ACA Affordability Threshold Change for 2024 – The IRS has just announced that employer-sponsored medical coverage will satisfy the ACA’s “affordability test” for large employers in the 2024 year if the employer offers a single coverage option that does not exceed 8.39% of an employee’s household income – down from 9.12% in 2023. This is the lowest this rate has ever been going back to when the law took effect in 2015. To put the new 2024 number in perspective for a $13/hour worker who works 30 hours a week, an applicable large employer (using the Rate of pay safe harbor) charging more than approx. $142 per month for their least expensive single medical plan may be penalized under the affordability test. If you need help making sure your medical plan meets these requirements, please reach out to your Stumm service team.
New 2024 Commuter Benefits Mandate for Chicagoland Employers – The State of Illinois has passed the Transportation Benefits Program Act, which will require all Chicagoland employers with 50 or more employees to offer a benefit program for all employees. Employees will be able to elect to set aside pre-tax dollars (up to $300 per month) to pay for transit passes (e.g. pass, token, fare card, or voucher for any authority under the jurisdiction of the Regional Transportation Authority). It applies to employers that are headquartered Chicago and its “collar counties” that are also located within one mile of a transit service location. Employers can administer it internally or hire an outside vendor (similar to a FSA/HSA/HRA vendor), so contact your SI team if you are interested in hiring a vendor.
Busy Season: Not Just for Tax Accountants – According to a recent survey, 47% of group plans renew as of December 1st or January 1st. Having your company’s benefit plan renew during an already busy time of year may have been a choice at one point in time for your business operations, but it is certainly not a requirement to stay that way. A group plan can change its renewal any month during a calendar year (with potential rate impacts) while your employees’ deductibles and out-of-pocket maximums remain unimpacted on a calendar year basis. If you are interested in moving your group plan away from perhaps the busiest time of year for your company – certainly for the health insurance industry – your Stumm service team can help guide you through the nuanced process.
FREE Payroll Vendor & HR Technology Search – Need help looking for a new Payroll vendor, or maybe just looking to improve the relationship with your current vendor? Millson James is an independent HR & Payroll Technology consultant that can help you search and evaluate IT vendors associated with your company’s Payroll / HRIS / Benefits Admin / Time & Attendance functions. Stumm Insurance continues to offer this service at NO COST to our clients (i.e. Stumm pays Millson James for their fees), and many of our clients have already taken advantage of this free service, saving countless hours and dollars in their search. See the flyer attached, and feel free to contact your Stumm service team to learn more about how Millson James can assist your company in its HR or payroll vendor search.
Should you have any further questions, please feel free to contact your Stumm Insurance Client Service Team.