In past posts, we have discussed the value of a fully-integrated HRMS system for evaluating performance evaluations and hiring decisions. This value can also extend to your ACA reporting to the IRS, by reducing the amount of time you need to invest both ensuring year-round ACA compliance, and compiling employee data for year-end reporting.
Your HRMS dashboard can be configured to give you information on employees who are eligible for benefits, or may soon become available based on measurement period data, so that management can quickly make informed benefits and budgeting decisions.
How it Works
Employee Onboarding
ACA Reporting relies on a lot of basic employee information, including Taxpayer Identification Number (TIN). A properly secured and designed HRMS allows employee enrollment data to be cross-referenced by your payroll, legal, and ACA reporting HR systems, and can warn you of any potential TIN mismatch errors before you risk an IRS penalty.
Significant Life Events
Eligibility periods for significant life events can be small, and a major headache if an employee finds out too late that an election period has expired. Organizations can make use of their HRMS to communicate eligibility for insurance adjustment, as well as election deadlines to enroll or remove a spouse or child from benefits coverage.
Measurement and Stability Periods
If you have employees who work an average of 30 hours per week, these are variable hour employees – and their health benefits eligibility can be complicated. In order to reduce the overhead involved in hourly employee health benefits management, your HRMS can calculate any employees’ average hours worked per week, to determine their ACA eligibility during your Measurement Period, and track their eligibility though a Stability Period.
When further integrated with CorpStrat Payroll, CorpStrat HR simplifies the process. By allowing employees to enroll into the system online, CorpStrat HR can track employees through their stability period to ensure that deductions are made accurately and on-time.
Your CorpStrat Account Manager will help you configure these data dependencies by understanding your organizations’ individual needs and capabilities, and provide the information that empowers your employees, HR department, and management teams to make the most informed benefits decisions.
Ask us how you can spend less time on ACA reporting and more time on growing your business. Contact us today, or learn more about CorpStrat HR and CorpStrat Payroll.
