NY Wage Parity Revisited:

Transcription

1 NY Wage Parity Revisited: How Surprising New Developments Impact Your Business Presented by: Yonina Shineweather CPA Zishe Glauber 07/23/2014 1

2 Part I: The Old and The News 2

3 Public Health Law 3614-c Home Care Worker Wage Parity. Beginning March 1, 2012, established a minimum wage for home care aides who perform Medicaid reimbursed work for certified home health agencies (CHHAs), long term home health care programs (LTHHCPs) and managed care organizations (MCOs) within New York City and within the counties of Nassau, Suffolk and Westchester. 3

4 What Qualifies as Supplemental Wage? Health Pension Dental Vision Medical FSA Life insurance Extended disability Critical injury PTO Transit checks (DOH silence ) Child care benefits Education (voluntary, for employees, not work related ) 5

5 What qualifies as Additional Wage? Not overtime Vacation Sick Holiday Personal Shift or assignment differential/premium 28 PTO days per year Accruals to meet NYC Sick Pay Law AND THE NEWS. 6

6 SURPRISE! NEW REVELATIONS ABOUT ADDITIONAL WAGE 7

7 ADDITIONAL WAGES CAN BE SUPPLEMENTAL WAGES! (1199 United Healthcare Workers was right) 8

8 ADVANTAGES TAX BENEFITS ACA BENEFITS ($ $2.40) x 40 HOURS = $ / WEEK $ / MONTH CREATIVE BENEFIT ARRANGEMENTS POSSIBLE 9

9 DISADVANTAGES EXISTING PTO MAY SATISFY REQUIREMENTS DIFFERENTIALS: AVERAGE OVER WORKFORCE EMPLOYER GAINS FROM USE IT OR LOSE IT 10

10 Is Your Package as Good or Better? Annual leave: accrued at one hour for every 26 worked (up to 2.3 hours per week and 10 days or 120 hours per year) Sick leave: accrued at one hour for every 26 worked (up to 2.3 hours per week and 10 days or 120 hours per year) Personal day: accrued at one hour for every 250 worked (up to 8 hours per year) Holidays: New Year s Day, Martin Luther King Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day Paid time off: when they fall on days that the employees are scheduled to work Premium pay: 1.5 times the base, when employees work on any of five holidays designated by the employer for premium pay Live-in work: an extra $16.95 per day, or $ per hour Weekend work: an extra $1.10 per hour Multiple clients: an extra $0.50 per hour 11

11 Weighted Average of Differentials Allowed Total wage differentials paid to covered workers divided by total hours worked by covered workers >= $1.69 If < $1.69, use PTO accruals to supplement 12

12 USE IT OR LOSE IT RULE Employers can limit roll-overs No guidance on limits of limit 13

13 Coordination with NYC Paid Sick Leave Law NYC sick accruals count as Additional Valued at $0.33 toward the $1.69 1/30 x $10 = $0.33 If rate is > $10.00, accrual is worth more Example: Employee rate = $11 Accrual is worth $0.37 toward the $1.69 1/30 x $11 = $

14 Overtime: The Good, the Bad and the Ugly 15

15 The Way it Was 1. No DOH guidance, even to NYSAHCP 2. PHI position: no wage parity for OT: $ Some: Pay regular time wage parity: $ Some: Pay OT + sup. + addit: $

16 The Good May, 2014 FAQs provide guidance 17

17 The Bad Wage Parity is required for all hours Including OT hours 18

18 The Ugly Wage Parity is required for all hours Including OT hours IN ADDITION TO OT PREMIUMS! 19

19 The Way It Is NYC Counties OT Rate (1.5 x $8) = $12.00 $12.00 Supplemental Wage = $2.40 $1.43 Additional Wage = $1.69 Total Rate = $16.09 $

20 The Way It Will Be 1/1/15 NYC Counties OT Rate (1.5 x $10, 9.50) = $15 $14.25 Supplemental Wage = $2.40 $1.43 Additional Wage = $1.69 Total Rate = $19.09 $

21 The Way It Could Be OT audits retro to 3/1/12 Legal challenges Seek legal counsel 22

22 QIVAPP UPDATE Q I V A P P uality ncentive ital ccess rovider ool 23

23 REQUIREMENTS Maintain/participate in aides specialty training - beyond DOH minimum Implemented written QA program Participate in health benefits fund OR Provide comprehensive health benefits 24

24 WHAT S AVAILABLE? 1. Pool of $70 million 2. $ per hour additional reimbursement 3. For NYC service hours only 4. To come between now and 3/31/15 5. For service through 12/31/14 6. No funds yet: MLTC surveys ended last week 7. Applications due by 8/1/14 25

25 Self-Insured Plans Redux:! Are They Compliant? 26

26 ! IT DEPENDS Actual contribution required Trust Escrow Not book entry No retro reduction of contribution below parity Beware of refunds/dividends from unclaimed funds Some indirect arrangements meet wage parity Know your broker 27

27 Part II: BDB s Exclusive Wage Parity Solutions 28

28 Introduction: PayStream In-house developed and proprietary Fully customizable based on client need Web and remote apps anywhere, anytime Advanced, rigorous data security 29

29 1. Retroactive Overtime Calculations 2. Automatic Wage Parity Calculations 3. Automatic OT Calculations 4. Automatic Min Wage Calculations 5. Benefit Plan Data Transmission 6. HHA Software Integration 7. Education and Research Resource 30

