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Employee Benefits Compliance Checklist For Manufacturing Companies

June 28, 2021, by New City Insurance

wooden blocks with employee benefits in the Manufacturing CompaniesManufacturers know the importance of offering a competitive wage and benefits compliance package to employees. In fact, manufacturing workers earn approximately 13 percent more in hourly compensation, including wages and benefits, than comparable workers in other private sector businesses.

Developing an attractive employee benefits package is just the first hurdle. Companies in the manufacturing industry must also comply with federal laws that apply to all health and welfare benefit plans. Federal requirements often change annually to meet the growing healthcare demands in the U.S., and companies must keep up with these changes or risk severe penalties.

When managing an employee benefits package, consider what legal requirements pertain to the manufacturing industry. Businesses may also need to comply with additional compliance requirements based on guidelines under the Affordable Care Act (ACA). The following compliance checklist applies to most manufacturing companies.

Affordable Care Act

The ACA mandate typically applies to employers with 50 or more full-time employees. Under the Affordable Care Act, employers must offer affordable health insurance to workers and their children until age 26.

As of January 1, 2021, all employees covered under applicable large employers (ALEs) are limited to a contribution amount that does not exceed 9.83 percent of the employee’s household income for that taxable year. All ALEs must have a minimum of one health plan offered to full-time employees that satisfies the affordability standard to avoid penalties.

Changes have also been made to health flexible spending accounts (FSAs) under the ACA. In 2021, the HSA contribution limit changed to $3,600 for individuals and $7,200 for family coverage.
This is a 1.5 percent increase from 2020.

man holding mobile and benefits written on screen working at Manufacturing CompaniesAnother change under the ACA pertains to out-of-pocket maximums on health plans. Non-grandfathered plans, meaning health plans that went into existence after March 23, 2010, when the ACA was first enacted, must meet specified limits on cost-sharing for essential health benefits (EHB).

In 2021, the out-of-pocket expense on annual high deductible health plans (HDHPs) is $7,000 for individuals and $13,800 for family coverage.

Non-grandfathered health care plans must comply with preventative care. If a manufacturer chooses to move to a non-grandfathered health plan, the business must show that the plan complies with benefit provisions and patients’ rights required by the Affordable Care Act.

Consolidated Omnibus Budget Reconciliation Act

The Consolidated Omnibus Budget Reconciliation Act (COBRA) also applies to companies in the manufacturing industry. This federal law enables employees to temporarily continue their existing healthcare coverage if they lose their job or suffer another qualifying event.

Under COBRA, businesses that offer employer-sponsored healthcare plans and have 20 or more employees are required to offer covered employees the option of continuing their healthcare coverage in certain situations. Failure to comply with COBRA can lead to hefty fees for businesses.

COBRA requires plan administrators to provide an explanation of coverage and rights within 90 days of the coverage start date. In addition, employers must notify the plan administrator of any qualifying events, and the plan administrator must provide a COBRA election notice within 14 days after being notified of a qualifying event.

If it is discovered that coverage will be terminated earlier than the end of the coverage period, the plan administrator must provide an early termination notice to all plan participants. Notices must also be provided in cases of insufficient payment and premium changes.

Employee Retirement Income Security Act

The Employee Retirement Income Security Act (ERISA) of 1974 sets standards for many voluntary retirement and health plans in the private industry. The federal law protects employees’ retirement assets by enforcing rules that all qualified plans must follow to prevent fiduciaries from misusing plan assets.

To determine compliance with ERISA, companies must ensure that their plan document is up-to-date and that all participants and beneficiaries can gain access to the document if requested. The Department of Labor must also be given access to ERISA plan documents.

Request Assistance with Employee Benefits Compliance

employees having conversation in a room working for different Manufacturing CompaniesManufacturers may also be required to comply with other federal laws, such as the Mental Health Parity and Addiction Equity Act (MHPAEA), the Health Insurance Portability and Accountability Act (HIPAA), Women’s Health and Cancer Rights Act (WHCRA), Newborns’ and Mother’s Health Protection Act (NMHPA), the Genetic Information Nondiscrimination Act (GINA), and the Family and
Medical Leave Act (FMLA).

With help from an experienced employee benefits and HR consulting firm, companies in the manufacturing industry can acquire the insurance policies they need and meet compliance requirements with ease. For more information about employee benefits compliance for manufacturing companies or to speak with an experienced benefits consultant, contact New City Insurance today.

