BEOP: Busines Owner Overhead Insurance

Business overhead expense insurance

Business overhead expense insurance covers the costs of running your business when your absence, due a disability, means those costs would go unpaid.

Here's a video on the subject:

 Have questons please call or email !

Matt Boland

M & M Insurance Agency

info@mminsuranceagency.com

877-480-HEALTH (4325)

New Video from MJB

Here's a new video from Matt Boland

Contact us or visit our life insurance quoting website !

Click Here for our Life Insurance quoting website !

Matt Boland: Broker
Michele Boland: Broker


info@mminsuranceagency.com

Give us a call: 877-480-4325

Cost of Long Term Care now and in the future !

Cost of Long Term Care now and in the future !

One of our carriers has a great tool for you to see what the current and future cost might be for Long Term Care.

Click Here for a look into the future:  

Click Here for Long term Care Cost in your area !

Planning now is a great idea !

We can help !

Contact us ! Click Here !

We can run a quote for you to see how to protect you and your family !

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Matt Boland Broker Michele Boland Broker M&M Insurance Agency 11024 Montgomery Blvd., NE Suite # 261 Albuquerque, New Mexico 87111 & 1685 S. Colorado Blvd. Suite S312 Denver, Colorado 80222-4040 NM Ofc: 505-881-2638  CO Ofc: 303-988-2115 Mobile: 505-280-5830 Fax # 505-881-8553 Our Private Exchange: www.mminsuranceagency.com If you go direct to the Exchange please use the following: National Producer Number (NPN) 16276252 Federally-facilitated Marketplace Name (FFM) mjboland

Are Your Benefits Enough to See Employees Through a Crisis?

Are Your Benefits Enough to See Employees Through a Crisis? Middle class families - those with incomes of between roughly $50,000 and $100,000 per year - are becoming increasingly reliant on workplace benefits to ensure their financial well-being in case of a disability or critical illness. Simple health insurance is insufficient to carry the load. The loss of a breadwinner's or caregiver's financial contribution through death or disability is often devastating. A recent survey by benefits provider Guardian indicates that families in this category are struggling when it comes to achieving their financial goals. Of those workers surveyed only half believe they would be able to manage if the household lost an income due to death or illness.  Options to Add additional Employee Benefits !  Caught in the middle Families with incomes significantly above $100,000 per year are generally able to create at least some financial cushion against the possibility of death or disability. They also receive a good deal of advice from financial advisors, accountants and insurance agents in managing their financial affairs. Working class families - those with incomes below about $50,000 - are often able to access various parts of the social safety net in times of crisis. The "middle market," in contrast, must make do without the advantages of the more affluent, with fewer privately owned insurance products and services, and without the same access to the social safety net afforded to working class families.    Workplace benefits are critical According to Guardian's researchers, the middle-market population is overwhelmingly reliant on the quality and breadth of the benefits they receive at work - over and above cash compensation. Over 80% of middle-market respondents report that they got their health insurance, disability insurance and retirement plan all through their employer. Meanwhile, six in 10 have no life insurance in place outside of the workplace. This means that the solid majority of working families are relying entirely on workplace benefits to see them through the death of a family breadwinner. And in the event of disability ending a breadwinner's income, the situation is even more dire: Only 7% of the middle market owns any kind of disability insurance protection, outside of what they are able to access via their employer. Are life insurance benefits adequate?  For young families, the primary role of life insurance is to replace the income of a deceased breadwinner. But many employers cap life insurance benefits at $50,000 - the maximum figure that allows employers to deduct premiums as a workplace benefit under IRC 7702. The actual need for many of these families is several hundred thousand to a million dollars, and occasionally more. That's what it takes to replace the income of a worker who earns $50,000 to $100,000 per year until the children are out of college and a surviving spouse is taken care of. A solution  One solution is to offer voluntary benefits to workers. These include a menu of benefits, such as: Group life insurance Group disability insurance Long-term care insurance Critical illness coverage  Options to Add additional Employee Benefits ! Often many of these benefits can be offered at little or no cost to the employer. Premium costs are simply deducted from the worker's wages and forwarded to the insurance company via payroll deduction. In this way, workers can purchase much more coverage and provide protection for their families - and it doesn't cost the employer a dime. In some instances, it can even save on payroll taxes. To learn more, call us.

