News

Questions and Answers on Reporting of Offers of Health Insurance Coverage by Employers (Section 6056)

The Tedrick Group is sharing with you an article posted on the IRS.gov website on the “Basics of Employer Reporting” and “who is Required to Report”.  We hope you find this information helpful as we continue our efforts to keep you informed on changes that affect you with regard to the ACA.

The following information is found on the IRS.gov website. Click http://www.irs.gov/Affordable-Care-Act/Employers/Questions-and-Answers-on-Reporting-of-Offers-of-Health-Insurance-Coverage-by-Employers-Section-6056 to see the article in it's original environment.

Information reporting under section 6056 is first required in early 2016 with respect to calendar year 2015.  For more information, see question 2.  More information is available on the information reporting by applicable large employers page.

  • Basics of Employer Reporting: Questions 1-4
  • Who is Required to Report: Questions 5-12
  • Methods of Reporting: Questions 13-17
  • How and When to Report the Required Information: Questions 18-31
  •  

    Basics of Employer Reporting

     

    1.  What are the information reporting requirements for employers relating to offers of health insurance coverage under employer-sponsored plans? 

    The Affordable Care Act added section 6056 to the Internal Revenue Code, which requires applicable large employers to file information returns with the IRS and provide statements to their full-time employees about the health insurance coverage the employer offered.  (For a definition of applicable large employer, see question 5, below.) 

    Under the regulations implementing section 6056, an applicable large employer may be a single entity or may consist of a group of related entities (such as parent and subsidiary or other affiliated entities).  In either case, these reporting requirements apply to each separate entity and each separate entity is referred to as an applicable large employer member (ALE member).  See question 7 for more information about the treatment of related entities.

    The IRS will use the information provided on the information return to administer the employer shared responsibility provisions of section 4980H.  The IRS and the employees of an ALE member will use the information provided as part of the determination of whether an employee is eligible for the premium tax credit under section 36B.

    ALE members that sponsor self-insured group health plans also are required to report information under section 6055 about the health coverage they provide (See our section 6055 FAQs). Those ALE members that sponsor self-insured group health plans file with the IRS and furnish to employees the information required under sections 6055 and 6056 on a single form. The IRS and individuals will use the information provided under section 6055 to administer or to show compliance with the individual shared responsibility provisions of section 5000A.

  • For details about the section 6056 information reporting requirements and additional guidance on how to complete Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, and Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, see the Employer Information Reporting FAQs for Forms 1094-C and 1095-C on IRS.gov.

    2.  When do the information reporting requirements go into effect?

    The information reporting requirements under section 6056 are first effective for coverage offered (or not offered) in 2015.  An ALE member must file information returns with the IRS and furnish statements to employees beginning in 2016, to report information about its offers of health coverage to its full-time employees for calendar year 2015.

    Notice 2013-45 provides transition relief for 2014 from the section 6056 reporting requirements and the section 6055 reporting requirements for health coverage providers and, thus, the section 4980H employer shared responsibility provisions as well. Accordingly, neither the reporting requirements nor the employer shared responsibility provisions apply for 2014.  The transition relief applies to all ALE members including for-profit, non-profit, and government entity employers.  However, in preparation for the application of the employer shared responsibility provisions beginning in 2015, employers and other affected entities may comply voluntarily for 2014 with the information reporting provisions and are encouraged to maintain or expand coverage in 2014.  Returns filed voluntarily will have no impact on the tax liability of the employer.  For more information about voluntary filing in 2015, including the requirements for filing electronic returns, see IRS.gov.     

    3.  Is relief available from penalties for incomplete or incorrect returns filed or statements furnished to employees in 2016 for coverage offered (or not offered) in calendar year 2015?

    Yes. In implementing new information reporting requirements, short-term relief from reporting penalties frequently is provided.  This relief generally allows additional time to develop appropriate procedures for collection of data and compliance with the new reporting requirements.  Accordingly, the IRS will not impose penalties under sections 6721 and 6722 on ALE members that can show that they have made good faith efforts to comply with the information reporting requirements.  Specifically, relief is provided from penalties under sections 6721 and 6722 for returns and statements filed and furnished in 2016 to report offers of coverage in 2015 for incorrect or incomplete information reported on the return or statement.  No relief is provided in the case of ALE members that cannot show a good faith effort to comply with the information reporting requirements or that fail to timely file an information return or furnish a statement.  However, consistent with existing information reporting rules, ALE members that fail to timely meet the requirements still may be eligible for penalty relief if the IRS determines that the standards for reasonable cause under section 6724 are satisfied.  See question 31 for more information about penalties under sections 6721 and 6722.

