Question of the Week
By: Mineral
When can we deduct from an Exempt Employee’s pay?
In general, if an exempt employee performs any work during the workweek, you must pay them their full salary for that week. Deductions are allowed, however, for legally required withholdings and benefit elections.
There are a handful of other situations in which a deduction from an exempt employee’s salary would be permissible under federal law:
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- For any workweek in which the employee performs no work, including answering emails, texts, or phone calls.
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- In the initial or final week of employment based on the number of hours worked.
This Q&A does not constitute legal advice and does not address state or local law.
Compliance Corner
By: Benefit Comply
Education Assistance Programs – New IRS FAQs
The IRS released a set of FAQs that do not appear to make any changes, but simply clarify the tax-favored reimbursement available via educational assistance programs offered by employers to employees. Code §127 permits employers to reimburse employees for payments for tuition, fees and similar expenses, books, supplies and equipment. Through the end of 2025 (unless extended further by legislation), employers may also reimburse employees for principal or interest payments on qualified education loans. Such reimbursements may be excluded from employees’ taxable income up to $5,250 per calendar year. Further detail on such programs is available in the IRS FAQ found here - https://www.irs.gov/newsroom/frequently-asked-questions-about-educational-assistance-programs
Empower Your People
By: VAST University
One of the biggest problems in our industry is auto adjudication. Auto adjudication is the automatic processing of claims. Eighty percent of all medical and prescription claims are paid without any oversight or review. Often times this leads to claims being paid that were incorrect like duplicate claims. Paying duplicate claims results in a higher utilization percentage and therefore an increase in premiums at renewal time. Recently, during our claim audit process, we identified a duplicate claim of over $34,000! Make sure your employees know that this can happen and to review their EOB and provider bills. If you need content to provide your people, please let us know. No one should have to pay double for the services received by their provider.
Upcoming Webinars
Common Employee Benefit Compliance Questions
This webinar will address some of the most common benefit compliance questions that employers of all sizes struggle with. In addition, we will ask the audience to participate during the webinar, providing an opportunity for you to test your compliance knowledge and have a little full with some everyday compliance topics that tend to trip up the best of us.
July 25, 2024 @ 2pm
Registration link: https://assurexglobal.zoom.us/webinar/register/WN_8hwgyYFGQJi79IYTkJtATg#/registration
Presenters: Bob Radecki, Principal, Benefit Comply LLC & Regan Debban, J.D. MBA, Principal, Benefit Comply LLC