Contact Us Matt Boland: Broker Michele Boland: Broker M & M Insurance Agency DENVER OFFICE 1685 S. Colorado Blvd., Suite S312 Denver, Colorado 80222-40401 303-988-2115 ALBUQUERQUE OFFICE 11024 Montgomery Blvd., NE Albuquerque, New Mexico 87111 505-881-2638 matt@mminsuranceagency.com michele@mminsuranceagency.com Call from anywhere: 1-877-480-HEALTH Our Website: Click Here !

1095 forms to employees IRS Extended to March 2nd, 2020

SHRM is a great resource for HR Managers !

 

IRS Grants Relief as Employers Prep for ACA Reporting in 2020 

Full article: 1095b ACA Reporting Article: Click Here !

Deadline extended to March 2 for distributing 1095 forms; additional small-employer relief

By Stephen Miller, CEBS December 3, 2019

updated January 14, 2019. 

O
n Dec. 2, the IRS announced it would extend the deadline to March 2 from Jan. 31 for employers to provide employees with a copy of their 1095-C or 1095-B reporting form, and again extended "good faith effort" transition relief to employers for Affordable Care Act (ACA) reporting for plan year 2019.

The IRS granted additional relief to small employers with regard to furnishing employees with Forms 1095-B, letting them post a notice on their websites that Forms 1095-B are available on request, and will allow large self-insured employers similar relief with regard to furnishing Forms 1095-C to part-time employees.

Filing Deadlines

The critical 2020 filing deadlines for 2019 coverage are as follows:

ACA Requirement	Deadline
1095 forms delivered to employees	Jan 31 (extended to March 2)*
Paper filing with IRS	Feb 28
Electronic filing with IRS	Mar 31

*As in the past, the IRS has extended the Jan. 31 deadline by 30 days, doing so in Notice 2019-63.
Source: IRS.

Although the IRS has extended the Jan. 31 deadline to furnish ACA reporting forms to employees by 30 days, employers may still decide to distribute 1095 forms to employees in January along with employees' W-2 earnings statements.

"The IRS will not grant an additional 30-day extension beyond this deadline," and if an employer submits a request for a 30-day extension to furnish these forms, "the IRS will not respond to that request since it is now moot," according to compliance firm Hub International. Reporting entities may, however, request individual extensions to file these forms with the IRS.
Even with the automatic extension for distributing forms, "the IRS specifically encouraged employers and other coverage providers to send the forms to employees and individuals as soon as possible."

Forms and Instructions

The IRS also has issued final forms and instructions for employers to report on the health coverage they offered employees in 2019. Employers subject to the ACA must ensure that 1095 reporting forms are distributed to employees, except as noted below, and transmit copies of these forms to the IRS early in 2020.

"The release of these documents is another clear message from the IRS that it's continuing to enforce the reporting requirements," said benefits attorney Arthur Tacchino, chief innovation officer at compliance software and services firm SyncStream Solutions.
The final forms and instructions are available on the IRS website:

• Form 1095-B, Health Coverage.
• Transmittal Form 1094-B to accompany Form 1095-B.
• Instructions for Forms 1094-B and 1095-B.
• Form 1095-C, Employer-Provided Health Insurance Offer and Coverage.
• Transmittal Form 1094-C to accompany Form 1095-C.
• Instructions for Forms 1094-C and 1095-C.

Compliments of M &  M Insurance Agency: Colorado & New Mexico 

Our email Address: Info@mminsuranceagency.com 

Our Website: www.MMinsuranceAgency.com

Let us shop your Group Health Insurance Coverage:

Click Here for our online Group Health Shopping Service !

