ppaca webinar patient protection and affordable care act, what now? disclaimer the information in...

PPACA WebinarPatient Protection and Affordable Care Act, What Now?

Disclaimer

The information in this webinar is generalized and is NOT intended to be legal advice or an authoritative reference.

We encourage you to benefit from resources and information provided in this webinar to further your own research and to learn more about the PPACA guidelines.


What this webinar will cover What about PPACA? Why is timekeeping important? What tools are available in SwipeClock

for PPACA? What Now? SwipeClock has tools to

help you share the message and “seize the opportunity”

Questions/Answers


In Summary PPACA stands for the Patient Protection and

Affordable Care Act Signed into law in 2010 Represents the most significant government

expansion and regulatory overhaul of the U.S. healthcare system since the passage of Medicare and Medicaid in 1965.

“Shared Responsibility” puts the burden on employers and individuals, with the added burden on employers to track how many hours employees are working.

PPACA brings automated timekeeping to the forefront of tools your clients must have


Why Client’s Need Timekeeping for PPACA

Count of “Hours of Service”

FT= >30/week avg. OR >130/month avg.

FTE=total hours of non-FT employees /120 per

calendar month

Seasonal <120 days/year

FTE Thresholds

1-25: Small Employer Tax Credit

26-50: “Bubble employers”

<100 can purchase group plans at discounted rate

via exchanges

200+: auto-enroll employees

Administrative Records

IRS: assessed payments/penalties will be collected based on verification of records

which begins with timekeeping

DOL: Still over the FLSA regulations and most

likely become even more “aggressive” since

“triggers” can come from IRS now


Why Client’s Need Timekeeping for PPACA

Annual Measurement for determining “Applicable Large Employer” status

Ongoing Measurements to “Pay or Play”

• “Applicable Large Employer”= 50+ FT and FTE’s based on “hours of service”

• 2013: safe harbor, employers can measure 6 consecutive months to report their status for the 2014 year

• 2014 and beyond: must measure 12 months to determine amount of FTE’s

• Employer sets “measurement period” between 3-12 months to determine FT employees

• “Play”: Each FT employee entitled to “affordable” and adequate health coverage from an “applicable large employer”, or $3,000/ee penalty (excluding first 30 FT ee’s)

• “Pay”: $2,000/ee for all FT employees less first 30 FT ee’s.

Additionally timekeeping is required for….


Part-Time Employees and PPACA Part time employees Count for PPACA

Total hours of PT employees / 120 = count of Full Time Equivalents for a calendar month

Food for thought: Health Care Exchanges will be busy with part-time employees who do not have health care coverage, potentially increasing the “exposure” of your clients timekeeping records to regulatory audiences.

Automated timekeeping eliminates this “unknown”


Who is regulating PPACA?• IRS/DOL

– IRS carries the bulk of regulation and assessed payments will be submitted to them

– Recent Forbes article states: “the IRS will need more than 2,000 employees to monitor compliance with Obama’s health care law. And that’s just for 2013.” (http://www.forbes.com/sites/merrillmatthews/2013/01/10/irs-to-employers-pay-obamacare-shared-responsibility-or-else/)

– Department of Labor (DOL) should be expected to continue monitoring labor laws with respect to employee classification and wage and hour compliance

http://www.forbes.com/sites/merrillmatthews/2013/01/10/irs-to-employers-pay-obamacare-shared-responsibility-or-else/





Why Automated Timekeeping Matters for PPACA• Automated timekeeping is a smart, cost saving,

time saving option for employers as it is, but now:

• Hours of service = Number of Employees• The IRS will check records• Consistent monitoring of hours• Ensures records are reliable and easily obtained


Applicable “Large Employer”??(50+ FTE’s)• Hours worked is how to determine your

standing• 2013 Safe Harbor:– In 2013 only, employers can elect to use a 6

consecutive-month look back period rather than the entire 12 months to determine their “large employer” status for 2014 purposes

• How it’s determined:– Employers with at least 50 FT and FTE

employees– Hours worked or “intended to work” are

included in the calculation


Employee Tracking Requirements• Whether “Pay” or “Play” clients will need to

track accurate timekeeping records to justify measurement look back and stability periods.

