NAPEO: National Association of Professional Employer Organizations

June/July 2015
Wouldn't it be nice if everything you needed to comply with the Affordable Care Act (ACA), incorporate it's requirements into your operation, and keep healthcare coverage for your clients and worksite employees affordable were packaged up in a neat little box? All you would have to do is open it up, read the instructions, and boom—done!
    Well, it's not like that, but this PEO Insider® feature organizes and packages the most current ACA compliance, operation, and affordability information for you:
  • The Cadillac tax. The Department of the Treasury released the first notice about this excise tax earlier this year, providing some insight into how it may apply the tax and seeking comments. Another notice is due later this year. After comments on both notices are considered, regulations will be issued. Although not effective until 2018, the time is now for PEOs to begin preparing.
  • ACA reporting under IRC sections 6055 and 6066. In 2016, some employers will be required to report certain health insurance information to the government and employees. The rules are quite intense, but PEOs can provide much value to their clients by offering ACA reporting services, regardless of whether the client or the PEO is ultimately responsible for this reporting.
  • Customization, affordability, and participation. The simplified administration of a large group plan may come at the cost of limited options for clients and employees. A PEO may find customized plans for its clients are more affordable and provide for more participation.
  • Access to large-group master plans. Knowing if your PEO is a good fit for a master health plan, learning what carriers are looking for, and avoiding common mistakes PEOs make in their approaches to carriers can help put a master health plan within your PEO's reach.
  • Assisting clients with tracking service hours, measurement periods, and notifications. Although most employers have a basic understanding of the ACA employer mandate regulations, they still need help with these tasks, and PEOs are in the perfect position to provide that help.
  • Skinny plans. One technique some employers have found to comply with the employer shared responsibility requirement under the ACA and provide affordable coverage is using "skinny" plans. However, while affordable, these plans fall short of providing minimum essential coverage. While guidance on this is lacking, PEOs can help clients redesign their plans or add benefits to fill the plans out.
  • Practical considerations. To incorporate the requirements of the ACA into their operations, PEOs must apply the requirements in a practical way. Regardless of the level of compliance assistance a PEO decides to offer, it must balance its service offering with an understanding of the complex nature of compliance.
So, open these boxes, read the instructions, and you'll be on your way...
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legal currents
Hot Topics in Exempt Versus Non-Exempt Pay Status
Brian M. Nugent, Esq.
Changes to the federal white-collar exemptions are coming soon, with new rules expected to make more employees eligible to receive overtime pay. However, that isn't the only development affecting exempt versus non-exempt pay status. The last year or two produced numerous rulings on exempt issues that will keep payroll administrators on their toes. Here are the highlights of the latest developments on exempt issues facing PEOs and employers today...
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human resources
Job Tryouts are the New Interviews
Edwina R. Maxwell
If orange is the new black and 40 is the new 30, then job tryouts are the new interviews. Companies are quickly learning that even in this seemingly oversaturated job market, where dozens and sometimes hundreds of resumes are received for one position, finding that right fit can still be a bit of a challenge. Add to the saturated market the incredibly quick access to resume-building Internet sites and templates, and it doesn't take much for even the least qualified of candidates to appear to be rock stars on paper and get hired. It's only natural for companies to...
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ERISA Compliance for PEOs and Worksite Employers—What's the Wrap?
Tom Jacobs, J.D., MBA
starts like this. A letter comes in the mail. It's from an investigator of the U.S. Department of Labor (DOL): "Dear Plan Administrator…Your health plan is scheduled for an investigation from this office..." For a PEO sponsoring benefit plans, that plan administrator is you. Attached to the letter, usually ‘Attachment A,' is a laundry list of items and documents you are requested to forward to the DOL investigator within 10 business days to help the onsite field investigation, and which "may eliminate the need for an onsite visit entirely." The laundry list on Attachment A consists of...
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risk management
Controlling the Costs of Controlling a Workers' Compensation Claim
Brian S. Fischer, Esq.
Results-oriented workers' compensation programs such as large deductible policies and captive insurance programs can be financially rewarding for PEOs, if run properly. Controlling the cost of claims when they inevitably occur has always been vital to the outcome of a successful workers' comp program. Today's emphasis on programs that allow the PEO to participate in the financial risks of their workers' comp programs force them to continuously examine ways to control claims costs. There are, of course, two parts to managing claims costs, and, if done properly, they are...
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the inside word
NAPEO's Day on Capitol Hill
Brent R. Tilson
2015 NAPEO Chairperson

