Ensuring Compliance with the ACA – Part 2

Ensuring Compliance with the ACA - Part 2

In part one, we discussed how a total workforce management solution that includes ACA compliance tools makes it much easier to track all the information you need in a single, unified system.

In part two, we are discussing some additional ACA compliance tools a total workforce management solution should include:

• Benefit plan enrollment tracking: If your company is an ALE, you need the ability to track and manage medical benefits offered to employees and their dependents. An effective method of identifying eligible employees, managing open enrollment, and reporting to the IRS will make this much easier. Benefits administration tools help manage and document ACA compliance and provide a solid foundation to meet IRS reporting requirements.
• Average hours compensated per week reporting: Workforce management technology allows employers to view hours of service during measurement periods to determine which employees are eligible for health coverage. Calculations should take into consideration differences in pay frequencies, irregular pay period lengths, paid time off, and periods of time during which an employee was not compensated.
• A dedicated dashboard for ACA measurement periods: A dashboard specifically for managing ACA requirements helps determine which variable hour employees worked enough hours during the designated measurement period to qualify for health coverage. The dashboard tracks employees who are not eligible for coverage and eligible employees who were not offered coverage, and it provides alerts for employees who are in initial and standard measurement periods.
• Health plan coverage reporting: The IRS has released the final versions of Forms 1094-C and 1095-C under Section 6056. This annual reporting is required for ALEs with 50 or more full-time employees for the tax year 2015. Compliance tools can handle the 1094-C and 1095-C reporting requirements under Section 6056 of the ACA by automatically populating all the required information. This eliminates the time-intensive, error-prone task of pulling the information manually and helps reduce the risk of penalties.

Did you know?

Applicable large employers (ALEs) that do not submit the 1094-C transmittal form or provide 1095-C forms to all full-time employees may be subject to a penalty of up to $100 per return. Using a total workforce management solution that handles 1094-C and 1095-C reporting requirements can help prevent unnecessary penalties.

This article is excerpted from the Definitive HR Guide: Workforce Management Tools and What You May Be Missing - download your copy today.

SOURCES

Information Reporting by Large Applicable Employers

Questions and Answers about Information Reporting by Employers on Form 1094-C and Form 1095-C

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