Compliance – Ultimate Software's Blog http://blog.ultimatesoftware.com Thoughts on Putting People First in the Workplace Tue, 18 Jul 2017 10:00:57 +0000 en-US hourly 1 https://wordpress.org/?v=4.8 Employee Handbooks: Your Ultimate Guide http://blog.ultimatesoftware.com/employee-handbook-guide/ http://blog.ultimatesoftware.com/employee-handbook-guide/#respond Thu, 11 May 2017 10:00:58 +0000 http://blog.ultimatesoftware.com/?p=997 Guest post by Kate Bischoff, Employment Lawyer & HR Consultant Shoved deep in some desks of supervisors and employees, the employee handbook resides.  For some, the handbook has lived in this dark corner of the workplace for years without a thought or care. In other workplaces, the handbook rests right there on the desk, enjoys […]

The post Employee Handbooks: Your Ultimate Guide appeared first on Ultimate Software's Blog.

]]>
Guest post by Kate Bischoff, Employment Lawyer & HR Consultant

Shoved deep in some desks of supervisors and employees, the employee handbook resides.  For some, the handbook has lived in this dark corner of the workplace for years without a thought or care. In other workplaces, the handbook rests right there on the desk, enjoys frequent reading, and is referenced when needed. Where does your employee handbook live?

employee handbookLawyers, like me, love handbooks (I’m not joking). Handbooks set expectations—both employer and employee expectations. Take, for example, one of the most important policies: sexual harassment. From this singular policy, employers can expect employees not to engage in sexual-harassing conduct, and employees can expect the employer to do something about it. Employees learn what the employer defines as sexual harassment and how employees can report it if they see, hear, or otherwise experience it. And, as a bonus for lawyers, we can use the policy to protect the employer if a claim is ever raised.

Employee handbooks take on all shapes and sizes. Some are true tree-killers, coming in at over 100 pages.  Others are on smartphone apps available at employee fingertips 24-7, with links to forms that an employee might need. Here are a couple of tips for all handbooks:

Make Them Readable & Accessible

Some of the best advice I ever received was “write for fourth graders.” This is especially true for handbooks. While all of your employees might be post-graduate-degree holders, a handbook with too much legalese, jargon, or seven-syllable words is not going to be understood by most.  If you write it to a fourth grader, your employees (and potential jurors) can better understand it. It’s accessible and, therefore, meaningful.

Handbooks Should Contain Only What’s Necessary

Hundred-page handbooks make my heart hurt. Employees are probably not going to read such tomes, even though they acknowledge an in-depth reading at the start of employment. Plus, with such detail, it is unlikely that the employer is doing everything it says it will do in a handbook of that size. An at-will employment statement, harassment, discrimination, retaliation, leave (and FMLA, if it applies), and some state-specific policies are the only policies employers must include. My favorite add-on policy is “use good judgment in all situations.” It pretty much covers everything else.

Use Your Handbook!

If you say you’re going to do something in your handbook, do it. Forgetting, picking and choosing, or actively working against what’s in your handbook hurts you and your people, because you show that the handbook doesn’t mean what it says. This breeds mistrust and resentment among employees. You don’t want this, even though you have the power to change the handbook at any time, with or without notice.

Talk About Your Handbooks with Employees

Employees should have a handbook available to them. They also should have a member of management, including HR, available to answer questions about what’s in there. Walk through the handbook with new employees. Hold a meeting to discuss changes when you make them.  Being open and honest about what’s in there helps create an environment of trust.

Update, Update, Update

One last thing, please update your employee handbook. Run it past your friendly neighborhood employment lawyer. Like life, employment law moves pretty fast. If you don’t stop and look around at it once in a while, you could miss it. In all seriousness, new requirements are made all the time. Being out of compliance is easy if you don’t regularly have someone take a look.

Handbooks are creatures of culture. If your handbook sets a tone of doom and gloom, that will be reflected in your culture. Think about this when you draft, revise, and rollout a handbook.  Find the right person to work with you to make your handbook a useful tool that employees look at, value, and don’t shove into the dark recesses of their desks.

