san francisco health care security ordinance lindquist update

8/2/2019 San Francisco Health Care Security Ordinance Lindquist Update

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San Francisco EmployersAdvisory CouncilKyle S. Whittemore - PartnerLindquist LLPMarch 1, 2012


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About Lindquist LLP Founded in 1975 in the Bay Area Four West Coast locations:

San Ramon Orange (Los Angeles) Seattle

Portland Ten partners, approximately 70 professionals

and staff

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Specialty Areas Employee benefit plans

Multiemployer Single-employer

Labor organizations Not-for-profit entities

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Services Audits, Review, Compilations Exempt Organization Reporting

(Forms 5500, 990) Payroll Compliance Audits Claims Payment and Administration Review

Accounting and Bookkeeping Support

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Industry Involvement International Foundation of Employee Benefit

Plans (IFEBP) Advisory Board Financial Review Committee Professionals Committee

American Institute of Certified Public Accountants (AICPA)

California Society of Certified Public Accountants

Western Pension and Benefits Conference

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Industry Involvement (Contd) Speakers, moderators and participants at the:

AICPA National Conference on Employee Benefit PlansNational Governmental Accounting and Auditing UpdateNot-for-Profit Auditing and Accounting Update

IFEBP Annual ConferenceBenefit Plan Professionals InstituteCollection Procedures Institute

Western Claim Conference Western Pension and Benefits Conference

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San Francisco Health Care SecurityOrdinance (HCSO) Enacted July 2006 (Ordinance 218-06) Access to affordable health care

SF residents Non-SF residents working in SF

Minimum health care spend requirement for SF

employers Effective January 2008

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Health Care Spend RequirementSection 14.3

Covered Employers shall makerequired health care expenditures toor on behalf of their Covered

Employees each quarter.

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Hours Paid times Expenditure Rate


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Health Care Spend RequirementCovered Employer

SF business registration certificate20 or more EEs (50 if nonprofit) All EEs, not just SF

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Health Care Spend RequirementCovered Employee

Working in City/County of SFDriving through noMake stops - yes

Entitled to minimum wage

Employed 90 days after hire dateMinimum of 8 hours per week Exemptions (ex. Mgr > $84,051)

Waivers for other coverage

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Health Care Spend RequirementHours Paid

Work performed in the City Not to exceed 172 hours per month

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Reporting RequirementsTo the City

Annual Reporting Form (ARF)To employees

Health Care Payment ConfirmationPayments made to the City option

Contribution summary (new 2012)Separation summary (new 2012)

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Office of Labor StandardsEnforcements (OLSE)Responsible for enforcement of

HCSOCollect compliance data (ARFs) Investigations

Analyzed the 2010 ARFs

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Findings of Analysis of 2010 ARFs Increased use of reimbursement plans at

the expense of health insurance Average reimbursement rate was 20%(median 12%)

$62 million allocated ($50 millionunspent) Consistent with prior years

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2011 Amendment New Ruleseffective January 1, 2012 HCSO Notice posting requirement

Reimbursements accounts * Surcharges * New and increased penalties

*New reporting requirements

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Reimbursement Accounts Available for 24 months from the date

of contribution Written summary to EE w/in 15 days of the date of contribution

Where, when, amount, activity

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Reimbursement Accounts Rules at separation

Balance available for 90 days afterseparation

Provide written notice w/in 3 daysBalance, expiration dates

Reminder contribution likely due atseparation New reporting on ARF

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Surcharges

Full amount collected must be spent onemployee health care

New reporting on ARF

Violations consumer fraud NOTE: State BOE - Sales tax applies to

surcharge collected

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Penalties Required penalties for late

expenditures Increased penalties Failure to maintain accurate records

Failure to submit ARF

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Questions

andContact Information

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Website: www.lindquistcpa.comEmail: [email protected] Phone: 925-277-9100

Stephanie [email protected]
mailto:[email protected]:[email protected]

san francisco health care security ordinance lindquist update

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