    4.  Where is more detailed information available about these reporting requirements?

    The regulations under section 6056 provide further guidance on the information reporting requirements for applicable large employers, and the regulations under section 6055 provide guidance on the information reporting requirements for insurers and other health coverage providers.  Regulations on the employer shared responsibility provisions under section 4980H provide guidance on determining applicable large employer status and determining full-time employee status, including defining and providing rules for calculating hours of service. The 1094/1095-C Questions and Answers provide guidance on how to complete Form 1094-C and Form 1095-C.

    Back to top
     

     

    Who is Required to Report

     

    5.  Who is required to report under section 6056?

    Applicable large employers that are subject to the employer shared responsibility provisions under section 4980H are required to report under section 6056.  An applicable large employer is an employer that employed an average of at least 50 full-time employees on business days during the preceding calendar year.  A full-time employee generally includes any employee who was employed on average at least 30 hours of service per week and any full-time equivalents (for example, 40 full-time employees employed 30 or more hours per week on average plus 20  employees employed 15 hours per week on average are equivalent to 50 full-time employees).  For purposes of the reporting requirements under section 6056, an ALE member is any person that is an applicable large employer or a member of an aggregated group (determined under section 414(b), 414(c), 414(m) or 414(o)) that is determined to be an applicable large employer.  See question 7 for information about aggregated groups.

    Additional information about who is an applicable large employer and transition relief under section 4980H is available in regulations issued under section 4980H and in related FAQs on the employer shared responsibility provisions (see questions 4 through 17 and 29 through 39 of those FAQs).

  • 6.  Are nonprofit and government entities required to report under section 6056?
  • Yes.  Section 6056 applies to all employers that are ALE members, regardless of whether the employer is a tax-exempt or government entity (including federal, state, local, and Indian tribal governments).

    7.  If two or more related companies together are an applicable large employer under section 4980H, how do they comply with the information reporting requirements?

    For purposes of the information reporting requirements under section 6056, each ALE member must file Form 1094-C (or a substitute form) with the IRS and furnish Form 1095-C (or a substitute statement) to its full-time employees, using its own EIN. See question 14 for further details about substitute forms and statements. All persons treated as a single employer under section 414(b), (c), (m), or (o) are treated as one employer for purposes of determining applicable large employer status under section 4980H.  Under those rules, companies will be combined and treated as a single employer for purposes of determining whether or not the employer has at least 50 full-time employees (including full-time equivalents) and together will be an applicable large employer.  Each of the companies that is combined is referred to as an ALE member.  When the combined total of full-time employees (including full-time equivalents) meets the threshold, each separate company or ALE member is subject to the employer shared responsibility provisions even if a particular company or companies individually do not employ enough employees to meet the 50-full-time-employee threshold.  See questions 15 through 17 of the employer shared responsibility provision FAQs for more information about calculating the number of full time employees (including full time equivalents).

    For purposes of section 6056 reporting, government entities, churches, and a convention or association of churches should use the same interpretation of section 414(b), (c), (m) and (o) as that used for purposes of section 4980H in determining whether a person or group of persons is an applicable large employer and whether a particular entity is an ALE member.

    8.  Is an ALE member required to report under section 6056 if the ALE member has no full-time employees?

    An ALE member that did not have an employee who was a full-time employee in any month of the year (that is, no employee averaged at least 30 hours of service per week in any month) is not required to report under section 6056. An ALE member is required to report if it has an employee who was a full-time employee for any month of the year. For example, if an ALE member did not have at least one full-time employee in any month in 2015, it is not required to report in 2016 for calendar year 2015.

  •  
  • 9. Is an employer that is not subject to the employer shared responsibility provisions of section 4980H (that is, the employer is not an ALE member) required to file under section 6056? 
  • No. An employer that is not subject to the employer shared responsibility provisions of section 4980H is not required to report under section 6056. Thus, an employer that employed fewer than 50 full-time employees (including full-time equivalents) during the preceding calendar year is not subject to the reporting requirements of section 6056.
  •  
  • 10. Is an ALE member that sponsors a self-insured health plan required to file Form 1094-C and Form 1095-C if the ALE member has no full-time employees?
  • Generally, yes.  An ALE member that sponsors a self-insured health plan in which any employee or employee’s spouse or dependent has enrolled is required to file Form 1094-C and Form 1095-C, whether or not that employer has any full-time employees and whether or not that individual is a current employee or a full-time employee. For an individual who enrolled in coverage who was not an employee in any month of the year (for example, an ex-spouse electing coverage in his or her individual capacity and not through the employee’s election of spousal coverage), the employer may file Forms 1094-B and 1095-B for that individual.
  •  
  • 11. Is an employer that is not an ALE member required to file under section 6056 if the employer sponsors a self-insured health plan that provides minimum essential coverage?
  • No; however, such an employer is subject to the reporting obligations under section 6055. An employer that is not an ALE member that sponsors a self-insured health plan in which any individual has enrolled is not subject to the reporting requirements of section 6056. Such an employer will generally satisfy its reporting obligations under section 6055 by filing Form 1094-B and Form 1095-B. See section 6055 Questions and Answers.
  •  
  • 12. Is an ALE member required to report under section 6056 with respect to a full-time employee who is not offered coverage during the year? 
  • Yes.  An ALE member is required to report information about the health coverage, if any, offered to each of its full-time employees, including whether an offer of health coverage was (or was not) made. This requirement applies to all ALE members, regardless of whether they offered health coverage to all, none, or some of their full-time employees.  For each of its full-time employees, the ALE member is required to file Form 1095-C with the IRS and furnish a copy of Form 1095-C to the employee, regardless of whether or not health coverage was or was not offered to the employee. Therefore, even if an ALE member does not offer coverage to any of its full-time employees, it must file returns with the IRS and furnish statements to each of its full-time employees to report information specifying that coverage was not offered.
  • Back to top
     

