Companies may be subject to hefty fines and penalties under the Affordable Care Act if the insurance benefits provided for employees don't meet minimum requirements.
This is just one potential implication out of many that employers can face for failing to understand and comply with a wide range of regulations regarding benefits, from what kind of health coverage you should offer to how you pay out vacation time when an employee leaves the organization. This quick breakdown can help you understand benefits compliance implications for small, medium, and large companies.
Small businesses - those with 50 employees or less - should consider the following acts and legislation when writing policies and procedures and making benefits selections:
It's also important to note that state legislation in many states includes provisions outlining the accrual and pay-out of paid time off. Additionally, small businesses have to comply with the Women's Health and Cancer Rights Act (WHCRA), Michelle's Law, CHIPRA where applicable, HIPAA and ERISA when applicable.
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Medium or mid-sized businesses should use the list of benefits compliance considerations for large businesses to make decisions about their benefits offerings and policies.
Very few acts differentiate between medium and large businesses, but instead differentiate between companies with less than 50 employees and companies with more than 50 employees. COBRA is one exception; their guidelines change when a company reaches 20 employees.
Large businesses are impacted by all of the same laws as small businesses with a few extra requirements and penalties. They are also regulated by laws in addition to those applied to small businesses.
In addition to those listed above, large companies must also comply with COBRA, GINA, the Women's Health and Cancer Rights Act (WHCRA), the Newborns' and Mother's Health Protection Act (NMHPA), Michelle's Law, and various other requirements. Additionally, large employers should familiarize themselves with state labor and benefits laws and ensure their organization is in compliance.
HR Compliance Consulting.
Maintaining compliance in a constantly changing legal environment is no easy task. Relying on compliance experts to handle the regulatory aspect of your business can help you save valuable time that can be used to focus on other areas of your business.
Consulting a compliance adviser can help save time, prevent legal complications, increase comfort and avoid business interruption due to non-compliance.