Legislative Brief: HSA Limits Will Increase for 2013

The Internal Revenue Service (IRS) issued Revenue Procedure 2012-26, which increases limits for health savings accounts (HSAs) effective for calendar year 2013. The following HSA limits will increase for 2013:

  • Annual contribution limits for single and family coverage;
  • Maximum out-of-pocket expense limits for coverage under a high deductible health plan (HDHP); and
  • Minimum deductibles for HDHPs.

HSA Contribution Limits

For 2013, the annual HSA contribution limit for an individual with self-only coverage under an HDHP is $3,250 (up from $3,100 for 2012).

For 2013, the annual HSA contribution limit for an individual with family coverage under an HDHP is $6,450 (up from $6,250 in 2012).

HDHP Out-of-Pocket Expense Limits

The maximum out-of-pocket expense (deductibles, co-payments and other amounts, but not premiums) limit for self-only HDHP coverage for 2013 is $6,250, which is up from $6,050 for 2012.

For family HDHP coverage, the maximum out-of-pocket expense limit for 2013 is $12,500, which is up from $12,100 for 2012.

HDHP Deductible Limits

For 2013, the deductibles under an HDHP must be at lease $1,250 for self-only coverage (up from $1,200 for 2011 and 2012) and $2,500 for family coverage (up from $2,400 for 2011 and 2012).

**This legislative brief is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. © 2012 Zywave, Inc. All rights reserved.

Safe Driving – What It Can Mean For You, The Employer

Car accidents related to distraction due to mobile devices are on the rise and have the potential to impact employers when these accidents involve an employee and occur during working hours. According to the Virginia Tech Transportation Institute in research for www.Distraction.gov, “sending or receiving a text takes a driver’s eyes from the road for an average of 4.6 seconds, the equivalent – at 55 mph – of driving the length of an entire football field, blind.”

Regardless of whether or not the mobile device is distributed by the employer, you can still be held liable if a claim is filed as the result of an accident. ERA is taking a proactive approach by encouraging clients to update their employee handbook to include new specifications involving driving while using a mobile device during working hours. If you have questions about changing your hand book or educating your employees on driving safety, ERA would welcome the opportunity to assist you. Please find our contact information here.

Sources: Haller, Darin. “Smart Phones and Mobile Devices in Today’s Workforce.” PEO Insider November 2011: 16-18.

ERA – How Outsourcing Can Benefit Your Business

As an entrepreneur/operator of your own business or the executive of a company with ultimate responsibility for its success, you are in a state of continual competition. Of course you’re competing against your commercial rivals for the business of your customers, but you are also competing against the age old adversary – passage of time.

To be more precise you are not actually competing with time itself, but you are competing with your business rivals to make better use of time. Undoubtedly some do this better than others, and that is where the real competition takes place. Naturally this is not news to you. As a business manager you understand the importance of productivity and time management as it is impacted by your employees.

On the other hand maybe you haven’t given too much thought to your own productivity and that of your top management. After all you are the planner, motivator and operational backbone. It is certainly fair to say that the success of your company depends upon your skills and creativity in steering your organization in the direction that will maximize success. Is it possible you are not as productive as you might be in your own battle against time? Are you as competitive as your business rivals? Consider this:

According to the United States Small Business Administration (SBA), small business owners/managers spend almost 25% of their time on paperwork related to their employees – that is to say paperwork that is non income producing.

Of course this is not to say that you necessarily spend that much time on paperwork. Perhaps you have already recognized such tasks are not a cost effective use of your time, and you have delegated these tasks to another management person down the line. The question remains, “Is your top management as productive as it can be?”

If not, you will find that not only much of the repetitious tedious paperwork can be shifted to a more cost effective solution, but that you can avail yourself of expertise that could help your company avoid costly litigation and potential financial disasters. Employee Resource Administration has professional Human Resource personnel that will guide you through the perilous pitfalls of employee hiring and termination, as well as managing EEOC, State Employment Commission, and OSHA encounters. Carefully planned outsourcing can greatly enhance your productivity, competitiveness and effective use of time.