of their on-line capabilities gives us the information we need when we need it. Their response to our diverse needs has been excellent.”
-B G – HobbyTown USA, Omaha, Nebraska

“From the start, Time & Pay has worked with us in many aspects of payroll and HR as we have grown from a single facility to a multi-state operation. They have allowed us to concentrate on that expansion while they have focused on keeping us compliant with payroll and timekeeping regulations. There customer service is exemplary! They are great to work with.”
-J G – Prime Choice Foods, Denver, CO

“Having Time & Pay as a payroll service has been a wonderful partnership. Their customer service, punctuality and attention to detail have surpassed our expectations and we are glad to have them as a partner in conducting all of our payroll functions. I would highly recommend their services to companies, large and small.”  
-T W – Little Things, LLC, Chattanooga, TN

“We have been using Time & Pay for a number of years. Their customer service is outstanding. I would recommend their products and services to anyone looking to get the most out of the payroll process and stay compliant with federal and multi-state payroll regulations.”
-M W – Royal Brass, Knoxville, TN

“As a former customer of one of those big national firms, not only does Time & Pay perform better in the payroll processing area with better products and services, but you are also way ahead of them in the customer service area. It is a pleasure working with your staff knowing that any help we need is readily available.”
-C – Comprehensive Community Services, Johnson City, TN

7-15-2014

FMLA Benefits Now Include Same Sex Marriage Couples

Under a proposed rule issued June 20th by the Dept. of Labor, the Family and Medical Leave Act (FMLA) will now apply to eligible employees in legal same-sex marriages regardless of what state they live in and that state’s same-sex marriage laws. Under the FMLA, workers are allowed to take up to 12 weeks of [...]

READ MORE

6-30-2014

Minimum Wage to Increase in Some States

Mid 2014 brings minimum wage increases to a number of locations. The hourly minimum wage rate is to increase July 1 in two states and the District of Columbia, with rate changes coming over the next few months in other states. Wage rate increases that take effect July 1: • California: The state’s hourly minimum wage [...]

READ MORE

6-20-2014

Payroll News

Changes in FLSA expected in November: In response to President Obama’s executive order declaring that the FLSA protections should cover more employees, the Dept of Labor has declared that they expect to announce the FLSA OT wage cap in November of 2014. The current wage cap is $455 per week meaning that any employee who [...]

READ MORE

Independent Payroll Providers Association Member               Registered IRS E-Filer