Did you Hear from your Payroll Vendor about
Employer Shared Responsibility (ESR)?
Applicable Large Employer (ALE) Status
Tracking, Reporting, and Filing Services?
The ACA imposes penalties on large employers that fail to offer coverage to full-time employees, or that offer coverage that is unaffordable or does not provide minimum value. For purposes of these rules, a large employer is one that employed, on average, at least 50 full-time employees (including full-time equivalent and seasonal employees) during the prior calendar year. 2015 is the prior calendar year, that will be reported in 2016.
The ACA penalty potential can easily turn into huge numbers. Potomac did the research to determine if paying additional fees to your payroll vendor for providing Employer Shared Responsibility and 6056 Reporting and Filing services would be worthwhile, and the results are a resounding “Yes!”
Why? The ACA’s Shared Responsibility requirements are among the most significant and complex provisions of the ACA. There are so many variables and deadlines that have to be tracked and monitored in order to ensure accurate, compliant reporting. It makes the most sense to allow a knowledgeable, prepared vendor administer this ACA requirement. This first year in particular is critical. The administrative burden for both manpower, and the associated costs to administer this requirement internally, far outweigh any fees associated with providing this service.
The peace of mind of not having to worry if all the moving parts are being tracked correctly, or the potential of facing any penalties for errors or omissions, makes this type of investment more than worthwhile. If you haven’t heard from your payroll vendor, call them today to find out what ACA services they are offering you for 2015.
We recently evaluated the payroll situation for one client, who didn’t realize how much they were being overcharged. We were able to lower their costs, add on additional features, elevate them to another platform, and lock in the costs for three years. Contact us for more information.