30 Retroactive Overtime Calculations * Date of service (charge date) controls * Late timesheets won t disturb compliance! BDB Exclusive Feature 1: Magda Johnson submits a timesheet for period ending 3/14/14 showing 39 hours worked. On 5/2/14, she remembers to report an additional home visit on 3/12/14 of 5 hours. BDB will automatically divide the 5 hours into 1 hour regular pay (40-39 previously reported hours) and 4 hours overtime pay and include the additional amount with her current paycheck. 31

31 Automatic wage parity calculations I. Track wage parity liabilities employee by employee for every hour worked based on service a) type b) location c) date II. No manual calculations or spreadsheet tracking 32

32 Automatic wage parity calculations BDB Exclusive Feature 2: James Brook reports hours and rates for the period ended 5/9/14 as follows. Note that although James is reporting 2013 service dates in 2014, BDB uses the wage parity rates and rules in effect for 2013 for calculating liabilities for those dates. Thus, for the 12/14/13 service date in NYC, no additional wage liability is computed and supplemental wage computations use the 2013 rates. 33

33 Automatic wage parity calculations BDB Exclusive Feature 2:! DOS$ Loca)on$ Type$of$ James s$ BDB$reports$addi)onal$ BDB$reports$supplemental$ service$ Hourly$ wage$liability$per$hour$ wage$liability$per$hour$ Rate$! 5/5/14$ NYC$ Medicaid$$ $10.00$ $1.69$ $2.40$ 5/6/14$ NYC$ Private$$ $10.00$ 0$ 0$ 5/7/14$ Suffolk$$ Medicaid$ $10.00$ 0$ $0.93$ 12/14/13$ NYC$ Medicaid$ $10.00$ 0$ $0.93$ 5/8/14$ Nassau$$ Medicaid$ $12.00$ 0$ 0$ 5/9/14$ NYC$ Medicaid$ $11.00$ $0.69$ $2.40$$$$***$ 12/20/13$ Westchester$$ Medicaid$ $10.00$ 0$ $0.35$ $$ $$ $$ $$ $$ $$ *** With BDB s complete flexibility, you can choose to apply amounts in excess of base wage to supplemental wage before additional wage. This chart shows the default setting of applying to additional wage before supplemental wage.!!!!!!! 34

34 Automatic wage parity calculations When wage parity rates change mid pay-period, BDB tracks hour by hour and saves you money, instead of lumping all hours together at the higher rates in effect at period end.! BDB Exclusive Feature 3: The Helpers, a LHCSA, has a payroll period that ends on Wednesday. For the week ended March 5, 2014, Henry Gluck reports hours as follows. Henry s default rate is set to wage parity settings. 35

35 Automatic wage parity calculations BDB Exclusive Feature 3:! DOS$ Loca)on$ Type$of$ service$ Henry s$ Hourly$ Rate$ BDB$reports$addi)onal$ wage$liability$per$hour$ BDB$reports$supplemental$ wage$liability$per$hour$ 2/27/14$ NYC$ Medicaid$ $9.50$ 0$$ $1.43$ 2/28/14$ Nassau$ Medicaid$ $9.00$ 0$ $1.35$ 3/3/14$ NYC$ Medicaid$ $10.00$ $1.69$ $2.40$ 3/4/14$ Nassau$ Medicaid$ $9.50$ 0$ $1.43$ 3/5/14$ NYC$ Medicaid$ $10.00$ $1.69$ $2.40$ 36

36 Automatic Overtime Calculations Some popular time and attendance packages export only total hours BDB allocates hours appropriately between regular and overtime pay based on state wage and hour laws. If you have double time or premium rules, BDB calculates pay accordingly on an employee-byemployee basis. 37

37 Automatic Overtime Calculations BDB Exclusive Feature 4 Nelson Baker is a home health care worker. In New York. Your T&A software exports 45 hours for him for a workweek. BDB will automatically pay 40 hours at Nelson s regular rate and 5 hours at his OT rate.! Deloris Caller is a live-in companion in New York. Your T&A software exports 45 hours for her for a workweek. BDB will automatically pay 44 hours at Deloris s regular rate and 1 hours at her OT rate.!! Eleanor Davis is paid double time for hours in excess of 45. Your T&A software exports 47 hours for her for a workweek. BDB will automatically pay 40 hours at Eleanor s regular rate, 5 hours at her OT rate and 2 hours at her double time rate. 38

38 Automatic Minimum Wage Calculations Date of service controls BDB uses minimum rates in effect for old service dates reported late BDB checks state of each service for required minimum wage Overtime will also be based on rates in effect on date of service No manual calculations or spreadsheet tracking BDB will override incorrect T&A package settings that may use higher, current rates for old service dates You can set employee minimum rates with effective starting dates, to ensure compliance with changing wage parity rates. 39

39 Benefit Plan data transmission BDB transmits supplemental liabilities directly to a) Insurance companies b) Debit card programs c) Transit card programs d) All other benefit programs each payroll, or monthly using each provider s specifications and saving you time and effort. 40

40 Benefit Plan data transmission BDB transmits census reporting for employee file changes as most insurance providers require. 41

41 HHA Software Integration BDB integrates seamlessly with leading HHA software packages Ability to import: hours worked client names type of service date of services any other data items your software captures All imported items can also be included on employee pay stubs for ease of reference 42

42 HHA Software Integration BDB s great relationships with HHA software vendors eliminate finger pointing and ensure speedy, painless issue identification and resolution. 43

43 !! Education and Research Resource! BDB s team of payroll specialist CPAs and CPPs are standing ready to help you solve your toughest wage parity issues. 44

44 ! CPE Credit! Certificate of Course Completion will be ed to registered address To request alternate address, 45

45 Thank You! 46