With the ever-changing nature of the Affordable Care Act, most employers keep themselves braced for any costs that might arise. The reasons for this cost rise can vary from time-to-time but what if you failed to account for those unexpected financial crisis that can prove to be extremely devastating for any organization??
Let’s have a look at some of those unprecedented costs that might daunt you if you don’t prepare yourself enough or have the right technology partner at your assistance.
1. Higher Health Insurance Premiums
This is probably expected. Health care expenses are growing at a fast pace which is becoming the cause of concern for both employees and employers. And then the changes in IRS rules, like employer mandate (need to provide health care benefits for employers with 50 or more FTEs), is also the cause of unexpected increase as some employers might be providing insurance to more employees than ever before.
2. IRS Penalties That Are Likely To Occur
There are certain employers who have decided to rather pay the penalties than play, after weighing the pros and cons of not abiding to healthcare reforms and the amount of money they’ll be spending in both the cases. But for some employers, this calculation can substantially go wrong and this might force them to pay a significant amount of money. The same can happen to those who were, however trying to comply with the rules, but still fall short of some regulations and end up paying hefty penalties. The common causes can be improper tracking of employee working hours or several typing errors.
3. Added Administrative Costs
To achieve ACA compliance successfully, an unprecedented level of workforce tracking, administering programs and reporting is required. This significantly adds up to the administrative expense that might come as a total surprise for most employers. Moreover, making use of traditional paper practices to fulfill ACA requirements manually can also be extremely costly and time-consuming as well.
Thus, the Total Unexpected Costs can either be
- a combination of cost of hiring a new HR or outsourcing the entire process & the cost of penalties which include a no. of incorrect or missing forms; or
- the addition of cost of time spent in filling various forms & the cost of penalties including no. of incorrect or missing forms.
The good news in all of this confusion is that it is definitely possible for employers to manage and minimize the ACA and other unforeseen costs. TeemWurk, with its time and attendance system, benefits administration solution along with reporting capabilities easily automates tracking of employee working hours and provide hassle free employee benefits administration minus the penalties. It will help your organization in controlling and maintaining costs and help you remain in your budget premises.