New Rules Allow Employers to Reimburse for Health Premiums

 New Rules Allow Employers to Reimburse for Health Premiums

If you have employees that you would like to help with their individual health insurance premium, check out our link below this article for more information,

Starting Jan. 1, 2020, employers can establish accounts for their employees to help them pay for individual health insurance policies they purchase, as well as for other health care expenses.
A new regulation expands on how health reimbursement accounts can be used. Currently, employers and their workers can contribute to these accounts, which can be used to reimburse workers for out-of-pocket medical expenses.
With these new Individual Coverage HRAs, employers can fund the account workers would use to pay for health insurance premiums for coverage that they secure on their own.
Up until this new regulation, such arrangements were prohibited by the Affordable Care Act under the threat of sizeable fines in excess of $36,000 per employee per year.
This rule is the result of legislation signed into law by President Obama in December 2016, which created the "qualified small employer health reimbursement arrangement (QSEHRA)," which would allow small employers to reimburse for individual insurance under strict guidelines.
The Trump administration was tasked with writing the regulations, which created the Individual Coverage HRA (ICHRA).

 Here's a link to more  info on a QSE-HRA or Qualified Small Employer HRA: Click Here !

How it works
Under the new rule, if an employer is funding an ICHRA, the plan an employee chooses must be ACA-compliant, meaning it must include coverage for the 10 essential benefits with no lifetime or annual benefit maximums - and must adhere to the consumer protections built into the law.
Once the ICHRA is created, the employer will a set amount every month into the account on a pre-tax basis, which the employee can then use to buy or supplement their purchase of health insurance benefits in the individual market.
The law allows employers to set up as many as 11 different classes of employees for the purposes of distributing funds to ICHRAs. The employer can vary how much they give to each different group. For example, one class may get $600 a month per single employee with no dependents, while members of another class may receive $400 a month.
The allowable classes are:
Full-time employees - For the purposes of satisfying the employer mandate, that means a worker who averages 30 or more hours per week.
Part-time employees - Like the above, the employer can choose how to define what part-time is.
Seasonal employees - Workers hired for short-term positions, usually during particularly busy periods.
Temps who work for a staffing firm- These employees provide temporary services for the business, but are formally employed through a staffing firm.
Salaried employees - Staff who have a have a fixed annual salary and are not typically paid overtime.
Hourly employees - Staff who are paid on an hourly basis and can earn overtime.
Employees covered under a collective bargaining agreement - Employees who are members of a labor union that has a contract with the employer.
Employees in a waiting period - This class would include workers who were recently hired and are in their waiting period before they can receive health benefits (in many companies, this is 90 days).
Foreign employees who work abroad - These employees work outside of the U.S.
Employees in different locations, based on rating areas - These employees live outside the individual health insurance rating area of the business's physical address.
A combination of two or more of the above - Businesses can also create additional classes by combining two or more of the above classes.

 Here's a link to more  info on a QSE-HRA or Qualified Small Employer HRA: Click Here !

The rules for ICHRAs are as follows:

• Any employee covered by the ICHRA must be enrolled in health insurance coverage purchased in the individual market, and must verify that they have such coverage (as mentioned above, that coverage must be ACA-compliant);
• The employer may not offer the same class of workers both an ICHRA and a traditional group health plan;
• The employer must offer the ICHRA on the same terms to all employees in a class;
• Employees must be allowed to opt out of receiving an ICHRA;
• Employers must provide detailed information to employees on how the ICHRA works;
• Employers may not create a class of employees younger than 25, whom they might want to keep in their group plan because they're healthier;
• A class cannot have less than 10 employees in companies with fewer than 100 workers. For employers with 100 to 200 employees, the minimum class size is 10% of the workforce, while for employers with 200 or more staff, the minimum size is 20 employees;
• While benefits must be distributed fairly to employees that fall within each class, each class can be broken down further by age and family size. That means employees with families can be offered a higher amount per month and rates can be scaled by age.

Here's a link to more  info on a QSE-HRA or Qualified Small Employer HRA: Click Here !

Travel Insurance, Things to know before you Travel

Some of you are calling our agency for travel insurance in preparation for an upcoming trip.

W pulled this from the CDC website that might be helpful.  

We do market a travel policy with the link at the bottom of this note.