Kate Bischoff is an energetic and enthusiastic human resources professional, employment/labor law attorney, and technology aficionado. She loves HR and wants to make companies better – not just compliant. To read more from Kate, find her HR-related posts here: http://www.ultimatesoftware.com/blog/author/katebischoff/

The post Employee Handbooks: Your Ultimate Guide appeared first on Ultimate Software's Blog.

]]>
http://blog.ultimatesoftware.com/employee-handbook-guide/feed/ 0
Using Payroll Software to Alleviate Tax-Time Woes http://blog.ultimatesoftware.com/payroll-software-simplify-taxes/ http://blog.ultimatesoftware.com/payroll-software-simplify-taxes/#comments Fri, 28 Apr 2017 01:05:25 +0000 http://blog.ultimatesoftware.com/?p=990 Just like how February is for sweethearts and November is for feasting, for many Americans, April is synonymous with one thing: filing taxes. Depending on your personal and financial situation, the process can be relatively smooth or plagued with technicalities, and the same is true for businesses. If you’re a small company with a few […]

The post Using Payroll Software to Alleviate Tax-Time Woes appeared first on Ultimate Software's Blog.

]]>
Just like how February is for sweethearts and November is for feasting, for many Americans, April is synonymous with one thing: filing taxes. Depending on your personal and financial situation, the process can be relatively smooth or plagued with technicalities, and the same is true for businesses.

payroll softwareIf you’re a small company with a few local employees, it’s possible that your tax services process can be reasonably handled by an in-house employee. But for most businesses, managing employee taxes is an extremely complex endeavor, as you’ll need to manually navigate through thousands of tax jurisdictions—there are 7,000 in Pennsylvania alone—to assign the correct tax code for each employee. And the price of non-compliance is steep; in 2014, the IRS issued 6.8 million penalties related to employment taxes alone, costing US businesses $4.5 billion. For these reasons, it often makes more sense to use payroll software and services that can meet your organization’s unique needs while conserving internal resources and ensuring IRS compliance.

How Payroll Software Can Help

Some payroll solutions offer a comprehensive tax management feature to help businesses handle all tax and compliance computations, including withholding requirements, multi-state taxing rules and reciprocity, and more. All U.S. federal, state, and local tax regulations can be updated automatically, as well as Canadian federal and provincial/territorial regulations. And to simplify things even further, these solutions often leverage the latest geographic information systems to automatically determine the correct tax codes for employees.

As a result, tax information is processed quickly and accurately, simplifying the administrative process and mitigating compliance risk. Technology providers can even provide services to print, seal, and send you your year-end tax forms, ready for immediate distribution. For Ultimate Software, tax services are just another way we’ve designed our solution to put people first.

Service: Putting People—and Their Taxes—First

In addition to UltiPro’s strong payroll solution, service has always been a differentiating factor. In an industry where 7 out of 10 HR decision makers report regretting their HCM provider choice, Ultimate stands proud with a 95% customer satisfaction rate. We’re in the people business, and we treat our customers as partners for life. This means that you’ll work closely with one of our dedicated representatives—throughout the entire process—to define and implement the strategies that make sense for your company.

To learn more about how Ultimate’s HR, payroll, and talent management software can fulfill your human capital management needs, join us for a live UltiPro Web Demo on April 27, at 2:00 p.m. Eastern time.

The post Using Payroll Software to Alleviate Tax-Time Woes appeared first on Ultimate Software's Blog.

]]>
http://blog.ultimatesoftware.com/payroll-software-simplify-taxes/feed/ 3
HR Compliance in a Legal Whiplash World http://blog.ultimatesoftware.com/hr-compliance-predictions/ http://blog.ultimatesoftware.com/hr-compliance-predictions/#respond Wed, 15 Feb 2017 11:00:45 +0000 http://blog.ultimatesoftware.com/?p=873 Guest post by Kate Bischoff, Employment Lawyer & HR Consultant HR compliance is hard. Employers are subject to so many different laws that even the most seasoned HR practitioners can innocently overlook legal changes. Last year was a particularly fast-paced year for employment law changes. We saw so many different laws and minor tweaks that […]

The post HR Compliance in a Legal Whiplash World appeared first on Ultimate Software's Blog.

