Y our R esou r c e for - PowerPoint Presentation

Slide1

Y

our

R

esource for HR Technology

Benefit Technology Resources

LLC

Presented by: Jamie Hawkins, CEO

HR Technology

and

the World of ACA Employer

ReportingSlide2

T

ODA

Y’S

AGENDA

1

ACA Overview

2

ACA Tools – Provider Update

6

Provider Solutions

4

Process /Understanding what you have

3

ACA Provider Bandwidth

5

Provider Updates

7

Questions & AnswersSlide3

PROVIDERS – THERE ARE OVER 300 IN THE MARKETPLACESlide4

SERVICES

BTR

PROVIDES

Review your current

HR technology: To ensure compliance with healthcare reform. To ascertain efficiencies and gaps to maximize existing products. To ensure pricing competitiveness.If you do need to look for a provider, we will manage the RFP Process:

We will draft and oversee the RFP selection process for a new provider.

Assist with selecting the right HR technology

to fit your organization’s needs and objectives.

Oversee the implementation and ongoing support of any technology solution selected.  Slide5

OUR

PROC

ESS

Dis

c

o

v

e

r

y/

Needs

Assessm

e

n

t

Pre

par

e

you

r

Request for Proposal (RFP) t

o begin the provider review proces

sOngoing technology supportWe conduct a

detailed discovery

of your business

needsAnalyze

proposals received

Schedule demos

Review agreeme

nts

Ass

is

t wit

h acquisit

ion dec

ision

Pr

o

vid

e

suppor

t

du

rin

g

i

mpl

e

me

ntatio

n

Post Implementation Phase

Evaluation & Selection Phase

Search

Phase

Purchase & Implementation PhaseSlide6

GETTING

DOWN TO BRASS TAX

April 2015 Survey Results

Many employers are still not ready and it is almost too late!Slide7

GETTING READY

FOR ACA REPORTING

New HRA reporting requirementsSlide8

DETAILS YOU

NEED TO PLAN FOR

The relationship between true plan premium and incentives will influence

affordability

:Tobacco related – assumes non smoker regardless of statusWellness – assumes no wellness or other incentivesBundled Benefits – i.e. Dental bundled Medical coverage, total premiums must be includedMissing Dependent Data (self funded employers):Identify dependents with missing SSN’s – change procedures to capturePerform solicitation via paper and phone (1 attempt of the 3 can be electronic; other 2 must me via US Mail)Slide9

POPULATIONS YOU WILL

NEED TO PLAN FOR

COBRA - Configure COBRA eligibility group in benefits admin and load participants back to 1/1/15.

Retirees

Board members offered medical coverageUnion employeesTemporary workers – who is providing 1095-C?Contract workersPaid versus unpaid internsStudents teachers/Student workers – this impacts the educational industry in a huge wayEmployees and Spouses that are employed by youCould require additional work to locate and consolidate data.Slide10

TRANSITION RELIEF

– BENEFITS ADMIN IMPACT

Employers with

non-calendar year medical plans that did not offer minimum essential coverage but was affordable

this year are eligible for transition relief, per section 4980H(b).On the 1095-C, line 14, they can use the code 1I for the months they offered Qualified Coverage prior to the beginning of their medical plan year.Still have to provide 1095-C to all qualified employees from January-December.If it did offer MEC and was Affordable – clients must include the appropriate codes from January 1st regardless of the start date of their medical plan.Slide11

CASE STUDY

INTUIT 3,000 LIFE GROUP in 2014

TurboTax – tax service for employees – 30.5 million consumers

Intuit – Tax Prep Service for Accountants – 121,000 accountants

LearningImplicationVery little awareness of health ins and tax return intersectionPrepare employees to understand formsOnly 75% of consumers were insured for 12 monthsPrepare employees for all ACA tax reporting, not just 1095-C55% of 1095-C recipients used Turbo Tax through a mobile device.Leverage mobile deliveryTax refund delays caused anger and stress for the employee

Be prepared during January to quickly address issues that will delay an employees refund1095-C pilot drove calls from more than 25% of the population

Be prepared in a timely manner to answer questionsSlide12

WHEN DO EMPLOYERS

NEED TO FILE & FOR WHAT PERIOD?

Mandatory reporting is due for the Calendar Year 2015:

February 1, 2016 –Employee Statements (1/31 is a Sunday)

February 29, 2016 – IRS Statements due if filing by paperMarch 31, 2016 – IRS Statements due if filing electronically (Required if filing 250+)Penalty Relief for 2015Employers who show a good faith effort to comply will not be liable for accuracy related penaltiesHowever, if you report inaccurate data– there will be clean up needed (reissue 1095-C and 1094-C) and potential penaltiesSlide13

WHAT TO

CONSIDER

These reports are not due until 2016, we have plenty of time right?

NO!

Many Providers have closed their doors to new clients.You must provide a contact phone number for every employee’s formForms must be submitted to IRS in Native XML uncompressed format (file size limitation of 100MB)Slide14

NEW ELECTRONIC

FILING STEPS

The IRS has provided more information on the process for electronic reporting. The electronic filing system, ACA Information Return (AIR) system is significantly more complex than simply uploading a PDF file containing the pertinent information. Required to complete the following steps prior to being able to electronically submit any Reporting Forms:

Register with the IRS’s e-services website, including submission of personal information about the person registering for the Submitting Entity

Obtain an AIR Transmitter Control Code (TCC), a unique identifier authorizing each Submitting Entity to submit the Reporting Forms, and Pass a series of technical/system tests to ensure that Reporting Forms will be properly submitted when due. The first two steps can be completed now. The third step is anticipated to become available later this year.Slide15

WHAT TO

CONSIDER

IRS information from IRS.gov :

Each provider that submits forms has to have a UniqueRecordIDType – The process of defining a unique Record ID Type Element is defined in publication 5165 Guide for electronically filing Affordable Care Act Information Returns for Software Developer and Transmitters (processing year 2015)

Does the file require a specific encoding types? Yes, MTOM coding is supported. (Message Transmission Optimization Mechanism, a method of efficiently sending binary data to and from Web services)Slide16

ADP

Essential ACA – Available for new clients signing by 10/1/2015 for 2015 returns.

