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Tag Archives: PPACA

The Total HR Management Guide On How To Comply With The Affordable Care Act’s Exchange Notice Requirements

The Affordable care Act’s exchange notice requirements for employers are not an option. The Patient Protection and Affordable Care Act (PPACA) has amended the Fair Labor Standards Act (FLSA) to require employers of all sizes to provide their employees a notice of the availability of coverage through public health insurance exchanges. The original deadline was in March of 2013, but the U.S. Department of Labor, the agency charged with administering the FLSA, announced a delay in the effective date of the notice to October of 2013.

In an article about Technical Release No. 2013-02 by the Labor Department, the National Law Review explains the details about the FLSA exchange notice requirement. The effective date is now October 1, 2013 for current employees or within 14 days of an employee’s start date for new employees. Although enforcement of such requirements have been limited, Total HR Management believes that all employers should make sure to provide the following information to their employees immediately.

The FLSA exchange notice about PPACA must include the following:

  1. Be in written form in a manner calculated to be understood by the average employee
  2. It must meet basic requirements of accessibility and readability
  3. A description of the existence of, and services provided by the new public exchanges
  4. An explanation of how the employee may be eligible for a premium tax credit or a cost-sharing reduction if the employer’s plan does not meet certain requirements
  5. Inform employees that if they purchase a qualified health plan through the exchanges, then they may lose any employer contribution toward the cost of employer-provided coverage
  6. Inform employees that all or a portion of the employer contribution to employer-provided coverage may be excludable for federal income tax purposes
  7. Include contact information for customer service resources within the local exchange, and an explanation of appeal rights

The Department has provided two model notices — one for employers who offer a health plan to some or all employees and another for employers who do not. The model notice for employers who offer a health plan includes two parts. Part A (entitled “General Information”) tracks the requirement of the statute. Part B (entitled, “Information About Health Coverage Offered by Your Employer”) solicits information about the employer’s group health plan coverage.

Part B includes an optional section that asks the employer to disclose whether the health care coverage offered meets the minimum value standard and whether the cost of coverage is intended to be affordable. While not required, employers may decide to complete this part of the notice in order to avoid having to respond to inquiries from exchanges seeking to process an individual’s application. Total HR Management provides our clients with such notices so they don’t have to worry about any of these bureaucratic requirements.

ACA Exchange Notice Requirements

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Exchange Notice Posting Requirements No Joke

The Affordable Care Act does not appear to impose any separate penalty for ignoring this exchange notice requirements at this time. The FLSA authorizes administrative actions, civil suits and criminal prosecutions for violations of pre-existing FLSA sections. Total HR Management believes that noncompliance is not a good idea for any business or even a viable option. A lack of penalties does not translate into a lack of consequences. When it comes to dealing with federal requirements, it is better to be safe now than to be penalized later.

If you have any questions about PPACA exchange notice requirements, please contact Total HR Management for help by calling (800) 975-5128 or emailing our human resources outsourcing experts at info@totalhrmgmt.com.

 

No Legal Advice Intended: This blog includes information about legal issues and legal questions. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and should not be taken, as legal advice on any particular set of facts or circumstances. You must not rely on the information on this website as an alternative to legal advice from your attorney or other professional legal services provider.

 

Why Should Your Company Work With A Professional Employer Organization (PEO)?

In the 21st century and in the wake of the recent recession, owning and running a business is more challenging than ever. While your core business remains your main priority, there seems to be so many other employment-related responsibilities that consume an employer’s focus. Employee benefits, healthcare reform, payroll processing and EPLI risk management are commonly referred to as administrative burdens for a reason. They are a time suck. Then again, hiring a full-time human resources director is expensive. What are the options and what are you supposed to do when it feels like you are caught between a rock and a hard place?

