Navigating the ACA Infographic

Infographic

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Decision Tree

Affordable Care Act HR Technology Guide

HR Tech Guide

ACA Forms Breakdown

Form Breakdown

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  • Navigating the ACA | Infographic
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  • ACA Reporting Forms Breakdown | Guide
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Toolkit

Navigating the Affordable Care Act with Paycom

For smooth sailing through the murky mix of looming ACA requirements and deadlines, Paycom offers this infographic as a guide in the journey to compliance.

Upcoming Webinars

Is Your Business ACA-Compliant?
    October
    30
    3:00 pm - 4:00 pm CT

    Is Your Business ACA Compliant?

    x
    CPE Sponsorship

    All attendees are eligible for 1 hour of CPE credit.

    Wondering if your business is in compliance with the Affordable Care Act? Did you know simply offering health insurance to your employees does not mean you are in compliance? In this webinar we will:

    • Discuss what aspects of the Affordable Care Act are impacted by the delay to 2015.
    • Look ahead at the 2018 Cadillac Tax and how it is already affecting employers.
    • Provide an overview of the upcoming ACA mandates for 2014 and 2015.
    • Walk you through an easy-to-use Decision Tree designed to help you determine if you are ready for ACA compliance.
    • Show you how the right Benefits Administration system can give you the resources you need to stay compliant in regards to the election notices, automatic enrollment into benefits, new COBRA notification and more.
    • Determine if you have the proper reporting capabilities and tools to notify employees of health care exchange opportunities.

    Here’s what others are saying about this Webinar:
    “Very worthwhile hour. It was well-presented, pace was excellent and critical items were identified for this webinar.”
    ~ Bob W., PhD, SPHR ~

    “There were topics mentioned that reminded me to follow up on certain things like our SBC’s and updating our model notice for 2014 to give to new hires.”
    ~ Janet N., HR Director ~

    “I liked the decision tree the best. Very helpful in evaluating the compliance with ACA”
    ~ Theresa F., Controller ~

    “Presentation helped to clarify the calculation process for determining full-time equivalent employees. The simple chart used to explain calculation process was very helpful.”
    ~ John T., CFO ~

    Click here to register!

    November
    11
    3:00 pm - 4:00 pm CT

    Is Your Business ACA Compliant?

    x
    CPE Sponsorship

    All attendees are eligible for 1 hour of CPE credit.

    Wondering if your business is in compliance with the Affordable Care Act? Did you know simply offering health insurance to your employees does not mean you are in compliance? In this webinar we will:

    • Discuss what aspects of the Affordable Care Act are impacted by the delay to 2015.
    • Look ahead at the 2018 Cadillac Tax and how it is already affecting employers.
    • Provide an overview of the upcoming ACA mandates for 2014 and 2015.
    • Walk you through an easy-to-use Decision Tree designed to help you determine if you are ready for ACA compliance.
    • Show you how the right Benefits Administration system can give you the resources you need to stay compliant in regards to the election notices, automatic enrollment into benefits, new COBRA notification and more.
    • Determine if you have the proper reporting capabilities and tools to notify employees of health care exchange opportunities.

    Here’s what others are saying about this Webinar:
    “Very worthwhile hour. It was well-presented, pace was excellent and critical items were identified for this webinar.”
    ~ Bob W., PhD, SPHR ~

    “There were topics mentioned that reminded me to follow up on certain things like our SBC’s and updating our model notice for 2014 to give to new hires.”
    ~ Janet N., HR Director ~

    “I liked the decision tree the best. Very helpful in evaluating the compliance with ACA”
    ~ Theresa F., Controller ~

    “Presentation helped to clarify the calculation process for determining full-time equivalent employees. The simple chart used to explain calculation process was very helpful.”
    ~ John T., CFO ~

    Click here to register!

    November
    27
    3:00 pm - 4:00 pm CT

    Is Your Business ACA Compliant?

    x
    CPE Sponsorship

    All attendees are eligible for 1 hour of CPE credit.

    Wondering if your business is in compliance with the Affordable Care Act? Did you know simply offering health insurance to your employees does not mean you are in compliance? In this webinar we will:

    • Discuss what aspects of the Affordable Care Act are impacted by the delay to 2015.
    • Look ahead at the 2018 Cadillac Tax and how it is already affecting employers.
    • Provide an overview of the upcoming ACA mandates for 2014 and 2015.
    • Walk you through an easy-to-use Decision Tree designed to help you determine if you are ready for ACA compliance.
    • Show you how the right Benefits Administration system can give you the resources you need to stay compliant in regards to the election notices, automatic enrollment into benefits, new COBRA notification and more.
    • Determine if you have the proper reporting capabilities and tools to notify employees of health care exchange opportunities.

