ACA Compliance in New Orleans, LA
Since its inception, the Affordable Care Act (ACA) has changed many rules in today’s workplaces. That’s no doubt. Employers are now tasked to implement different rules for workforce management or risk getting penalties from the IRS. The ACA has hugely impacted employee benefits and it’s a growing concern for many employers. There are so many requirements that employers must meet and there is still more to come. With new employer shared responsibility provisions, reporting requirements, employee eligibility guidelines, and data tracking rules, it can be quite hectic to keep up with the ACA provisions. This is where Payroll Rx, LLC comes in handy, offering a solution that automates most of the required steps to keep you ACA compliant.
What is The Affordable Care Act?
The Affordable Care Act, or ACA, is the new health care reform law in the United States that was passed by Congress and signed into a law on March 23, 2010, by the President. It is popularly known as ObamaCare and is aimed at improving the access to healthcare services and curbing the growing spending through taxes and regulations. Typically, the ACA strives to provide more Americans with feasible access to improved health care quality and affordable health insurance.
The ACA does a lot of things to make access to health care services easier than before. People with health insurance coverage can now enjoy new protections, benefits, and rights, which ensure they get treatment whenever they need it. It has cut down out-of-pocket and premium costs to make getting health insurance more affordable to the average American. The law curbs gender and health status discrimination in the health care sector by spreading risk equally. Americans can now compare insurance plans conveniently thanks to the new competitive health insurance marketplace.
ACA Compliance Tracking
With the implementation of the ACA, employers are now expected to properly monitor, manage, track and report on ACA compliance. First, it is important to know the necessary items to track and this includes employee classification, employee eligibility, coverage and schedules and hours. Tracking this data can be a nightmare for your HR department, especially if your business has varied employees with different qualifications.
Fortunately, Payroll Rx has a system that can make the whole tracking process quite a cinch. With our management solution, you can upload your ACA policy and add more information about the policy and your company’s benefits plans. Once you have completed the setup, the Solution will track and document all notifications about your policy. Your employees can e-sign to confirm that they have seen the policy, and the Solution records the timestamp and e-signature of the employee. Our management solution determines the safe harbor affordability rates and also defines the monthly premium contribution for each employee using your ACA policy rules. Every year, the Solution generates forms 1094c and 1095c for the employer and employee. With the whole process automated, it is easier for employers to meet ACA requirements and stay in compliance.
Benefits of Manager Solution
With the Payroll Rx solution, you don’t need to overwork your HR department to manually track every important employee benefits data while ensuring the ACA requirements are upheld. It’s quite simple. You no longer need to fall a victim of angst due to the ACA regulations. It is true that there are so many laws, but so little time. By implementing an effective and reliable manager solution, the whole process is simplified. You can use ACA tools like compliance alerts, management dashboard, and status measurements to meet the requirements provided by the IRS and Department of Labor.
Calculate the average hours easily while taking into account variables such as rehires and protective leave. Use the program to invite all eligible employees to select benefits and give them access to the plan rules. You can also easily sent communication alerts to employees on their plan options, eligibility status, benefits confirmation, and enrollment timing. Within the manager, you have access to analytics tools and reports you need to complete different ACA forms. Additionally, you benefit from ongoing reporting that help you meet the compliance requirements.
How ACA Reporting Works
As from January 2016, the law requires certain employers to file annual returns with the IRS and provide summary statements to all employees on the authority of the ACA Employer Shared Responsibility provision. The reporting requirements apply to health insurance providers, self-insured employers, and employers with 50 or more full-time employees. The Internal Revenue Code has two sections that impose these requirements: Section 6055 and Section 6056.
Section 6055 covers requirements that are applicable to health insurance carriers, small employers that offer self-funded health plan sponsorships, and employers who offer minimum essential health coverage. Section 6056 entails requirements that apply to large employers and they are required to share coverage details to determine if they qualify for premium tax credit. Employers who fail to provide minimum essential coverage, or MEC, to at least 70 percent of their full-time employees risk getting penalties.