Our employer have added stepson to payroll only just so he can receive insurance. Is this allowed?
He does come in to p/u check. Our ins. agent got definite nervous and the cpa said don't do it. What is the risk to the co.? The stepson is a specialist in spreading his kernel and not being a good father and losing job. Oh and going to the hospital.
So how and why is this any of your business??
It is his company, he have the right to have whomever he wants as an hand and he can decide what they have to do... For adjectives you know the stepson stays home and files papers, mails letters etc etc. He could effortlessly claim any of those. He could simply be hired on even as a consultant.
Also, I do not understand why you are so worried about it.
Answers: OK, I've never heard of a small group plan getting "popped" because of overuse by one member. I don't come up with that's true.
Is it legal? Well, it's definately unethical. But if they're paying him payroll, withholding payroll taxes, and paying into social guarantee, then he's an employee - even if he doesn't show up.
If they aren't paying him, it's insurance fraud, and illicit.
So it depends on if he's an employee or not. But you said, they've added him to the payroll. So apparently he is an employee.