     

    Methods of Reporting

     

    13.   Are different methods available to ALE members for reporting required information to the IRS and furnishing statements to employees?

    Yes.  The regulations provide a general method (see question 14, below) that all ALE members may use for reporting to the IRS and for furnishing statements to full-time employees, and also provide alternative reporting methods (see questions 15-17, below) for eligible ALE members.  If an ALE member cannot use the alternative reporting methods for certain employees, the ALE member must use the general method for those employees.  In any case, the alternative reporting methods are optional so that an ALE member may choose to report for all of its full-time employees using the general method even if an alternative reporting method is available.

    In an effort to simplify the section 6056 reporting process, certain information required to be reported to the IRS and furnished to full-time employees may be reported through the use of indicator codes rather than by providing more detailed information.  For further details about the section 6056 reporting process, see the instructions for Forms 1094-C and 1095-C.

    14.  What is the general method of reporting?

    As a general method, each ALE member may satisfy the requirement to file a section 6056 return by filing a Form 1094-C (transmittal) and, for each full-time employee, a Form 1095-C (employee statement).  An ALE member that maintains a self-insured plan also uses a Form 1095-C to satisfy the reporting requirements under section 6055.  The Form 1095-C has separate sections to allow ALE members that sponsor self-insured group health plans to combine reporting to satisfy both the section 6055 reporting requirements and the section 6056 reporting requirements, as applicable, on a single return.

    Under the general method, the section 6056 return (and, if the employer maintains a self-insured plan, the section 6055 return) also may be made by filing a substitute form but the substitute form must include all of the information required on Form 1094-C and Form 1095-C and satisfy all form and content requirements as specified by the IRS.

    15.  What are the alternative methods of reporting?

    Two alternative methods of reporting under section 6056 were developed to minimize the cost and administrative tasks for employers, consistent with the statutory requirements to file an information return with the IRS and furnish an employee statement to each full-time employee.  The alternative reporting methods, in certain situations, may permit employers to provide less detailed information than under the general method for reporting. These simplified alternative reporting methods and the conditions for using them are described in detail in Subsections A through D of the preamble to the section 6056 regulations and in the instructions for Forms 1094-C and 1095-C.  The alternative reporting methods are:

    • Reporting Based on Certification of Qualifying Offers
    • Option to Report Without Separate Identification of Full-Time Employees if Certain Conditions Related to Offers of Coverage Are Satisfied (98 Percent Offers)

    The information provided to the IRS and the employee pursuant to section 6056 is important for administering section 4980H and the premium tax credit.  However, in some circumstances, only some of the information required under the general method is necessary.  Accordingly, the alternative reporting methods identify specific groups of employees for whom simplified alternative reporting would provide sufficient information.    

    16.  How does an ALE member report under the certification of Qualifying Offers method?

    If an ALE member has made a Qualifying Offer for all 12 months of the year to one or more full-time employees, the ALE member may use an alternate reporting method for those employees who received a Qualifying Offer for all 12 months of the year. A “Qualifying Offer” is an offer that satisfies all of the following criteria:

    • an offer of minimum essential coverage that provides minimum value;
    • the employee cost for employee-only coverage for each month does not exceed 9.5 percent of the mainland single federal poverty line divided by 12; and
    • an offer of minimum essential coverage is also made to the employee’s spouse and dependents (if any).
  • An ALE member reporting under the certification of Qualifying Offers method may furnish a simplified statement to the employee rather than furnishing a copy of Form 1095-C as filed with the IRS. In general, however, the alternative statement is not available for an employer that sponsors a self-insured plan with respect to any employee who has enrolled in self-insured coverage under the plan because the employer is required to report that coverage on Form 1095-C.
  • For additional details on the reporting rules for Qualifying Offers, including the contents of the alternative statement, see the instructions for Forms 1094-C and 1095-C and the 1094-C and 1095-C Questions and Answers.
  • 17.  How does an ALE member report under the 98 percent offer method?

