From billing to payroll, back office staffing agency employees juggle numerous tasks that keep the company running. As if their days weren’t jam-packed enough, now there are ACA compliance-related tasks to complete as well.
ACA compliance is an incredibly complex subject that presents significant challenges for staffing companies. Tasks can be time consuming, using up valuable employee hours. Failing to comply can result in financial penalties.
This blog post should not be taken as legal advice! But the topic is top of mind for many back office staffers. Here are a few “must knows” for the back office when it comes to ACA compliance.
“Must Know” Activities
There are five “must do” activities regarding ACA compliance that the back office must conduct each month.
Calculate eligibility. Some recruiting agency back office software includes a process that calculates eligibility of contingent workers based on an algorithm and timecard hours. Otherwise employees should manually conduct this task.
Classify employees. Based on the results of calculations, classify temporary employees into the correct category – variable, non-variable, part time or seasonal.
Notify employees. Notify employees about their eligibility status and document communications about their classification, including those who are newly eligible.
Record responses. Document when employees accept or decline coverage, all related dates pertaining to when coverage begins and what healthcare is offered.
Set up deductions. Finally, set up any payroll deductions for employee contributions.
These tasks come with timeframe parameters, which some back office software can automate to help with ACA compliance.
Software like AdaptSuite can also calculate the hours worked by employees and the timeframe over which they’ve been working. Then, it presents to recruiting agency staff which employees will soon need healthcare coverage.
“If I want to see who’s eligible for coverage starting August 1, I’d run the report through July 31 to see who needs to be covered starting the next day,” says Julie Schilz, Bond ACA knowledge team lead. “You can look at a corporation, branch, certain employee or by ACA classification, or just look at your variable or part-time employees.”
When it comes to “must know” information, it’s crucial to understand how to classify employees. When workers are hired, they should be classified according to ACA categories as follows:
Non variable employee. This is a full-time employee who works at least an average of 30 hours per week.
Variable employee. When employers are uncertain whether an employee will work full-time, they are considered a variable employee.
Part time employee. Employees who work less than 30 hours per week, or less than 130 hours per month, are considered part time.
Seasonal employee. If the customary annual employment for an employee is six months or less, they are considered seasonal.
“Must Know” Time Periods
There are multiple required time periods that back office employees must know in order to keep staffing agencies compliant with the ACA. These time periods for enrolling in healthcare coverage are complex and require careful attention by back office staff.
For example, there is a measurement period, which is a 3 to 12 month period where hours are calculated to determine eligibility. A stability period is the timeframe when healthcare employees are considered full time and are offered coverage, while an administrative period is the time allowed for employers to determine eligibility of employees, notify them of their status, and enroll them.
The back office keeps the staffing agency running smoothly. With knowledge about ACA compliance “must knows” and software that can support tasks, the back office can adopt tasks to ensure compliance seamlessly.
The Bond Team has deep industry experience that makes it uniquely capable and responsive to your needs. No staffing or recruiting software firm knows the business better, and that know-how is focused on helping you do what you do better and more profitably.
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