ACA Lite - One-Time transitional solution for 2015 ACA Reporting.

This is a more manual process with the client completing a template for ADP to upload

Client must take the full Essential ACA solution for 2016The only way to have the Essential ACA solution is to also have and utilize their HRB (HR and Benefits) module.Slide17

PAYLOCITY

 Client

can input or import the data for ACA by employee into Webpay manually and Paylocity

will handle the 1094/1095s. Basic reporting included in HRIS/Benefits/Payroll platform.

Enhanced package - is a full analysis and compliance tool, with less manual work, $1.25 PEPM and the 1094/1095s are included. (recommended option) Had to select by July 18th. Essential Package - for $5.50 per 1095-C form. This includes basic ACA dashboards, reporting and filing. Forms will require manual input on the part of the employer. If your client has Paylocity payroll and bswift for benefits, ACA reporting will be typically done out of payroll.  Slide18

EMPLOYEE

NAVIGATOR

Track hours paid to determine eligibility status (includes employer’s designated measurement, stability and administrative periods)

Print & Mail IRS Form 1095C to employees

E-file IRS Form 1094C and 1095C on behalf of EmployersSlide19

PLAN

SOURCE

Existing Clients - that have not elected ACA reporting (as of 9/1/15) will have to find another solution.

New Clients - will be able to include ACA reporting for 2015 for an additional fee up until the cut off date of 9/30/15. Slide20

OTHER PROVIDERS

Proliant

ACA available now - strong reportingPaycor ACA available now

 Ultimate Software (Ultipro)

ACA forthcoming in their fall release, variable hour tracking available nowIsolved/Infinisource ACA available nowBenefitMall/Compupay ACA due out in fall releaseNamely ACA available nowCeridian Dayforce ACA available now (300+ employees)

Freedom Platform – ACA forthcoming (No timeline given)

Mangrove ACA forthcomingSlide21

ACA

TRACKING – STAND ALONE PLATFORMS

Providers

No longer available for 2015Equifax

Continuon Healthefx Tango Slide22

ACA

TRACKING – STAND ALONE PLATFORMS

Average Implementation Length

Contract Execution DeadlineSSAE - 16 Audited/CompliantACA Track8-10 weeksStill AvailableYesACA Elevate6 weeks

Still Available

NoACA Works

6 weeks

10/1/2015Yes

Diversified8 - 12 weeks

10/1/2015

YesInfinityHR

6 weeks

Still AvailableYes

SyncStream6 weeks

9/30/2015NoWorxTime6 weeks10/1/2015

YesSlide23

ACA

REPORTING ONLY PLATFORMS

REPORTING ONLY

Average Implementation Length

Contract Execution DeadlineSSAE - 16 Audited/CompliantBenChoice2 weeksStill AvailableNoGreatland2 weeksStill Available

Yes

Sovos2 weeks

Still Available

YesSlide24

BTR

ACA PROPOSAL PROCESS

Client/TIS submit ACA Manager Stand-Alone Proposal Request form to BTRBTR will request proposals from the appropriate providers

BTR will send the side-by-side comparison to the Client/TIS and all proposals receivedClient will need to make a decision ASAP to be assured a “spot in line”Slide25

TIMELINE TO

CONSIDER

Date

Event10/1/2015

Contract signed - Implementation starts11/30/2015Client goes live on new ACA Platform (6-8 week implementation)12/31/2015Data is loaded back to 1/1/1512/31/2015Reporting Period Ends2/1/20161095-C Forms Due to Employees2/29/2016Forms due to IRS if filing Paper3/31/2016

Forms due to IRS if filing Electronically (only option if over 250)Slide26

BEST PRACTICE

RECOMMENDATIONS PREPARE FOR 2016

Be sure

your client checks

with their current payroll provider as a 1st step. The more you can keep with the primary provider the better.If they haven’t already – deploy a benefits administration module, this will automate the benefits tracking needed for ACA compliance. (EEN may be the best option at this stage.)If their benefits admin or payroll provider can’t support ACA reporting, they will need to deploy a stand-alone ACA module.Consider the terms of the agreement with the provider.

Don’t wait!! Data must be backloaded

and provider bandwidth is closingSlide27

RISK

CONSIDERATIONS

Operationa

l: more demand than capacity

Security: new entrants; it doesn’t take much to start a new companyTechnology: lots of

data but is it secure?

Financial:

new

entrants, low E&O coverage

Business Attributes:

compliance expertise?

Platform

:

early stagesSlide28

WHAT WE EXPECT WILL

PROBABLY HAPPEN

Service Providers will:

Not get it right

Over-commit and under-deliverGet purchased by adjacent playersRegulations will continue to change, creating challenges for service providers“Free” will quickly become fee-basedFees will be unstable for at least 2

yearsCapacity will be stretched **ACA may not available on 4

th quarter builds because of bandwidth**

IRS will be overwhelmedSlide29

Thank

You!