Before You Travel Tips

Some airlines check for visibly sick passengers in the waiting area and during boarding. If you look like you may be sick, the airline may not let you get on the plane. Important: If you’re sick, check with your airline to see what options you have for rescheduling your flight. Each airline has its own policy about rescheduling flights because of an illness or emergency.

Here are some things to consider before you head out on your next adventure.

First, know your health status.

Work with your doctor to evaluate your health, or the health of those traveling with you, by using the guide below. In general, you should not travel by plane if you:

• Have recently had any type of surgery, especially stomach, brain, eye, or orthopedic (bone or joint) surgery. Check with your doctor to see when it is safe for you to travel.
• Have had a recent heart attack or stroke
• Are suffering from:
  • Chest pain, pneumothorax, or a severe chronic respiratory disease
  • Severe sinus, ear, or nose infection
  • Any disease that you can easily spread to other people
  • A fever of 100.4°F (38°C) or greater
  • Swelling of the brain caused by bleeding, injury, or infection
  • Sickle cell disease
  • Uncontrolled psychotic illness

Special Considerations

• If you’re traveling with a disability, a weakened immune system, or a chronic illness, make sure you talk to your doctor and take extra steps to ensure a safe and healthy trip.
• If you’re pregnant, be sure to talk with your doctor before making any travel decisions. Pregnant women over 36 weeks may not be able to travel by plane.
• Talk to your doctor if you have blood clots, including deep vein thrombosis (DVT) or pulmonary embolism (PE). Airplane travel, especially flights longer than 4 hours, may increase the risk for DVT or PE.. Read more about minimizing blood clot risks here.
  • You are at increased risk for blood clots, DVT, or PE if you:
    • Have had DVT/PE in the past
    • Have a family history of blood clots
    • Have had recent surgery (especially abdominal or orthopedic)
    • Are pregnant, are postpartum, or are taking birth control pills or hormone replacement therapy
    • Are a smoker
    • Are overweight (BMI ≥30 kg/m²)
    • Have cancer, restricted movement, or a blood-clotting problem

Check your destination & see a doctor before you go.

Check your destination for concerns to be aware of before you leave. Depending on where you’re going and what you’ll be doing, you may need vaccinations, medicines, and destination-specific advice before your trip.
See you doctor at least a month before you go. CDC websites provide recommendations, but CDC cannot give you specific medical advice. Recommendations for vaccines and medicines depend on many factors that are specific to each person. You should let your doctor know that you are planning a trip at least 4 weeks before departure to be sure you can get the vaccines and medications you need.

• Be sure to give your doctor the following information about your trip so they can assess your risks:
  • Where you are traveling to
  • When you are leaving
  • The length of your trip
  • What types of activities you might do
  • Other personal matters such as your age, allergies, medical and vaccine history, and prior travel experience

• Follow the advice of your doctor by getting the vaccines and medicines that are recommended for you.
  • Make sure that you are up to date with all of your routine vaccinations, including measles-mumps-rubella (MMR) and a seasonal flu vaccine.
  • Consider any recommended travel vaccines for your destination.

Find a travel health clinic or other clinic.

Plan ahead for injuries. Consider insurance.

Know the different types of insurance. Travelers are responsible for hospital and other medical expenses incurred during their trip. Be prepared to pay out of pocket at the time you receive any medical services while abroad or if you cancel plans while traveling, even if you do have insurance.

• Trip Cancellation Insurance: Trip cancellation insurance covers your financial investment in your trip, such as flights, cruises, and/or train tickets.
  • Carefully examine the policy to make sure it covers your needs, including cancellation if you or a close family member gets sick.
• Travel Health Insurance: If you need to go to a hospital or clinic overseas, you may need to pay out of pocket for any services, which could be very expensive.
  • Check your health insurance plan to see if it covers potential health needs abroad.
  • If your insurance doesn’t cover you while you’re traveling, consider purchasing additional insurance.
  • If you plan to participate in adventure activities, such as scuba diving or hang gliding, you may need additional extreme sports insurance.

