ADP’s Answer to the Affordable Care Act
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ACA Differs from all preceding legislation…
Three Things You Will Remember
! WHY IT’S IMPORTANT TO YOU
+ HOW ADP CAN HELP
? WHAT IS REQUIRED? There are implications for Employers
Source: Mercer Select Health Care Reform Briefing, October 27, 2011
WHAT IS REQUIRED?
DEPENDENT COVERAGE
Employers must expand coverage for qualifying dependent childrenup to age 26
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Configure the ADP WFN platform to apply age rules where applicable
Provide open and life event enrollment tools to allow dependent children up to age 26 access to health and welfare plans
Provide benefit plan setup template to track dependent age requirements
HOW ADP CAN HELP+Dependent Coverage
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Reduces costs associated with ineligible plan participants
Reduces premium overpayments
Helps ensure compliance with coverage regulations
WHY IT’S IMPORTANT!Dependent Coverage
WHAT IS REQUIRED?
Insurers and self-insured group health plans must provide SBCs for annual enrollments beginning on or after 9/23/12 +
BENEFITS
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SUMMARY OF BENEFITS AND COVERAGE (SBC)
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ADP WFN supports delivery of SBC electronically as well as obtaining acknowledgement from employees; client can also print hard copy
HOW ADP CAN HELP+Summary of Benefits and
Coverage (SBC)
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WHY IT’S IMPORTANT!
Aids compliance with SBC requirements
Reduces administrative burden of communicating SBCs to employees
Empowers employees with access to coverage-related information+
BENEFITS
Summary of Benefits and Coverage (SBC)
WHAT IS REQUIRED?
Sponsors of plans will be assessed a
federal tax to examine the effectiveness of hospitals and doctors
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PATIENT-CENTERED OUTCOMES RESEARCH FEE
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HOW ADP CAN HELP+
ADP WFN provides Practitioners with self administered plans the means to calculate the research fee
Provides non-self administered Practitioners with the means to audit their providers
Patient-Centered Outcomes Research Fee Report
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WHY IT’S IMPORTANT!
Aids compliance with research fee requirements
Reduces administrative burden of calculating or auditing research fees
Patient-Centered Outcomes Research Fee Report
WHAT IS REQUIRED?
FSA ANNUAL LIMIT
maximumAbility to determine the
amount an employee can contribute to FSA
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HOW ADP CAN HELP+
Provide one- stop shop for all ADP Healthcare spending accounts for 2013 open enrollment (FSA, HSA, HRA), including single debit card and mobile access
FSA Annual Limit
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WHY IT’S IMPORTANT!
Aids compliance with FSA requirements
Reduces administrative burden of communicating FSA limits to employees
Boosts employee engagement by improving communication
MAXIMUM
FSA Annual Limit
WHAT IS REQUIRED?
Ability to notify Employers of new statutory
regulations
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MEDICARE TAX ON WAGES AND UNEARNED INCOME
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HOW ADP CAN HELP+Medicare Tax on Wages and
Unearned Income
ADP WFN allows practitioners to generate a report in order to conduct analysis of payroll & deductions for high-income employees who may meet criteria for the new taxes
Calculates the new Medicare tax for appropriate employees
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WHY IT’S IMPORTANT!
Increases employee satisfaction with highly compensated/executive associates on planning their taxes
Improves accuracy and reduces risk of penalties
Medicare Tax on Wages and Unearned Income
WHAT IS REQUIRED?
W-2
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Ability to track total costs of group health coverage for
BOTH employee and employerto display on Form W-2
W-2 REPORTING OF HEALTHCARE INSURANCE COSTS
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HOW ADP CAN HELP+W-2 Reporting of Healthcare
Insurance Costs
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ADP WFN gives the ability to determine which benefit plans should be included in the Group Health Insurance Costs calculation for the W-2
Group Health Insurance Costs reporting is available to generate and review the costs associated with each employee by benefit plan
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WHY IT’S IMPORTANT!
Aids compliance with W-2 requirements
Reduces risk of penalties for incorrect W-2s (i.e., $50 per)
Reduces administrative burden of year-end payroll processing and validation
W-2
W-2 Reporting of Healthcare Insurance Costs
WHAT IS REQUIRED?
Ability to
load notice describing availability of exchange coverage
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EMPLOYEE NOTICE OF EXCHANGE
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ADP WFN supports delivery of Notice of Exchange electronically as well as obtaining acknowledgement from employee; client can also print hard copy
HOW ADP CAN HELP+Employee Notice of Exchange
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WHY IT’S IMPORTANT!
Aids compliance with exchange notice requirements
Reduces administrative burden of communicating exchange option to employees
Employee Notice of Exchange
WHAT IS REQUIRED?
WAITING PERIODS
Ability to define when an employee is eligible to enroll in employer group health plans
Date of Hire
First of the Month
following Hire DateX number of Days following Date of Hire
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Provide new hire reports (up to 90 days) to validate employment status & change triggers to ensure appropriate benefits enrollment
HOW ADP CAN HELP+Waiting Periods
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WHY IT’S IMPORTANT!
Helps mitigate excessive costs based on employment status
Aids compliance with FLSA rules
Date of Hire
First of the Month following Hire Date
X number of Days following Date of Hire
Waiting Periods
WHAT IS REQUIRED?
EMPLOYER SHARED RESPONSIBILITY
Employers with
must offer affordable, minimum essential coverage or be subject to tax penalties
50+ FTEs and/or equivalents
Offering traditional group health plan coverage for all employees, with minimum essential coverage (60%+ of actuarial value), while employee costs are capped (9 1/2% of household income)
Offering no medical coverage
Offering medical coverage for some but not all employees
Options include:
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Provide tools for the practitioner to conduct analysis of employees purchasing benefits from employer to see if costs exceed 9 ½% of W-2 wages
Assist with identifying plans that are minimum essential coverage (60%+ of actuarial value
Track employees who have waived benefit coverage and reason
HOW ADP CAN HELP+Employer Shared Responsibility
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HOW ADP CAN HELP+
Provide tools to assist with annual reconciliation of the penalty bill against benefits and W-2 data, enabling client to request W-2 corrections or initiate penalty appeals process
Employer Shared Responsibility
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WHY IT’S IMPORTANT!
Mitigates risk related to cost of benefits and employee burden levels
Aids compliance regardless of company size
Reduces administrative burden in determining wage levels
Offering traditional group health plan coverage for all employees, with minimum essential coverage (60%+ of actuarial value), while employee costs are capped (9 1/2% of household income)
Offering no medical coverage
Offering medical coverage for some but not all employees
Options include:
Employer Shared Responsibility Play or Pay Preparation Report
Why ADP . . .
Our goal is to minimize your administrative burden across the entire spectrum of payroll, tax, HR and benefits, so that you can focus on running your business.
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#ADPHCM "We're proud of our payroll heritage" but #ADP is much more than payroll today -- global HCM leader in the cloud.NAOMI BLOOM, HCM INDUSTRY ANALYST IN FULL BLOOM
“With RSM McGladrey and ADP managing our most sensitive business information, I come away each day with a sense of confidence and internal control becauseI am managing the business, not the tasks.MIKE NICHOLAS, CHIEF FINANCIAL OFFICERRSM MCGLADREY
“
“Committed to assisting businesses with increased compliance requirements resulting from rapidly evolving legislation.
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