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Applicable Large Employers Say 2016 Has Been Very Costly

Employers Say 2016 Could Be Very Costly


ACA Costs

The Affordable Care Act has caused many employers to pay more in health care costs. However, many organizations are anticipating even higher costs in the coming year. A new survey conducted by the International Foundation of Employee Benefit Plans has revealed this.

The Survey Report

According to the survey report, one-third of the employers expect to pay the highest amount of price increases in 2016 with the implementation of new requirements for reporting, notification and disclosure. There are even some employers that expect to pay the highest increase in costs in 2018. This is because of the Cadillac tax.

Top Compliance Cost Drivers

The employers were asked what they think is going to be the top drivers of cost. One response was the excise tax on plans of high-value. Another response was the costs of general administration. The third response was the reporting, notification and disclosure requirement costs.



Compliance with the Law

Employers are required to set aside a significant amount of time in order to comply with the law. Employers are required to collect tons of data to the point that it could take hours out of their day. This may even require complex infrastructures of IT. Smaller organizations are especially affected by the increase in costs.

The Highest Costs are Coming

71% of employers believe that the most expensive years have not arrived yet. However, this does not take away from the financial impact that they are feeling. 82% have stated that there are already a lot of increases in the costs of their organization in this year. Most are expecting a 1 to 6 percent increase in expenses related to compliance.

Controlling Costs Options

There are efforts and steps being taken by employers to control the costs that are affected by the ACA. Many have stated that the law has influenced them to consider High-deductible health plans. This allows for lower premiums compared to other plans, and can help employers stay away from excise taxes.


HSAs and HRAs

HSAs and HRAs

More than Forty percent of employers are looking at an HDHP accompanied by a health savings account. A little over 10 percent of employers are looking at an High-deductible health plan accompanied by a health reimbursement arrangement. There are also a portion of employers that are looking at HDHPs with no accompanying account. The HRAs are funded by employers with HSAs having the ability to be funded by employees and employers.

Full Replacement Approach

Approximately one out of every ten organizations has used a full-replacement strategy for HDHP. This is where the only plan options provided are HDHPs. This helps them avoid the excise tax.

The Popular Option

The popular choice for employers is high-deductible health plans. This allows employers to be better able to handle both health care costs of the present and the future. HDHPs are continuing to become popular with the coming “Cadillac Tax”.

The Excise Tax

According to a survey, more than 50% of the employers are headed towards the excise tax in 2018. However, the people that are planning to pay the tax are only three percent. The employers that are trying to avoid the tax are looking for plans. 53% of them have added the HDHP.

Health Care Stays

Even considering the majority of the respondents who feel the law is negatively impacting the business, there are still plans from all employers to continue to offer health care coverage for years to come. Health benefits are essential for future employees. High-quality employees are going to be looking for health care plans. Employers do have the option of altering the health care plan structure or shift some of the costs to their employees.


ACA Survey


The survey was conducted with HR and other professionals for benefits in March of 2015. The survey was conducted in the databases for the International Foundation of Employee Benefit Plans as well as the International Society of Certified Employee Benefit Specialists. A wide range of employers in almost 20 industries have been represented by these organizations.

Avoid Tax Penalties

Companies are scrambling to provide health care to their employees in order to avoid major tax penalties. The ACA had impacted the business landscape forever. Only time will tell how many industries, employees and employers are affected, and to what degrees each will benefit – or suffer.


Article provided by Neches FCU, with locations in Port Neches, Nederland, Beaumont, Lumberton and Bridge City.
Neches FCU is one of the most trusted Texas Credit Unions.
It has 9 convenient service locations, with a superior team of professionals ready to service their 45,000+ members.
Daily, their core mission of “Ultimate Member Satisfaction” becomes the sole focus for every employee.

Why Millennials are Choosing Texting over Phone Calls

Why Millennials are Choosing Texting over Phone Calls

It’s understandably frustrating for managers when millennials won’t answer their phone. For the longest time, phone calls alone have been relied on for quick and easy long-distance communication, and missing even one phone call can make you feel like your business is suffering. Managers are finding it more and more common for millennials to neglect answering their phones. This is mostly due to the fact that the younger generation has been more involved with texting than talking on the phone, and the latest phones focus more on ease of texting than improving phone calls.


Communication in business

Communication is the key to proper business management, but most people don’t neglect to answer their phones to be rude. In fact, in comparison with texting, phone calls can actually be a detriment to many businesses.


Merely hearing your phone ring can be a distraction, and the need to answer it and have a full conversation over the phone can be much more distracting. Many people need to drop everything that they’re doing to put their focus on the phone call. Texting involves a single tone alert that is minimally distracting, and quick responses can be made when the person is ready. Additionally, you can start typing up a text and return to it later if some work needs immediate attention.


Be Considerate to Coworkers


Since phone calls require so much attention and immediate response, it implies that your phone call and the task being presented in the phone call is more important than whatever the person is doing at the time. While that may not be your intention, it can be seen as very disrespectful and inconsiderate to your employee. Texting does not intrude on what the receiver is doing, and it does not imply that the person should drop everything that they’re doing at the time to suit your needs.


Be direct in communicating

Dancing Around the Point

You may have a clear and concise message that needs to be conveyed, but most people don’t start a phone call to simply say a few sentences and hang up. Being on a phone call can give the illusion that you may need to go into greater detail or explore the topic more than you have to in order to seemingly give more value to the person’s time when you’re actually taking value away from the phone call. Texts are meant to be short and to the point. They can be written quickly, edited as you go and read even more quickly.


Do not waste time

Wasting Time

Not only do people feel somewhat obligated to extend phone calls for the sake of trying to add more substance to a conversation but people also tend to add time to a phone call on accident by straying from the topic, making small talk and repeating themselves. This can easily turn an intended short call into a 20 or 30 minute discussion. People don’t tend to ramble or stray off-topic in texts. Even if small talk and pleasantries are included, it’s much faster to read and respond to these time wasters in text than it does over the phone.




When millennials don’t answer their phones, you’ll most likely end up in a game of phone tag. Either the missed call will prompt them to call you back later or you’ll have to keep communicating through voicemail until one of you manages to get a phone call through. Texts are usually read within a few minutes, especially since most people take a few seconds regularly to check their email and texts. With texting, you won’t have to deal with the frustrations of phone tag and voicemail and you can have full conversations quickly and easily.


Texting has found a welcome home in many businesses. It may take some time to get your team on a mostly text-oriented structure, but you will find numerous benefits to adopting texting over phone calls.

This doesn’t mean that phone calls have lost their use in the workplace. Context, tone of voice and more are difficult to convey through texting, and a phone call can seem more personal and welcoming than a text. Knowing when to use texts and when to use phone calls is vital to ensuring that your professional relationships stay strong and your business stays efficient.


I hope you all found this article informative.
For those of you in the accounting industry, I’d like to share a quick tip that’s making my CPA business run smoothly during the tax season so far. I manage a portfolio of 80+ clients who are mostly local professionals and small businesses. I am usually stressed out having to print and mail tax forms for them. Last year, I decided to file 1099 misc online for their employees and the host of contractors they usually use. This saved me several days of wasted time.

This year, I’m going to continue with this more time-efficient way of filing a 1099 misc form. Take my advice, and Google They do all the printing and delivery of the forms to employees and contractors after I do the efile on their website. It’s worked out better than taking on new employees to manually do the work I don’t like to. Check out their video above. And happy tax season guys!