Wage Parity Revisited

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PAYROLL SERVICES TM Presented by: Yonina Shineweather CPA [email protected] Zishe Glauber [email protected] 07/23/2014 1 NY Wage Parity Revisited: How Surprising New Developments Impact Your Business

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The Home Care Worker Parity Living Wage Law brought about sweeping reforms for the home health care industry. Now, surprising guidance released in May, 2014 has shaken many assumptions about overtime pay and additional wages. Is your company in compliance with the new guidance? BDB Payroll Services provides you with a step-by-step update on these challenging developments: ~ Overtime and Wage Parity: The Good, the Bad and the Ugly ~ Surprise! New Revelations about Additional Wage ~ Use it or Lose it Rule ~ Coordination with NYC Paid Sick Leave Law ~ Self-Insured Plans Redux: Are They Compliant? ~ QIVAPP update ~ BDB Solutions for Healthcare Businesses Slides were presented at a Special Webinar for BDB's clients who operate in the healthcare industry and BDB's affiliate CPA's.

Transcript of Wage Parity Revisited

  • PAYROLL SERVICES TM Presented by: Yonina Shineweather CPA [email protected] Zishe Glauber [email protected] ! 07/23/2014 1 NY Wage Parity Revisited: How Surprising New Developments Impact Your Business
  • PAYROLL SERVICES TM Part I: The Old and The News 2
  • PAYROLL SERVICES TM 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 certied 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
  • PAYROLL SERVICES TM A Brief Wage Parity History 4 New$York$City$ Nassau,$Suolk$,$Westchester$ March&1,&2012& Base:&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&$9.00& Addi5onal:& Supplemental:&&&&&&&&&&&&&&&&&&&&$1.35&&&&&&&&&&&&&&&90%& OT:&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&$10.88&???& Base:& Addi5onal:& Supplemental:& OT:&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&$10.88& March&1,&2013& Base:&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&$&9.50& Addi5onal:& Supplemental:&&&&&&&&&&&&&&&&&&&&&$&1.43&&&&&&&&&&&&&&95%& OT&(un5l&12/31/13):&&&&&&&&&&&$10.88&???& Base:&&&&&&&&&&&&&&&&&&&&&&&&&&&$&9.00& Addi5onal:& Supplemental:&&&&&&&&&&&$&&1.35&&&&&&&&&&&&&&&&&&&90%& OT&(un5l&12/31/13):&$10.88&???& March&1,&2014& Base:&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&$10.00& Addi5onal:&&&&&&&&&&&&&&&&&&&&&&&&&&&$1.69& Supplemental:&&&&&&&&&&&&&&&&&&&&&$2.40&&&&&&&&&&&&&&&100%& OT&(from&12/31/13):&&&&&&&&&&&$16.09& Base:&&&&&&&&&&&&&&&&&&&&&&&&&&&&$&&9.50& Addi5onal:& Supplemental:&&&&&&&&&&&&$&&1.43&&&&&&&&&&&&&&&&&&95%& OT&(from&12/31/13):&$13.43& January&1,&2015& Base:&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&$10.00& Addi5onal:&&&&&&&&&&&&&&&&&&&&&&&&&&&$1.69& Supplemental:&&&&&&&&&&&&&&&&&&&&&$2.40&&&&&&&&&&&&&&&100%& OT:&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&$19.09& Base:&&&&&&&&&&&&&&&&&&&&&&&&&&&$&9.50& Addi5onal:& Supplemental:&&&&&&&&&&&$&1.43&&&&&&&&&&&&&&&&&&&&95%& OT:&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&$15.68& March&1,&2015& SAME&AS&ABOVE& Base:&&&&&&&&&&&&&&&&&&&&&&&&&&&$10.00& Addi5onal:&&&&&&&&&&&&&&&&&& Supplemental:&&&&&&&&&&&$2.40&&&&&&&&&&&&&&&&&&&&&&&100%& OT:&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&$17.40& & March&1,&2016& SAME&AS&ABOVE& Lesser&of:&115%&of&the&total&compensa5on&of& NYC;&&OR& the&total&compensa5on&mandated&by&the&living& wage&law&of&Nassau,&Suolk&or&Westchester& coun5es&depending&on&episode&of&care& loca5on.& & PAYROLL SERVICES TM
