ExtensisHR’s Post

Our most recent blogpost comes with impeccable timing as many businesses will start to get their renewals from brokers and benefits providers. If you think that renewal may be a bit steep for the coverage you're getting, you're probably right. Let's have a conversation. #insperity #benefitsstrategy #takecareofyourpeople #costefficiency

https://lnkd.in/gQVHHVBy COLI policies are a way for companies to informally finance employee benefits, minimize tax burdens and increase after-tax net income. They are taken out on critical employees, with companies paying the insurance premiums and receiving the death benefit if a covered employee passes away. A common use of COLI policies is to help employers meet obligations arising from non-qualified deferred compensation (NDQC) plans. When a company makes a promise of future compensation to key employees, this promise can create a liability that can grow over time.

A Primer on Finge Benefits Understanding fringe benefits is key for any employee. Taxable and non-taxable fringe benefits are important to differentiate. Health benefits, life insurance benefits, mass transit passes, and employee educational assistance are typical, non-taxable fringe benefits under the Internal Revenue Code. This means employees receive these benefits instead of their value in money; they're free, and as an added benefit, employees are not taxed on them. On the other hand, taxable fringe benefits exist that also free but they are taxed on. For example, an allowance for a company car to be used personally and season tickets to their favorite NFL team are fringe benefits employees don't pay for, but they are taxed on. Remember every business and accounting transaction is as unique as the people involved so consult your financial advisor before making financial decisions.

I don't do this often, but I'd love to share a recent win! I had an opportunity to advise a lovely mid-market nonprofit group who had an incumbent broker, but shared going concerns with their group benefits plan and various aspects that were left unaddressed. A full review and market uncovered a few pain points. I'll highlight 3: 1. Their pooled benefit lines were 30%+ higher with no justifiable explanation. 2. Their reimbursement model was outdated and not only put employees out financial resources upfront, but kept these same cash-strapped employees waiting several weeks after claim. 3. The group usage was trending towards greater need in dental and this was going to translate into increased costs at renewal, just a few short months away. With inflation rearing its ugly head and families of all types feeling the pinch, the last thing groups want or need is an ugly renewal on the horizon. HOW DID I FIX IT? Because I took the time to do a full marketing, I had the data to successfully re-negotiate rates where a clear lack of competitiveness was demonstrated. I offered pay-direct cards at no additional cost to support the employees in a meaningful way and kick unnecessary wait times to the curb, easing a tremendous financial burden for front-line staff. Because numerous pooled rates had been renegotiated, this resulted in a net savings that would bypass the renewal, altogether, and buy some time to monitor dental experience, get back to the drawing board, and ensure sustainability of plan design for years to come. LESSONS LEARNED: So often, advisors and benefits consultants can become fixated on the "greener grass" and convincing people to move because of what the new carrier will offer. What is more important, is demonstrating that regardless of carrier, YOU are in the client's corner! When I had the data to support the asks, this carrier was willing to work with us. What this method did NOT require: a sale. A change in carrier. Or a disruption. What it did require was a confident advocate.

Employers, it’s the last few weeks for employees to use their FSA’s. Remind them before it’s too late. #employeebenefits #benefitsadministration #employeeretention #groupbenefits #employeewellness #employeehealth #FSA https://ow.ly/gTGw50QfMCV

Employers, it’s the last few weeks for employees to use their FSA’s. Remind them before it’s too late. #employeebenefits #benefitsadministration #employeeretention #groupbenefits #employeewellness #employeehealth #FSA https://ow.ly/gTGw50QfMCV

Your employee benefits can make a big impact on your financial plan. Our blog post guides you through your options when changing jobs. https://lnkd.in/ezfPqnjS

What's your last straw??? For one of my clients, it was a broker administered FSA plan that was going directly to employees for discrepancies of penny's. For another client, it was learning that their benefits advisor had not delivered an unfavorable renewal from the carrier completed 6 weeks prior. For another client, it was for trying to place them into a self-funded plan when it didn't make any sense. For me, it's getting ATT voice messages 3 days after they are left, but I digress... Your benefits advisor is supposed to be advising your company to select the best funding method and products based on your employee's needs. This is also a continual process throughout the year, not just at renewal time. If you're approaching your last straw, reach out. You deserve better! #CFO #employeebenefits #humanresourcesconsulting

Your employee benefits can make a big impact on your financial plan. Our blog post guides you through your options when changing jobs. https://lnkd.in/ezfPqnjS