Most of the questions from employers surrounding PPACA, thus far, stem from initial and continuous tracking of variable hour employees, seasonal employees, newly hired and rehired employees. How do these groups of employees determine if the employer is classified as an “Applicable Large Employer” which dictates “Play or Pay” and potential nondeductible penalties? How does the employer efficiently manage certain employees’ hours BELOW the 30 hour threshold? How many hours should be counted? The first Stability Period is also the second Measurement Period – WHAT?? Without proper systems in place, a significant negative impact on employers’ bottom line could be looming!!
As you’re suspecting, all these questions tie back to managing payroll that’s obviously based on hours worked. While our agency’s not in the payroll business, PPACA’s requirements have encouraged us to become aware of innovative, proactive systems which benefit accounts we manage. Paylocity, a national payroll vendor, prides themselves on being one of the pioneers in the world of a PPACA revamped payroll tracking solution. I’ve taken the liberty of providing an attached simple, straight forward PowerPoint that is quite informative. Also, their website hosts more PPACA tracking insight at www.paylocity.com.
Responses to date have been very favorable, if for no other reason, than to become more informed of what questions and capabilities you may want to ask your payroll vendor. Different times require different approaches…
If you would like additional information or discuss other PPACA challenges, I’ll be happy to assist.
Gary G. Oetgen, CLU