don't let the affordable care act turn your business upside down
TRANSCRIPT
![Page 1: Don't Let the Affordable Care Act Turn Your Business Upside Down](https://reader036.vdocuments.net/reader036/viewer/2022062406/55c47f75bb61eb3f498b46a1/html5/thumbnails/1.jpg)
What you need to know…
Don’t Let The Affordable Care Act Turn Your Business Upside-Down
Presented by:Mark Young
Senior Vice President, Human Capital PracticeSynergy Services
Sponsored by: PeopleFluent
![Page 2: Don't Let the Affordable Care Act Turn Your Business Upside Down](https://reader036.vdocuments.net/reader036/viewer/2022062406/55c47f75bb61eb3f498b46a1/html5/thumbnails/2.jpg)
2 of 25
Don’t Let The Affordable Care Act Turn Your Business Upside- Down| October 30, 2014
Mark YoungSVP, Human Capital Practice - Synergy Services
• With Company Since 2009• Responsible for:
• - Internal & External HR• - Independent Contractor• Classification Compliance• - Human Capital Management • Consulting for Contingent Labor
• ACA Compliance Strategy and Implementation
Your Speaker Today
![Page 3: Don't Let the Affordable Care Act Turn Your Business Upside Down](https://reader036.vdocuments.net/reader036/viewer/2022062406/55c47f75bb61eb3f498b46a1/html5/thumbnails/3.jpg)
3 of 25
Don’t Let The Affordable Care Act Turn Your Business Upside- Down| October 30, 2014
PeopleFluent & Synergy Services
Your Sponsor:PeopleFluent
• Leader Human Capital Management
• In over 5,200 organizations
• 214 countries and territories
• 80% of the Fortune 100
• 170 VMS customers• $7B managed spend
Your Speaker is with:Synergy Services
• Headquarters in Denver, CO• Specialization and focus:
• IC Compliance • Discovery and Analysis• Compliance Validation and
Engagement• Employer of Record Services• Vendor Compliance Services• Contractor Reutilization Programs• Human Capital Practice• Flexible Workforce Consulting Services
![Page 4: Don't Let the Affordable Care Act Turn Your Business Upside Down](https://reader036.vdocuments.net/reader036/viewer/2022062406/55c47f75bb61eb3f498b46a1/html5/thumbnails/4.jpg)
4 of 25
Don’t Let The Affordable Care Act Turn Your Business Upside- Down| October 30, 2014
What Will You Learn Today?
1 Why Labor Supplier Compliance with the ACA should matter to you and your business.
Suggestions on how to work with your Labor Supplierson Next Step Solutions for ACA Compliance.3
Client Case Study: Lessons Learned and Best Practices from an End Client perspective on Supplier Compliance with the ACA.
2
![Page 5: Don't Let the Affordable Care Act Turn Your Business Upside Down](https://reader036.vdocuments.net/reader036/viewer/2022062406/55c47f75bb61eb3f498b46a1/html5/thumbnails/5.jpg)
5 of 25
Don’t Let The Affordable Care Act Turn Your Business Upside- Down| October 30, 2014
Have you been approached by your contingent labor suppliers about the impact of the ACA on your business?
Poll Question:
![Page 6: Don't Let the Affordable Care Act Turn Your Business Upside Down](https://reader036.vdocuments.net/reader036/viewer/2022062406/55c47f75bb61eb3f498b46a1/html5/thumbnails/6.jpg)
6 of 25
Don’t Let The Affordable Care Act Turn Your Business Upside- Down| October 30, 2014
The Affordable Care ActThe Basics of the ACA
![Page 7: Don't Let the Affordable Care Act Turn Your Business Upside Down](https://reader036.vdocuments.net/reader036/viewer/2022062406/55c47f75bb61eb3f498b46a1/html5/thumbnails/7.jpg)
7 of 25
Don’t Let The Affordable Care Act Turn Your Business Upside- Down| October 30, 2014
• Pay or Play Mandate - Large EmployersEffective 1/1/15 (100+ employees)
• Pay or Play Mandate - Small EmployersEffective 1/1/16 (50+ employees)
• IRS responsible for policing this law• Annual reports due: April 2016• Impacts nearly every single company in America by
virtue of the Individual Mandate
ACA Highlights
![Page 8: Don't Let the Affordable Care Act Turn Your Business Upside Down](https://reader036.vdocuments.net/reader036/viewer/2022062406/55c47f75bb61eb3f498b46a1/html5/thumbnails/8.jpg)
8 of 25
Don’t Let The Affordable Care Act Turn Your Business Upside- Down| October 30, 2014
2015 Employer “Play or Pay” Penalties
No offer of “minimum essential coverage” (MEC) for full-time employees* (and children)
- and - At least one employee obtains subsidized exchange coverage
Offer of MEC but offer is not also Qualifying and Affordable,
and FTE obtains subsidized exchange-based coverage
Tier 1 Penalty$2,080 annually per
total number of FTEs in EIN
Tier 2 Penalty$3,120 annually per
each FTE that receives subsidies from an
Exchange
![Page 9: Don't Let the Affordable Care Act Turn Your Business Upside Down](https://reader036.vdocuments.net/reader036/viewer/2022062406/55c47f75bb61eb3f498b46a1/html5/thumbnails/9.jpg)
9 of 25
Don’t Let The Affordable Care Act Turn Your Business Upside- Down| October 30, 2014
The Affordable Care ActWhy Should Labor Supplier Compliance with the ACAMatter to Me?
