Top 3 Answers To The Most Commonly Asked Questions About The ACA
Despite the Affordable Care Act (ACA) being in the news for a few years now, it is still causing some confusion among employers, payroll admins and human resource professionals. The details as to how the provisions within the ACA will concretely affect employers in terms of payroll and administration of benefits is fairly unknown, yet with substantial consequences and penalties awaiting ACA scofflaws, it’s critical that business owners and payroll departments understand what they need to do to make sure they are within compliance. The following are answers to some of the most commonly asked questions about the ACA.
Rules for Organizations Based on the Number of Full-Time Employees
Employers trying to determine if they meet the requirements to provide health insurance, should begin by tracking the number of hours worked by their employees in the designated reporting period. The employer may be required to offer health insurance to employees averaging more than 30 hours a week. To avoid any errors, use your payroll system to run a report detailing the average hours worked by each employee during any given date range. This information can then be used to determine liability requirements.
Understanding Flexible Healthcare Spending Accounts
New changes include a limit on employee contributions to their flex healthcare spending accounts, yet with specific payroll software, limitations can be put on the contribution amount so that the deductions stop when the limit is met. By setting up a deduction code with a balance and limit, it is easier to track the remaining balance to be deducted and it will automatically stop at that limit.
Coverage Choices and the Effects on ACA compliance and Business Operations
It is important to understand that compliance begins with coverage choice. It is in your best interest to begin finding out now what you can change into your current coverage plans that will ultimately maximize the benefit for the business. Being certain you can provide coverage at a required standard takes stress of your employees and helps with productivity. Payroll software providers are creating a standard for reports as well as custom reporting solutions. An easy-to-use payroll software solution helps analyze and report with no mistakes and in a timely fashion.
During this time it is critical to not only have a good payroll software program, but to also stay close to your HR and payroll provider for any changes that may occur. By staying in contact with your providers, you better guarantee that your business is regularly receiving updates and your company software is in compliance with every legislative change. Further information regarding employer payroll, benefits and compliance requirements can be found on the US Small Business Administration site.
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