]]>
Guest post by Kate Bischoff, Employment Lawyer & HR Consultant

HR compliance is hard. Employers are subject to so many different laws that even the most seasoned HR practitioners can innocently overlook legal changes. Last year was a particularly fast-paced year for employment law changes. We saw so many different laws and minor tweaks that one would hope 2017 would slow this down just a smidge. Don’t hold your breath, HR, because 2017 promises to be just as fast and maybe even more confusing.

Watch the Locals

With the federal government in conflict over nominees, travel bans, and religious policies, state legislatures, county commissions, and city councils are busy bees. Sick and parenting leave, minimum wages, and scheduling rules are all under consideration by local lawmakers. Even Linn County, Iowa with just over 210,000 residents upped its minimum wage and continues to study whether it’ll increase wages even further.

Employers need to know what their local lawmakers are doing. The laws being made on local levels always differ from the eventual state or federal laws that follow. We may be forced to doing some fancy HR yoga to comply with both. If you want a voice, get involved through industry-specific organizations or local chambers of commerce, or by contacting lawmakers directly. Trust me, when HR has a say in making the law, compliance is easier.

Ice Your Legal Whiplash

HR complianceLast year was a whirlwind year for employment law at the federal level. The U.S. Department of Labor’s fiduciary rule, the “blacklisting” rule, and new overtime regulations among others had employers confused and working diligently to find ways to comply. Yet, it appears that only a few of the new federal laws will actually come to fruition. The fiduciary rule is now under review. The U.S. House of Representatives recently voted to repeal the “blacklisting rule.” And, the last-minute injunction imposed by a Texas federal judge remains in place on the overtime regulations. While we don’t know how the U.S. Court of Appeals for the Fifth Circuit will decide whether the salary-basis part of the new regulations is within the DOL’s discretion, it’s only natural that employers feel like they’re suffering from legal whiplash.

This feeling will likely continue. We’re almost a year away from filing a new EEO-1 pay report that the new Acting Chair of the EEOC dislikes. So, could this change? Maybe. The makeup of the ever-controversial National Labor Relations Board will change and, with it, the Board’s decisions on social media and respectful workplace policies will likely swing the other way too.  Get out your icepacks. We are likely in for a bumpy ride for awhile.

Count Your Sick Leave

For the last decade, employers have known that they need to provide some sort of paid time off (PTO) for employees. This PTO has included sick leave, vacation, and even time off to attend school conferences. But, PTO has not been a legal requirement for many employers until now. Chicago, Minneapolis, Trenton, and many others have all enacted new sick-leave ordinances with other localities considering enacting such ordinances soon. Employers have to ask themselves, Got sick leave?

The challenge with the new sick-leave laws is how to calculate the PTO. For example, in St. Paul, Minnesota, employees earn one hour of sick leave for every 30 hours worked. This calculation may be very different than the years-of-service method that determines the amount of PTO a full-time employee accrues under an employer’s policy. For HR, this means we have to be careful calculating earned PTO, and even reverse-engineer the amount of time offered to employees. Remember, employers can always pay more—even in sick leave—just never below.

Befriend an Employment Attorney

The only guarantee I can make for 2017 is that you’re going to need to know an employment law attorney. Employment attorneys are required to know the laws in their jurisdiction. The need to pay attention at city council meetings, attend hearings at state legislatures, or at the very least follow the #emplaw hashtag on Twitter to keep up are essential functions listed in our job descriptions. Meet us, let us buy you a donut or lunch, and ask us lots of questions to help keep you in compliance.

Kate Bischoff is an energetic and enthusiastic human resources professional, employment/labor law attorney, and technology aficionado. She loves HR and wants to make companies better – not just compliant. To read more from Kate, find her HR-related posts here: http://www.ultimatesoftware.com/blog/author/katebischoff/

The post HR Compliance in a Legal Whiplash World appeared first on Ultimate Software's Blog.

]]>
http://blog.ultimatesoftware.com/hr-compliance-predictions/feed/ 0
One-Stop Compliance Shop – Top 19 Compliance Resources http://blog.ultimatesoftware.com/one-stop-compliance-shop-top-20-compliance-resources-flsa-aca/ http://blog.ultimatesoftware.com/one-stop-compliance-shop-top-20-compliance-resources-flsa-aca/#respond Wed, 10 Aug 2016 21:27:43 +0000 http://blog.ultimatesoftware.com/?p=663 Whether preparing for upcoming Fair Labor Standards Act (FLSA) changes or planning for the next Affordable Care Act (ACA) deadline, compliance issues can make or break an organization. At SHRM 2016, we launched our #PeopleFirstPodcast in an effort to help HR professionals thrive in their careers and in the HCM cloud. We know that one […]

The post One-Stop Compliance Shop – Top 19 Compliance Resources appeared first on Ultimate Software's Blog.