• Medical Evacuation Insurance: If you are traveling to a remote destination or to a place with limited medical capabilities or accessibility, consider buying medical evacuation insurance. This kind of insurance will cover the cost of transporting you to other parts of a country or outside the country if you are seriously ill or injured.
  • It can be purchased separately or as part of your travel health insurance policy.
  • It will pay for emergency transportation from a remote area to a hospital.
  • Ensure that the policy provides a 24-hour physician support center for you to contact in an emergency.

Some areas are prone to certain natural disasters, such as earthquakes, hurricanes, or tsunamis. To find out if your destination is at risk for certain natural disasters, see the Country-specific Information Pages (US Department of State) in the “Special Circumstances” section.

• For information about types of natural disasters, how to prepare for one, and what to do after one happens, see CDC’s Natural Disasters and Severe Weather website.

Learn about common travel safety concerns on the US State Department’s Travel Advisories page.

• Enroll in the Smart Traveler Enrollment Program. The US Department of State provides this free service to US citizens who are traveling or living in another country. You can record information about your trip so that an American consular officer can reach you and help in an emergency.
• The Association for Safe International Road Travel (ASIRT) provides helpful information about road safety in other countries.
• Learn about local laws and the culture of your destination. Find more information here.

Pack smart.

• Pack a travel health kit.
• Pack enough medicine for your whole trip plus a little extra, just in case.
• Check with the U.S. foreign embassy of the country you will be visiting to make sure your prescription medicines are permitted at your destination. Read more about traveling abroad with prescription medicines.

Know and share your trip information.

• Make sure you and a friend or family member have copies of all of your travel documents, including your passport, health insurance documents, itinerary, and prescriptions.
• Register with the Smart Travelers Enrollment Program (https://travel.state.gov/content/travel/en/international-travel/before-you-go/step.html)
• Write down the contact information of people or services you may need to contact while abroad.
• Make arrangements to check in with someone at regular intervals during your trip.
• If there is an emergency at home, or if a family member is worried about a traveler’s welfare, they can ask the embassy or consulate for help.
• If you think you may need assistance, contact the local US embassy or consulate. They are available 24/7 with emergency assistance for US citizens.
  • Dial 1-888-407-4747 if calling from the United States or Canada,
  • Dial 00 1 202-501-4444 if calling from overseas, or
  • Find your local US embassy, consulate, or diplomatic mission.
  
  We do offer a insurance travel policy if you want to check it out:  
  
  Click Here for our Travel Insurance Coverage !
  

Don't Let Glaucoma Steal Your Sight!

Pulled from the Center for Disease and Control and Prevention site

Half of people with glaucoma don’t know they have it. Get a healthy start this year by learning about glaucoma and taking steps to reduce your risk of vision loss!

Know the Facts About Glaucoma

• Glaucoma is a group of diseases that damage the eye’s optic nerve and can result in vision loss and even blindness.
• About 3 million Americans have glaucoma. It is the second leading cause of blindness worldwide.
• Open-angle glaucoma, the most common form, results in increased eye pressure. There are often no early symptoms, which is why 50% of people with glaucoma don’t know they have the disease.
• There is no cure (yet) for glaucoma, but if it’s caught early, you can preserve your vision and prevent vision loss. Taking action to preserve your vision health is key.

Know Your Glaucoma Risk

Anyone can get glaucoma, but certain groups are at higher risk. These groups include African Americans over age 40, all people over age 60, people with a family history of glaucoma, and people who have diabetes. African Americans are 6 to 8 times more likely to get glaucoma than whites. People with diabetes are 2 times more likely to get glaucoma than people without diabetes.

Healthy habits will help you avoid vision loss from glaucoma.

Take Action to Prevent Vision Loss

There are many steps you can take to help protect your eyes and lower your risk of vision loss from glaucoma.

• If you are in a high-risk group, get a comprehensive dilated eye exam to catch glaucoma early and start treatment. Prescription eye drops can stop glaucoma from progressing. Your eye care specialist will recommend how often to return for follow-up exams. Medicare covers a glaucoma test once a year for people in high-risk groups.
• Even if you are not in a high-risk group, getting a comprehensive dilated eye exam by the age of 40 can help catch glaucoma and other eye diseases early.
• Open-angle glaucoma does not have symptoms and is hereditary, so talk to your family members about their vision health to help protect your eyes—and theirs.
• Maintaining a healthy weight, controlling your blood pressure, being physically active, and avoiding smoking will help you avoid vision loss from glaucoma. These healthy behaviors will also help prevent type 2 diabetes and other chronic conditions.