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Managing Human Resources

Total HR Management is proud to offer the modern PEO solution to the age-old problems of effective human resources management. The bonus of working with a professional employer organization is that it allows you to be hands off when it come to all of those annoying administrative burdens. When partnering with Total HR Management, you enter into a tailored co-employment relationship. Co-employment is when the PEO performs the functions of the administrative employer and takes on certain liability responsibilities of the employer, allowing the client to focus on the actual work of their business. Why is the Total HR co-employment model tailored? The reason simply is we give your company what it needs; nothing more and nothing less.

There is a bevy of administrative tasks we can handle. These administrative tasks range from payroll processing and employee benefits administration to liability insurance and regulatory paperwork. Keeping up with the times, we also have become experts at navigating the complexities of healthcare reform and PPACA. If you already have an employee benefits solution, but your payroll processing and EPLI situation leaves something to be desired, these are the PEO functions that Total HR will cover. By offering a tailored solution, we work with you to diagnose the needs of your company and provide a services package that makes sense.

If you want to know more about how Total HR Management can potentially help your company as a professional employer organization, please contact us today by calling (800) 975-5128 or emailing our human resources outsourcing experts at info@totalhrmgmt.com.

 

 

Essential Update About The Employer Mandate Of The Affordable Care Act (PPACA)

Here is an essential update about the employer mandate of the PPACA. According to the Congressional Budget Office, the Obama administration’s decision this summer to delay the employer mandate of the Patient Protection and Affordable Care Act increased the price tag of health reform by $12 billion. It is important to realize that $10 billion of that figure is a result of a reduction in the collection of penalties and fines that would have been collected from employers for non-compliance. Inspired by an in-depth article in Benefits Pro, Total HR Management illuminates the reasons behind and key facts about the delay.

The Employer Mandate

The article in Benefits Pro outlined the following about the postponement in the enforcement of the employer mandate to 2015 until after the Congressional elections:

IRS Notice 2013-45 provided a one-year delay to three requirements under the healthcare reform law:

  • The annual obligation under Section 6055 of the Internal Revenue Code (Code) for insurers, self-insuring employers and other parties that provide “minimum essential coverage” to provide certain information to the IRS.
  • The annual obligation under Code Section 6056 for applicable large employers to report to the IRS and to the employer’s full-time employees as to whether and what healthcare coverage is offered to such employees.
  • The requirement under Code Section 4980H for applicable large employers to offer healthcare coverage to full-time employees or pay penalties, commonly known as the “play-or-pay” penalties (POP).

What it is important to understand is that PPACA does not require employers to provide health coverage for their employees. Although there is no blanket requirement, there is a substantial penalty for large employers (50 or more full-time employees) who choose to ignore the Employer Mandate of the Affordable Care Act. This penalty has been delayed until 2015.

Employer Mandate Penalties

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The Pieces of the Employer Mandate

In terms of calculating the number of workers employed, the definition of a large employer now includes part-time workers. If employers fail to provide minimum coverage for their employees and the dependents of those employees, the penalties will be calculated monthly. If you do not offer health insurance and you have 50 or more full time employees or equivalents, the penalty is waived for the first 30 employees, then the penalties kick in after that point at a rate of $2,000 per employee per year.

To avoid the penalties, the employer must offer “minimum essential coverage” to its full-time employees and their dependents. In this new definition, dependents go well beyond just children. They can also include parents, siblings, uncles, aunts, nieces, nephews, grandchildren, and in-laws. In fact, if a person has the same principal address as the employee and lives in the same household, that person is eligible to be listed as a dependent. And this is only the beginning of the vast set of challenges presented by PPACA.

Total HR Management understands how difficult the complicated maze of PPACA can be to a business owner. As a professional employer organization (PEO), we are here to help you effectively navigate that maze. If you have any questions or want to learn more about the employee mandate delay, please contact Total HR Management for help by calling (800) 975-5128 or emailing our human resources outsourcing experts at info@totalhrmgmt.com

What Is The Impact Of The Government Shutdown On Healthcare Reform And The Affordable Care Act?

