As key provisions of the Affordable Care Act (ACA) take effect in 2014, businesses will see changes to the way they handle payroll reporting, administration, monitoring, and employee benefit offerings on a broad scale. Paychex, Inc., a leading provider of
solutions for small- to medium-sized businesses, is helping employers navigate these changes with the launch of new comprehensive solutions that help employers and employees prepare for the Employer Shared Responsibility (ESR) and Individual Mandate provisions of the ACA.
“With more than 300 different provisions, the Affordable Care Act is a complex piece of legislation that has many employers concerned about the upcoming obligation they face under Health Care Reform,” said Martin Mucci, Paychex president and CEO. “As we approach a critical time in the legislation with Employer Shared Responsibility and the Health Insurance Marketplaces taking effect in 2014, Paychex is committed to providing America’s businesses with the information and support they need to understand the implications of Health Care Reform, and providing the solutions they need to take action.”
Paychex Employer Shared Responsibility Services
The Employer Shared Responsibility (ESR) provision of the Affordable Care Act takes effect January 1, 2014 for employers with 50 or more full-time employees (taking into account full-time equivalent (FTE) employees). Employers face four specific compliance needs around ESR. The primary considerations for an employer include:
- Performing the calculations to determine if the employer is an applicable large employer who must offer health coverage to full-time employees
- Determine which employees are considered full-time employees and therefore put the employer at risk for penalties if not offered adequate coverage
- Determining if the coverage they offer meets the minimum standards of actuarial value and affordability which would put the employer at risk for penalties if it does not
- Being prepared to meet IRS requirements for end-of-year reporting
Paychex Employer Shared Responsibility Service
makes it easy for business owners to determine if ESR applies to them, and what actions they need to take to meet the requirements of this provision. The basic service includes an Hours Worked Report that tells employers how many hours each employee worked, giving them the data that can assist in calculating their number of full-time employees.
For businesses looking for a more robust solution, Paychex offers the ESR Complete Analysis and Monitoring Services. This includes:
- Applicable Large Employer Analysis and Monitoring – Although ESR doesn’t take effect until January 1, employers need to track employee hours now to determine if they qualify as an applicable large employer prior to open enrollment in the fall. The Applicable Large Employer Analysis and Monitoring service performs the complicated calculations used to assist in determining employer size. The service will perform ongoing calculations and alert employers with under 50 full-time employees when they are approaching the threshold of becoming an applicable large employer.
- Full-Time Employee Analysis and Monitoring – For those employers that meet the requirements of an applicable large employer, the Full-Time Employee Analysis and Monitoring service determines which employees are considered full time, and therefore put the employer at risk for penalties if they are not offered any or adequate coverage. The service alerts employers when an employee becomes a full-time employee, according to the provisions. It will also allow the employer to use different measurement or “look back” periods to help manage their unique workforce.
- Coverage Adequacy Analysis and Monitoring – Accessible to Paychex clients who offer employees health insurance through Paychex Insurance Agency, Inc. this service uses Paychex and Agency data to help determine if the coverage they offer meets federal standards for affordability and value, and alerts employers if coverage falls below those standards.
Once further guidance from the IRS is received, Paychex will offer a reporting solution as part of the Paychex ESR Service to help employers meet the requirements of IRS end-of-year reporting by providing them with the necessary payroll and benefits information required.