Payroll and the upcoming PPACA rules - how software can help
Posted: Wed Jan 22, 2025 10:47 am
By now, you’re probably aware of the Patient Protection and Affordable Care Act (PPACA) and its upcoming changes. Since 2014, this requirement aims to ensure that every U.S. citizen has affordable health insurance. PPACA will require employers with more than 50 full-time employees to offer health insurance to those employees or face penalties. These “big companies” may benefit from preparing for the upcoming regulations now. Here’s why it’s best to be prepared and how software can help.payroll software new rules
The first question to answer is whether your company is considered a “large company.” In the eyes of PPACA, this is defined as an employer with more than 50 full-time employees. An employee is considered full-time if they work 30 or more hours per week over a specified period of time. If you are an employer that meets both of these criteria, you are considered a large company.
If you are a large company, you will need to report the benefit of using our student database this information. Review the reports in your payroll statement to help you do this. Create a report that allows you to include all employees, the total hours worked, and the overall average hours worked by employee during the time period you specify. While this may seem like an easy task at first, some employers will have a harder time than others collecting the correct information and ensuring its accuracy on a consistent basis. Some systems may calculate average hours worked differently than others. For example, the average may include overtime or irregular hours worked. You need to be sure that the report you create calculates the average hours correctly.
Some payroll systems allow you to create your own custom reports, while others require you to request reports to be created for you. Determine ahead of time whether your payroll system allows you to create such a report, and if not, you may want to consider creating a custom report for you. Keep in mind that in some cases, creating a custom report may be expensive or even impossible, in which case you will have to collect this information manually. Figuring out how you will collect this information now is a good idea, as payroll companies become extremely busy as the end of the year approaches and the new year begins.
Creating and generating this report now is critical. If you wait until 2014, you may be completely surprised to find that you have more employees than you thought who can claim full-time, which in turn could cost you more money than expected. Or you may try to run the report in question, only to find that your system won’t let you generate the information you need, leaving you to perform important and possibly complex calculations manually.
Let your payroll software help you generate the information you need to comply with future PPACA regulations. Be prepared and create the reports you need now so you know what to expect once the new rules are implemented.
The first question to answer is whether your company is considered a “large company.” In the eyes of PPACA, this is defined as an employer with more than 50 full-time employees. An employee is considered full-time if they work 30 or more hours per week over a specified period of time. If you are an employer that meets both of these criteria, you are considered a large company.
If you are a large company, you will need to report the benefit of using our student database this information. Review the reports in your payroll statement to help you do this. Create a report that allows you to include all employees, the total hours worked, and the overall average hours worked by employee during the time period you specify. While this may seem like an easy task at first, some employers will have a harder time than others collecting the correct information and ensuring its accuracy on a consistent basis. Some systems may calculate average hours worked differently than others. For example, the average may include overtime or irregular hours worked. You need to be sure that the report you create calculates the average hours correctly.
Some payroll systems allow you to create your own custom reports, while others require you to request reports to be created for you. Determine ahead of time whether your payroll system allows you to create such a report, and if not, you may want to consider creating a custom report for you. Keep in mind that in some cases, creating a custom report may be expensive or even impossible, in which case you will have to collect this information manually. Figuring out how you will collect this information now is a good idea, as payroll companies become extremely busy as the end of the year approaches and the new year begins.
Creating and generating this report now is critical. If you wait until 2014, you may be completely surprised to find that you have more employees than you thought who can claim full-time, which in turn could cost you more money than expected. Or you may try to run the report in question, only to find that your system won’t let you generate the information you need, leaving you to perform important and possibly complex calculations manually.
Let your payroll software help you generate the information you need to comply with future PPACA regulations. Be prepared and create the reports you need now so you know what to expect once the new rules are implemented.