ADPs Answer to ACA: Compliance Connection Tool

ADP’s Answer to the Affordable Care Act

© Copyright 2012 ADP, Inc. Proprietary and Confidential Information.!2

ACA Differs from all preceding legislation…

Three Things You Will Remember

! WHY IT’S IMPORTANT TO YOU

+ HOW ADP CAN HELP

? WHAT IS REQUIRED? There are implications for Employers

© Copyright 2012 ADP, Inc. Proprietary and Confidential Information.

Source: Mercer Select Health Care Reform Briefing, October 27, 2011

WHAT IS REQUIRED?

DEPENDENT COVERAGE

Employers must expand coverage for qualifying dependent childrenup to age 26

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Configure the ADP WFN platform to apply age rules where applicable Provide open and life event enrollment tools to allow dependent children up to age 26 access to health and welfare plans Provide benefit plan setup template to track dependent age requirements

HOW ADP CAN HELP+Dependent Coverage

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Reduces costs associated with ineligible plan participants

Reduces premium overpayments

Helps ensure compliance with coverage regulations

WHY IT’S IMPORTANT!Dependent Coverage

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WHAT IS REQUIRED?

Insurers and self-insured group health plans must provide SBCs for annual enrollments beginning on or after 9/23/12 +

BENEFITS

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SUMMARY OF BENEFITS AND COVERAGE (SBC)


ADP WFN supports delivery of SBC electronically as well as obtaining acknowledgement from employees; client can also print hard copy

HOW ADP CAN HELP+Summary of Benefits and

Coverage (SBC)

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WHY IT’S IMPORTANT!

Aids compliance with SBC requirements

Reduces administrative burden of communicating SBCs to employees

Empowers employees with access to coverage-related information+

BENEFITS

Summary of Benefits and Coverage (SBC)

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WHAT IS REQUIRED?

Sponsors of plans will be assessed a

federal tax to examine the effectiveness of hospitals and doctors

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PATIENT-CENTERED OUTCOMES RESEARCH FEE


ADP WFN provides Practitioners with self administered plans the means to calculate the research fee

HOW ADP CAN HELP+Patient-Centered Outcomes

Research Fee Report

!10 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.

Provides non-self administered Practitioners with the means to audit their providers



Aids compliance with research fee requirements

Reduces administrative burden of calculating or auditing research fees

Patient-Centered Outcomes Research Fee Report

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WHAT IS REQUIRED?

FSA ANNUAL LIMIT

maximumAbility to determine the

amount an employee can contribute to FSA

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HOW ADP CAN HELP+

Provide one- stop shop for all ADP Healthcare spending accounts for 2013 open enrollment (FSA, HSA, HRA), including single debit card and mobile access

FSA Annual Limit

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Aids compliance with FSA requirements

Reduces administrative burden of communicating FSA limits to employees

Boosts employee engagement by improving communication

MAXIMUM

FSA Annual Limit

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WHAT IS REQUIRED?

Ability to notify Employers of new statutory

regulations

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MEDICARE TAX ON WAGES AND UNEARNED INCOME


ADP WFN allows practitioners to generate a report in order to conduct analysis of payroll & deductions for high-income employees who may meet criteria for the new taxes Calculates the new Medicare tax for appropriate employees

HOW ADP CAN HELP+Medicare Tax on Wages and

Unearned Income

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Increases employee satisfaction with highly compensated/executive associates on planning their taxes

Improves accuracy and reduces risk of penalties

Medicare Tax on Wages and Unearned Income

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WHAT IS REQUIRED?

W-2

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Ability to track total costs of group health coverage for

BOTH employee and employerto display on Form W-2

W-2 REPORTING OF HEALTHCARE INSURANCE COSTS


ADP WFN gives the ability to determine which benefit plans should be included in the Group Health Insurance Costs calculation for the W-2

HOW ADP CAN HELP+W-2 Reporting of Healthcare

Insurance Costs


Group Health Insurance Costs reporting is available to generate and review the costs associated with each employee by benefit plan



Aids compliance with W-2 requirements

Reduces risk of penalties for incorrect W-2s (i.e., $50 per)

Reduces administrative burden of year-end payroll processing and validation

W-2

W-2 Reporting of Healthcare Insurance Costs

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WHAT IS REQUIRED?

Ability to

load notice describing availability of exchange coverage

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EMPLOYEE NOTICE OF EXCHANGE


ADP WFN supports delivery of Notice of Exchange electronically as well as obtaining acknowledgement from employee; client can also print hard copy

HOW ADP CAN HELP+Employee Notice of Exchange

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Aids compliance with exchange notice requirements

Reduces administrative burden of communicating exchange option to employees

Employee Notice of Exchange

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WHAT IS REQUIRED?

WAITING PERIODS

Ability to define when an employee is eligible to enroll in employer group health plans

Date of Hire

First of the Month following Hire Date

X number of Days following Date of Hire

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Provide new hire reports (up to 90 days) to validate employment status & change triggers to ensure appropriate benefits enrollment

HOW ADP CAN HELP+Waiting Periods

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Helps mitigate excessive costs based on employment status

Aids compliance with FLSA rules

Date of Hire

First of the Month following Hire Date

X number of Days following Date of Hire

Waiting Periods

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WHAT IS REQUIRED?

EMPLOYER SHARED RESPONSIBILITY

Employers with

must offer affordable, minimum essential coverage or be subject to tax penalties

50+ FTEs and/or equivalents

Offering traditional group health plan coverage for all employees, with minimum essential coverage (60%+ of actuarial value), while employee costs are capped (9 1/2% of household income)

Offering no medical coverage

Offering medical coverage for some but not all employees

Options include:

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Provide tools for the practitioner to conduct analysis of employees purchasing benefits from employer to see if costs exceed 9 ½% of W-2 wages Assist with identifying plans that are minimum essential coverage (60%+ of actuarial value Track employees who have waived benefit coverage and reason

HOW ADP CAN HELP+Employer Shared Responsibility



Provide tools to assist with annual reconciliation of the penalty bill against benefits and W-2 data, enabling client to request W-2 corrections or initiate penalty appeals process

HOW ADP CAN HELP+Employer Shared Responsibility

!29 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.© Copyright 2012 ADP, Inc. Proprietary and Confidential Information.



Mitigates risk related to cost of benefits and employee burden levels

Aids compliance regardless of company size

Reduces administrative burden in determining wage levels

Offering traditional group health plan coverage for all employees, with minimum essential coverage (60%+ of actuarial value), while employee costs are capped (9 1/2% of household income)

Offering no medical coverageOffering medical coverage for some but not all employees

Options include:

Employer Shared Responsibility Play or Pay Preparation Report

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Why ADP . . .

Our goal is to minimize your administrative burden across the entire spectrum of payroll, tax, HR and benefits, so that you can focus on running your business.

“

#ADPHCM "We're proud of our payroll heritage" but #ADP is much more than payroll today -- global HCM leader in the cloud. NAOMI BLOOM, HCM INDUSTRY ANALYST IN FULL BLOOM

“

With RSM McGladrey and ADP managing our most sensitive business information, I come away each day with a sense of confidence and internal control because I am managing the business, not the tasks. MIKE NICHOLAS, CHIEF FINANCIAL OFFICER RSM MCGLADREY

“

“Committed to assisting businesses with increased compliance requirements resulting from rapidly evolving legislation.


Marketplace Buzz

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ADPs Answer to ACA: Compliance Connection Tool

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