U.S. business owners have a tough row to hoe with the Affordable Care Act and its new laws. The one-year delay on the Affordable Care Act mandate is coming to a close in a few months for employers with 100 or more employees, leaving business owners vulnerable to violations, fees, and fines in the thousands of dollars for failing to offer health insurance.
Using a corporate payroll services provider that is prepared for the Obamacare law considerations will help save time and money by automating accurate processes, protecting businesses from complicated errors, and ensuring healthcare deductions are processed and reported properly.
With the mandate becoming effective beginning in 2015, the first place to start to figure out a company’s ACA compliance responsibilities is to determine the employer’s size for ACA purposes.
The Obamacare plan defines large employers as those that have more than 50 full-time equivalent (30 hours or more per week) employees. CNN Money recently reported that 97 percent of American small businesses have fewer than the 50 employee threshold for the ACA, meaning that only three percent of all “small businesses” have ACA compliance requirements. Knowing if your company falls in the Obamacare’s definition of small business is an important first step.
A recent Gallup Poll of 603 business owners revealed that about half think the ACA will hurt small business and half think it will have no impact or have a positive impact. Many that feel the ACA will hurt business have held off hiring new employees and expanding their businesses because of it, and a little more than half expect to pay more for healthcare under ACA. With these kinds of doubts and information gaps about ACA compliance responsibilities, both small and large employers can really benefit from the Obamacare help that the best payroll services are providing.
Top payroll companies manage critical elements of ACA compliance for employers, including determining eligibility, looking at affordability, and providing regulatory solutions to help proactively identify and address compliance issues. They have compliance expertise to handle issues like notice of coverage, exchange notices management, annual reports, including Forms 1094 and 1095, and can assist with penalty management.
Their systems and services provide strong data analysis and integration to maintain compliance with HR, benefits, payroll, IT, legal, and financial requirements. Top payroll companies keep their customers informed of Affordable Care Act news, deadlines, changes, and updates in real time so they can understand how it impacts their businesses and what they need to do about each piece of legislation.
Contact us now to see how PAYDAY's payroll software and dedicated reps can manage these critical elements of ACA and ensure that your company is in compliance.
PAYDAY Workforce Solutions provides a single database SAAS solution for Human Capital Management (HCM) including payroll, human resources, time management, benefits administration and onboarding to companies of all sizes and in various industries.
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