ACA Compliance Made Easy
The ACA, or Patient Protection and Affordable Care Act (PPACA), was signed into law by President Obama in March of 2010. As part of this reform, employers now face some of the biggest reporting challenges in decades. In fact, it has been reported that more than 65% of organizations still do not have the proper tools to comply with the ACA’s regulations and reporting requirements.
The Employer Shared Responsibilities provision, or the “Play or Pay” part of the law, requires employers to offer affordable plans to at least 95% of all full-time employees or face a penalty. Concessions have been made to help organizations ease into new processes. Large employers may qualify for some transition relief rules in 2015. Your organization must fully understand these rules and present metrics in order to qualify for them. Download our Affordable Care Act: “Play or Pay” Transition Relief Rules Datasheet to help your organization decide which path to take.
For other compliance areas and reporting requirements, your organization will need to put systems in place to ensure that complete, accurate data is being collected. The new mandate requires organizations to collect and track information from at least 3, and up to 5, different systems including Payroll, HR, Benefits, Time and Attendance, and more. When all of this information is housed in disparate systems, it can be nearly impossible to ensure accuracy and compliance. This data collection and unification will be especially crucial for the filing of the 1094 and 1095 forms in early 2016.
Things you need to know for ACA Compliance
- Total number of employees
- Number of FTEs per month
- Hourly rate of pay and hours worked
- Number of seasonal employees per month
- Employee service hours per month
- Number of employees enrolled in benefit coverage per month
- Variable Employee Monitoring
- Number of employees working outside of status per month
- Cost of employer sponsored health coverage
- Employee dependents covered and their ages
- Robust Summary of Benefits and Coverage for Employees
- Overall real-time and historical organizational visibility
How DATIS can help with ACA Requirements
- Forms 1094 and 1095: Unlike other providers that are charging hefty fees for ACA reporting modules, dashboards, and other pieced-together packages, DATIS provides complete ACA compliance to their clients at no additional cost. We use the information from our fully-unified database to provide unique reporting views and electronic IRS forms processing at no charge.
- Variable Employee Monitoring: Employers can tag any employees who are not normally eligible for medical benefits and the system will monitor their hours worked for their defined measurement period. During the measurement period, graphical representation will show administrators all employees tagged as variable, their average weekly hours, and their overall progress throughout the process.
- Summary of Benefits and Coverage for Employees: Summary Plan Documents are loaded into our software for each benefit. They are visible to all employees and available for download in the New Hire Wizard and the Open Enrollment Wizard. They are also available throughout the year for reference in the employee self-service portal.
- Company Labor History Reports: A full report of all current and historical company labor that can be broken down by deductions, earnings, job codes, and more.
- Acknowledgements: Acknowledgements allow notifications to be sent to individuals, groups, or the entire organization. When employees become eligible for benefits, they will be presented with the IRS Marketplace Notification document and can be required to electronically acknowledge, sign, and/or download. It will then be stored in their electronic employee file.
- Employees Working Outside of Status: Employers are allowed to do a one-time “look back period” to capture any employees who have been working over 30 hours that they did not offer benefits to, and need to begin offering benefits to in 2015 in order to comply with the law. Our Employees Working Outside of Status report will provide a list of all those employees who meet the criteria in an instant.
- Benefits Dashboard: Once an employee is deemed eligible for benefits at the end of their measurement period, the Open Enrollment Wizard will automatically open, allowing them to submit benefit elections. Administrators can monitor their open enrollment status and progress at-a-glance from the Benefits Dashboard.
- FTE Count: Point-in-time FTE counts and historical FTE counts are available from both the Organizational Chart and the Company Labor History report.
- Benefits Analysis Report: Detailed information regarding which employees are enrolled in which plan and how much is being taken out of each paycheck is available with our robust, drill-down analysis report.
Although the IRS Forms 1094 and 1095 are not due until early 2016, completing them requires month-by-month data for the entirety of 2015. Organizations with outdated, or pieced together solutions need to act quickly to unify their data in a single database for 2016 reporting, and beyond. The DATIS software will provide your organization with all of the tools you need to achieve ACA compliance.
Stay informed with ACA updates by checking our blog for more information.