1 Your Resource for HR Technology Benefit Technology Resources LLC Presented by: Jamie Hawkins, CEO HR Technology and the World of ACA Employer Reporting

1

Your Resource for HR TechnologyBenefit Technology Resources LLC

Presented by: Jamie Hawkins, CEO HR Technology and the World of ACA Employer

Reporting

Benefit Technology Resources LLC

Confidential & Proprietary Information – Not for Distribution

22TODAY’S AGENDA

1 ACA Overview

2 ACA Tools – Provider Update

6 Provider Solutions

4 Process /Understanding what you have

3 ACA Provider Bandwidth

5 Provider Updates

7 Questions & Answers



33PROVIDERS – THERE ARE OVER 300 IN THE MARKETPLACE



44SERVICES BTR PROVIDES

• Review your current HR technology:

To ensure compliance with healthcare reform.

To ascertain efficiencies and gaps to maximize existing products.

To ensure pricing competitiveness.

• If you do need to look for a provider, we will manage the RFP Process:

We will draft and oversee the RFP selection process for a new provider.

Assist with selecting the right HR technology to fit your organization’s needs and objectives.

Oversee the implementation and ongoing support of any technology solution selected.



55OUR PROCESS

Discovery/ Needs Assessment Prepare your Request for Proposal (RFP) to begin the provider review process

Ongoing technology support

We conduct a detailed discovery of your business needs

Analyze proposals receivedSchedule demos

Review agreements

Assist with acquisition decisionProvide support during implementation

Post Im

plementation

PhaseEv

aluati

on &

Sele

ction

Pha

se

Search Phase

Purchase & Implementation Phase



6GETTING DOWN TO BRASS TAX

April 2015 Survey Results

Many employers are still not ready and it is almost too

late!



7GETTING READY FOR ACA REPORTING

New HRA reporting requirements



8DETAILS YOU NEED TO PLAN FOR

The relationship between true plan premium and incentives will influence affordability:• Tobacco related – assumes non smoker regardless of status• Wellness – assumes no wellness or other incentives• Bundled Benefits – i.e. Dental bundled Medical coverage, total

premiums must be included

Missing Dependent Data (self funded employers):• Identify dependents with missing SSN’s – change procedures to capture• Perform solicitation via paper and phone (1 attempt of the 3 can be

electronic; other 2 must me via US Mail)



9POPULATIONS YOU WILL NEED TO PLAN FOR

• COBRA - Configure COBRA eligibility group in benefits admin and load participants back to 1/1/15.

• Retirees• Board members offered medical coverage• Union employees• Temporary workers – who is providing 1095-C?• Contract workers• Paid versus unpaid interns• Students teachers/Student workers – this impacts the educational industry in a

huge way• Employees and Spouses that are employed by you

Could require additional work to locate and consolidate data.



10TRANSITION RELIEF – BENEFITS ADMIN IMPACT

• Employers with non-calendar year medical plans that did not offer minimum essential coverage but was affordable this year are eligible for transition relief, per section 4980H(b).

• On the 1095-C, line 14, they can use the code 1I for the months they offered Qualified Coverage prior to the beginning of their medical plan year.

• Still have to provide 1095-C to all qualified employees from January-December.

• If it did offer MEC and was Affordable – clients must include the appropriate codes from January 1st regardless of the start date of their medical plan.



11CASE STUDY INTUIT 3,000 LIFE GROUP in 2014

TurboTax – tax service for employees – 30.5 million consumersIntuit – Tax Prep Service for Accountants – 121,000 accountants

Learning Implication

Very little awareness of health ins and tax return intersection

Prepare employees to understand forms

Only 75% of consumers were insured for 12 months

Prepare employees for all ACA tax reporting, not just 1095-C

55% of 1095-C recipients used Turbo Tax through a mobile device.

Leverage mobile delivery

Tax refund delays caused anger and stress for the employee

Be prepared during January to quickly address issues that will delay an employees refund

1095-C pilot drove calls from more than 25% of the population

Be prepared in a timely manner to answer questions



12WHEN DO EMPLOYERS NEED TO FILE & FOR WHAT PERIOD?

Mandatory reporting is due for the Calendar Year 2015:• February 1, 2016 –Employee Statements (1/31 is a Sunday)• February 29, 2016 – IRS Statements due if filing by paper• March 31, 2016 – IRS Statements due if filing electronically (Required if filing 250+)

Penalty Relief for 2015Employers who show a good faith effort to comply will not be liable

for accuracy related penaltiesHowever, if you report inaccurate data– there will be clean up needed

(reissue 1095-C and 1094-C) and potential penalties



1313WHAT TO CONSIDER

These reports are not due until 2016, we have plenty of time right?

NO! Many Providers have closed their doors to new clients.

You must provide a contact phone number for every employee’s form

Forms must be submitted to IRS in Native XML uncompressed format (file size limitation of 100MB)



1414NEW ELECTRONIC FILING STEPS

The IRS has provided more information on the process for electronic reporting. The electronic filing system, ACA Information Return (AIR) system is significantly more complex than simply uploading a PDF file containing the pertinent information. Required to complete the following steps prior to being able to electronically submit any Reporting Forms:• Register with the IRS’s e-services website, including submission of personal information about the

person registering for the Submitting Entity • Obtain an AIR Transmitter Control Code (TCC), a unique identifier authorizing each Submitting Entity

to submit the Reporting Forms, and • Pass a series of technical/system tests to ensure that Reporting Forms will be properly submitted

when due.

The first two steps can be completed now. The third step is anticipated to become available later this year.