Reaching People at Risk

CDC funds programs to detect glaucoma and other eye diseases among high-risk communities and provide successful follow-up care. Read more about our glaucoma initiatives.

Manage and Treat Glaucoma

Vision loss from glaucoma usually affects peripheral vision (what you can see on the side of your head when looking ahead) first. Later, it will affect your central vision, which is needed for seeing objects clearly and for common daily tasks like reading and driving.
Glaucoma is treated with eye drops, oral medicine, or surgery (or a combination of treatments) to reduce pressure in the eye and prevent permanent vision loss. Take medicine as prescribed, and tell your eye care specialist about any side effects. You and your doctor are a team. If laser or surgical procedures are recommended to reduce the pressure in your eye, make sure to schedule regular follow-up visits to continue to monitor eye pressure.

Learn About Low Vision

Some people with glaucoma have low vision, which means they have a hard time doing routine activities even with the help of glasses or contacts. See the “Low vision resources for glaucoma” link below for more information.

Take steps to protect your eyes and the vision health of your loved ones by learning about glaucoma and other eye diseases. Know the facts, know the risks, and take action!

M & M offers vision insurance for individual as well as on an employee group basis.  Let us know f we can prepare a quote for you !

Talk to us ! Click Here to send us note to call you !

Here's our individual quote page: Click here for a Vision Quote

Why Young Families Need More Life Insurance Than Others

Why Young Families Need More Life Insurance Than Others   Check out Life Insurance Pricing ! Click Here ! Life insurance is one of the most important financial products a couple with young children can secure. If only one spouse is the breadwinner and suddenly dies, the family could be left destitute quickly because of the loss of the paycheck. Even if both spouses are working and they have a mortgage that they both contribute to, it could ruin the family if one of them suffers an untimely death. There are many other reasons for young couples with kids to secure life insurance, such as: Couples typically accumulate assets during this period of time, and an unexpected death can really damage this phase. This is also the time when debts are highest (mortgage, student loans, etc.), and those debts need to be paid. Also, it's not cheap to raise kids. Securing a life insurance policy in your younger years means you'll pay lower premiums than if you buy a policy when you are older, as you are expected to be healthier and have a long life ahead of you. Life insurance options Level term life insurance - If you have a young family, you may want to consider a level term life insurance policy.  This is one of the simplest forms of life insurance: you just pick a length of time, a death benefit, and the premium is stays the same through the life of the policy.    A level term life insurance policy: Lets you pick a policy length, which you could set to expire when you retire, or the kids graduate from college. A standard length of time is 20 to 30 years. Lets you choose a death benefit that meets your needs. Is often relatively inexpensive. Permanent life insurance - You may also want to consider a permanent life insurance policy, which provides coverage during the entire lifetime of the individual. It can also have the benefit of accruing a cash value over time. But for the coverage to remain valid, premiums must be paid on time. There are benefits and drawbacks to each type of life insurance; it really depends on the specific needs of the family. Buying the right coverage amount You will also want to consider how much life insurance will cover the needs of remaining family members. Number of family members, debt, future debt and ability to afford the various life insurance premiums will all play a role in how much life insurance coverage is best. It can be beneficial to make an outline of what your present monetary obligations and needs are, and a prediction of what those needs and obligations will be in five, 10, 15 and 20-plus years down the road. By combining this information with your total household income, you can determine the best amount of life coverage. At the very least, you should make a list of recurring monetary obligations - mortgage, student loans, vehicle loans, credit card debts, etc. Don't forget future obligations, such as a child's college tuition, in your calculation so that you have the most accurate estimate on how much coverage you should purchase. Be prepared Financial solvency for young families can be ensured with a life insurance plan. However, even the best-laid plan can become dated as life changes. So, part of being prepared also includes periodically re-evaluating your life insurance coverage. Call us if you need help in deciding the type and amount of life insurance to take out, or in re-examining your coverage.

