ADP Product Simplifies PPACA Compliance for Employers

The new features deliver functionality to support PPACA provisions and help mid-sized businesses manage the employer “shared responsibility” portion of the act. The features include and/or facilitate the following.

• Determining Full-Time Employees: Allows employers to proactively track the hours of service of their employees to determine PPACA full-time status, which is defined as employees who average 30 or more hours of service per week or 130 hours or more per month;
• Measuring Full-Time Employee Status Using the Look-Back Approach: Provides the ability for employers to automatically calculate PPACA full-time benefit status using look-back measurement periods for various categories of employees;
• Newly Hired “Variable Hour” Employee Benefit Status Reports: Helps employers assess whether newly hired “variable hour” employees meet PPACA full-time benefit status;
• PPACA Affordability Testing: Allows employers to easily track and confirm that full-time employees do not contribute more than 9.5% of their projected W-2 wages for the lowest-cost, self-only coverage that provides minimum value; and
• Providing 6055 and 6056 Annual Reports Data: Enables all employers who offer health plans to track and report on each individual for whom they provide coverage (employees and their dependents), along with the terms and conditions of the coverage offered to full-time employees during the prior year.

“Understanding the nuances of ACA can seem daunting,” said Regina Lee, division president, ADP. “This was recently underscored by an ADP Research Institute study showing that two-thirds, or 68%, of HR/benefits decisionmakers at mid-sized businesses lack confidence in their organizations’ understanding of employer responsibilities related to ACA requirements.”

ADP is a provider of business outsourcing and human capital management solutions and also helps clients comply with regulatory and legislative changes.