    An ALE member that certifies that it has offered, for all months of the calendar year, affordable health coverage providing minimum value to at least 98% of its employees for whom it is filing a Form 1095-C, and offered minimum essential coverage to those employees’ dependents, may qualify for simplified reporting procedures.

  • For further details on the 98 percent offer method, see the instructions for Forms 1094-C and 1095-C and the 1094-C and 1095-C Questions and Answers.
  •  
  • Back to top
     

     

    How and When to Report the Required Information

     

    18.  When must an ALE member file the required information return with the IRS?

    An ALE member must file Form 1094-C and Form 1095-C for each employee with the IRS on or before February 28 (March 31 if filed electronically) of the year immediately following the calendar year for which the offer of coverage information is reported.  Because transition relief applies for section 6056 reporting for 2014 (see Notice 2013-45), the first section 6056 returns required to be filed are for the 2015 calendar year and must be filed no later than February 29, 2016, or March 31, 2016, if filed electronically.  Regulations under section 6081 address extensions of time to file information returns.  

    19.  When must an ALE member furnish the statements to full-time employees?

    An ALE member must furnish the statement to each full-time employee on or before January 31 of the year immediately following the calendar year to which the information relates.  This means that the first Forms 1095-C (the statements for 2015) must be furnished to employees no later than February 1, 2016 (January 31, 2016, being a Sunday).

    20.  Must an ALE member file the return with the IRS electronically?

    The regulations require electronic filing with the IRS of Form 1094-C and Form 1095-C except for an ALE member filing fewer than 250 Forms 1095-C during the calendar year.  Each Form 1095-C for each full-time employee is counted as a separate return, and only Forms 1095-C are counted in applying the 250-return threshold for section 6056 reporting. For further details, see Affordable Care Act Information Returns (AIR) Program.

  • 21.  Must an ALE member furnish the employee statements to full-time employees electronically?

    The  regulations permit, but do not require, employers to furnish Form 1095-C electronically to full-time employees if notice, consent, and hardware and software requirements modeled after existing rules are met.  The regulations require that with respect to each full-time employee to whom the information is furnished, the ALE member must obtain consent from the employee before Form 1095-C may be furnished electronically. See the instructions for Forms 1094-C and 1095-C  for additional information about obtaining consent for electronic furnishing.

    22.  May an ALE member furnish a Form 1095-C to an employee by hand delivery?

    Yes. Form 1095-C may be delivered to employees in any manner permitted for delivery of Form W-2 (Wage and Tax Statement). But see question 21 above for the requirements that must be met to furnish employee statements electronically.

    23.  Must an ALE member furnish a Form 1095-C within 30 days of the employee's written request if the employee terminates employment and requests the statement? 

    No.  This requirement is applicable to the furnishing of Forms W-2 (Wage and Tax Statement) under the provisions of section 6051 of the Internal Revenue Code, but is not applicable to the furnishing of a Form 1095-C.  Accordingly, an employer may, but is not required to furnish a Form 1095-C upon an employee’s request following a termination of employment. In addition, if the employer furnishes a Form 1095-C to the employee under such circumstances and the relevant information changes (for example, the employee is rehired before the end of the year), the employer will need to furnish an updated Form 1095-C to the employee reflecting the updated information as filed with the IRS.

    24.  May an employer that is a governmental unit designate a third party to file the return and furnish the statements under section 6056 on its behalf?

    Yes.  The regulations provide that an ALE member that is a governmental unit (defined as the government of the United States, any State or political subdivision thereof, or any Indian tribal government (as defined in section 7701(a)(40)) or subdivision of an Indian tribal government (as defined in section 7871(d)), may report under section 6056 on its own behalf or may appropriately designate another person or persons to report on its behalf.  A person may be appropriately designated to file the return and furnish the statements under section 6056 on behalf of the ALE member if the person is part of or related to the same governmental unit as the ALE member. A government entity that is designated to file for another governmental unit is referred to as a Designated Government Entity (DGE).

    A separate Form 1094-C must be filed for each ALE member for which the appropriately designated person is reporting.  The designated entity would provide the name, address and EIN of both the designated entity and the ALE member for which it is reporting.  Additionally, the regulations require that there be a single identified Form 1094-C reporting aggregate employer-level data for the ALE member (including full-time employees of the ALE member the reporting for which has been transferred to a designated person), and that there be only one Form 1095-C for each full-time employee of the ALE member with respect to employment with that ALE member.  For additional details, see the instructions for Forms 1094-C and 1095-C and the 1094-C and 1095-C Questions and Answers.