  • PAYROLL SERVICES TM What Qualifies as Supplemental Wage? Health Pension Dental Vision Medical FSA Life insurance Extended disability Critical injury PTO Transit checks (DOH silence) Child care benets Education (voluntary, for employees, not work related) 5
  • PAYROLL SERVICES TM 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
  • PAYROLL SERVICES TM SURPRISE! NEW REVELATIONS 7 ABOUT ADDITIONAL WAGE
  • PAYROLL SERVICES TM ADDITIONAL WAGES CAN BE SUPPLEMENTAL WAGES! 8 (1199 United Healthcare Workers was right)
  • PAYROLL SERVICES TM ADVANTAGES TAX BENEFITS ACA BENEFITS ($1.69 + $2.40) x 40 HOURS = $163.60 / WEEK $708.93 / MONTH CREATIVE BENEFIT ARRANGEMENTS POSSIBLE 9
  • PAYROLL SERVICES TM DISADVANTAGES EXISTING PTO MAY SATISFY REQUIREMENTS DIFFERENTIALS: AVERAGE OVER WORKFORCE EMPLOYER GAINS FROM USE IT OR LOSE IT 10
  • PAYROLL SERVICES TM 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 Years 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 ve holidays designated by the employer for premium pay Live-in work: an extra $16.95 per day, or $1.4125 per hour Weekend work: an extra $1.10 per hour Multiple clients: an extra $0.50 per hour 11
  • PAYROLL SERVICES TM 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
  • PAYROLL SERVICES TM USE IT OR LOSE IT RULE Employers can limit roll-overs No guidance on limits of limit 13
  • PAYROLL SERVICES TM 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 = $0.37 14
  • PAYROLL SERVICES TM Overtime: The Good, the Bad and the Ugly 15
  • PAYROLL SERVICES TM The Way it Was 1. No DOH guidance, even to NYSAHCP 2. PHI position: no wage parity for OT: $12.00 3. Some: Pay regular time wage parity: $14.09 4. Some: Pay OT + sup. + addit: $16.09 16
  • PAYROLL SERVICES TM The Good May, 2014 FAQs provide guidance 17
  • PAYROLL SERVICES TM The Bad Wage Parity is required for all hours Including OT hours 18
  • PAYROLL SERVICES TM The Ugly Wage Parity is required for all hours Including OT hours IN ADDITION TO OT PREMIUMS! 19
  • PAYROLL SERVICES TM The Way It Is 20 NYC Counties OT Rate (1.5 x $8) = $12.00 $12.00 Suppleme- ntal Wage = $2.40 $1.43 Additional Wage = $1.69 Total Rate = $16.09 $13.53
  • PAYROLL SERVICES TM The Way It Will Be 1/1/15 21 NYC Counties OT Rate (1.5 x $10, 9.50) = $15 $14.25 Suppleme- ntal Wage = $2.40 $1.43 Additional Wage = $1.69 Total Rate = $19.09 $15.68
  • PAYROLL SERVICES TM The Way It Could Be OT audits retro to 3/1/12 Legal challenges Seek legal counsel 22
  • PAYROLL SERVICES TM QIVAPP UPDATE 23 Q uality I ncentive V ital A ccess P rovider P ool
  • PAYROLL SERVICES TM REQUIREMENTS Maintain/participate in aides specialty training - beyond DOH minimum Implemented written QA program Participate in health benets fund OR Provide comprehensive health benets http://www.health.ny.gov/health_care/medicaid/redesign/docs/2014-06-13-_benets_overview_qivapp_application_attach2.pdf 24
  • PAYROLL SERVICES TM WHATS AVAILABLE? 1. Pool of $70 million 2. $0.30-1.00 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
  • PAYROLL SERVICES TM Self-Insured Plans Redux: ! Are They Compliant? 26
  • PAYROLL SERVICES TM ! 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
  • PAYROLL SERVICES TM Part II: BDBs Exclusive Wage Parity Solutions 28
