R&R Insurance Blog

Think of this as a friendly alert to double check your personal retirement contribution amounts with your HR or payroll department to ensure you continue contributing at the maximum amount as that limit has increased for 2020.

For business owners, this is great information to share with employees who are maxing out so they can continue fully maximizing their retirement savings potential.

Looking for additional guidance personally or for your employees?  Reach out to R&R Wealth Management with questions: MyKnowledgeAdvisor.com / 262.696.5167.

2020 Contribution and Benefit Limits

For 401(k) and other Qualified Plans

*Applies for determining Highly Compensated Employees for the 2020 plan year.

Limits stated above are subject to the provisions of the plan. Refer to your plan document or contact your plan consultant (TPA) for more information.

The content of this document is for general information only and is believed to be accurate and reliable as of posting date but may be subject to change.

Online retailer Amazon recently announced that you can now use your flexible spending account (FSA) or health savings accounts (HSA) to purchase eligible medical products on its site. Amazon’s FSA and HSA stores enable you to add your respective health payment card to the site and shop for your eligible products as you would shop for any other item.

Some examples of eligible medical expenses include the following:

• Bandages
• Eyeglasses
• Blood glucose monitors

For more information about using your respective health payment card through Amazon, read more here.

Did you know that $4.5 billion in Affordable Care Act (ACA) employer mandate penalties were assessed by the IRS for the first assessment year alone (2015)? It is expected that by 2026, over $228 billion in penalties will have been assessed. This summer, the IRS began sending Letters 226-J for proposed 2017 ACA employer mandate penalties. Additionally, the IRS is increasing efforts to identify potential non-filers via Letter 5699.

One in every six large employers is currently at risk for compliance action by the IRS regarding the ACA penalties.

This is a reality and the fines can be significant!  R&R Insurance provides evaluations and reconciliations for clients.  However this is a constantly evolving process.  In fact, we helped one client avoid a $118,213.26 penalty with our proven process.  Read more here.

For more information regarding Letter 226-J, you can refer to our previous blog here.

For more information regarding Letter 5699, you can refer to our previous blog here.

[Note: The ACA requires applicable large employers (ALEs) to offer affordable, minimum value health coverage to their fulltime employees or pay a penalty. This employer mandate provision is also known as the “employer shared responsibility” or “pay or play” rules. An ALE is only liable for a pay or play penalty if one or more of its full-time employees receive a subsidy for coverage through the Marketplace/Exchange.]

An employee’s mental health encompasses how they think, feel and act. It also includes their emotions and social well-being. While mental health does include mental illness, these two are not interchangeable.

1 in 5 U.S. adults experience mental illness annually;

a recent study by Deloitte revealed that less than half receive treatment.

It has also been found that mental illness is the leading cause of disability for adults in the U.S. between the ages of 15 to 44—making more work days lost to mental health-related absenteeism than any other injury or illness.

The discussion of mental health has been more popular in recent years with the tagline of “end the stigma,” this discussion will only keep growing as society realizes that not all illness are visible ones.

So what does this mean for employers?

It is important that organizations create a culture that supports its employees and their mental health. This process is easier than one might think. Below are five easy ways to implement support at your organization:

1. Promote Mental Health Awareness in the Office
   • This is the first step in supporting employees and their mental health. There must be awareness and de-stigmatizing of mental health or illness. Provide resources / information to employees and those seeking support.
2. Offer Flexible Scheduling
   • Help employees better balance their work and personal lives by embracing workplace flexibility. This will look different at every company but provide employees with job satisfaction, better health, increased work-life balance and less stress.
3. Address Workplace Stress
   • Chronic workplace stress can cause fatigue, irritability and health problems. While it’s probably not possible to eliminate job stress in its entirety for employees, you can help them manage it more effectively.
4. Evaluate Your Benefit Offerings
   • Review the benefits you offer and make sure they support mental well-being. Also evaluate your current health plan to see if it covers mental health services.
5. Provide Mental Health Training for Managers
   • It’s important to properly train management in recognizing the signs of mental illness, excessive workplace stress, workplace bullying and fatigue. Furthermore, managers should be trained to handle potentially difficult conversations with employees surrounding mental health.

Many homeowners avoid installing home security systems because of the cost associated with the installation, monitoring and servicing. The security company charges a monthly fee for monitoring, and false alarms will also incur charges. Is the cost worth it?

Aside from the primary reason (keeping your family safe), you must consider other benefits of a security system, such as the cost of replacing stolen items and broken doors and windows. The peace of mind you have when your family is safe is invaluable.

