Hi Emily: This practice has many legal considerations (Tax, Affordable Care Act, Medicare). Some of these considerations are pretty complex (Medicare rules particularly) and there are several recommendations for employers considering an “opt out” arrangement. This article (https://www.shrm.org/resourcesandtools/tools-and-samples/hr-qa/pages/insuran...) from a reputable HR source provides some information, but it is strongly recommended that you and your board consult with your library attorney and/or your tax professional to create the best program for your library, as the negative ramifications for mistakes can be pretty hefty (high tax bill, administrative penalties) – for the library and the staff. Please don’t hesitate to contact me if you need to find an attorney, or, if I can provide any additional information. Take care, Sincerely, Clare Clare D. Membiela, MLS, J.D. Library Law Consultant Library of Michigan MembielaC@michigan.gov<mailto:MembielaC@michigan.gov> 517-335-8132 47 The research and resources above are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. You have the power to shape your future, and the future of all children, by counting everyone in your home in the 2020 Census<https://gcc01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fmy2020census.gov%2F&data=02%7C01%7CMembielaC%40michigan.gov%7C228de169937142b1174208d80ca949e7%7Cd5fb7087377742ad966a892ef47225d1%7C0%7C0%7C637273268619909706&sdata=My24jpXjxu%2BI4cMZT%2BjJO5CH31Elu6Ut8wT5rcfrSaQ%3D&reserved=0>. [A close up of a sign Description automatically generated] From: Michlib-l <michlib-l-bounces@mcls.org> On Behalf Of Comstock Director via Michlib-l Sent: Thursday, August 13, 2020 12:01 PM To: michlib-l@mail3.mcls.org Subject: [Michlib-l] In lieu payment question CAUTION: This is an External email. Please send suspicious emails to abuse@michigan.gov<mailto:abuse@michigan.gov> Hello everyone, I am wondering what other libraries may offer as payment to employees in lieu of taking the library’s health insurance. Specifically, I’d be interested to know: -Do you offer a lump sum payment once a year, once a month, or a prorated amount each pay period? -How do you determine that payment—is it based on a percentage of an individual's health insurance costs or do you use another method to calculate it? We’re a PA 164 township, class IV library but I’d appreciate hearing from any libraries willing to share—any info appreciated! --Emily Emily Kubash Director Comstock Township Library 6130 King Highway P.O. Box 25 Comstock, MI 49041 (269) 345-0136
