Since ACA reporting is in its first year, thus possibilities are extremely high that employers are totally unaware of what is actually going to happen. Under this confusion, several employers tend to make mistakes that might result in serious consequences. Following are some common questions that every employer must find answers to, in order to stay compliant and avoid any unwanted penalties.
Is it important to track employee hours?
Regardless of the size of an organization, it is extremely important that every employee’s working hours are recorded. Such information will help in fulfilling many legal requirements and will play a vital role in various calculations, and even determining if an employer is an applicable large employer or not (on the basis of total number of full-time or equivalent employees).
There’s no fine enforced for having 50 – 99 employees in 2015, thus filing is not required. Is there any need to worry about filing?
To stay compliant with the law, even the employers having between 50- 99 employees should make an attempt to file. Although, IRS and DOL don’t have any plans of penalizing such employers but filing for the year 2015 can be a good idea to avoid facing any unforeseen consequences. The regulations might get updated at any moment and last minute preparation can be hazardous.
Is it not the responsibility of the payroll partner to take care of these filings?
ACA reporting is a complex aspect and it doesn’t only includes regular taxation processes. Thus, to file accurately, all your departments-payroll, HR and benefits administration need to work in sync. The job can be more efficiently handled by a domain expert, basically an integrated software that not only deals with HR, benefits admin and payroll but also ACA compliance and reporting. Moreover, with the help of technology you can make this process even smoother.
As an Employer, it is quite necessary if you know whether your reporting process would be simple or complicated?
The following aspects can help you determine the same. You will experience a simple reporting if,
1. All of your employees are on salary basis.
2. All your employees are working for 30 or more hours a week.
3. You have the same employees from year to year with little or no staff changes.
4. You offer minimum essentials coverage to your full-time and full-time equivalent employees.
On the other hand, your reporting will be complex if,
1. You also have a large number of part-time employees
2. You hire using an employment agency.
3. You had more than 40 employees in 2015.
4. Your health coverage or carriers changed since 2012.
5. You have a grandfathered self-funded health care plan.
6. You have high annual turnover.
7. You have several seasonal employees.
For the employers falling in the second category, keeping accurate records for 2015 and beyond is the basic necessity.
To fulfill all the requirements and avoid any penalties, take the aid of an ACA reporting tool. TeemWurk can be your ultimate partner in meeting all the reporting requirements, without missing any deadlines. You are sure to win this reporting battle with such a tool by your side.