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Filed Under: Benefits,  Employee Benefits Compliance,  Manufacturing

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Carol Zhang
Carol Zhang
04:29 06 Mar 22
As a rapidly expanding national media organization, the employee benefits strategy and administration that New City has provided us during our growth has been invaluable. They have been proactive about informing us of the different benefit strategies available to us as we grow as well as managing the additional compliance laws and reporting requirements at each stage of our growth.
Claudia Villalobos
Claudia Villalobos
20:14 03 Mar 22
New City Insurance made navigating through all the health insurances super EASY. Their documents are highly informative, professional, and easy to work with. Thank you for making the process of choosing a health plan so simple. You guys are THE BEST!
Philippe Salas
Philippe Salas
17:02 22 Feb 22
I never expected to have a good time talking to an insurance salesman, but let me tell you Brendan was quite the treat. He was very helpful explaining the options and has a wonderful sense of humor. I hope to speak with him every time I call.
Jennifer Polito
Jennifer Polito
17:15 09 Feb 22
Super easy enrollment process. Fast and friendly customer service. If you are looking for an insurance company that is there for you every step of the way I highly recommend New City Insurance.
Rocky Salas
Rocky Salas
23:46 07 Jan 22
So friendly, I hope to speak to him again in all my future insurance needs.
Rocky Salas
Rocky Salas
23:38 07 Jan 22
So friendly and soft spoken. I hope to speak to him again in all my future insurance needs.
Jose Brena
Jose Brena
13:20 06 Jan 22
Eric Calciano has been extremely helpful in finding and selecting the right insurance coverage for our company. With many options out there Eric assisted us on getting a low cost provider saving more than 20% than from our competitors and providing excellent coverage for our employees.
Anastasia Beaverhousen
Anastasia Beaverhousen
17:05 28 Dec 21
Signing up for insurance was quick and easy. Felicity Sundsboe
SFCC
SFCC
22:08 29 Nov 21
Jeff Stoltey and his team provide excellent customer service. Jeff has always provided my company SFCC with straightforward options. I went to a larger insurance company only to RUN BACK to Jeff at New City Insurance. I recommend them to anyone needing insurance without hesitation.
Kevin Luby
Kevin Luby
19:13 22 Oct 21
Quick, easy & informative. We were able to secure quality insurance for our small business on a tight deadline. Thanks for the help New City.
Theresa Ruybol
Theresa Ruybol
19:30 01 Jul 21
Eric was so great with us. He was very patient and kind as we are a newer smaller organization who is growing rapidly. With that said, we had made our inquiry, he had great rapid response and mostly had to wait on me. Any request that we made and/or questions we had, he was great answering and helping us understand. Then when we were ready for all documents and to move forward, Brendan helped with getting that together and the two of them worked their magic on New City's end to notify me of what was needed, assist me in that process and confirming that all was complete and approved for the coverage. I just want to say thank you all again so much, as insurance has always been confusing to me, and you all made that process go a lot smoother.Thank you
Andrea Ordendorff
Andrea Ordendorff
21:06 07 May 21
I've been working with both Clayton and Brendan for well over a year. As the purchase of our dental practice was delayed well over 14 months they both patiently supported me and continued to make themselves available. When we were officially ready to sign up they made the whole process seamless and super easy. This team is highly knowledgeable, professional, supportive, and efficient! I can't thank them enough for everything they've done.
T W
T W
22:32 30 Aug 20
I love New City Insurance. I never had a good experience dealing with insurance brokers until I started working with Brendan. He’s awesome! He is patient with me and takes the time to answer all my questions. I’m very grateful for all his help and hard work!
Mary Jane Deyette
Mary Jane Deyette
00:57 11 May 20
Jeff Stoltey is so awesome...even thru my company had only two employees, he took the time each year to research and find the best plan for us. The only reason I am leaving New City Insurance is because we no longer have any employees. Thank you Jeff
Alma Ortiz
Alma Ortiz
22:25 23 Feb 20
Brendan was awesome! I couldn't figure out how to pick my plan and he returned my call on a weekend to help me. Outstansing service!
jessica kavanagh
jessica kavanagh
19:53 13 Feb 20
Brendan was so helpful I definitely recommend him if you’re in need of good help and getting it done promptly. Thankyou so much again.
Tricia DeYoung
Tricia DeYoung
19:49 13 Feb 20
I was very thankful I inquired about this info. with Brendan. He was very helpful so I understand the benefits available much better now. Thank you Brendan.
B Bayer
B Bayer
17:43 24 Sep 19
NCI handled almost everything from start to finish. Clayton and Brendan made the plans easy to understand and walked me through the application process. They got me my ID numbers before my cards arrived so that I could keep an appointment I had already scheduled. My last broker wouldn't have done that. 5 stars!
Jessica Lehr
Jessica Lehr
03:36 07 Jun 19
Our staff was interested in a health plan, but we didn't know how beneficial a solid employee benefits package would be for our business to expand. We'd lose prospective employees because they had more options for their medical insurance which was sometimes more valuable than more pay. The New City team was amazing and gave us as many affordable options as possible so that everyone had their needs met.
Mike McClay
Mike McClay
19:36 03 May 19
My employer uses New City as their insurance broker, and I'm always amazed when I call in for assistance by how knowledgeable and attentive their staff is with my requests. Their online benefits platform makes selecting insurance plans pretty darn easy. I would highly recommend their services.
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