1515WHAT TO CONSIDER

IRS information from IRS.gov :

Each provider that submits forms has to have a UniqueRecordIDType – The process of defining a unique Record ID Type Element is defined in publication 5165 Guide for electronically filing Affordable Care Act Information Returns for Software Developer and Transmitters (processing year 2015)

Does the file require a specific encoding types? Yes, MTOM coding is supported. (Message Transmission Optimization Mechanism, a method of efficiently sending binary data to and from Web services)

http://en.wikipedia.org/wiki/Web_service



1616ADP

• Essential ACA – Available for new clients signing by 10/1/2015 for 2015 returns.

• ACA Lite - One-Time transitional solution for 2015 ACA Reporting.

• This is a more manual process with the client completing a template for ADP to upload

• Client must take the full Essential ACA solution for 2016• The only way to have the Essential ACA solution is to also have and utilize

their HRB (HR and Benefits) module.



1717PAYLOCITY

• Client can input or import the data for ACA by employee into Webpay manually and Paylocity will handle the 1094/1095s. Basic reporting included in HRIS/Benefits/Payroll platform.

• Enhanced package - is a full analysis and compliance tool, with less manual work, $1.25 PEPM and the 1094/1095s are included. (recommended option) Had to select by July 18th.

• Essential Package - for $5.50 per 1095-C form. This includes basic ACA dashboards, reporting and filing. Forms will require manual input on the part of the employer.

• If your client has Paylocity payroll and bswift for benefits, ACA reporting will be typically done out of payroll.



1818EMPLOYEE NAVIGATOR

Track hours paid to determine eligibility status (includes employer’s designated measurement, stability and administrative periods)

Print & Mail IRS Form 1095C to employees

E-file IRS Form 1094C and 1095C on behalf of Employers



1919PLANSOURCE

• Existing Clients - that have not elected ACA reporting (as of 9/1/15) will have to find another solution.

• New Clients - will be able to include ACA reporting for 2015 for an additional fee up until the cut off date of 9/30/15.



2020OTHER PROVIDERS

• Proliant ACA available now - strong reporting

• Paycor ACA available now

• Ultimate Software (Ultipro) ACA forthcoming in their fall release, variable hour tracking available now

• Isolved/Infinisource ACA available now

• BenefitMall/Compupay ACA due out in fall release

• Namely ACA available now

• Ceridian Dayforce ACA available now (300+ employees)Freedom Platform – ACA forthcoming (No timeline given)

• Mangrove ACA forthcoming



21ACA TRACKING – STAND ALONE PLATFORMS

Providers No longer available for 2015

Equifax

Continuon

Healthefx

Tango



22ACA TRACKING – STAND ALONE PLATFORMS

Average

Implementation Length

Contract Execution Deadline

SSAE - 16 Audited/Compliant

ACA Track 8-10 weeks Still Available Yes

ACA Elevate 6 weeks Still Available No

ACA Works 6 weeks 10/1/2015 Yes

Diversified 8 - 12 weeks 10/1/2015 Yes

InfinityHR 6 weeks Still Available Yes

SyncStream 6 weeks 9/30/2015 No

WorxTime 6 weeks 10/1/2015 Yes



23ACA REPORTING ONLY PLATFORMS

REPORTING ONLY Average Implementation Length

Contract Execution Deadline

SSAE - 16 Audited/Compliant

BenChoice 2 weeks Still Available No

Greatland 2 weeks Still Available Yes

Sovos 2 weeks Still Available Yes



24BTR ACA PROPOSAL PROCESS

• Client/TIS submit ACA Manager Stand-Alone Proposal Request form to BTR

• BTR will request proposals from the appropriate providers

• BTR will send the side-by-side comparison to the Client/TIS and all proposals received

• Client will need to make a decision ASAP to be assured a “spot in line”



2525TIMELINE TO CONSIDER

Date Event10/1/2015 Contract signed - Implementation starts11/30/2015 Client goes live on new ACA Platform (6-8 week implementation)12/31/2015 Data is loaded back to 1/1/1512/31/2015 Reporting Period Ends

2/1/2016 1095-C Forms Due to Employees2/29/2016 Forms due to IRS if filing Paper3/31/2016 Forms due to IRS if filing Electronically (only option if over 250)



2626BEST PRACTICE RECOMMENDATIONS PREPARE FOR 2016

1. Be sure your client checks with their current payroll provider as a 1st step. The more you can keep with the primary provider the better.

2. If they haven’t already – deploy a benefits administration module, this will automate the benefits tracking needed for ACA compliance. (EEN may be the best option at this stage.)

3. If their benefits admin or payroll provider can’t support ACA reporting, they will need to deploy a stand-alone ACA module.

4. Consider the terms of the agreement with the provider.

Don’t wait!! Data must be backloaded and provider bandwidth is closing



2727RISK CONSIDERATIONS

• Operational: more demand than capacity

• Security: new entrants; it doesn’t take much to start a new company

• Technology: lots of data but is it secure?

• Financial: new entrants, low E&O coverage

• Business Attributes: compliance expertise?

• Platform: early stages



2828WHAT WE EXPECT WILL PROBABLY HAPPEN

Service Providers will:

• Not get it right• Over-commit and under-deliver• Get purchased by adjacent players• Regulations will continue to change, creating challenges for service providers• “Free” will quickly become fee-based• Fees will be unstable for at least 2 years• Capacity will be stretched **ACA may not available on 4th quarter builds because of

bandwidth**• IRS will be overwhelmed



2929

Thank You!

Documents

1 Your Resource for HR Technology Benefit Technology Resources LLC Presented by: Jamie Hawkins, CEO HR Technology and the World of ACA Employer Reporting