  • The designated person must agree that it is the appropriately designated person for the governmental unit and that it is responsible for reporting under section 6056 on behalf of the ALE member.  Thus, the appropriately designated person must agree that it is responsible for the information reporting under section 6056 and is subject to the information reporting penalty provisions of sections 6721 and 6722.  However, the ALE member remains subject to section 4980H.
  • 25.  May an employer that is a governmental unit that sponsors a self-insured employer-sponsored health plan designate a third party to file the return and furnish the statements under section 6055 on its behalf? 

    Yes.  A governmental unit that sponsors a self-insured employer-sponsored health plan may designate its reporting obligations under section 6055 to a DGE. The procedures for a governmental unit to designate a DGE for reporting under section 6055 are the same as those for designating a DGE for reporting under section 6056 as described in question 24 above, and the regulations under section 6055.  As with the designation under section 6056, a governmental unit that designates reporting under section 6055 will remain subject to section 4980H.

    26.  May an employer that is a governmental unit that sponsors a self-insured health plan designate its reporting obligations under section 6055 to a DGE but not designate its reporting obligations under section 6056? 

    Yes.  A governmental unit that sponsors a self-insured employer-sponsored health plan may designate its reporting obligations under section 6055 to a DGE, as discussed in question 24 above, but not designate its reporting obligations under section 6056.

  •  
  • 27. How does a governmental unit delegating reporting responsibility to a DGE affect the requirement that one Form 1094-C be designated as the Authoritative Transmittal containing aggregate employer-level data? 
  • Each governmental unit that is an ALE member must file a single authoritative transmittal Form 1094-C containing the aggregate employer-level data for the governmental unit (meaning the total number of full-time employees and the total number of employees of the governmental unit for each month of the calendar year, regardless of whether a Form 1095-C is transmitted with that Form 1094-C).  However, the governmental unit may designate to the DGE the requirement to file a Form 1094-C authoritative transmittal.  For example, assume County X had 1,000 employees all of whom enrolled in employer-provided coverage, County X provided that coverage to 850 of its 1,000 employees through State Y self-insured plan, and County X delegated its reporting of offer of coverage information for those 850 employees to State Y (whether or not it also delegates its reporting of enrollment in coverage information to State Y).  In that case, County X may also delegate the responsibility to file an authoritative transmittal Form 1094-C, so that the Form 1094-C filed by State Y indicating County X as the employer and State Y as the DGE would also indicate that it is the authoritative transmittal and report that County X had 1,000 employees as well as the number of those employees who were full-time employees.  In that case, the Form 1094-C filed by County X covering the remaining 150 employees would not indicate that it was an authoritative transmittal.      
  •  
  • 28. May an employer hire a third party administrator or other third party service provider to file the return with the IRS and furnish the statements to employees required under section 6056?
    Yes.  Reporting arrangements between ALE members, issuers, and other parties are not prohibited.  However, entering into a reporting arrangement does not transfer the ALE member’s potential liability under section 4980H and (except in the case of a related entity properly designated by a governmental unit) does not transfer the potential liability for failure of the ALE member to file returns and furnish statements under section 6056.  If a person who prepares returns or statements required under section 6056 is a tax return preparer, that person will be subject to the requirements generally applicable to tax return preparers.

    ALE members are responsible for reporting under section 6056. Generally, each ALE member must file a separate Form 1094-C providing that ALE member’s EIN.  If more than one third party is facilitating reporting for an ALE member, there must be only one Form 1094-C authoritative transmittal reporting aggregate employer-level data for the ALE member.  Additionally, there must be only one section Form 1095-C for each full-time employee with respect to employment with that ALE member.   For additional details, see the instructions for Forms 1094-C and 1095-C and the 1094-C and 1095-C Questions and Answers.

  •  
  • 29. For the methods of reporting, including reporting facilitated by a third party, may an ALE member file more than one Form 1094-C?
    Yes.  An ALE member may file more than one Form 1094-C, provided that , one of those transmittals must be an authoritative transmittal reporting aggregate employer-level data for the ALE member. See the instructions for Forms 1094-C and 1095-C  for further details on the authoritative transmittal.

    For example, Corporation XYZ has two separate operating divisions, Division A and Division B. XYZ may file separate Forms 1094-C for Division A and Division B, but must designate one of them as the authoritative transmittal reporting combined employer-level data including both divisions.

  •  
  • 30. May an ALE member satisfy its reporting requirements for an employee by filing and furnishing more than one Form 1095-C that together provide the necessary information?
    No.  There must be only one Form 1095-C for each full-time employee with respect to that full-time employee’s employment with the ALE member, so that all  information for a particular full-time employee of the ALE member is reflected on a single Form 1095-C.