]]>
Whether preparing for upcoming Fair Labor Standards Act (FLSA) changes or planning for the next Affordable Care Act (ACA) deadline, compliance issues can make or break an organization.

At SHRM 2016, we launched our #PeopleFirstPodcast in an effort to help HR professionals thrive in their careers and in the HCM cloud. We know that one important aspect of HR is keeping organizations compliant with increasingly changing regulations locally, nationally, and globally. To that end, Episode 4 discusses The Impact of Compliance on the Business. Listen here: http://www.ultimatesoftware.com/Compliance-and-Benefits-Podcast

In this episode, Sharlyn Lauby, the HR Bartender, and Maria Luther, Director of Compliance for Ultimate Software, discuss important issues such as how to strategically prepare for compliance changes. Maria explains how she grades risks in a risk assessment before determining the best ways to prepare, as well as determining implementation and preparation timelines. She also shares the role technology, mobile, and self-service features play in compliance. The 15-minute episode ends with a more serious discussion on cyber security.

Mentioned in the podcast, here are 19 of our favorite compliance resources—including information from SHRM, HR influencers who are compliance experts, employment lawyers, additional resources discussed during the episode, and a few others to round out the list!

Our 19 Favorite Compliance Resources

  1. #PeopleFirstPodcast Episode 4 – The Impact of Compliance on the Business – Ultimate Software
  2. New Report: Understanding the Final FLSA Overtime Rules and How to Prepare – Ultimate Software
  3. Breaking Down FLSA Overtime Changes Infographic – Ultimate Software
  4. ACA Resource Center – Ultimate Software
  5. ACA Planning 2016 and Beyond – Ultimate Software
  6. Navigating the PPACA – Ultimate Software
  7. Compliance for Federal Contractors – Ultimate Software
  8. An Overview of the New FLSA Overtime Rules – Ultimate Software
  9. New FLSA Overtime Rules: How to Develop and Effective Communication Strategy Webcast – Ultimate Software
  10. Drug testing employees post-accident is going to get harder starting in August (OSHA) – Michael Haberman, Omega HR Solutions, Inc.
  11. #SHRM16 Report Day 3 – Focus on the FLSA – Michael Haberman, Omega HR Solutions, Inc.
  12. FMLA, Termination and the ADA – Michael Haberman, Omega HR Solutions, Inc.
  13. HR Intel – The Calm Before the Wage and Hour Storm – SHRM, Michael Jacobson
  14. FLSA Answers – SHRM, Rue Dooley
  15. Here are the 3 biggest workplace compliance concerns for the next year? No. 2 will shock you! – Eric B. Meyer, The Employer Handbook
  16. Social Recruiting and Record Keeping (OFCCP) – Kate Bischoff, Employment Law Navigator
  17. HR Compliance: Shooting the Messenger – Kate Bischoff and Judy Langevin, Employment Law Navigator
  18. Exemptions for Executive, Administrative, Professional, Outside Sales and the Fair Labor Standards Act – US Department of Labor, Wage and Hour Division
  19. FLSA Overtime Rule Resources – SHRM

The post One-Stop Compliance Shop – Top 19 Compliance Resources appeared first on Ultimate Software's Blog.

]]>
http://blog.ultimatesoftware.com/one-stop-compliance-shop-top-20-compliance-resources-flsa-aca/feed/ 0
An Overview of the New FLSA Overtime Rules http://blog.ultimatesoftware.com/flsa-overtime-rules/ http://blog.ultimatesoftware.com/flsa-overtime-rules/#respond Tue, 02 Aug 2016 15:33:20 +0000 http://blog.ultimatesoftware.com/?p=647 The U.S. Department of Labor (DOL) recently announced changes to overtime rules under the Fair Labor Standards Act (FLSA). These changes stand to impact millions of employees across the country, and it’s important for organizations to understand the rules, as well as the proactive measures they can take today to remain competitive and compliant. Let’s […]

The post An Overview of the New FLSA Overtime Rules appeared first on Ultimate Software's Blog.