Given the extremity of the government shutdown, Total HR Management illuminates how the shutdown will effect the Affordable Care Act and healthcare reform. This article has been informed by an investigative piece on the Leavitt Group website. Following the end of the federal government’s fiscal year on October 1, 2013, a government shutdown began on account of Congress’ inability to reach an agreement on a spending bill.

Effects of Government Shutdown

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Government Shutdown & The PPACA

The House of Representatives refused to fund the implementation of the Affordable Care Act (ACA). In response, the Senate refused to pass any budget that did not include such funding. Despite this stalemate and the negative effect on the country, the government shutdown has had very little impact on PPACA and the implementation of the Affordable Care Act.

Since funding for PPACA was passed by Congress in 2010, the health insurance exchanges opened as scheduled for enrollment on October 1, 2013. State-based health insurance marketplaces help uninsured people find workable health coverage plans. The majority of these state exchanges and the requirements for businesses to enact the law will not be greatly affected by the government shutdown.

Although the exchanges are operational, technical difficulties have been happening due to a high volume of site traffic. When attempting to access exchange websites on October 1, people experienced wait times and error messages that indicated heavy site traffic. Since nearly 800,000 government workers were furloughed, nobody knows when IT consultants will be employed to fix these initial online problems. This is one of the negatives of the government shutdown.

The Cost of the Government Shutdown

Although the government shutdown will have many negative consequences (the estimates are that it is costing the United States over $300 million dollars per day), those consequences will not alter or change the future of the Affordable Care Act. As a professional employer organization (PEO), Total HR Management is here to help our clients and potential clients navigate through the challenges and pitfalls of healthcare reform. If you have any questions, please contact Total HR Management for help by calling (800) 975-5128 or emailing our human resources outsourcing experts at info@totalhrmgmt.com.

Two Ways Human Resources Administration And HR Services Are Changing In The 21st Century

human resources administration and hr services

Changing Face of HR Services

In the 21st Century, Total HR Management has seen major changes in human resources administration and HR services. As a top Professional Employer Organization (PEO), Total HR Management is happy to see a trend shifting towards our business model. Human resources outsourcing is becoming more and more the norm as the core competencies needed to succeed in human resources become more complex and the use of human resources specialists become more necessary.

2 key ways HR is changing in the 21st Century:

1. Core Competencies of Strategic Thinking and Tailored Solutions

The trend towards more strategy-focused human resources administration and HR services was predicted 11 years ago in SHRM’s 2002 report, The Future of the HR Profession. By offering tailored solutions that work for a specific business, Total HR Management is helping to turn this strategic vision into a viable reality. The analysis of a business from an external perspective by a company with extensive experience working with a multitude of different types of businesses delivers a rare combination of experience and expertise.

A professional employer organization (PEO) offers a company an outside eye and perspective that can help that business make more accurate projections on what is needed to succeed. Such projections can be particularly effective when it comes to recruitment and hiring to help the company find the right employees. In addition, such strategic thinking and tailored solutions apply to benefits and payroll administration in order to retain a company’s best employees and maintain their productivity.

2. The Human Resources Specialist is the Norm, not the Exception

The human resources pendulum is swinging back towards the role of the HR specialist with the real expertise fostered by working in the context of a professional employer organization. A PEO environment is the perfect training ground for true human resources specialists. Such HR specialists are becoming the norm and not the exception in the 21st century.

The introduction of healthcare reform in the form of the Patient Protection and Affordable Care Act (PPACA) has raised the stakes of human resources administration and services. The consequences of failing to have a true human resources specialist on your company team are greater than ever. As a result, more and more small to mid-sized businesses are embracing the professional employer organization (PEO) option than ever before

Total HR Management is proud to be able to deliver the very best in human resources administration and HR services. Our business model fits well with the ongoing evolution of the HR needs of your company. If you have any questions, please contact Total HR Management for help by calling (800) 975-5128 or emailing our human resources outsourcing experts at info@totalhrmgmt.com.


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