    For instance, in the example in question 29 above, assume an employee worked for both Division A and Division B of Corporation XYZ during the year. Because both divisions are part of the same ALE member (Corporation XYZ), the employee would receive only one Form 1095-C from Corporation XYZ reflecting service in both Division A and Division B.

    By contrast, assume that the two divisions were separate employers, Subsidiary A and Subsidiary B. Each subsidiary is an ALE member that is required to file. An employee that worked for both Subsidiary A and Subsidiary B during the year would thus receive a Form 1095-C from Subsidiary A and a separate Form 1095-C from Subsidiary B.

    Note that a full-time employee of an ALE member may in some circumstances receive a Form 1095-C and a separate form 1095-B reporting coverage information under a self-insured plan sponsored by a related employer (for instance, a DGE that has been delegated reporting authority under section 6055 as discussed in question 26). However, no employee should receive more than one Form 1095-C from the same ALE member.

  •  
  • 31. For information returns filed and furnished in 2017 for coverage offered (or not offered) in 2016 and later years, what penalties may apply if an ALE member fails to comply with the section 6056 information reporting requirements?
    The penalty under section 6721 may apply to an ALE member that fails to file timely information returns, fails to include all the required information, or includes incorrect information on the return.  The penalty under section 6722 may apply to an ALE member that fails to furnish timely the statement, fails to include all the required information, or includes incorrect information on the statement.  The waiver of penalty and special rules under section 6724 and the applicable regulations, including abatement of information return penalties for reasonable cause, may apply to certain failures under section 6721 or 6722.  See question 2, above, for more details on when the information reporting is first required (in 2016 for coverage offered in 2015) and on voluntarily complying with those requirements in 2015 for coverage offered in 2014.  See question 3, above, for information on relief that applies with respect to these penalties for reporting and furnishing in 2016 for coverage offered in 2015.
  •  

Hetzels Overland Transport, Inc. recognized by Mid-West Truckers Association as Trucker of the Month May 2015

Mid-West Truckers Association’s Trucker of the Month is Hetzels Overland Transport, Inc. of Effingham, Illinois.

Owned and operated by Stacey and Darrell Durbin, Hetzels Overland Transport started out in 1993 as Poverty Trucking by Keith Hetzel. Poverty Trucking was providing spotter and shuttle services in Effingham for local business and manufacturing. As customers demanded longer distance services, Keith started Hetzels Overland Transport. Business grew and the company added more trucks to handle the increasing demand for over the road work.

When Keith passed away, his brother Scott stepped in and ran the company operations. He hired Stacey Durbin in 2007 as a secretary to handle invoicing. Stacey had been involved in trucking for years and her husband drove a truck for another local company. Scott’s heart was in farming, not trucking, so in 2009 Stacey and Darrell purchased Hetzels Overland Transport and Poverty Trucking.

Poverty Trucking is still doing spotter services and shuttle service in Effingham just as it has since 1993. Hetzels Overland Transport has had 18-20 trucks since 2009 and still does today.  One of the first things Stacey and Darrell took care of was upgrading all the trucks and trailers to 2010 or newer models. All of the tractors are Internationals. Just the fuel savings alone on the new tractors paid for the cost of upgrading all the equipment.

“We have almost all the same drivers when we bought the company, with very little turnover,” says Stacey. “We like to know our drivers and their families.” They also have a number of owner-operators leased on and pulling freight for Hetzels Overland Transport. With the many trucks and two companies, they have two full-time mechanics working on everything from DOT inspections to complete overhauls.

Stacey and Darrell are happy with the size of their company and are not actively seeking large growth opportunities. They primarily haul Midwest regional van freight in a 500-700 mile radius of Effingham.  With the recent changes to IRP they may look at doing a few east-coast and longer hauls in the future.

Stacey manages the day-to-day operations and Darrell is the safety manager for both companies. They live in Dietrich, IL with their 17 year old daughter Alyssa and have twin girls Amber and Ashley, 21, who are attending Southern Illinois University at Carbondale.

Stacey uses Mid-West Truckers Association to get answers to her trucking questions and takes advantage of the many services provided by MTA. “When I have a question, I never hesitate to call the MTA office and quickly get the answers I need,” she says.

The Board of Directors of Mid-West Truckers Association expresses their true appreciation to Hetzels Overland Transport Inc, and Poverty Trucking for their 22 years of membership and salute Stacey and Darrell Durbin as our May Trucker of the Month.

Congratulations!

To learn more about Mid-West Truckers Association, click here.

Proposed FLSA overtime regs go to OMB for review

The federal Department of Labor (DOL) has submitted proposed changes to the Fair Labor Standards Act (FLSA) overtime regulations to the office of Management and Budget (OMB) for review. These regulations will increase the number of employees nationwide who qualify for overtime.

Employers get ready, because these overtime changes will likely have a substantial effect on your workforce. Many employees who qualify for an exemption from overtime right now, will be entitled to overtime once the regulatory changes are finalized.