]]>
The U.S. Department of Labor (DOL) recently announced changes to overtime rules under the Fair Labor Standards Act (FLSA). These changes stand to impact millions of employees across the country, and it’s important for organizations to understand the rules, as well as the proactive measures they can take today to remain competitive and compliant.

Let’s take a closer look at these updates and their potential impact.

What’s Changing and When
Generally, there are three requirements that must be met for an employee to be exempt from overtime and minimum wage. If an employee is:

  • Considered an executive, administrator, professional, or outside salesperson—Duties Test
  • Paid on a salary or fee basis, except for outside-sales employees—Salary Test
  • Paid at a minimum rate of $455 per week for a regular employee or $100,000 per year for a highly compensated employee (HCE)—Threshold Test

Effective December 1, 2016, the threshold will increase to $913 per week for regular employees and $134,004 per year for HCEs, and will adjust every three years beginning on January 1, 2020. Additionally, employers may not count incentive pay—nondiscretionary bonuses of up to 10% of employees’ salaries, for example—toward meeting the new threshold. Certain employees, such as doctors, lawyers, and teachers, are statutorily exempt from the minimum wage and overtime requirements. Other classes of employees (e.g. software developers and computer engineers) have a different threshold amount of $27.63 per hour, if they are paid hourly.

Organizations Have Options
Employers have two options for navigating these changes: 1. Increase impacted employees’ salaries to meet the new threshold, or 2. Reclassify impacted employees to non-exempt and begin tracking their time. As part of their due diligence, employers will need to analyze compliance requirements, cost components, pay-structural changes, and strategy for communicating with employees. Most employers will find that the right strategy for them is a combination of these.

Once a strategic decision has been made on how to comply with the new rules, administrative considerations come into play, including:

  1. Is it necessary or beneficial to create new pay codes for reclassified employees?
  2. Has enough time has been set aside to establish such codes and ensure proper data feeds?
  3. Will reclassified employees lose eligibility for benefits tied to salaried or hourly status?
  4. Is it better to reclassify employees to salaried non-exempt status rather than hourly status (i.e., pay overtime on top of regular salary) to limit benefit or morale repercussions?
  5. Have preparations been made to transition employees to using time-tracking systems?

Additional Costs, Compliance to Consider
Employers should make sure they take into account other costs associated with the overtime-rule changes. These costs may include:

  • Employer taxes: FICA (employer portion of Social Security and Medicare tax), state and federal unemployment, employer-paid state disability taxes, workers’ compensation, or local business taxes (Oregon tri-county metro tax, for example)
  • Employee-benefit costs attached to salary: 401(k) matching contribution, life-insurance premium, or Health Reimbursement Account matching
  • Administrative costs: time and attendance administration, as well as additional processing time for timesheet approvers and payroll professionals

Finally, other preparations should be made to ensure employers avoid unintended consequences. For instance, employers should consider making pay-rate or reclassification changes effective the first day of the pay period, so as to avoid prorated calculations. It may also be beneficial to review employees’ job duties to ensure they meet the aforementioned Duties Test. Note that it’s common for employees to be paid above the threshold but still fail the Duties Test, resulting in a DOL fine.

A Proactive Approach
While employers have several months to prepare for these changes, now is the time to begin planning in order to mitigate the impact on their people and their organization as a whole.

For more information on ways to navigate the updates, check out Ultimate Software’s new infographic below, “Breaking Down FLSA Overtime Changes,” and download our whitepaper, “Understanding the Final FLSA Overtime Rules and How to Prepare.”

How is your organization planning for the Fair Labor Standards Act (FLSA) changes? Check out this infographic and blog post to see how you can start preparing for compliance.

The post An Overview of the New FLSA Overtime Rules appeared first on Ultimate Software's Blog.