![Page 10: Don't Let the Affordable Care Act Turn Your Business Upside Down](https://reader036.vdocuments.net/reader036/viewer/2022062406/55c47f75bb61eb3f498b46a1/html5/thumbnails/10.jpg)
10 of 25
Don’t Let The Affordable Care Act Turn Your Business Upside- Down| October 30, 2014
Why Compliance MattersWho’s on First Base?
• Co-Employment• Classification Matters• IRS Common Law Test• Solution to avoid ACA Co- Employment Concern:• Treasury Regulation Section 54.4980H-4(b) (2)
and -5 (b)• Take Credit for Suppliers ACA compliant plan
![Page 11: Don't Let the Affordable Care Act Turn Your Business Upside Down](https://reader036.vdocuments.net/reader036/viewer/2022062406/55c47f75bb61eb3f498b46a1/html5/thumbnails/11.jpg)
11 of 25
Don’t Let The Affordable Care Act Turn Your Business Upside- Down| October 30, 2014
Why Compliance MattersIt’s Time to Get Ready
• Supplier’s decision to Play or Pay
• Client is at risk for Supplier’s decision to Pay rather than Play
• Third Party relationships through existing suppliers matter too
![Page 12: Don't Let the Affordable Care Act Turn Your Business Upside Down](https://reader036.vdocuments.net/reader036/viewer/2022062406/55c47f75bb61eb3f498b46a1/html5/thumbnails/12.jpg)
12 of 25
Don’t Let The Affordable Care Act Turn Your Business Upside- Down| October 30, 2014
Do you have a strategy regarding your labor suppliers’ compliance with the ACA?
Poll Question:
![Page 13: Don't Let the Affordable Care Act Turn Your Business Upside Down](https://reader036.vdocuments.net/reader036/viewer/2022062406/55c47f75bb61eb3f498b46a1/html5/thumbnails/13.jpg)
13 of 25
Don’t Let The Affordable Care Act Turn Your Business Upside- Down| October 30, 2014
Lessons Learned and Best PracticesThe Affordable Care Act
![Page 14: Don't Let the Affordable Care Act Turn Your Business Upside Down](https://reader036.vdocuments.net/reader036/viewer/2022062406/55c47f75bb61eb3f498b46a1/html5/thumbnails/14.jpg)
14 of 25
Don’t Let The Affordable Care Act Turn Your Business Upside- Down| October 30, 2014
Common Law Gut CheckBest Practices
• Does the client company exercise direction & control over the services of the contingent worker?
• Does the client have the right to direct and control the services of the contingent worker?