    Here’s what others are saying about this Webinar:
    “Very worthwhile hour. It was well-presented, pace was excellent and critical items were identified for this webinar.”
    ~ Bob W., PhD, SPHR ~

    “There were topics mentioned that reminded me to follow up on certain things like our SBC’s and updating our model notice for 2014 to give to new hires.”
    ~ Janet N., HR Director ~

    “I liked the decision tree the best. Very helpful in evaluating the compliance with ACA”
    ~ Theresa F., Controller ~

    “Presentation helped to clarify the calculation process for determining full-time equivalent employees. The simple chart used to explain calculation process was very helpful.”
    ~ John T., CFO ~

    Click here to register!

Recent ACA Blog Posts

Test
Aug 26 2014

ACA Employer Mandate Summertime Blues

Worried about the Affordable Care Act, especially the reporting requirements for employers? Well you’re not alone as a large number of employers are searching for answers to these very questions. While a number of employers are aware that the Department of the Treasury and Internal Revenue Service (IRS) issued final regulations on the reporting requirements for employers regarding the ACA’s employer mandate, many are still unaware how it will impact their organizations or what they need to report on.

holding up money
Jul 28 2014

ACA Small-Business Tax Credit Too Good to be True?

The Affordable Care Act (ACA) has already or will drastically impact employers with 50 or more full-time employees; however, the IRS announced it will be expanding incentives – in the form of a tax credit – to small employers who offer insurance through the exchange to its employees.

man and flag
Jul 3 2014

ACA and Entrepreneurial Independence

On the eve of Independence Day, I want to take a moment to look at a unique comparison between our country’s founding fathers and the people who have helped create jobs for you and me: the American entrepreneur. Although separated by time, the two have something in common in the Affordable Care Act (ACA). The federal government’s controversial legislation has our founding principles and entrepreneurial spirit on the proverbial pins and needles.

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Affordable Care Act Calculator
Test

Worried about the Affordable Care Act, especially the reporting requirements for employers? Well you’re not alone as a large number of employers are searching for answers to these very questions.

While a number of employers are aware that the Department of the Treasury and Internal Revenue Service (IRS) issued final regulations on the reporting requirements for employers regarding the ACA’s employer mandate, many are still unaware how it will impact their organizations or what they need to report on. Add to this that new regulations and changes occur often and you have a recipe for uneasy employers, especially as we head into the home stretch for reporting. So here’s what you need to know as we head into the final month of summer.

Draft Forms Available, Not Final
In July the IRS officially released drafts of the Forms 1094/5-C and 1094/5-B for reporting purposes. These forms are not yet final as the IRS anticipates draft instructions related to the forms will be posted by August. Something tells me that date is a little premature as we are near the end of August, but only time will tell. The forms and instructions are expected to be finalized “later this year,” according to the IRS, but no specific date was given.

This leaves the door open for even more changes – especially in regard to filing instructions – making it difficult to finalize how the reports will be distributed to employers, employees and IRS alike.

To review, applicable large employers (ALEs) will use the Forms 1094/5-C to report on health coverage they offer to 50 or more full-time (or full-time equivalent) employees, while the self-insured and insurers alike will use Forms 1094/5-B for reporting purposes. To view the reporting requirements along with transitional relief and filings check out our blog ACA Reporting Requirements Become Clearer.

Affordability Change or Not?
All ALEs are subject to the employer mandate and must offer affordable insurance or pay fines associated with non-compliance.

Last month, the IRS released Revenue Procedure 2014-37, effectively increasing the threshold for determining whether an employer offered affordable coverage to its employees. The IRS guidance increased the affordability percentage from 9.5% to 9.56%, meaning the employer’s least expensive plan in 2015 cannot require any employee to pay more than 9.56% of an employee’s household income.

Repeat: household income.

Because determining household income is challenging for employers, the IRS released the safe harbor provisions method, allowing employers to determine affordability by assessing whether the premium exceeded 9.5% of the employee’s:

  1. W-2 income as reported in Box 1,
  2.  Rate of Pay or
  3. A measure of the Federal Poverty Level.

However, employers may want to move forward with caution in regards to the 9.56% increase for determining affordability based on an employee’s W-2 income as the IRS regulations still reflect 9.5% when using safe harbor methods. As with a number of ACA changes, the IRS may have meant this to reflect when determining affordability using the safe harbor methods, but the change has not been made in official regulations.

