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About Shirley McAllister, CPP, PHR
Expertise
I can answer questions about payroll laws and payroll tax laws and Human Resource laws and agencies. I can answer federal payroll and human resource law questions and most states; I do not have a knowledge of the local taxes for cities and counties within the state. If and when I can I will try and send you the website where you can reference the answer and where you can obtain more information as well as a contact number if needed for that particular agency. Some agencies I have worked with are IRS, Department of Labor (federal and state), Revenue Canada (and provincial governments), Inland Revenue, OSHA (0ccupational Safety and Health Administration); Social Security Administration and National Child Support as well as other agencies in Payroll and Human Resources. Some Laws I am particularly familiar with are FLSA (Fair Labor Standards Act), ADA (Americans With Disabilities Act), FMLA (Family Medical Leave Act) COBRA (Consolidated Omnibus Reconciliation Act ) , QDRO's, QMCSO's, and other support orders and garnishments, USERRA (Uniformed Services Employment and Remployment Rights Act,PPA Act (Pension Protection Act of 2006, As well as most other employment type acts. I am also well versed in the Title V Civil Rights Act and the HIPAA (Health Insurance Portability and Accountability Act).

Experience
25 years in Payroll and Human Resources

Organizations
SHRM (Society of Human Resources) APA (American Payroll Association) DOLEA (Department of Labor Employers Association)

Education/Credentials
PHR Certification in Human Resources CPP Certification in Payroll in U.S. Payroll Administrator and Payroll Supervisor certification in Canada

You are here: Experts > Business > Corporate Law > Employment Law > exempt employees

Employment Law - exempt employees

Expert: Shirley McAllister, CPP, PHR - 10/27/2009

Question
Our employer has paid for exempt employees insurance for many, many years as a benefit. This month we got a letter stating that they can no longer pay for our insurance as a benefit. Stating it is a violation of an IRS regulation. We are all shocked by the news. It was the only benefit of being exempt.

Answer
Sorry to tell you but I have never heard of this being a benefit of being exempt. I have been doing HR and benefits for over 30 years.

Insurance is a benefit and if it is paid for the employee it can be deducted as an employee benefit. I pay 100% of the employee's insurance and 60% of dependent insurance. This is not a violation of IRS regulations.

I cannot pay for exempt benefits and not pay for non exempt benefits, this would be a violation of the law.

I do not know of a regulation that IRS has which would prevent the employer paying for insurance for the employee.

If the employer pays life insurance anything over 50,000 becomes taxable to the employee, which is why we capped our life insurance at 50,000.

I think someone is misinterpreting the rules. The company is not mandated to pay for insurance for the employees which means that he does not have to pay it, but I do not agree that there is a rule saying he cannot unless he is discriminating against non exempt and does not want to pay for the non exempt so he is paying for no employees.

Shirley

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