Five Things You Can do to Avoid ACA Penalties
If you don’t already have a grand plan in place for meeting the requirements of ACA, you’re probably feeling a little like an underachiever. Well, don’t worry you’re not alone. Majority of large employers (70%) handle ACA compliance internally, and an independent study revealed that these employers do not feel fully prepared to manage several critical compliance requirements, including Exchange notices (62%), ACA penalties (60%) and annual health care reporting (IRS Forms 1094/1095-C) (49%).*
So don’t beat yourself up too much, we have the solutions you need to arm and protect your business against ACA penalties.
5 Ways to Avoid ACA Penalties
- Determine your employees ACA status—Full-time or Full-time equivalent.
- Under the ACA, to provide an employee with health benefits, full-time is defined as working an average of 30 hours a week or 130 hours a month. To be considered full-time, the employee must work more than 120 days in a year.
- Track employees hours to the minute.
- Set thresholds on the number of hours employees can work.
- Keep accurate, auditable timekeeping records.
- Accessible reports at your fingertips.
This list may appear a bit daunting but don’t worry we have the solutions to make all of this possible with the ease of system automation—TimeWorksPlus and TimeSimplicity.
TimeWorksPlus enables you to track hours worked to determine FT or FTE status. It also provides an electronic “paper” trail for accurate and untampered reporting purposes and provides a Work Week and Work Month report that contains the total of hours worked for that week, and or pay period. You can also set threshold alerts to show you who is coming up on 30 hours worked.
TimeSimplicity enables you to set an hour limit per employee schedule that gives the scheduler an immediate warning when they attempt to add a shift to an employee who is at the threshold of 29-hours. The qualifying number of hours that determine an employee’s status of full-time or full-time equivalent for ACA are 30-hours per week or 130-hours per month.
*The ADP Research Institute® conducted the Affordable Care Act and Employer Confidence: Navigating a Complex Compliance Challenge study in August and September 2014 and included input from HR/benefits decision makers in U.S. enterprises.
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