]]>
http://blog.ultimatesoftware.com/flsa-overtime-rules/feed/ 0
The Excise, “Cadillac” Tax – Start Thinking Ahead http://blog.ultimatesoftware.com/the-excise-cadillac-tax/ http://blog.ultimatesoftware.com/the-excise-cadillac-tax/#respond Wed, 04 Nov 2015 17:50:15 +0000 http://blog.ultimatesoftware.com/?p=386 The Affordable Care Act’s Excise Tax is coming January 1st, 2020, and applies to all employers—including small businesses, tax-exempt organizations and government entities. It may seem as though 2020 is a long way off, but it’s never too early to begin planning for your organization’s compliance needs. Some estimates indicate that as many as 60% […]

The post The Excise, “Cadillac” Tax – Start Thinking Ahead appeared first on Ultimate Software's Blog.

]]>
The Affordable Care Act’s Excise Tax is coming January 1st, 2020, and applies to all employers—including small businesses, tax-exempt organizations and government entities. It may seem as though 2020 is a long way off, but it’s never too early to begin planning for your organization’s compliance needs. Some estimates indicate that as many as 60% of employers could be subject to this tax, which is sometimes referred to as the “Cadillac tax” since it targets high-cost health coverage, unless they make changes to their plans before it goes into effect. There are many differing opinions on the value of this controversial aspect of the ACA, with many economists and government agencies believing it is a necessary provision to support healthcare reform, and many politicians and employers believing it will have a net negative effect and calling for its repeal. As it stands, the Excise Tax is law, and the best thing you can do to prepare your business is to be informed.

This image shows the dollars that employers will have to spend on employee healthcare through the new excise or cadillac taxes detailed by the ACA starting in 2018.

By 2020, all employers will be responsible for employee healthcare coverage. Start preparing for the “Cadillac” tax now.

Essentially, the new rule sets a dollar limit on the total amount employers can spend on health care coverage for employees. Any excess costs above this limit during a “taxable period” will be taxed at 40% (non-deductible). In 2020, these limits are $10,200 for the year for self-only coverage, and $27,500 for family coverage (any coverage provided to an employee and at least one other beneficiary). These limits are slightly higher for retirees and high-risk professionals, and have been indexed to increase with inflation year over year as well. The “taxable period” is generally considered to be a full calendar year; though the language of the legislation does provide the IRS with the ability to prescribe different taxable periods for employers of varying sizes, this has not happened yet. The dollar limit is calculated on a monthly basis, using 1/12 of the annual amount. Calculations are based on the actual plan the employee is enrolled in, rather than the most expensive one offered to them. Exemptions exist for disability income insurance, liability insurance, workers’ compensation, automobile medical payment insurance, dental- and vision-only coverage, and a small number of other plans. However, any employer-sponsored plan that does not meet one of these exemptions may be subject to the tax, regardless of the size of the employer.

One major goal of the Excise Tax is to slow the rate of cost increase for healthcare across the market, which will especially benefit those in low-cost plans. It also aims to cap the amount of tax-free benefits that can be provided by employers, and generate revenue to offset some of the costs of the other aspects of the ACA. A Congressional Research Service report estimates that the tax will reduce healthcare expenditures nationwide by 3 to 4 percent, a savings of $60 billion by 2024, and estimates also show that the tax will reduce the deficit. Research on current health plans indicates that a large majority of covered employees will not be affected by the tax—the average employer-sponsored family plan comes in at 40% under the dollar limit that would be taxed. However, the Excise Tax has also come under fire across the political spectrum for placing an additional burden on employers that provide higher-tier health plans to their employees. The tax would not assist consumers with factors such as rising prescription drug costs, which contribute to a significant portion of health care spending. Many experts are also predicting that employers are likely to reduce health benefits for employees if they would otherwise incur the tax.

The IRS stipulates that the “coverage provider” is responsible for paying the tax. For fully-insured plans, the insurance company is responsible for the tax, though this is likely to be passed on to the employer. For Health Savings Accounts (HSAs) or Archer medical savings accounts (MSAs), the coverage provider is the employer. For self-insured plans, the person that administers the plan benefits is directly responsible, which will usually be the employer. In scenarios for which the employer is not the responsible party, costs are expected to be passed onto the employer. Insurance companies may also bill for a payment of the additional income tax incurred due to the Excise Tax reimbursement, because the tax is nondeductible.