How we got here

On March 13, 2014, President Obama issued a Presidential memorandum directing the Secretary of Labor to begin the process of addressing overtime pay protections to increase the number of workers who would qualify for overtime.

In May 2014, the DOL announced in its Semi-Annual Regulatory Agenda, under the section “Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees,” that the DOL was directing the Secretary to “modernize and streamline the existing overtime regulations for executive, administrative, and professional employees.” Proposed rules were originally due out in November 2014 according to the Agenda, but they were delayed.

Thomas Perez, Labor Secretary, has just announced that the proposed regulations have been submitted to the OMB for review. The review process can take anywhere from 30 days to 60 days, or in some cases even longer.

How the changes will look

The DOL changes to the overtime regulations will increase the number of employees nationwide who qualify for overtime in several ways.

First, it is very likely that the DOL will increase the salary threshold required for exemption, perhaps even double it. The current salary threshold for white collar employees is $455 per week. If the threshold increases, more employees will be entitled to overtime.

Second, the DOL may make the duties tests for exemption more difficult to pass. The overtime regulations require that employees perform certain duties in order to be classified as exempt. An exempt administrative, executive, professional, computer, or outside sales employee must have his or her primary duty work that meets the first requirement of the standard duties test for the particular exemption.

A determination of whether an employee passes the primary duty test is based on all the facts in a particular case. The amount of time spent in the performance of the required duties is one key factor.

Third, the DOL may impose a hard and fast minimum 50 percent time requirement on exempt primary duties. Currently, "primary duty" means over 50 percent of the employee's time. However, time alone is not the only test. For example, an employee who does not spend over 50 percent of his or her time in managerial duties might still have management as his or her primary duty if other pertinent factors are present. These include:

  • The relative importance of the executive duties as compared with other types of duties
  • The amount of time spent performing exempt work
  • His or her relative freedom from supervision
  • The fact that his or her salary is greater than the wages paid to other employees for the kind of nonexempt work performed by the executive

If a hard and fast minimum 50 percent time requirement is imposed on exempt primary duties, then these factors will no longer play into the analysis.

Cost to employers

Most employers will be affected by the changes to the FLSA regulations. In addition, most business establishments will incur costs from the changes. What types of costs are we talking about? Some costs will be one-time implementation costs and other costs will be ongoing for an indefinite period of time.

  • Devoting time to reading and understanding the new regulations
  • Updating corporate overtime policies to comply with the FLSA changes
  • Establishing communication between employers and employees about the benefits of qualifying as an exempt or nonexempt employee
  • Reviewing job categories and job descriptions to classify them as either exempt or nonexempt
  • Paying overtime to those employees who exceeded the current salary threshold of $455 per week, but will fall below the new salary level—yet to be announced
  • Increasing the salaries of certain employee groups to raise them above the salary threshold to classify them as exempt
  • Facing lawsuits by employees who claim they qualify for overtime under the FLSA

Conduct a self-audit

To help ensure that your company will not be subject to an FLSA claim or a DOL audit, conduct an internal audit once the proposed regulations are released. Review job descriptions to determine whether they are still accurate, reflect the jobs being performed, and reflect the skills necessary to perform the job.

Do you have the required posters hung in the appropriate places in the workplace? That is an easy violation for DOL investigators to spot right when they walk through the doors of your company.

Make sure you have properly calculated overtime for nonexempt employees. And pay past overtime due to employees you have misclassified. Paying them now will be far less expensive than paying them in a DOL settlement or class action lawsuit.

 

REFERENCE: HR.BLR  Susan E. Prince, J.D.

Top 5 Actions to Prevent Calls That Can Kill

Thank you for celebrating with us Distracted Driving Awareness Month. As April closes down, you can still put an end to distracted driving and help save lives throughout the year.

  1. Avoid using hands-free devices while driving.
  2. Don’t use your dashboard Infotainment system for tasks unrelated to driving.
  3. Change your voicemail message to tell people that you may be driving and will call them back when you can safely do so.
  4. Share with others this educational Infographic and video.
  5. Register for our FREE April 21 webinar "Hands-free or Handheld: Risks your Workplace Can’t Afford."

For more FREE resources including posters, fact sheets, and the NSC Cell Phone Policy Kit, visit us at nsc.org/cellfree.
   
Thanks again for helping to promote Distracted Driving Awareness Month and spreading important safety messages.

National Safety Council   1121 Spring Lake Dr    Itasca,  IL   60143-3201   United States
 

This Week's Training Shorts

 

Click here to log in to your personalized platform

 

These training shorts can increase safe work habits, productivity, and morale. The shorts cover a wide variety of work-related subjects to assist your organization in preventing injuries.