  • PAYROLL SERVICES TM Introduction: PayStreamTM In-house developed and proprietary Fully customizable based on client need Web and remote apps anywhere, anytime Advanced, rigorous data security 29
  • PAYROLL SERVICES TM 1. Retroactive Overtime Calculations 2. Automatic Wage Parity Calculations 3. Automatic OT Calculations 4. Automatic Min Wage Calculations 5. Benet Plan Data Transmission 6. HHA Software Integration 7. Education and Research Resource 30
  • PAYROLL SERVICES TM Retroactive Overtime Calculations * Date of service (charge date) controls * Late timesheets wont 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
  • PAYROLL SERVICES TM 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
  • PAYROLL SERVICES TM 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
  • PAYROLL SERVICES TM Automatic wage parity calculations BDB Exclusive Feature 2: ! ! ! ! ! ! ! ! ! *** With BDBs 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 DOS$ Loca)on$ Type$of$ service$ Jamess$ Hourly$ Rate$ BDB$reports$addi)onal$ wage$liability$per$hour$ BDB$reports$supplemental$ wage$liability$per$hour$ 5/5/14$ NYC$ Medicaid$$ $10.00$ $1.69$ $2.40$ 5/6/14$ NYC$ Private$$ $10.00$ 0$ 0$ 5/7/14$ Suolk$$ Medicaid$ $10.00$ 0$ $0.93$ 12/14/13$ NYC$ Medicaid$ $10.00$ 0$ $0.93$ 5/8/14$ Nassau$$ Medicaid$ $12.00$ 0$ 0$ 5/9/14$ NYC$ Medicaid$ $11.00$ $0.69$ $2.40$$$$***$ 12/20/13$ Westchester$$ Medicaid$ $10.00$ 0$ $0.35$ $$ $$ $$ $$ $$ $$
  • PAYROLL SERVICES TM Automatic wage parity calculations 35 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. Henrys default rate is set to wage parity settings.
  • PAYROLL SERVICES TM Automatic wage parity calculations BDB Exclusive Feature 3: ! 36 DOS$ Loca)on$ Type$of$ service$ Henrys$ 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$ $10.00$ $1.69$ $2.40$
  • PAYROLL SERVICES TM 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-by- employee basis. 37
  • PAYROLL SERVICES TM 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 Nelsons 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 Deloriss 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 Eleanors regular rate, 5 hours at her OT rate and 2 hours at her double time rate. 38
  • PAYROLL SERVICES TM 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
  • PAYROLL SERVICES TM Benefit Plan data transmission BDB transmits supplemental liabilities directly to a) Insurance companies b) Debit card programs c) Transit card programs d) All other benet programs each payroll, or monthly using each providers specications and saving you time and effort. 40
  • PAYROLL SERVICES TM Benefit Plan data transmission BDB transmits census reporting for employee le changes as most insurance providers require. 41
  • PAYROLL SERVICES TM 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
  • PAYROLL SERVICES TM HHA Software Integration BDBs great relationships with HHA software vendors eliminate nger pointing and ensure speedy, painless issue identication and resolution. 43
  • PAYROLL SERVICES TM ! ! Education and Research Resource ! BDBs team of payroll specialist CPAs and CPPs are standing ready to help you solve your toughest wage parity issues. 44
  • PAYROLL SERVICES TM ! CPE Credit ! Certicate of Course Completion will be emailed to registered address To request alternate address, email [email protected] 45
  • PAYROLL SERVICES TM Thank You! 46