• Look Back/measurement periods: Standard measurement chosen by employer (3-12 months).

• Stability periods: minimum of 6 months, employer must provide . Employer required to provide affordable health care to FT employees based on “Look Back Period”


Information about Employees• “Large Employers” – Employers with 50 or more

full time equivalents (FTE’s):

Source: http://www.slideshare.net/tasinquefield/ppaca-what-you-need-to-know

http://www.slideshare.net/tasinquefield/ppaca-what-you-need-to-know



How about smaller employers?• Small Business Health Care Tax Credit

for Small Employers:• Deductions for health care costs not eliminated by

the credit are still in play, therefore the benefits are high for clients that fit this group

• Example: • Client ABC pays $50,000/year in health care premiums• has under 25 FTE’s for the 2013 year• May qualify for a credit up to $25,000 (50% of $50k).

– Note: The smaller the firm, the higher the percentage for the credit


How about smaller employers? (1-25 ee’s)

Small Business Health Care Tax Credit for Small Employers:

IRS Says: “Small employer? Get the credit you deserve. If you are a small employer . . .with fewer than 25 full-time equivalent employees, pay an average wage of less than $50,000 a year, AND pay at least half of employee health insurance premiums . . .then there is a tax credit that may put money in your pocket.”

2010 to 2013, percentages were 35% for small business and 25% for tax-exempt employers.

Starting Jan 1, 2014 the percentages will increase to 50% and 35%, respectively

NOTE: Employer can still take the applicable deductions for the premiums and receive a credit to offset tax obligations


Now is the Time! It’s up to you to inform your clients For those using manual timekeeping methods or an

antiquated system without proper tools for PPACA, a time clock installed and implemented by June 1, 2013 is step #1

PPACA affects small to large employers with tax credit options and assessed payment penalties

FT/FTE and how their hours are calculated determines the credits/penalties/requirements


Automated timekeeping has become a vital part of this equation:Plug n’ play clocksQuick implementation and training turn

around

PPACA centered tools:Work Week Report (available in Classic and

Glue)Hours Alerts (Glue only)

How SwipeClock is a great PPACA solution for your clients?


SwipeClock’s Work Week Report Available in Both Classic and Glue Report includes:

Total FT employees (Salary can be set to be included in this total)

Total Non-FT employees Total hours for Non-FT employees Total FTE’s/Total FT with FTE’s (if weeks chosen

is divisible by 4)


Work Week Report Includes all hours except “unpaid” hours Salary employees can be turned on and

off via “salary” in the Options field of Employee Setup making it unnecessary to track salary hours on time cards

Coming Soon: Report by Calendar Month “Seasonal” employee tracking Option to select the exact pay categories to be

included in the report Etc.

Let’s take a look!


Additional Tools Available for your clients in SwipeClock Glue

“HoursAlert” rule (Glue only): Set a maximum amount of hours, a

threshold for the message to appear (e.g., remind me 12 hours before the employees reach the maximum), and whether to see hours, times or both in the message.

Can be configured to track only OT eligible hours, or ALL hours

Alert message on both the time cards and Daily Auto Email helps your client effectively manage their employees “hours of service”


So, What Now? June 1, 2013 gives your client the

minimum required 6 consecutive month measurement period

Get a clock on your client’s wall!


So, What Now? To learn more:

Visit SwipeClock University and click on this guy:

Marketing Materials available for distribution to your clients: A marketing email to send your clients

regarding PPACA One-page flyer for distribution A newsletter article that can be shared with

clients A short-video promoting the importance for

timekeeping with PPACA mandates


Resources for Additional Information• IRS Q&A:

http://www.irs.gov/uac/Newsroom/Questions-and-Answers-on-Employer-Shared-Responsibility-Provisions-Under-the-Affordable-Care-Act

• Employer Shared Responsibility info: http://www.irs.gov/irb/2012-09_IRB/ar10.html#d0e1759

• Review of PPACA Details: http://www.slideshare.net/tasinquefield/ppaca-what-you-need-to-know





http://www.irs.gov/irb/2012-09_IRB/ar10.html

http://www.irs.gov/irb/2012-09_IRB/ar10.html



ppaca webinar patient protection and affordable care act, what now? disclaimer the information in...

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