As we loaded two buses and made the trip to Capitol Hill during NAPEO's 2015 PEO Capitol Summit for our annual day on the Hill, I was reminded of how far we have come over the years. It wasn't all that many years ago that NAPEO members would hail a taxi from the hotel to journey up to the Hill for a congressional visit. The task at hand was to educate legislators about the PEO industry and thank them for support of the Small Business Efficiency Act (SBEA). This activity would happen throughout the day as, one by one, NAPEO members made their trips and...
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napeo notebook
NAPEO's PEO Capitol Summit: A Great Time Was Had By All
Patrick J. Cleary
As I write this, another PEO Capitol Summit is in the books. We are back in the office and folks are safely back home after a long and productive week
    We kicked off as we always do with a Board of Directors meeting where, among other business, the board approved the...

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capitol comment
NAPEO Capitol Hill Day: Building Relationships
Thom Stohler
Since 1998, NAPEO members have been visiting Capitol Hill as part of the PEO Capitol Summit (formerly the Legal and Legislative Conference, and before that, Government Relations Day). Starting in 2013, NAPEO carved out an entire day of activities on Capitol Hill for members to visit with their representatives and senators and to hear from leaders in Congress on key issues. NAPEO's 2015 Capitol Hill day started with...
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peo index
PEO Index Shows Continuing Strength
John Slavic
The PEO Index is once again indicating continuing strength. The correlation between the index and gross domestic product (GDP) remains...
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peo community
Helping the Community from the Inside Out
Debbie Padello
One of the principles our company was founded on is giving back to the community. While SimplicityHR by ALTRES has always participated in community service and charitable works, the company started a program two years ago that starts from the inside to make sure this principle is part of the company's culture. The program, Mind, Body, Spirit, focuses on the well-being of our corporate employees, intellectually, physically, and spiritually...
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peo spotlight
The Society of Entrepreneurs 2015 Inductees
Bob Adams & Jim Keegan: Adams Keegan
Lesley Young

Bob Adams recognizes the good fortune in being an entrepreneur. His mentor, board member, and investor, Jim Keegan, understands it's also a matter of recognizing an opportunity.
    Together since 1996, the two have been building a sizable business venture, Adams Keegan, that now employs 140 people and brings in $800 million in revenue.
    "I was 30 years old when I...

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global insights
Let's Help America's Entrepreneurs Soar
Thomas J. Donohue
Challenge America's entrepreneurs to do the impossible, and they'll find a way to do it. The can-do attitude and spirit of enterprise written into our collective DNA have helped make the United States the most innovative and prosperous country on earth.
    Writer David McCullough captures the zeal and dynamism of two of America's early entrepreneurs in his new book...

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NAPEO Medallion Partners
NAPEO Thanks its 2015 Medallion Partners
Black Diamond Partners

Diamond Partners

Artex Risk Solutions, Inc.         Compass Consulting Group, Inc.

Massachusetts Mutual Life Insurance         McHenry Consulting

Risk Transfer Insurance Agency, LLC
Platinum Partners

MetLife        Summit Software         ThinkWare Corporation

Transamerica Retirement Solutions
Gold Partners

ALLInsurance Solutions Management, LLC         EAP Consultants, LLC

PayPlus Software, Inc.         Pinnacle Financial Services, Inc.

Stonehenge Insurance Solutions
Silver Partners

Barrow Group, LLC         Eflexgroup, Inc.

Fisher & Phillips LLP         Kronos SaaShr, Inc.
Bronze Partners

Capital Alliance Corporation         Holland & Hart LLP         Jackson Lewis P.C.

NetWise Technology         U.S. Risk, Inc.

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