Together with our from our friends at PropertyCasualty360.com, there are five reasons why a home security system worth the investment.

1. Fire detection
   • Features such as smoke detection provide a timely warning for smoke in the house. Heat detectors can alert you if they sense a source of heat. Heat detectors can establish the presence of a growing fire in your home and provide a timely alert when they detect a small change in temperature. Early detection can help prevent further damage from the fire. Some heat detector will signal the authorities to respond to a fire crisis in your home.
2. Detraction from possible intruders
   • Protecting valuables is the immediate benefit that people enjoy when they install a home security system. You continuously buy, inherit, and collect items that mean a lot to you or cost you a lot of money. The items reflect your values and accomplishment in life, but they are also the target for burglars.  The system alerts authorities of burglary, which increases the chances of catching the criminal. The cameras not only monitor your home but help identify the criminal for the committed crime. The video footage will also help you create a list of items lost during the burglary.
3. Potentially lower home insurance premium
   • While there are many factors that make up the cost of home insurance, many insurance companies provide discounts to property owners who have a home security installed on their premise.  A home security system will also help protect your identity. Some invaders target your identity. Identity theft can occur if an invader if you keep crucial documents at home or forget them in the car. An invader can use the information on these documents and cause you significant financial losses.
4. Protect against carbon monoxide gas
   • Carbon monoxide gas is part of combustion fumes. Burning wood, stoves and other heating systems produce carbon monoxide gas. The gas is colorless, tasteless, and odorless. Thus, the human senses cannot detect the presence of the gas in the air. Prolonged exposure causes the gas to build up in the bloodstream. Large amounts of the gas in the air will cause your body to replace the oxygen in the red blood cells with the gas. The side effects include serious tissue damage, and in severe cases, carbon monoxide poisoning culminates in death. A home security system can incorporate a carbon detector. The detectors will sense high amounts of the poisonous gas in your home and alert you so you can take the right measure.
5. Peace of mind
   • Various security breach situations can disturb your peace of mind. For instance, if you live in an insecure area where burglary can occur at any time, having a home security system is crucial. Peace of mind is essential for the seniors or another person with a disability who frequently remain at home. Such people cannot respond with the necessary speed to a dangerous situation. The security system will monitor your home and dispatch security personnel whenever the need arises. Some security systems also feature a wearable medical alert device for those with specific medical conditions to call for help when a medical situation arises. You can go on a vacation or attend to your job feeling confident and safe.

Many people say they have a safe work environment - but how safe is it really?  Or often we hear "yes, we have a safety plan in place so we're fine." 

We challenge you:

• How often do supervisors get together to review protocols? 
• Can you show us your post-accident forms?  And who reviews post-accident reports? 
• Who is responsible for formal inspections?  And how often are they performed?

Vendors are increasingly looking for formal, documented processes to prove steps towards a safe culture.  And, ultimately, this can have an impact on insurance premiums. 

R&R's Professional Services staff have created trainings to address the three most critical points for manufacturers:

1. Work Comp 101
   • The most effective 1st training, intended for Supervisors, this eye opening session takes a high level approach to explaining the financial impact safety plays in a risk management program
   • EX: a trip to the Emergency Room is generally 2x-3x more expensive than a walk-in clinic - do you have a relationship with a clinic that understands Workers Compensation and your Return-to-Work program?
2. Accident Investigation
   • About as real as it gets in safety!  This session emphasizes the importance of a documented process: the POTENTIAL, learn from the ACTUAL, and lose the THEORETICAL
3. Performing your own Safety Audits
   • More than the daily walk-through on the floor, this shows the value of a team of auditors ("the more eyes, the better!") and provides assistance with creating custom checklists specific to your organization

As with any successful safety program, it is important to have management involved in the process and to review protocols annually.

Our Professional Services team make these a regular part of our client's risk management program.  Looking to attend a general session? Check out our full seminar & webinar schedule.

OSHA started a new initiative this year: if the OSHA 300A data an employer submits to the Injury Tracking Application (ITA) shows the rates are above their industry averages, then that employer will receive an email. The email is informational only and obligates an employer to do nothing. As with every employer, regardless of their rates, OSHA encourages frequent review of safety and health efforts.

As always, we are here to answer any of your OSHA questions - please reach out to your KnowledgeBroker or view one of our OSHA webinars.

For your information, below is an excerpt of the email: 

Dear Employer:

OSHA recognizes that the DART rate does not necessarily indicate a lack of interest in workplace safety and health. If you are one of the many employers who would welcome help from experts in workplace safety and health, OSHA has many compliance assistance resources, several of which are at no cost and confidential.

