Compliance ThumbnailSince the Affordable Care Act became law, organizations have spent countless hours deciphering this regulation. Consequently, those in HR know the ins and outs of ACA compliance. CeridianVoice readers, in particular, have a comprehensive understanding of the law, with 97% of readers receiving a perfect or near perfect score on our ACA quiz.  

 

Voice Reader Insight: It's Time to Streamline ACA Compliance

Since the Affordable Care Act became law, organizations have spent countless hours deciphering this regulation. Consequently, those in HR know the ins and outs of ACA compliance. CeridianVoice readers, in particular, have a comprehensive understanding of the law, with 97% of readers receiving a perfect or near perfect score on our ACA quiz. (Haven’t taken the quiz yet? Test your ACA compliance knowledge now.)

Our readers’ impressive quiz results points to a broader trend: organizations’ are no longer just trying to understand the law but have begun focusing on making ACA compliance streamlined and cost effective. The vast amount of tracking and reporting required by the ACA demands more resources than HR departments have to offer. For this reason, organizations are turning to savvy, progressive technology.

“ACA compliance is complicated and can be burdensome, but it doesn’t have to be expensive and time consuming. With the right technology, organizations can replace the onerous and costly tasks of ACA compliance with an automated and streamlined process that helps them achieve compliance,” said Eric Schuster, vice president of Dayforce Product Management at Ceridian.

3 Ways to Simplify ACA Compliance

By focusing on the main areas of ACA compliance - eligibility, affordability and reporting – organizations can simplify the administrative burden of this regulation. Read on for compliance tips as well as for insight into how your peers performed in Ceridian’s ACA quiz.

 

Eligibility
ACA RequirementsACA Compliance – Simplified

The ACA requires employers to offer health care coverage to full-time employees (those who average 30 or more hours of work each week).

Organizations must receive real-time notification of employee hours so that they can offer coverage at the appropriate time. 

 

 

To be able to offer or deny employees health care coverage, organizations must have a streamlined system in place for tracking hours worked.

ACA requires organizations to establish measurement periods for ongoing, new and variable hour employees. When organizations have a single application for time, pay and benefits, the system automatically configures measurement, administration and stability periods for employees. As a result, organizations can receive notification when employees become eligible for coverage – without devoting ongoing time and resources to this task.

Employers need to ensure that employee hours are communicated to them in real-time. Integrated workforce management and payroll systems ensure that organizations know exactly when employees pass the 30 hour threshold, allowing them to immediately take the appropriate next steps.

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View the full ACA quiz results infographic

 

Affordability
ACA RequirementsACA Compliance – Simplified

Employers must ensure that health care coverage meets two conditions of affordability:

  1. The employee’s share of the premiums for self-only coverage does not exceed 9.5 percent of their income.
  2. The plan covers at least 60 percent of the total allowed cost of benefits.

Verifying affordability of coverage requires organizations to compare the cost of benefits to an employee’s income data. Organizations must establish an automated process that prevents a premium payment in excess of 9.5 percent.

Simplify compliance by leveraging cloud technology that integrates payroll data into the ACA compliance process in real time and enables the organization to use a formula to set each employee’s premium maximums.

 

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View the full ACA quiz results infographic

 

Reporting

 

ACA RequirementsACA Compliance – Simplified

Starting in 2016, organizations are required to report to the IRS the cost of health coverage offered to full-time employees and their dependents, along with enrollment data.

 

 

 

Correctly submitting ACA data to the IRS is no small feat and should not be taken lightly by organizations. Employers must have a system in place for tracking and reporting who is eligible and ineligible for coverage at the end of every measurement period.

When employees become eligible for coverage, progressive technology tracks who enrolled in benefits and who declined coverage, along with the amount that the enrolled employees paid for coverage. ACA reporting requirements for the IRS begin in 2016, which means that employers must begin collecting coverage data in 2015 to effectively prepare for next year’s reporting requirement. Setting up effective technology, processes and tools today will streamline IRS reporting for next year and beyond. 

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View the full ACA quiz results infographic

 

“Technology that is programmed to track the ACA requirements provides organizations a system of compliance checks and balances. Time and attendance technology like Dayforce HCM gives HR departments confidence that they are not overlooking any important pieces of the compliance puzzle. ACA compliance is simply too complicated to do on your own,” said Schuster.

For more information:

  • View Ceridian’s ACA Compliance Checklist
  • View Ceridian’s ACA quiz results infographic
  • Learn about Dayforce HCM