Employee benefit plans are a significant part of your employees’ total compensation package. NEXTAFF will help review and audit your company benefit offerings to ensure they align with your corporate culture and most importantly, meet the needs of your entire workforce.  Our intention is not always to replace your current benefits broker, but to simply work with your broker to provide another perspective to link the internal and external factors affecting your plan

Benefits Plan Design

• Research/compare competitive benefits-at renewal period for Client employees
• Develop and recommend customized benefits program with Client consideration
• Review cost and quality annually  
• Conduct a Benefits Return On Investment study to determine where you can best spend your benefit dollars

Benefits Enrollment*

• Explain benefit plans and costs to client and employees*
• Work with client to help ensure timely receipt of all enrollment forms from each client location*
• Forward applications to each insurance provider*
• Confirm, track and administer enrollment of all eligible employees*
• Conduct annual open enrollment*

Benefits Administration

• Reconcile and ensure monthly client payments are made for each plan (if NEXTAFF pays monthly billings)
• Respond to employee coverage questions*
• Stock/supply all benefits brochures and forms*
• Fulfill employee requests for information*
• Assist employees with coverage changes where requested*
• Notify payroll of deductions, changes
• Assist employees with claims issues*
• Manage liaison and relationship with providers
• Track and administer COBRA compliance for each terminated employee Assemble and distribute enrollment kits
• Track changes in eligibility
• Track and administer IRS code section 125 insurance deductions
• Process coverage and beneficiary changes
• Track and process optional additional coverage
• Administer and reconcile employee termination paperwork with each insurance provider

Retirement/ 401(k)*

• Initial plan design*
• Administer day to day activities of 401(k)*
• Retirement plan enrollment*
• Respond to employee questions*

COBRA Administration

• Track and administer qualifying events
• Send notice to employee and dependents
• Maintain required records
• Collect payments and remit premiums
• Terminate coverage for nonpayment

*These items performed only if enrolled in NEXTAFF benefit plan.

A flexible spending account, also known as a flexible spending arrangement, is one of a number of tax-advantaged financial accounts that can be set up through a cafeteria plan of an employer in the United States. An FSA allows an employee to set aside a portion of earnings to pay for qualified expenses as established in the cafeteria plan, most commonly for medical expenses but often for dependent care or other expenses. Money deducted from an employee's pay into an FSA is not subject to payroll taxes, resulting in substantial payroll tax savings. One significant disadvantage to using an FSA is that funds not used by the end of the plan year are lost to the employee.

The most common FSA, the medical expense FSA (also medical FSA or health FSA), is similar to a health savings account (HSA) or a health reimbursement account (HRA). However, while HSAs and HRAs are almost exclusively used as components of a consumer driven health care plan, medical FSAs are commonly offered with more traditional health plans as well. In addition, funds in a health savings account are not lost when the plan year is over, unlike funds in an FSA. Paper forms or an FSA debit card, also known as a Flexcard, may be used to access the account funds.
Most cafeteria plans offer two different flexible spending accounts; one is for qualified medical expenses and the other is for dependent care expenses. A few cafeteria plans offer other types of FSAs, especially if the employer also offers an HSA. Participation in one type of FSA does not affect participation in another type of FSA, but funds cannot be transferred from one FSA to another.

Medical expense FSA
The most common type of FSA is used to pay for medical expenses not paid for by insurance, usually deductibles, copayments, and coinsurance for the employee's health plan. Prior to January 1, 2011, over-the-counter (OTC) items such as bandages, rubbing alcohol, first aid kits, and other medical expenses not distinguished as a drug or medicine were reimbursable under health care FSA plans; however, the Patient Protection and Affordable Care Act changed the rules regarding OTC expenditures, allowing reimbursement for these items only when purchased with a doctor's prescription.  Generally, allowable items are the same as those allowable for the medical tax deduction, as outlined in IRS publication 502.
Prior to the enactment of the Patient Protection and Affordable Care Act, the Internal Revenue Service permitted employers to enact any maximum annual election for their employees.  Patient Protection and Affordable Care Act amended Section 125 such that FSAs may not allow employees to choose an annual election in excess of $2,500. Employers have the option to limit their employees' annual elections further. This change starts in tax years that begin after December 31, 2012.

