In addition to federal requirements, household employers may also have state, or even local, labor and tax requirements. In HI, one such requirement is all employers (household employers included) are required to provide health insurance coverage to their employees, if they are not already covered. Below are the answers to frequently asked questions about this obligation.
Am I required to provide health insurance to my household employee?
According to the Hawaii Department of Labor and Industrial Relations, all employers with one or more employees, working at least 20 hours a week, whether full-time or part-time, permanent, or temporary, must provide Prepaid Health Care Act coverage to their eligible employees.
How do I provide health insurance to my household employee?
Employers may purchase an DLIR-approved health care plan through Healthcare.gov. Hawaii also allows an approved self-ensured plan, which requires audit information and bonding.
How much is the employer expected to pay for health insurance?
Employers must contribute at least one-half of the premium providing the employee contributes no more than 1.5% of their wages towards the premium.
Are there any tax credits available to help offset the costs of providing insurance to my employee?
There are tax credits available for employers with less than 25 employees who pay on average less than $50,000 a year. Ask your tax advisor for more details.
Are employers required to provide family coverage under the PHCA or ACA?
The short answer is, “No.” However, employers may offer family coverage with the employee paying 100% or 50% of the family premium.
Providing health insurance to an employee is just one of many requirements HI household employers have. If you are already starting to worry about how you will stay in compliance with your obligations, don’t fret, the team at HomeWork Solutions is here to help. Call us today at 1-866-626-4829 or visit https://www.homeworksolutions.com/for a HI specific consultation, and to hear about how we can take the stress and the complexities out of household payroll.
