Employers of all sizes are feeling the impact of the Affordable Care Act (ACA). Complying with the law’s vigorous requirements can be time-consuming, complex and confusing. But there are various tactics employers can take to alleviate the burden.
Specifically, smaller and midsized businesses can consider partnering with a Professional Employer Organization (PEO). In doing so, a company benefits from what’s known as the co-employment model. This means that companies retain the day-to-day managerial control of employees, but also have access to the PEO’s compliance and risk experts who are responsible for tasks associated with HR and employee benefits. So now employers have time to focus on their business, rather than on the rigorous ACA requirements.
So, how can a PEO help you with the seemingly growing list of ACA requirements? ADP’s PEO business, ADP TotalSource, (which co-employs nearly 400,000 people) can help with things like monitoring employee hours, compensation, benefit plans offered, and employer contributions that automatically alert employers to non-compliant situations that could result in fines.
More recently, ADP announced that its offering will also give co-employment clients access to additional including assistance with the completion of required 1094-C and 1095-C IRS reporting and filing for clients that are considered applicable large employers. This also includes a team of ACA experts dedicated to helping manage and respond to notices from public health care exchanges and helping with reporting requirements.
“We believe that our clients should expect more than just seeing if they are in or out of compliance when it comes to something as important as their requirements under the Affordable Care Act,” said Maria Black, President, ADP TotalSource. “Instead, clients should expect a level of service and expertise that helps them strategically structure their organization to minimize compliance risks and give them peace of mind that they are making educated decisions and complying with all aspects of the ACA.”
So, to take a step back: in the evolving health care landscape, what should employers be doing? You may (or may not) already know that Applicable Large Employers (ALEs), or those who employ more than 50 full-time equivalent employees, will have to properly complete their 1094-C and 1095-C reporting and filing to the IRS. Additionally, employers will need to understand if they are actually considered an ALE per the ACA’s definitions. And for those who are? They’ll need to identify the measurement period that is best for them to ensure that all ACA reporting requirements are properly tracked and reported on a monthly basis—for every single employee.
What if an employer fails to do so? Unfortunately, they risk facing steep penalties. But, by engaging with a PEO business owners can help keep track of all of these requirements. From exchange notice review and management to a real-time snapshot of compliance and quick issue resolutions, employers can rest easy.