Legally Mandated Benefits
There are several legally mandated benefits that your employees may qualify for and it is your responsibility to ensure that they are informed of each. It is also your responsibility to properly complete the employer paperwork with each which in many cases is substantial and technical.
The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events. It is your responsibility to ensure that your employees have access to these benefits and are properly informed.
Disability Insurance is a component of the State Disability Insurance program, established in 1946, to provide partial wage replacement benefits to eligible California workers who are unable to work due to a non-work-related illness, injury, or pregnancy.
Family and Medical Leave Act
The Family and Medical Leave Act of 1993 (FMLA) is a United States labor law requiring covered employers to provide employees with job-protected and unpaid leave for qualified medical and family reasons.
A minimum wage is the lowest wage per hour that a worker may be paid, as mandated by federal or state law. The minimum wage is typically higher in CA than the federally set amount and is currently set to rise each year for the next several years.
Overtime benefits are paid to any employees working more than 40 hours per week or more than eight hours per day or any work performed on the seventh consecutive day of the pay period. In California, the minimum wage is paid at time and a half and must be paid when any one of the three scenarios above occurs.
Unemployment Insurance is a joint state-federal program that provides cash benefits to eligible workers. Unemployment insurance payments are intended to provide temporary financial assistance to unemployed workers who are unemployed through no fault of their own. Each state sets its own additional requirements for eligibility, benefit amounts, and length of time benefits can be paid.
Workers’ compensation provides benefits for workers when their injury or illness arises out of or is caused by their work. Workers’ compensation may also pay medical bills and benefits for temporary or permanent disabilities that are work-related.
Employer-Provided Health Insurance Requirements
Not all employers are required to offer benefits to their employees. For those employers with more than 50 full-time employees (companies with common ownership must combine their employee count), it is required that you offer ACA compliant medical insurance. Other insurances, such as dental, vision, and life, are completely optional, regardless of your company size.
Using a PEO Means Better Buying Power
By working with O2, you not only have access to experts in employee benefits but you have access to additional benefits for your employees offered through O2 such as dental, vision, and supplemental insurances. These are offered to your employees at no additional cost to you.
Better Benefits and Insurances Attract and Retain Better Employees
The benefits your company offers can often be the determining factor in top talent choosing to work for you rather than another company. Offering competitive benefits also helps your company to retain that top talent and keep your employees happy, healthy and motivated. Your benefit plan helps to differentiate you from your competition, an invaluable asset in today’s labor market.
Our Experts Handle All Details, Paperwork, and Compliance
Offering benefits to your employees means a lot of additional paperwork and potential compliance issues for you. Whether it is handling new enrollments, tracking eligibility, managing open enrollment periods, overseeing audits and government reporting or any one of the many other tasks associated with benefits, the experts at O2 will handle it all for you.