Under the Affordable Care Act (ACA), as of January 1, 2015, employers with 100 full-time employees (FTEs)—or a combination of full-time and part-time employees that is equivalent to 100 FTEs—are required to offer affordable health insurance benefits for employees and their dependents. The requirement for employers with 50 to 99 FTEs goes into effect in 2016.
Under the ACA Employer Shared Responsibility provisions, employers that do not offer a minimum level of coverage may be subject to a fine of up to $3,000 per employee, if at least one full-time employee receives a premium tax credit for purchasing individual coverage on one of the new Affordable Insurance Exchanges.
To maintain compliance with this requirement, employers in both size groups must measure, track and accurately report the number of hours their employees work per week or month—along with every full-time employee’s total monthly out-of-pocket health plan cost for the year—to the IRS using new tax forms 6055 and 6065. The IRS will use this information to determine whether employers are complying with the health care mandate.
Keeping an exact accounting of employees and their average hours worked can be difficult for institutions that rely on a time clock and manual recordkeeping, especially when dealing with full-time and part-time staff in multiple locations or with varied schedules. However, the penalties for not accurately reporting employee status could be expensive.
A professional human resources consultant can provide the tools and resources you need to streamline your time-tracking process and recording system to alleviate costly errors that can occur when maintaining these important records manually.
Professional advice and a human resources information system (HRIS) can also assist with:
With the onset of the ACA’s new initiatives, employers will be required annually to average the number of workers employed during the year to determine whether they meet the ACA mandate criteria.
So integrating employee information into one module now will reduce the time it takes to track, monitor, and report the information necessary to maintain compliance with the ACA for the long-term.
Plus, it reduces the possibility of errors that can lead to costly fines.
While HRIS systems were once used primarily by large institutions, implementing these more user-friendly, Web-based applications to track and report employee time can help small credit unions to maintain more accurate information.
Plus, credit unions can escape the costs of implementing internal hardware and software systems, avoid adding information technology personnel to manage the process, and most importantly ensure that they are meeting all ACA requirements.