Benefits departments must keep up with many regulations, including laws like the Affordable Care Act, which require them to provide their employees with compliant healthcare coverage or face hefty penalties. One way to do so is by outsourcing.
Outsourcing an ACA Compliance group can help your company save time and money while reducing risk. Here are some of the top benefits of doing so:
The ACA requires employers to offer affordable health coverage to full-time employees or face costly penalties. The compliance tasks required are complex, and the law is always changing. It can be a significant burden on HR departments to manage this work.
A reputable outsourcing partner will handle the work and ensure your organization is ACA-compliant. This will free up your team’s time and resources to focus on more strategic matters. Outsourcing also reduces your risk of a costly penalty.
Outsourcing is a good strategy for organizations of all sizes. Larger companies with dedicated HR departments can still benefit from the expertise of an outside vendor. Smaller businesses will appreciate the cost savings of outsourced ACA management.
The complexities of the ACA make it difficult to keep up with the changing laws. Adding HR staff to handle ACA compliance and reporting adds additional costs to your business. In addition, training your team to become experts in ACA compliance is expensive. Whether you’re an established firm or a start-up, outsourcing is a cost-effective strategy to help you focus on your core mission: building your business.
Tracking ACA compliance and complying with its many requirements is taxing for any HR department. Moreover, keeping up with the constant change in ACA rules and regulations is difficult, if not impossible, for any organization. Outsourcing can save companies time and money by reducing the burden on the internal team and freeing up resources to focus on other key business priorities.
For example, the ACA requires employers to report on their employee’s health coverage and affordability status using IRS forms 1094-C and 1095-C. This data requires a deep understanding of the nuances of the law, and it’s easy for businesses to make errors or file late. Outsourcing this responsibility to a partner with the right expertise ensures timely filing and avoids costly fines or penalties.
In addition, ACA compliance management solutions can help automate and streamline data collection and reporting to make it easier to stay compliant. For instance, a unified platform that integrates information from payroll, HRIS, and benefits helps eliminate manual processes like collecting employee hours, monitoring eligibility changes, and ensuring accurate ACA reporting.
The ACA has complex reporting requirements that can result in severe penalties for noncompliance. These include determining which employees are full-time for ACA purposes, capturing the correct information for coverage eligibility, understanding how to document benefit elections, and verifying that minimum essential coverage is offered. It can be time-consuming, confusing, and stressful for HR teams to manage this independently.
Having an expert team to handle these complex and time-consuming tasks can save organizations money, time, and stress while also mitigating the risk of costly penalties. It’s worth considering that outsourcing ACA compliance management may cost you an extra line item in your budget. Still, the reduced exposure to penalties and peace of mind is well worth it.
The benefits of a comprehensive ACA solution that provides you with best-in-class technology, specialized expertise, and dedicated support far outweigh the costs of doing it yourself. If you’re ready to free up your HR team’s time, save money, reduce risk, and improve the effectiveness of your ACA compliance efforts, contact us today to learn how we can help. We’re committed to helping your business thrive by delivering best-in-class ACA solutions. Your success is our success. That’s why we never compromise on delivering results you can trust.
Increase Employee Satisfaction
Managing payroll, ACA compliance, benefits administration, and other aspects of HR can be time-consuming. This removes your ability to focus on the most important things: boosting employee morale, increasing productivity, and growing the company.
Using a professional services firm to manage your ACA compliance allows you to reduce the time spent on tedious tasks so that you can devote more resources to other projects. Furthermore, firms specializing in ACA compliance management have the expertise to help you stay compliant and manage any penalties arising from noncompliance.
In addition to reducing the burden on your HR staff, outsourcing ACA compliance management can boost employee satisfaction. When your employees understand their benefits better, you can rest assured that they will be happier and more productive at work.
It is essential to note that not all ACA compliance management providers are created equal. Some may provide a cloud solution with simple forms for filling out and filing 1094/1095 documents, while others may offer a full-service ACA platform that includes employee data tracking throughout the year, accurate reporting and filing, and a robust self-service dashboard.
Choosing the right ACA compliance management provider comes down to several factors, such as data accuracy and comprehensiveness, the flexibility of their services, and whether or not they are expanding their offerings as the law evolves.