With shifting IRS reporting regulations and worry over hefty fines for non-compliance, organizations have felt the stress of complying with the Affordable Care Act. The new regulations introduce complexity around benefits administration with a heavy reliance on data from time tracking and payroll.
What’s more, companies who have disparate systems are all too often finding that they have information that’s messy, contradictory, or just plain wrong. This makes it very difficult to understand where they are with ACA, let alone comply with it.
Under ACA regulations, companies with 100 or more full-time equivalent employees needed to offer health insurance to at least 70 percent of their full-time workers by 2015 and at least 95 percent by 2016. By June 30, 2016, employers must report to the IRS as to whether and what kind of health insurance was offered to its full-time employees. If an employer doesn’t provide coverage, provides coverage below a basic level, or provides coverage that is unaffordable, an organization faces the risk of sizable IRS penalties.
That is why we continue to educate our customers on the ACA support included as part of Workday Human Capital Management. We’ve been actively monitoring the regulations and through our continuous development approach have been building our product to make ACA management as simple and streamlined as possible for our customers.
For current Workday customers, we have a FAQ available on the ACA page of our Community site (login required). For those not on Community, here are the most common questions we hear regarding Workday’s support for ACA as we near the IRS reporting deadline.
There are three key features our customers can leverage to help with ACA:
We have consulted with several Workday customers as well as expert legal counsel to define the specifications and design of the three ACA features.
Following IRS certification, Workday will be able to transmit this information directly to the IRS.
Workday provides you with a benefit event history report to determine when an offer of coverage was made for a benefit plan. Being a single system allows customers to initiate enrollment events upon employee eligibility; there is no need to manage enrollment within a separate downstream system—or worse, multiple HR systems.
Workday has made significant investments to help support our customers with ACA. As this regulation evolves, we will continue to deliver benefits offerings to best accommodate our customers and their changing needs.
To learn more about Workday and ACA management, read the Workday ACA Datasheet.