If you are a small employer with fewer than 250 workers on-site and no more than 500 workers corporate-wide, OSHA’s On-Site Consultation Program is available to you. This program is administered by state governments completely separate from OSHA’s enforcement program. The program assists employers to identify and eliminate or control hazards effectively and economically. More information on this program, including contact information for the local office in your state is available at https://www.osha.gov/consultation.

OSHA has resources to assist a company to develop and implement a safety and health program. Such a program to find and fix workplace hazards before they cause injury or illness can proactively reduce injuries, illnesses, and fatalities. Not only do employers experience dramatic decreases in workplace injuries, but they also often report a transformed workplace that can lead to higher productivity and quality, reduced turnover, reduced costs, and greater employee satisfaction. If you use the On-Site Consultation Program, the state consultant can help you develop an injury and illness prevention program. More information can be found on the OSHA webpage at www.osha.gov.

Other avenues to address this issue include hiring an outside safety and health consultant, working with your insurance carrier, or contacting your state’s workers’ compensation agency for advice to address a high DART rate. In addition, engaging your workers to identify hazards and find solutions is a proactive method to resolving safety and health hazards.

Thank you for your attention to this matter.

Sincerely,
Occupational Safety and Health Administration

Remember, March 2, 2020, is the deadline for electronically reporting your OSHA Form 300A data for calendar year 2019. Collection will begin January 2, 2020.

OSHA has a new and improved webpage aimed at answering common questions about electronic reporting: https://www.osha.gov/injuryreporting/index.html  

In case you cannot find an answer to your question on this page, a Help Request Form has been created and is available at this link: https://www.osha.gov/injuryreporting/ita/help-request-form.

If you are unsure whether you are keeping the records correctly, meaning what is or is not recordable, Wisconsin has two terrific resources for you:

1. Wisconsin’s Survey of Occupational Injuries and Illnesses (SOII) Program
   • Please contact them at (800) 884-1273 or email Jameson Bair, Administrative Program Specialist and the lead of the BLS Occupational Safety and Health collections.
   • Visit their web site at http://www.slh.wisc.edu/occupational/bls/
2. WisCon’s free and confidential employer training program regularly schedules training across the state to help employers determine whether a case needs to be recorded on the OSHA 300 log
   • http://www.slh.wisc.edu/occupational/wiscon/safety-and-health-wiscon-training/

R&R will be hosting our annual webinar on tips for completing a proper OSHA 300 log on December 17, 2019.  Register here.

As always, if you have a specific question regarding your OSHA log, please do not hesitate to contact your Knowledge Broker.

On July 23, 2019, the Internal Revenue Service (IRS) issued Revenue Procedure 2019-29 to index the contribution percentages in 2020 for purposes of determining affordability of an employer’s plan under the Affordable Care Act (ACA). The ACA’s employer shared responsibility or play or pay rules require ALEs (Applicable Large Employers) to offer affordable, minimum value health coverage to their full-time employees (and dependents) or pay a penalty. ALEs are those employers with an average of 50 or more full-time and full-time equivalent employees during the preceding calendar year.

For plan years beginning in 2020, employer-sponsored coverage will be considered affordable if the employee’s required contribution for self-only coverage does not exceed 9.78% of the employee’s household income for the year, for purposes of both the pay or play rules and premium tax credit eligibility.

For more details, read more here. If you have any questions, please contact a KnowledgeBroker today!

One of the most common, and usually preventable claims, we see year round is tree damage to homes and cars.  Occasionally, poorly maintained trees can cause injury to people or pets. And lets not forget when a poorly maintained tree on your property falls onto your neighbors house ... it makes those neighborhood block parties a little “interesting”! 

These claims can be not only dangerous, but also costly.  Preventative tree care should be part of your overall home maintenance program. 

1. Landscape care in the Fall
   • Prune unruly branches (leave the larger ones to the professionals!)
   • Inspect trees for dying limbs, insect damage, or signs of disease
   • Nourish trees with water and mulch
   • Plant new trees in the Fall
2. Do not build new structures near or around a tree - it can damage tree roots and growth space
3. Monitor and observe trees over time
   • Get a guide for identifying types of trees and potential disease 
   • Have an ISA-Certified arborist visit your property for an assessment on the health of your trees
4. Choose the right trees for your property
   • How tall and wide will the tree become?
   • How fast will the tree grow?
   • Does it lose leaves in the winter?

In Fall, it is also important watch for leaves that fall on your driveway or street - wet leaves become a slip and/or driving hazard.

Enjoy the beauty that nature offers with a well landscaped yard.  It also keeps you, and your neighbors, safe!