ADP has added new features to its ADP Workforce Now software to help midsize employers comply with the requirements of the Affordable Care Act.
Employers with 50 or more full-time equivalent employees on their payroll during the previous calendar year have a “shared responsibility” under the health care reform law to offer minimum essential coverage to their full-time employees. Failure to meet this “shared responsibility” will subject employers to penalties.
The enhancements to ADP Workforce Now will help businesses not only assess if the law’s “shared responsibility” is applicable to them if they have more than 50 full-time equivalent employees, but also with workforce planning, eligibility, affordability and enrollment reporting.
One enhancement will allow employers to proactively track the hours of service of their employees to determine full-time status, which is defined under the ACA as employees who average 30 or more hours of service per week or 130 hours or more per month.
ADP Workforce Now has also added the ability for employers to automatically calculate ACA full-time benefit status using look-back measurement periods for various categories of employees.
Another new feature helps employers assess whether newly hired “variable hour” employees meet ACA full-time benefit status.
An additional enhancement allows employers to track and confirm that full-time employees do not contribute more than 9.5 percent of their projected W-2 wages for the lowest-cost, self-only coverage that provides minimum value.
ADP Workforce Now also now enables all employers who offer health plans to track and report on each individual for whom they provide coverage (employees and their dependents) for their 6055 and 6056 annual reports, along with the terms and conditions of the coverage offered to full-time employees during the prior year.
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