Last year, more than a dozen San Francisco restaurants that levy surcharges each kept more than $100,000 that had been allocated to HRAs*, though in some cases the restaurants also offer health insurance to employees that isn’t paid for with HRA funds, according to city data. One Market, for example, allocated $118,799 to HRAs for its employees but only reimbursed $2,398. The restaurant says it spent an additional $10,248 on health insurance for employees.
(via gainfulunemployment)
Investopedia explains Health Reimbursement Account - HRA -
As a benefit, an employee may be reimbursed for qualified medical expenses from his or her employer. The funds received are tax-free, but because the plan is employer funded, the employer has the right to cancel or alter the distributions at any time. In spite of this, many employees consider HRAs as a valuable benefit given the rising cost of health care.
Health insurance is a serious labor issue….this video from the Wall Street Journal takes on the issue.
Menu Surcharge Can Be Misleading - WSJ.com
Diners are charged around 3% of their entire bill—with a 20% tip and near 10% sales tax, diners pay almost 30% above menu prices for the food/beverage total. The burden is on the staff to fill out paperwork to be reimbursed from the restaurant’s allocated healthcare funds. Every dining check nets funds for the healthcare pot, but paperwork for these funds aren’t necessarily filed. The restaurant keeps the unclaimed surcharge as profit.
Now, whenever I see the healthcare surcharge line item in my bill I will think of how I’m lining the pockets of some rich restaurant owner/investor, not chipping into healthcare for the people who serve the food, wash the dishes, etc.
(via gainfulunemployment)
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allaboutthedough reblogged this from gainfulunemployment and added:
Investopedia explains Health Reimbursement Account...for qualified medical expenses
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gainfulunemployment posted this