The Excise Tax is perhaps the most controversial aspect of the Affordable Care Act, and several factors are still yet to be finalized and subject to change. For example. final regulations are likely to provide limit adjustments for the age and gender of the covered employee if they differ substantially from the national workforce average. As always, Ultimate Software will stay at the forefront of the legislative landscape and continue to offer updates and services to help your business remain compliant with the ACA.

For more information, take a look at our Demystifying Healthcare Reform volume on the Excise Tax.

The post The Excise, “Cadillac” Tax – Start Thinking Ahead appeared first on Ultimate Software's Blog.

]]>
http://blog.ultimatesoftware.com/the-excise-cadillac-tax/feed/ 0
Navigating the Patient Protection and Affordable Care Act http://blog.ultimatesoftware.com/ultimate-affordable-care-act/ http://blog.ultimatesoftware.com/ultimate-affordable-care-act/#respond Tue, 02 Jun 2015 14:50:04 +0000 http://blog.ultimatesoftware.com/?p=278 Healthcare reform is here, and more is coming soon. With the Patient Protection and Affordable Care Act kicking into full swing, now is the time to ensure that your organization is 100% compliant and ready. At Ultimate, we’re harnessing our expertise and adaptability to provide businesses with the tools they need to face any challenges […]

The post Navigating the Patient Protection and Affordable Care Act appeared first on Ultimate Software's Blog.

]]>
Healthcare reform is here, and more is coming soon. With the Patient Protection and Affordable Care Act kicking into full swing, now is the time to ensure that your organization is 100% compliant and ready. At Ultimate, we’re harnessing our expertise and adaptability to provide businesses with the tools they need to face any challenges that pop up along the way.

These changes to the landscape are complex, and will involve many different areas of your organization. Many of the important provisions of the ACA, such as the “pay or play” requirement for employers and the individual insurance mandate, are already in effect right now. Employers that are not providing adequate essential coverage to all full-time employees can already be penalized if the coverage isn’t offered to all qualifying employees or the coverage does not meet affordability and value requirements.

Starting in 2016, applicable large employers (or ALEs—those with 50 or more full-time employees) are also required to report compliance information to the IRS each year. Companies that exhibit a good faith effort in 2015 to meet these reporting requirements will not be penalized. However, any organization that does not report on 2015 employee coverage information can face a penalty of $250 per each complete return they fail to file (capped at $3 million). Moreover, there will be a $250 penalty for each missing payee statement (capped at $3 million). IRS Form 1095-C and transmittal page Form 1094-C are used for this reporting and must be filed by February 29, 2016 (or March 31, 2016, if filed electronically).

UltiPro makes it easier for businesses to be ready for the Afforadable Care Act and Patient Protection

We recognize the challenges businesses may face in adapting to these new requirements. That’s why we’re working tirelessly to help. With each new release of UltiPro, we’re targeting the most pressing issues for HR professionals and business owners with ease-of-access and streamlined reporting at every step. Right now, UltiPro can automatically analyze employee hours of service to rapidly determine full-time status, track hours over a variety of time periods for your entire workforce, and present the relevant data for all of your impacted full-time employees in one Healthcare Eligibility Dashboard. Specially-crafted reports can show you at a glance which employees are eligible and ineligible for coverage, as well as whether or not it is currently being offered to them. Beginning with our spring 2015 release, UltiPro will feature new tools that make it even easier to collect, review, and correct this eligibility and coverage data for ALEs before reporting it to the IRS. Critical information for Form 1095-C will be able to be stored directly in UltiPro’s records or easily imported from Excel. In UltiPro’s summer 2015 update, we’re adding the functionality to collect employees’ consent to receive their Form 1095-C electronically, along with a new template for capturing monthly information. Finally, our fall 2015 release will enable the import of previously collected data for Form 1095-C, the ability to generate and print Forms 1095-C and 1094-C, and new business intelligence reports to make completing these forms accurately even simpler.

When it comes to navigating healthcare reform, Ultimate’s work doesn’t end there. In 2016 and beyond, we’ll continue to simplify compliance, data collection, and reporting for employees and employers throughout the United States. For more information on healthcare reform and what UltiPro can do to help your organization, check out our Healthcare Reform Law Resources page.

 

The post Navigating the Patient Protection and Affordable Care Act appeared first on Ultimate Software's Blog.

]]>
http://blog.ultimatesoftware.com/ultimate-affordable-care-act/feed/ 0