• IRS 3 main aspects of the Common Law Test:- Behavioral Control- Financial Control- Relationship of the Parties
![Page 15: Don't Let the Affordable Care Act Turn Your Business Upside Down](https://reader036.vdocuments.net/reader036/viewer/2022062406/55c47f75bb61eb3f498b46a1/html5/thumbnails/15.jpg)
15 of 25
Don’t Let The Affordable Care Act Turn Your Business Upside- Down| October 30, 2014
Best PracticesPossible Consequences “if”…
Supplier does not offer compliance coverage
(does not “Play”)
- OR -
The offered coverage in not “affordable” or of “minimum value” -
Worker may go to the Exchange
for coverage and identify the client as his/her “Common Law
Employer”
![Page 16: Don't Let the Affordable Care Act Turn Your Business Upside Down](https://reader036.vdocuments.net/reader036/viewer/2022062406/55c47f75bb61eb3f498b46a1/html5/thumbnails/16.jpg)
16 of 25
Don’t Let The Affordable Care Act Turn Your Business Upside- Down| October 30, 2014
Best PracticesBut…here’s the GOOD News
• Treasury and IRS provide a Safe Harbor for Clients with Suppliers offering ACA qualifying benefits to their employees
• The IRS will allow Clients to “take credit” for Supplier’s qualifying plans “if” the fee the Client pays for workers participating in the Supplier’s plan is reasonably higher than the fee for non-participants
![Page 17: Don't Let the Affordable Care Act Turn Your Business Upside Down](https://reader036.vdocuments.net/reader036/viewer/2022062406/55c47f75bb61eb3f498b46a1/html5/thumbnails/17.jpg)
17 of 25
Don’t Let The Affordable Care Act Turn Your Business Upside- Down| October 30, 2014
• Educate Senior Leadership• Create Cross-Functional Committee• Not just HR and Employee Benefits personnel• Supply Chain / Procurement• Legal
• Educate Manager / Supervisor Level• Compliant Suppliers• Internal Resource for Questions• Matrices for appropriate actions
Best PracticesGain Internal Support
![Page 18: Don't Let the Affordable Care Act Turn Your Business Upside Down](https://reader036.vdocuments.net/reader036/viewer/2022062406/55c47f75bb61eb3f498b46a1/html5/thumbnails/18.jpg)
18 of 25
Don’t Let The Affordable Care Act Turn Your Business Upside- Down| October 30, 2014
• Create Model Contract Language• Require to work with W2’s• Require to provide ACA Compliance Coverage• Notice of Rehire of former Employees of Client
Reporting Requirements
• Facilitate greater Collaboration with Suppliers
• Educate Suppliers on your Requirements• Strategic and Creative Solutions• Transition Plan if unable to meet requirements
Best PracticesStrategize with Suppliers
![Page 19: Don't Let the Affordable Care Act Turn Your Business Upside Down](https://reader036.vdocuments.net/reader036/viewer/2022062406/55c47f75bb61eb3f498b46a1/html5/thumbnails/19.jpg)
19 of 25
Don’t Let The Affordable Care Act Turn Your Business Upside- Down| October 30, 2014
The Affordable Care ActNext Step Solutions
![Page 20: Don't Let the Affordable Care Act Turn Your Business Upside Down](https://reader036.vdocuments.net/reader036/viewer/2022062406/55c47f75bb61eb3f498b46a1/html5/thumbnails/20.jpg)
20 of 25
Don’t Let The Affordable Care Act Turn Your Business Upside- Down| October 30, 2014
• Survey your Suppliers • Employment Size: Form 941• Letter from suppliers insurance carrier certifying
ACA compliance
• Business Decision:• Continue services if coverage is not provided?
Next Step SolutionsSurvey Says…
![Page 21: Don't Let the Affordable Care Act Turn Your Business Upside Down](https://reader036.vdocuments.net/reader036/viewer/2022062406/55c47f75bb61eb3f498b46a1/html5/thumbnails/21.jpg)
21 of 25
Don’t Let The Affordable Care Act Turn Your Business Upside- Down| October 30, 2014
• Discrimination• Hiring Decisions• Continued Engagement• Conversion to Full-Time
• Privacy• Personal Benefit Elections• Unnecessary Visibility
• Special Issues Around Retirees• Retiree Benefits
Next Step SolutionsConsider the HR Issues
![Page 22: Don't Let the Affordable Care Act Turn Your Business Upside Down](https://reader036.vdocuments.net/reader036/viewer/2022062406/55c47f75bb61eb3f498b46a1/html5/thumbnails/22.jpg)
22 of 25
Don’t Let The Affordable Care Act Turn Your Business Upside- Down| October 30, 2014
• Application of the Co-Employment remedy, Safe Harbor
• Obligations of the Supplier• Offer of Coverage• Necessary Tracking• Reporting
• Indemnification
Next Step SolutionsCreating Contracts & Amendments
![Page 23: Don't Let the Affordable Care Act Turn Your Business Upside Down](https://reader036.vdocuments.net/reader036/viewer/2022062406/55c47f75bb61eb3f498b46a1/html5/thumbnails/23.jpg)
23 of 25
Don’t Let The Affordable Care Act Turn Your Business Upside- Down| October 30, 2014
• How You Are Invoiced Matters• Reporting Requirements• Avoidance of Privacy and Discrimination Issues
• Invoice Options• Conformity to business needs• 1 solution for multiple suppliers
Next Step SolutionsCheck Please!
![Page 24: Don't Let the Affordable Care Act Turn Your Business Upside Down](https://reader036.vdocuments.net/reader036/viewer/2022062406/55c47f75bb61eb3f498b46a1/html5/thumbnails/24.jpg)
24 of 25
Don’t Let The Affordable Care Act Turn Your Business Upside- Down| October 30, 2014
• Supplier ACA Compliance is Important to You
• What have other Organizations done to prepare for Jan. 1, 2015
• Preparation Suggestions
Summary