In recent years, employers have had to bear an increasing burden in the form of employee benefits and Human Resources compliance regulations.

The increasing burden of employee benefits compliance regulations

Matt PfeiffenbergerHealth Benefits, Human Resources, Large Group Benefits (100+), Small Group Benefits (2-50), Third Party Claim Administration

In the last several years, the complexity of compliance employers need to wade through has grown exponentially. Regulations like ERISA, COBRA, HIPAA, FMLA, PACE, ADA and the ACA (Affordable Care Act), among many others, are their own monsters and require individual attention. Some overlap with existing human resources policies and employee benefits programs, but those acronyms are only increasing. As a result, the paperwork and time commitment surrounding these regulations and employer compliance in general has grown unbearably tedious for many businesses.

Most notably, the ACA has become a notoriously difficult regulatory burden for many employers and HR professionals.

"The ACA has become notoriously difficult."

The ACA has altered the new regulatory environment
The Affordable Care Act (what's in a name?) has been an ongoing and changing challenge for employers and HR professionals. The risks and penalties for inaccurate employee benefit plan information, plan design and plan financials are steeper than ever. In particular, the data capture required for proper reporting can prove next to impossible for many employers.

In addition to the "pay or play" rules governing group health plans, now, employers must meet the ACA's reporting requirements. These require employers to fill out and distribute Form 1095-C to all full-time employees as well as submit that information to the IRS on behalf of each employee. Similar to a W-2 or 1099, certain employers are required to provide employees with these Form 1095 to disclose employee information and the type of coverage the employer extended to the staff member that year. The 1095s submitted to the IRS need to track each employee's eligibility for coverage on a monthly basis and their access to affordable employer-sponsored healthcare coverage. Additionally,employers must report each employee's contribution to the employer's health benefits plan on a month-to-month basis.

Further regulatory challenges
One of the other main issues involved with the ACA is that it now calls for a "transitional reinsurance program assessment fee." All health insurance issuers and employers with self-insured health plans must now pay this fee. This fee is paid by the carrier on behalf of the fully insured employer and is added into the premiums charged back to that employer. Companies that are self-insured pay the fee directly.

As these compliance rules and regulations processes become more arduous year after year, employers and HR professionals need to ensure they have the right human resources information and benefits administration platform in place to collect all necessary data and report such data. If your data collection systems are outdated, now is the time to upgrade to a digital platform which enters all relevant information into a centralized platform. An HRIS or benefits administration system that does not enable HR to extract reports based on real-time data will expose an employer to a multitude of costly regulatory fines and penalties.

This is where Murray can help. We act as a compliance and technology partner. Murray can provide you with several health benefits enrollment, benefits administration, HRIS and integrated payroll systems. We can help your business to remain compliant with the current regulatory and reporting requirements that weigh heavily on your business and your staff.

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