Contact Us I wish you all a happy new year! Remember to make your Insurance payments before January 1st, 2020! Michele & Matt Boland M & M Insurance Agency 11024 Montgomery Blvd NE Suite #261 Albuquerque, NM 87111 505-881-2638 info@mminsuranceagency.com

Employers Can Get $16,500 to Set Up Retirement Plans: Secure Act

A budget group says the spending package as a whole will add $2 trillion in federal debt.

By Allison Bell | December 23, 2019 at 02:36 PM

(Credit: Thinkstock)

President Donald Trump signed the legislation creating the Further Consolidated Appropriations Act, 2020, Friday.

Advance your career and take your firm's production to the next level with FREE practice-management tips.

The president’s signature brought the “Setting Every Community Up for Retirement Enhancement Act of 2019″ (Secure Act) to life, and it set legislative analysts poring through the 1,773 pages of the PDF to see what’s really in there.

Retirement Plan Tax Credits The old tax credit was a maximum of $500 per year for three years for setting up a retirement plan — or a total of $1,500 over three years.
An employer can now get up to $5,000 per year for three years for setting up a plan, and $500 per year for three years for including an automatic enrollment feature. That means the total tax credit, over three years, could be $15,500.
To get the maximum possible tax credit, an employer has to make 20 non-highly-compensated employees eligible for the new retirement plan.

The Kiddie Tax

Legislative analysts are also giving more attention to a Secure Act provision that eliminates the “Kiddie Tax” — a provision in the Tax Cuts and Jobs Act of 2017 (TCJA) that changed the tax treatment of children’s unearned income.
Drafters included the provision to counter wealthy family’s tax planning strategies. But the provision ended up leading to dramatic increases in tax bills for low-income and moderate-income students using scholarships to pay for college.
Marc Cadin, chief executive officer of the Associated for Advanced Life Underwriting, and AALU members worked to point out that the provision has also hurt the children of service members who have died in combat. Families ended up having to pay more taxes on the benefits the children received as a result of the deaths of their parents.

Industry Reactions

Some companies and groups sent out celebratory announcements after Congress completed work on the FCAA 2020 package, and before the president signed it.
Some waited until right before, or right after, the president signed the legislation to celebrate.
Here’s a look at excerpts from some of the statements that came out right around the signing time:
John Carter, president of Nationwide Financial

“With record low unemployment rates making it harder for small businesses to retain top talent, paired with America’s growing retirement preparedness challenge, the Secure Act offers a solution for making workplace retirement plans easier to offer: open multiple employer plans (MEPs). MEPs allow small businesses to pool their resources to offer a workplace retirement plan that is cost effective and administratively simpler….
I“Nationwide is a strong supporter of enhancements to our retirement system that enable and protect the future for Americans and small businesses.”
Paula Nelson, president, retirement at Global Atlantic

“We view the Secure Act as the most comprehensive retirement security legislation in more than a decade and are pleased that it’s been signed by the President. At Global Atlantic, we would like to see all Americans achieve their retirement income goals, and we believe this will help by providing more access for working Americans to obtain guaranteed income products in their workplace retirement plans. Along with some of the Secure Act’s other provisions, this will help retirees ensure that they do not outlive their savings.”
Graham Cox, executive vice president and head of retirement and income solutions group at MetLife

“This legislation modernizes the nation’s retirement system by expanding access to solutions that will help workers live more confidently in retirement. It’s no longer enough that employees save for retirement — they need help understanding how to generate a steady level of income. Through the provisions of the Secure Act, employees can better understand the potential danger of outliving their savings and reduce the risk that they run out of money in retirement.”
Susan Neely, president of the American Council of Life Insurers

“We commend President Trump for signing the Secure Act into law as part of the spending package. And we applaud the bill’s bipartisan champions in the House and Senate and the leadership of Chairman Richard Neal and Ranking Member Kevin Brady and Chairman Chuck Grassley and Ranking Member Ron Wyden. Their determination made good public policy that’s been in the works for a decade become law.

