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Accounting, Payroll & Pension Issues/1099 benefits
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Question
We currently have 7 full time employees who receive $100 a month towards their medical benefits if they have proof of insurance. However, we reimburse our 1099 contractor 100% of his medical benfits.
1) If we continue with the 1099 relationship - do we need to offer the same benefits to the our current full time employees?
2) If we change the status of the 1099 to an actual employee (State of Connecticut) - is it mandatory that we offer the same 100% reimbursement to the other employees?
It is not necessary that the 1099 contractors be offered the same benefits as the employees or vice versa.
If the 1099 contractors become employees than yes all employees should have the same benefits but than if they are employees they could be offered the 100 a month benefit the same as employees.
Shirley
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Answers by Expert:
Shirley McAllister, CPP, PHR
Expertise
I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.
Experience
25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.
Organizations
SHRM, APA, I.O.M.A.
Publications
I.O.M.A. and BNA
Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration.
Boise State University Human Resource Certification
Awards and Honors
APA Hotline Citation of Merit for last 8 years.
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