 

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holding up money

The Affordable Care Act (ACA) has already or will drastically impact employers with 50 or more full-time employees; however, the IRS announced it will be expanding incentives – in the form of a tax credit – to small employers who offer insurance through the exchange to its employees.

2014 Changes
Under tax code Section 45R, the final regulations extended the small business tax credit for taxable years beginning in 2014. Employers with a maximum of 25 full-time equivalent employees with annual average wages not exceeding $50,800 are now eligible for a credit.

Eligible small employers can receive a maximum of 50 percent of the premiums paid on behalf of its employees under a qualifying arrangement for plans offered through a Small Business Health Options Program Marketplace. Additionally some employers may qualify for an exception to this requirement. Tax-exempt small employers such as charities can receive up to 35 percent of the premiums paid. These numbers rose from 35 and 25 percent, respectively, for the calendar years 2010-13. These credits are available to eligible employees for back-to-back taxable years.

Breaking Down the Numbers
Considering how the ACA has hit larger businesses’ pocket books hard, you may be thinking this all seems too good to be true. To break it down for you, if you pay $40,000 a year toward employees’ premiums and qualify for a 20 percent credit, you could save $8,000. Add that up over the course of the past four years and you are looking at a grand total savings of $32,000. Now considering the percentage increase, you could save even more in 2014.

It Gets Even Better
The credit can be carried forward or back to other tax years if the small business did not owe taxes during the year in which the credit was filed. Furthermore, because the amount paid for health insurance premium payments exceeds the credit, eligible businesses can claim a business expense deduction for the amount exceeding the credit; meaning some employers can enjoy the benefits of both a credit and deduction for employee premium payments.

Forgot to File?
Don’t worry if you forgot to claim your credits on previous returns because there is still time to file an amended return, though some limitations may apply. Your claim for a refund must be filed within three years from the date the return was filed or two years from the time you paid the tax.

Conclusion
While we can’t see far enough into the future to know if the ACA will negatively impact small businesses, what we do know is the tax credits available make it worthwhile for businesses to stand up and take note. Be sure you are able to find all the tax credits possible for your organization because as you can see they can quickly add up.

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man and flag

On the eve of Independence Day, I want to take a moment to look at a unique comparison between our country’s founding fathers and the people who have helped create jobs for you and me: the American entrepreneur.

Although separated by time, the two have something in common in the Affordable Care Act (ACA). The federal government’s controversial legislation has our founding principles and entrepreneurial spirit on the proverbial pins and needles.

Once independent in nature, entrepreneurs have helped lower the country’s unemployment rate; according to the U.S. Bureau of Labor Statistics, start-ups in their first year of existence currently create around 2.5 million new jobs annually. These entrepreneurs have to think like our country’s founders, in that they establish positive cultures that support their employees; otherwise, those employees might look to leave … and start their own independent company. Sound familiar?

Employers value those workers who exude entrepreneurial spirit, because outside-the-box thinking can yield unique solutions to drive revenue. On the other hand, if that spirit grows untamed, employers stand to lose that top talent to the allure of going solo. An entrepreneurial exodus is what employers may face due to feelings of independence and ACA’s influence.

According to Forbes, four stipulations exist within the ACA that prove “a boon to entrepreneurs,” potentially encouraging these workers to leave full-time employment behind for a shot at independence and opening their own shop. The first and foremost is simple enough: They can afford to.

While a Gallup-Healthways poll found that 25 percent of entrepreneurs went without health insurance two years ago, the ACA makes coverage affordable, especially with extending the deadline of young people remaining on their parents’ plan from age 19 to age 26.

With those extra seven years of security, Forbes reported, young entrepreneurs were more than twice as likely to set up shop for themselves. In 1776, life expectancy was right around 35 years, so the idea of today’s 26-year-olds still being dependent upon their parents would be as alien as putting man on the moon.

How many budding entrepreneurs do you have in your organization? And how many of those top performers already may be plotting an exit strategy to lead the charge for independence?

Obviously, America’s founders had the foresight to develop a business plan in the U.S. Constitution, a document that has evolved for more than 225 years. While a lot has changed in the business landscape across those two centuries, a lot has changed in the four years that the ACA became effective, too. Either example stands as a solid reminder that business plans aren’t set in stone. It is smart to revisit your goals constantly and consistently, several times a year.

As it was with the Constitution and is with the ACA, things change. In order to thrive and remain relevant, don’t be afraid to amend your business plans.

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