“The Secure Act expands access to retirement plans for millions of Americans and allows older workers to contribute more to their IRAs. It also makes it easier for small businesses to band together to provide retirement plans for employees — leading to at least 700,000 new savers.

“As consumers’ retirement needs evolve, we look forward to working with policymakers on additional bipartisan solutions to help all Americans position themselves to achieve financial security in retirement.”

Implementer Reaction

Human Interest is one of the 401(k) plan investment advisers that’s been publishing detailed analyses of the Secure Act all along.
Diana Torzewski, the company’s senior manager of customer experience, said the increase in the Small Employer Plan Start-Up Credit, to $15,000 over three years, from $1,500, will prompt many more employers to offer retirement plans.
Torzewski called the extra tax credit for employers that set up plans with automatic enrollment features “a hidden gem.”
“We find that when a small business automatically enrolls its teammates and provides some level of match, 92% of employees take advantage,” Torzewski said. “This has huge potential to impact the 86% of small business employees who don’t have access to this fundamental wealth-building benefit.”

What do Employees want ?

Employee Benefits: What Do Your Employees Really Want?

By Rieva Lesonsky | In: Compensation & Benefits

What kinds of employee benefits does your small business offer? If you’re only giving your employees the bare minimum—or not even that—you’re not doing your business any favors.

In a survey from Kelton Global commissioned by QuickBooks Payroll, 44% of small business employees say companies that don’t offer health or dental insurance, paid vacation and sick days, or retirement plans are cheap and don’t care about their employees. 

More than one-third say these companies are “behind the curve,” while 41% say they wouldn’t want to work there.

The survey of more than 1,000 U.S. small business employees has some other insights into what benefits employees care about, what they’re actually getting, and how your business stacks up. Here’s a closer look.

What are the most common employee benefits?

The good news: 93% of employees in the survey say their employer provides at least one benefit, with paid time off being the most common. However, while 57% get paid vacation, just 48% get paid sick days and only 37% get paid personal days. New parents fare the worst—just 14% say they get paid parental leave.
Two-thirds of survey respondents get health insurance benefits from their employer: 56% get health insurance, 41% receive dental insurance, and 35% get vision insurance.
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Just 41% are offered a retirement plan such as a 401(k), and retirement benefits are more likely to be offered to employees age 39 and up than to younger employees. Retirement plans for even the smallest businesses are available at reasonable costs, and this is one of the most desirable benefits for employees. Not only are retirement benefits essential to attracting older workers, they can also help make your business a more appealing employer for millennial and Gen Z workers—two demographics that are already concerned with their financial futures.

It’s the little things

Beyond the essential employee benefits mentioned earlier, the more discretionary employee benefits—such as free food in the office—are less common. About one-third (36%) of small businesses provide food and drinks to employees; 23% offer flexible work hours and just 13% let employees work remotely.
While free snacks are nice (and 61% of small business employees say they feel “cared for” by employers who provide such benefits), flexible or remote work is arguably a more meaningful benefit. Being able to work from home or adjust work hours around a child’s schedule has a significant impact on an employee’s daily life far beyond a free latte or granola bar. Flexibility can make all the difference when an employee is weighing a job at your business versus a job elsewhere.
Of course, if you own a retail store, restaurant, or other business where employees must be on-site to do their jobs, this isn’t an option for you. But for more and more businesses today, work can be done from anywhere, making it easy to offer flextime and let employees work remotely.

The benefits of benefits

Employee benefits are good for your staff, but they can also benefit your business by improving employee satisfaction and loyalty. Good benefits can also help a small business stand out and compete with bigger companies for qualified workers.

Employee Benefits: What Do Your Employees Really Want?

By Rieva Lesonsky | In: Compensation & Benefits

In this area, small businesses still have a way to go. Almost four in 10 (39%) survey respondents are dissatisfied with their employee benefits; 29% say their company only does the “bare minimum” when it comes to benefits.
In addition, just 39% say they have better benefits than most of their peers, and only 6% say their company’s benefits are “above and beyond” the norm.