Ladders - Selection and Maintenance - English

Guidelines for the selection and maintenance of ladders.
Ladders - Selection and Maintenance - English

 

April is Distracted Driving Awareness Month

Traffic crashes are the leading cause of workplace death. With one in four crashes estimated to involve cell phone use, we need to be concerned. Join NSC in educating your workers on the risks of driver cell phone use. Calls kill - it doesn't matter if a driver is talking on a handheld or hands-free device. More than 30 studies show hands-free doesn't make a driver any safer - the brain remains distracted by the conversation.

Join us for two free webinars, hosted by experts on distracted driving:

April 9, "Our Brains on Technology: A Risky Combo for Drivers"

April 21 "Hands-free or Handheld: Risks your Workplace Can't Afford."

Download these resources including, posters, fact sheets and a PowerPoint presentation to engage your employees during Distracted Driving Awareness month.

Encourage your employees to take the Focused Driver Challenge and pledge to drive cell free.

http://files.ctctcdn.com/5a30c209001/0fc72d56-8d22-4801-87a3-7294cf2bd9ef.jpgDon't Assume the Driver Sees You

Focused Driver Challenge

Just Not Worth It

Consequences Can Be Deadly

Factsheet Habits Worth Breaking

Factsheet Hands Free Myth

 

Visit nsc.org/cellfree for details.

REFERENCES: National Safety Council, 1121 Spring Lake Drive, Itasca, IL 60143-3201, Benefits Spotlight, April 2015

This Week's Training Shorts

 

Click here to log in to your personalized platform

 

These training shorts can increase safe work habits, productivity, and morale. The shorts cover a wide variety of work-related subjects to assist your organization in preventing injuries.

Incident Investigation - English

What to do when investigating an accident.
Incident Investigation - English

Incident Investigation - Spanish

What to do when investigating an accident.
Incident Investigation - Spanish

 

 

This Week's Training Shorts

These training shorts can increase safe work habits, productivity, and morale. The shorts cover a wide variety of work-related subjects to assist your organization in preventing injuries.

Safety - Everyone's Responsibility - English

Presents the worker's responsibility for creating a safe workplace.
Safety - Everyone's Responsibility - English

Safety - Everyone's Responsibility - Spanish

Presents the worker's responsibility for creating a safe workplace.
Safety - Everyone's Responsibility - Spanish

 

Office Closing Early 03/04/2015

Due to inclement weather in our area, we have decided to close our office at 3pm today, March 4th, 2015.

The Tedrick Group Recognizes Bolin Enterprises, Inc. as a Wellness Partner and Champion

Casey, Ill. (February 27, 2015) – Bolin Enterprises, Inc. a pipeline maintenance company in Casey, Ill., was recognized by The Tedrick Group as its first annual Corporate Wellness Partner. Additionally, Bolin Enterprises, Inc. HR and Marketing Manager, Deb Bohannon, was recognized by The Tedrick Group as its first annual Wellness Champion recipient.

 

The Tedrick Group Risk Management Consultants, Scott Giles and Chad Brandon, presented the recognition during the weekly Monday morning safety meeting on February 23, 2015.

 

The Tedrick Group, Risk Management Solutions, is committed to the growth and success for their customers throughout their initiatives involving Healthcare, Human Resources & Benefits and promoting a safe working environment. The Tedrick Group created the Wellness Partner and Champion Recognition Awards in 2014 as a way to acknowledge how companies are challenging themselves to accommodate the recent healthcare industry changes and to improve the overall health of their employee base.

 

“I am honored that Bolin Enterprises, Inc. has received these recognitions,” says Judy Bolin, President. “We have always had a Safety First moto in which our goal is that each day concludes with completing the circle of excellence and all employees return home safely.  Getting annual Wellness checks and being aware of health risks is part of that too.”

 

Bolin Enterprises, Inc. (BEI) a major pipeline company was started in 1986 as a family owned paint and body shop. In 1987, BEI began performing sandblasting and painting of exposed pipe locations. This rapidly expanded to include a variety of pipeline maintenance projects that propelled BEI into the pipeline maintenance arena with contracts with several pipeline companies. In 2003, BEI expanded services to include Underground Storage Tank (UST) and Aboveground Storage Tank (AST) Inspections / Cleanings / and Coatings. They are currently performing UST and AST Tank Inspections in all 50 states and Puerto Rico.

 

BEI is centrally located between Indianapolis, IN and St. Louis, MO on Interstate 70, placing the company in the heart of many major pipelines and communication hubs in St. Louis, Chicago, Detroit, Columbus and various Kentucky markets.  For more information visit Bolin Enterprises, Inc. website at www.bolininc.com.  General inquiries can be emailed to info@bolininc.com or call BEI direct at 1-800-650-7834.

 

 

###

Pages