Some employers choose to issue a debit card to their employees who participate in the FSA. Participants may use the debit card to pay for their FSA-eligible expenses at the point of sale. Pharmacies and grocery stores who choose to accept the debit card as payment must disallow transactions at point of sale if the participant attempts to pay for items that are not eligible under an FSA. In addition, employers still must require employees to provide itemized receipts for all expenses charged to the debit card. The IRS allows employers to waive this requirement when an individual uses the debit card at a pharmacy or grocery store that complies with the above procedure. The IRS also allows employers to waive this requirement when the amount charged to the debit card is a multiple of a co-pay of the employee's group health insurance plan. In most cases, the FSA administrating firm will prefer actual insurance Explanations of Benefits (EOBs) clearly representing the patient portion of any medical expense, over other, more vague documentation. This requirement is becoming less cumbersome as more insurance allow patients to search for past EOBs on their websites.

Dependent care FSA
FSAs can also be established to pay for certain expenses to care for dependents that live with you while you are at work. While this most commonly means child care, for children under the age of 13, it can also be used for children of any age who are physically or mentally incapable of self-care, as well as adult day care for senior citizen dependents who live with you, such as parents or grandparents. Additionally, the person or persons on whom the dependent care funds are spent must be able to be claimed as a dependent on the employee's federal tax return. The funds cannot be used for summer camps (other than "day camps") or for long term care for parents who live elsewhere (such as in a nursing home).

The dependent care FSA is federally capped at $5,000 per year, per household. Married spouses can each elect an FSA, but their total combined elections cannot exceed $5,000. At tax time, all withdrawals in excess of $5,000 are taxed.

Unlike medical FSAs, dependent care FSAs are not "pre-funded"; employees cannot receive reimbursement for the full amount of the annual contribution on day one. Employees can only be reimbursed up to the amount they have had deducted during that plan year.

While medical FSAs almost always favor the taxpayer, dependent care FSAs are a more complicated matter because they are a tradeoff between pre-tax deductions and tax credits, not itemized deductions. Enhancements to Child and Dependent Care Credits in recent years have made them more attractive than dependent care FSAs for some taxpayers, particularly those having more than one dependent in care or with adjusted gross incomes below $35k.

If married, both spouses must earn income for the Dependent Care FSA to work. The only exception is if the non-earning spouse (usually the wife) is disabled or a full-time student. If one spouse earns less than $5,000 then the benefit is limited to whatever that spouse earned. Many plan coordinators do not warn of this limit. This limitation can create a situation where the earning spouse sets up a Dependent Care FSA and dutifully sends in receipts to withdraw funds and then at tax time the FSA is effectively eliminated and all the work wasted. See IRS Form 2441 Part III for details.

Accurate, timely payroll processing is arguably the most important and critical operation in your business. Just ask your employees!  And it’s not just the simple task of writing and distributing paychecks. It’s making sure each and every employee’s check is absolutely right, every time it’s scheduled and issued…and that’s not simple.  NEXTAFF will relieve your accounting department of this burden and help you better serve your employees. The NEXTAFF teams are specialists in the complexities of payroll.  We will make sure that taxes are filed accurately and on time for single or multiple jurisdictions – local, state and federal – monthly, quarterly and annual tax filings!  We create your benefit deductions and reconcile associated invoices as well as a myriad other factors that can affect each and every paycheck you issue.

Our portfolio of payroll and compensation management services includes:

• Calculate and set up payroll deductions
• Set up benefit deductions in payroll system
• Record and track vacation accumulations
• Record and track sick leave
• Record and track other paid/unpaid leave
• Answer employee questions on payroll
• Issue appropriate W-2/ 1099 forms
• Process payroll checks
• Respond to employee wage garnishments, and remit to proper agency or individual
• Reconcile payroll deductions at termination of employees
• Process individual direct deposit
• Submit federal and state employee withholding reports
• Make federal and state tax withholding filings concerning deductions from employee’s wages
• Prepare and distribute new hire employment information
• Web-based payroll solution
• Customized payroll reports
• Supply federal employment posters
• Assist client, where requested, in client's classification of employees for exemption status

Paycheck Options

NEXTAFF offers a variety of methods by which your staff can receive their pay.

