In today’s fierce and tight labor market, the need to provide competitive employee benefits to recruit and retain top talent has become one of management’s top priorities. As businesses grow, however, the administering of benefits becomes more time consuming and the necessity to put proper efficiency tools in place also becomes crucial in order to scale appropriately. Although the capabilities of benefits administration platforms can vary from software to software, they’re all designed with a common purpose: to help administrators manage employee benefits all while ensuring compliance with extensive government regulations, specifically around health insurance benefits.
The following are 5 ways a benefits administration system eases the burden of business owners and administrators:
1) Peace-of-mind in maintaining eligibility compliance
During the benefit plan setup process, probationary periods and eligibility rules are built to ensure that only employees who are eligible can enroll in a specific plan. This provides administrators an extra layer of control to remain compliant and administer the benefits plans according to the plan documents. Additionally, eligibility dates are also entered for each employee during the setup process to easily keep track of and stay on top of employees who become newly eligible to enroll, ensuring employers offer health insurance on time and avoid penalties associated with the Affordable Care Act (ACA).
2) Save time during open enrollment periods
Over the years, many employers have gone paperless in different areas of the business and the world of HR is no exception. Benefits administration platforms are able to electronically facilitate the enrollment process. With the click of a button, benefit plan information is made available to employees who can log into their secure portals to view their available plan options, detailed information, and easily do cost comparisons at their convenience and from the comfort of their home. Enrollment periods can be triggered for annual open enrollments as well for new hires and employees who experience a qualifying life event (QLE). Administrators can monitor enrollment and have the system quickly send reminder emails to employees who still need to complete their enrollment.
3) Eliminate data entry errors
Once employees submit their benefits selections, all an administrator has to do is log into the system and approve the submissions. The system automatically creates enrollment records for each employee which then drive the employees’ payroll deductions. Rather than manually entering each employee’s deductions, the data is automatically fed over to payroll, saving countless hours of manual entry and eliminates room for error. Carrier connection feeds can further streamline the process to ensure all new enrollment information and QLE’s are automatically communicated to insurance carriers in a timely manner. Carrier connection feeds save time and eliminates the need for administrators to key in this data into each health insurance carrier’s system.
4) Centralize data & documentation
By managing employees’ enrollment records through a complete human capital management (HCM) platform, data from payroll, time & attendance, HR, and the benefits administration module can be used to run extensive reports which can assist in tasks like monthly reconciliations of carrier bills. Critical documentation, such as supporting documents for QLE’s, is automatically requested by the system and can easily be submitted by the employee via their self-service portal. These documents are securely stored in the cloud and can be quickly accessed for general review or in the event of an audit.
5) Stay in control and remain ACA compliant
A benefits administration system provides the necessary tools to ensure you are remaining compliant with the Affordable Care Act (ACA) regulations. These tools also help you track of hours worked for variable hour employees in order to determine if they are eligible for health insurance benefits as well as ensure that offered plans meet affordability requirements as defined by the IRS. Since the majority of the information reported on the IRS 1094/1095 Forms is driven directly from the benefits administration system, annual reporting becomes almost completely automated, saving administrators the headache of manually reporting.
Contact PAYDAY to schedule a demo and learn more about how our iSolved benefits administration system can help you!