In accordance with the National Council on Aging 25% of the American work force will soon be older or age 55.
Whether you may have old job applicants and have seniors are hiring or in your payroll, here are a few of the specific legal and tax concerns for companies with mature workers.
This issue is extremely important in my experience, but should be of concern to all or any small business owners, as a baby boomer myself.
You’ll see that senior worker or old worker is defined differently for different functions.
Age Discrimination in Employment Act (ADEA)
What this means is taking adverse actions on hiring, firing, promoting, and damages according to a worker being old.
In light of the possibility for claims by mature workers who believe they’ve been treated due to age, from an employer perspective, it’s essential to record all employment choices. As an example, if an elderly worker is terminated due to tardiness that is continual, make sure that keeping all time slips, notes on the warnings about lateness, as well as the reality that this was shared in the exit interview documents this cause for dismissal. This activity will ensure success if this type of claim is created or will help thwart a legal claim.
For those who own a business health plan, seniors coverage must be offered by you though they’re on Medicare. These workers will then possess a coordination of advantages, meaning that your coverage, or Medicare, is the primary payer.” that is “ This depends on several variables, one significant one of which is the variety of your workers:
- Medicare pays first, for those who have less than 20 workers. Your workers should enroll in Medicare. Even though there’s company coverage, it’s as though they don’t have any health coverage, when they don’t. (Note: Medicare can also be the principal payer for people that have COBRA or retiree health coverage.)
- Your group health plan pays first for those who have 20 or more workers. As the group plan is the primary payer, your workers do not have to sign up for Medicare Part B until they retire in the company coverage; the price of Medicare premiums might not be worth it because of Medicare being the secondary payer.