Check:

• Mailed to client location each payroll period

Direct Deposit:

• No fees
• Eliminates potential lost check fees
• Eliminates check cashing fees

VISA OR MasterCard Cash Card:

• Convenient fast and easy access to funds
• Accepted at millions of locations worldwide, including ATM’s
• Cost effective
• Eliminates check cashing fees
• Safety.  Relieves the need to carry large sums of cash.  Protects cardholders from financial loss if their card is lost or stolen
• No credit check.  Anyone is eligible subject to USA Patriot Act Compliance and OFAC check and appropriate proof of identity.

Risk Management

Risk management – the discipline of attempting to identify and manage threats that could negatively impact the organization – is much more than “getting the right insurance”.

Risk management is an essential component of responsible and sound corporate governance. And operating a company today through the turbulent times of shaky markets and seemingly excessive regulation and increasing complexity is more and more challenging. With NEXTAFF as your business partner and trusted advisor, we can help you “navigate the rough seas” to make sure you are smartly and aggressively managing the risks your business faces.

With increasing governmental regulations and employee-related lawsuits, NEXTAFF’s philosophy that risk management is every bit as important as financial management.
NEXTAFF will assist your organization in taking a comprehensive, focused review and assessment of the potential risks to your organization.  We will insure that you have the correct employment policies and training that guide the relationships between your workforce, management, regulatory agencies and the company.  Our goal is to eliminate or mitigate the risk associated with HR issues as well as worker’s compensation, safety and liability challenges. 

Our comprehensive threat management plan includes a consistent training component for all or designated employees. Preventing and mitigating risks can only be achieved through ongoing education and training and the development of sound employee and safety policies and procedures. 

For ALL insurance programs, NEXTAFF is the insured interest.  Our co-employment relationship will enable our insurance program to cover those employees.  Most of these insurance programs DO NOT extend to your company or company officers.  NEXTAFF can help you obtain discounted policies if needed. 

Workers Compensation

Workers' compensation (colloquially known as workers' comp in North America) is a form of insurance that provides wage replacement and medical benefits for employees who are injured in the course of employment, in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the tort of negligence. General damages for pain and suffering, and punitive damages for employer negligence, are generally not available in workers' compensation plans, and negligence is generally not an issue in the case.  Nextaff will:

• Determine classifications and rates based upon information supplied by Client
• Pay premiums and report monthly payroll
• Compile and prepare data for premium audits
• Claims management/investigation
• Maintain contact with injured employees
• Complete and file claims forms
• Monitor treatment status with medical staff
• Coordinate return to work or light duty
• Coordinate loss prevention activities with insurer
• Check for duplicate workers compensation/health claims
• Provide Client with claims management report
• Review safety programs
• Complete premium management services including audit preparation and completion
• Reconcile worker’s compensation bill
• Offer a “Pay-as-you-go” plan

There is generally a $1,000 deductible per occurrence with workman’s compensation policies – please refer to your Exhibit A for details.
Safety Programs

NEXTAFF will work in partnership with your staff to minimize employee accidents and maximize safety awareness.  Our staff will assist in:

• Participating in and implementing safety orientation of all employees,
• Corrective actions, including termination of field employees for repeated safety violations,

• Administration of Nextaff Safety & Risk Management Program, and

• Administration of any additional Safety or Risk Management program required by your company.

