Hickock Boardman Benefits

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Benefit System Crucial for ACA/IRS Compliance Requirements

The Affordable Care Act (ACA) has numerous requirements for employer reporting that are coming into play for most employers in 2015.  Employers will need ways to track the information necessary to report to the IRS or face penalties.

Starting in 2015, applicable large employers will need to identify whether they offered employer sponsored coverage to eligible employees.  Tied to eligibility is tracking the number of hours worked.  Unlike some previously required government reports, it will be next to impossible to track this manually.

Enter the benefits information system.  These may stand apart from your HRIS/Payroll system or be a part of it.  Both types of benefit system vendors are revising their systems to accommodate the special ACA/IRS reporting.  These systems already track employee data, enrollments and benefit plan features.  They must now also pull in hours worked per employee in order to create the necessary reports. 

Ideally, the benefit system would also track and verify the required employer notice regarding availability of public exchange benefits.  They may likely already track the ACA regulation giving dependent children eligibility for coverage up to age 26 and notify employers when an employee’s dependent reach the disqualifying age.

It is important to check NOW with your payroll/HRIS/benefits system vendor to see what they can or will be offering to enable you to complete the required reporting.  Most vendors are in various stages of making these new ACA capabilities available through their benefits module.  Some have already developed reports and some will be charging extra for these services. 

If you’ve not already checked out what your systems vendor offers, now would be the time.  If your payroll/HRIS/benefits system does not and will not have this ability, it’s time to look for an add-on or replacement system since this is a big project effort for HR because new systems will take several months to implement.