HR Support on Employee Benefits Administration

Editor's Note: Effective benefits administration meets the needs of both the employee and the employer.

Tracy MorleyOverview: Benefits administration involves establishing, maintaining and managing the full spectrum of employee benefit programs for an organization. More than just ensuring compliance, benefits administration is also concerned with making sure employees understand how their benefits work and what requirements must be satisfied in order to be eligible to participate.

From an operational standpoint, some major functions of benefits administration include: (i) ensuring the legal compliance and overall effectiveness of an organization's benefits program including health, welfare and retirement plans; (ii) negotiating with vendors and recommending benefit plans that align with organizational goals; (iii) communicating benefit plan options to both new and existing employees; (iv) processing additions and terminations to benefit plans in a timely manner; (v) verifying bills and making accurate and timely payments to insurance providers; (vi) making sure payroll deductions are in place for employee contributions to benefit plans; and (vii) ensuring employer contributions are done in a timely manner.

Benefits administration involves balancing the needs of both the employee and the employer. It is important to have programs in place that support the employee that are in line with what an employer can afford.

Trends: The newer requirements of the Patient Protection and Affordable Care Act (ACA), commonly referred to as Health Care Reform or Obamacare, in addition to the repeal of section 3 of the federal Defense of Marriage Act and the legalization of same-sex marriage in numerous states, will challenge HR professionals in both the short- and long-term as they monitor developments and adjust benefit strategies accordingly.

Author: Tracy Morley, SPHR, Legal Editor

Latest items in Benefits Administration

  • Health Information and Privacy (HIPAA)

    Type:
    Employment Law Manual

    Health Insurance Portability and Accountability Act (HIPAA) protects health insurance coverage for employees and their dependents that lose coverage or change jobs. This section reviews HIPAA's limitations on pre-existing condition exclusions, along with HIPAA's Privacy Rule for safeguarding protected health information (PHI) and Security Rule for protecting electronic PHI (ePHI).

  • Managing Employees in Special Situations

    Type:
    Employment Law Manual

    In-depth review of the spectrum of Federal employment law requirements HR must follow with respect to Managing Employees in Special Situations

  • Tax Treatment of Same-Sex Couple Benefits by State

    Type:
    Quick Reference

    Despite the DOMA decision handed down by the Supreme Court in Windsor, state laws still vary greatly regarding both the recognition of same-sex marriage and the taxation of benefits provided to an employee's same-sex spouse by an employer. This Quick Reference chart summarizes federal and state law regarding whether same-sex marriages, civil unions and/or domestic partnerships are recognized, and whether the value of benefits provided by an employer to an employee's same-sex spouse or civil union or domestic partner is taxable. This chart will be updated when any changes in these laws occur.

  • Taxation of Employee Benefits: Kansas

    Type:
    Employment Law Manual

    In-depth review of the spectrum of Kansas employment law requirements HR must follow with respect to taxation of employee benefits.

  • Taxation of Employee Benefits: Kentucky

    Type:
    Employment Law Manual

    In-depth review of the spectrum of Kentucky employment law requirements HR must follow with respect to taxation of employee benefits.

  • Taxation of Employee Benefits: Ohio

    Type:
    Employment Law Manual

    In-depth review of the spectrum of Ohio employment law requirements HR must follow with respect to taxation of employee benefits.

  • Honeywell's Wellness Program Violates ADA, GINA, EEOC Claims

    Date:
    05 November 2014
    Type:
    News

    The EEOC lost its bid to temporarily stop Honeywell International from imposing surcharges on employees who refuse to submit to biometric testing as part of its wellness program, which the EEOC claims violates the Americans with Disabilities Act (ADA) and Genetic Information Nondiscrimination Act (GINA).

  • IRS Announces 2015 Inflation Adjustments to Fringe Benefits, Other Taxable Amounts

    Date:
    31 October 2014
    Type:
    News

    The IRS has announced the annual cost-of-living adjustments made to several employee benefits and taxable amounts, based on changes to the Consumer Price Index. These are the maximum amounts that may be excluded in 2015 from an employee's taxable income for specific benefits.

  • EEOC Files Another Challenge of Employer Wellness Program Under ADA

    Date:
    08 October 2014
    Type:
    News

    The EEOC has filed a second lawsuit claiming an employer's wellness program violated the Americans with Disabilities Act (ADA).

  • Business Travel and Reimbursement Handbook Statement

    Type:
    Employee Handbooks

    Employers seeking to advise employees of when they will provide reimbursement for business travel and help employees maintain reasonable limits on business expenses should consider including this model policy statement in their handbook.