Our safety programs can include video and/or reading material and is for applicants and employees to view, test and discuss. Select topics are offered in English and Spanish.
Topics covered are:

VIDEO

• Manual Material Handling
• Back Injury                                                                                                    
• Basic Anatomy and physics of the spine and back
• Safe Lifting Techniques
• Ergonomics
• Posture and computers
• Muscle Fatigue and lifting
• Other specific handling tips

READING MATERIALS

• Cross Contamination
• Personal Hygiene
• Foreign Material
• Personal Protective Equipment
• Hazard Communication
• Blood borne Pathogens
• Lockout/Tagout
• Fire Safety

SAFETY EQUIPMENT

In order to provide for the total safety of all temporary employees, Nextaff will assist with providing the following safety equipment and/or convenient check deduction for employees:

• Steel Toe Boots
• Hard Hat
• Safety Glasses
• Gloves
• Ear Plugs
• Back Supports
  

State & Federal Unemployment Insurance (SUTA & FUTA)

Unemployment compensation is money received from the United States and a state by a worker who has become unemployed through no fault of their own. In the United States, this compensation is classified as a type of social welfare benefit. According to the Internal Revenue Code, these types of benefits are to be included in a taxpayer's gross income.  Although generally thought of as a tax, SUTA has an experience rating modifier; similar to worker’s compensation…therefore needs to be managed like any other risk.  Nextaff will:

• Perform onsite safety training – when requested
• Consult on Safety and Loss prevention
• Review safety and loss control analysis

Employment Practices Liability Insurance (EPLI)

EPLI is a type of coverage that protects businesses from the financial consequences associated with a variety of employment-related lawsuits. EPLI may cover lawsuits involving a company's directors and officers, negligence lawsuits affecting a company's human resources department, and liability lawsuits over fiduciary duty. EPLI can also protect against charges of racial or age discrimination, sexual harassment, wrongful termination, or noncompliance with the Americans with Disabilities Act.  Finally, EPLI can help protect businesses against legal conflicts that flare up between employees and third parties, such as vendors or customers, if a third-party coverage endorsement is secured as part of the EPLI policy.

• Nextaff can assist clients in obtaining discounted EPLI policies
• There is usually a $10,000 to $25,000 deductible for these types of policies depending on client size
• EPLI rates usually run between $2.50 - $3.00 per employee per month
• Nextaff can assist client in responding to all EEOC and NLRB charges of discrimination, including those from all state and local EEO agencies.  Be advised that NEXTAFF can assist up until the point that the opposing party engages legal council.  At that time, NEXTAFF will have to defer to your legal council or assist you in finding council.

Fiduciary Liability Insurance

Fiduciary Liability Insurance pays, on behalf of the insured (Nextaff), the legal liability arising from claims for alleged failure to prudently act within the meaning of the Pension Reform Act of 1974. “Insured” is variously defined as a trust or employee benefit plan, any trustee, officer or employee of the trust or employee benefit plan, employer who is sole sponsor of a plan and any other individual or organization designated as a fiduciary. Group life and medical expense plans, as well as pension and retirement plans, are within the scope of the law.

• Employee benefits liability coverage often is combined with fiduciary liability insurance policies, subject to the single limit. This is a distinct disadvantage because fiduciary liability presents an exposure that is infrequent but severe. The purpose for purchasing a fiduciary liability insurance policy, therefore, can be wiped out with frequent employee benefits liability claims.
• Employment Liability Insurance does not cover all situations of fiduciary responsibility, especially those regarding imprudent investment of funds.
• Under ERISA, fiduciaries may be held personally liable for breach of their responsibilities in the administration or handling of employee benefit plans. Fiduciary Liability Insurance is not required by ERISA. However, it is strongly recommended if you are a fiduciary of a welfare and/or pension plan because your personal assets are at stake. Many fiduciaries believe incorrectly that their ERISA fidelity bond protects their personal assets.
• Furthermore, many think that this type of coverage is included in their D&O policy. Most D&O policies exclude fiduciary liability exposures as well as those exposures pertaining to the Employee Retirement Income Security Act (ERISA).
• Moreover, designated fiduciaries are not the only targets of such lawsuits; targets can also include the employer and even the plan itself. Claims can be brought by plan participants, participants’ legal estates, the Department of Labor, and the Pension Benefit Guaranty Corporation.