Archbright™ Insights April 2015

Insights

HR Advice and Counsel

How Timekeeping Systems Can Help You Manage ACA Requirements

Are you scratching your head when it comes to the many aspects of complying with the Aiordable Care Act (ACA)? You are not alone! Archbright is carefully studying and monitoring this frequently changing law. Archbright Pay is also actively seeking ways to help our members track, manage, and report information in order to comply with the many aspects of the ACA. Archbright Pay oiers a software solution that helps members monitor, track, and report on large employer and full-time employee status, as well as designate measurement periods and respond to audits. Archbright Pay’s timekeeping systems allow employers the flexibility to access and use this data on a per pay period basis or on a calendar year basis. Other payroll systems only allow employers to track this information on a payroll cycle and do not provide real-time data to review and monitor. Large Employer or Not: Determining Large Employer Status under the ACA is required to be calculated using a calendar-based measurement. Making this determination can be challenging for a payroll or manual based system, as payroll dates and calendar dates seldom align. Using a timekeeping system with more flexible reporting options can reduce the administrative time spent in determining Large Employer status. Measurement, Administrative, & Stability Periods: The Measurement Period under the ACA is determined and designated by the employer. An employer may choose a designated time period of three (3) to twelve (12) months to determine if an employee is considered full-time (average of 30 hours or more per week / 130 hours or more per month) under the ACA. Remember, this full-time status determination is only used for ACA compliance. This is the only measurement period that may currently be defined using payroll period boundaries rather than calendar dates. The Administrative Period is optional under the ACA. This is a period of up to 90 days that an employer may use to notify and enroll eligible employees for coverage. If elected, this period would begin at the end of the Measurement Period. It may not be used to extend or shorten either the Measurement Period or the Stability Periods. The length of the Stability Period is also chosen by the employer. It may not be less than six (6) consecutive months and can be no shorter than the duration of the Measurement Period established by the employer.

During the Stability Period employees must be treated as full-time or non-full-time employees as determined based on the Measurement Period. This period must immediately follow the Administrative Period (or the Measurement Period if the Administrative Period was not invoked). As currently only one of these three measurement periods provides payroll based date flexibility to an employer, a timekeeping system also reduces administrative time in determining and applying all three measurement periods. Audit Response: The Archbright Pay timekeeping system tracks hours worked and allows employers to run detailed reports on employee hours during the Measurement Period. This allows an employer to provide extensively detailed reports to support their full-time or non-full-time employee designation decisions. This history is often frequently stored in the timekeeping system allowing easy access for future needs. One-Stop: Additionally, timekeeping systems can help with FMLA and other leave tracking management. These systems can help employers identify and address management issues (such as late arrivals or leaving early) in real time. Many timekeeping systems, including Archbright Pay’s system, allows employers to electronically automate much of the leave request process. In summary, a timekeeping system is a proactive approach for companies to manage multiple and complex issues from ACA compliance to leave management. A payroll system is only a reactive system. A timekeeping system can access, view, and provide information from a past, present, or future perspective while other systems only oier historical data. It can take on the complex calculations required by the ACA so you are not spending hours in front of a calculator or building complex Excel spreadsheets. As current reporting requirements are scheduled for 2016 for 2015 data, now is the time to consider timekeeping options for your company. Will you spend hours and hours looking through boxes of paper next year or will you click a few buttons and have your data? If you have questions about Archbright Pay, please contact your Account Executive at 206.329.1120 for more information.

www.archbright.com

2

Made with