Disclaimer

 The information in this webinar is generalized and is NOT intended to be legal advice or an authoritative reference.  We encourage you to benefit from resources and information provided in this webinar to further your own research and to learn more about the PPACA guidelines.

PPACA Webinar

Patient Protection and Affordable Care Act, What Now?

What this webinar will cover

 What about PPACA?

 Why is timekeeping important?

 What tools are available in SwipeClock for PPACA?

 What Now? SwipeClock has tools to help you share the message and “seize the opportunity”  Questions/Answers

PPACA Webinar

Patient Protection and Affordable Care Act, What Now?

In Summary

 PPACA stands for the Patient Protection and Affordable Care Act  Signed into law in 2010   Represents the most significant government expansion and regulatory overhaul of the U.S. healthcare system since the passage of Medicare and Medicaid in 1965.

“Shared Responsibility” puts the burden on employers and individuals, with the added burden on employers to track how many hours employees are working.

 PPACA brings automated timekeeping to the forefront of tools your clients must have

PPACA Webinar

Patient Protection and Affordable Care Act, What Now?

Why Client’s Need Timekeeping for PPACA

Count of “Hours of Service” FTE Thresholds Administrative Records FT= >30/week avg. OR >130/month avg.

1-25: Small Employer Tax Credit IRS: assessed payments/penalties will be collected based on verification of records which begins with timekeeping FTE=total hours of non-FT employees /120 per calendar month Seasonal <120 days/year 26-50: “Bubble employers” <100 can purchase group plans at discounted rate via exchanges 200+: auto-enroll employees DOL: Still over the FLSA regulations and most likely become even more “aggressive” since “triggers” can come from IRS now

PPACA Webinar

Patient Protection and Affordable Care Act, What Now?

Why Client’s Need Timekeeping for PPACA

• • • Additionally timekeeping is required for….

Annual Measurement for determining “Applicable Large Employer” status

“Applicable Large Employer”= 50+ FT and FTE’s based on “hours of service” 2013: safe harbor, employers can measure 6 consecutive months to report their status for the 2014 year 2014 and beyond: must measure 12 months to determine amount of FTE’s • • •

Ongoing Measurements to “Pay or Play”

Employer sets “measurement period” between 3-12 months to determine FT employees “Play”: Each FT employee entitled to “affordable” and adequate health coverage from an “applicable large employer”, or $3,000/ee penalty (excluding first 30 FT ee’s) “Pay”: $2,000/ee for all FT employees less first 30 FT ee’s.

PPACA Webinar

Patient Protection and Affordable Care Act, What Now?

Part-Time Employees and PPACA

 Part time employees Count for PPACA  Total hours of PT employees / 120 = count of Full Time Equivalents for a calendar month   Food for thought: Health Care Exchanges will be busy with part-time employees who do not have health care coverage, potentially increasing the “exposure” of your clients timekeeping records to regulatory audiences.

Automated timekeeping eliminates this “unknown”

PPACA Webinar

Patient Protection and Affordable Care Act, What Now?

Who is regulating PPACA?

• IRS/DOL – IRS carries the bulk of regulation and assessed payments will be submitted to them – Recent Forbes article states: “the IRS will need more than 2,000 employees to monitor compliance with Obama’s health care law. And that’s just for 2013.” ( http://www.forbes.com/sites/merrillmatthews/2013/01/10/irs-to-employers-pay-obamacare-shared responsibility-or-else/ ) – Department of Labor (DOL) should be expected to continue monitoring labor laws with respect to employee classification and wage and hour compliance

PPACA Webinar

Patient Protection and Affordable Care Act, What Now?

• • • • •

Why Automated Timekeeping Matters for PPACA

Automated timekeeping is a smart, cost saving, time saving option for employers as it is, but now: Hours of service = Number of Employees The IRS will check records Consistent monitoring of hours Ensures records are reliable and easily obtained

PPACA Webinar

Patient Protection and Affordable Care Act, What Now?

Applicable “Large Employer”??

(50+ FTE’s)

• • • Hours worked is how to determine your standing 2013 Safe Harbor: – In 2013 only, employers can elect to use a 6 consecutive-month look back period rather than the entire 12 months to determine their “large employer” status for 2014 purposes How it’s determined: – Employers with at least 50 FT and FTE employees – Hours worked or “intended to work” are included in the calculation

PPACA Webinar

Patient Protection and Affordable Care Act, What Now?

Employee Tracking Requirements

• • • Whether “Pay” or “Play” clients will need to track accurate timekeeping records to justify measurement look back and stability periods.

Look Back/measurement periods : Standard measurement chosen by employer (3-12 months). Stability periods : minimum of 6 months, employer must provide . Employer required to provide affordable health care to FT employees based on “Look Back Period”

PPACA Webinar

Patient Protection and Affordable Care Act, What Now?

•

Information about Employees

“Large Employers” – Employers with 50 or more full time equivalents (FTE’s): Source: http://www.slideshare.net/tasinquefield/ppaca-what-you-need to-know

PPACA Webinar

Patient Protection and Affordable Care Act, What Now?

How about smaller employers?

• Small Business Health Care Tax Credit for Small Employers: • Deductions for health care costs not eliminated by the credit are still in play, therefore the benefits are high for clients that fit this group • Example: • • • Client ABC pays $50,000/year in health care premiums has under 25 FTE’s for the 2013 year May qualify for a credit up to $25,000 (50% of $50k). – Note: The smaller the firm, the higher the percentage for the credit

PPACA Webinar

Patient Protection and Affordable Care Act, What Now?

How about smaller employers? (1-25 ee’s)

  Small Business Health Care Tax Credit    for Small Employers: IRS Says: “Small employer? Get the credit you deserve. If you are a small employer . . .with fewer than 25 full-time equivalent employees, pay an average wage of less than $50,000 a year, AND pay at least half of employee health insurance premiums . . .then there is a tax credit that may put money in your pocket.” 2010 to 2013, percentages were 35% for small business and 25% for tax-exempt employers.

Starting Jan 1, 2014 the percentages will increase to 50% and 35%, respectively  NOTE: Employer can still take the applicable deductions for the premiums and receive a credit to offset tax obligations

PPACA Webinar

Patient Protection and Affordable Care Act, What Now?

Now is the Time!

    It’s up to you to inform your clients For those using manual timekeeping methods or an antiquated system without proper tools for PPACA, a time clock installed and implemented by June 1, 2013 is step #1 PPACA affects small to large employers with tax credit options and assessed payment penalties FT/FTE and how their hours are calculated determines the credits/penalties/requirements

PPACA Webinar

Patient Protection and Affordable Care Act, What Now?

How SwipeClock is a great PPACA solution for your clients?

 Automated timekeeping has become a vital part of this equation:  Plug n’ play clocks  Quick implementation and training turn around 

PPACA centered tools:

 Work Week Report (available in Classic and Glue)  Hours Alerts (Glue only)

PPACA Webinar

Patient Protection and Affordable Care Act, What Now?

SwipeClock’s Work Week Report

  Available in Both Classic and Glue Report includes:  Total FT employees (Salary can be set to be included in this total)    Total Non-FT employees Total hours for Non-FT employees Total FTE’s/Total FT with FTE’s (if weeks chosen is divisible by 4)

PPACA Webinar

Patient Protection and Affordable Care Act, What Now?

Work Week Report

   Includes all hours except “unpaid” hours Salary employees can be turned on and off via “salary” in the Options field of

Employee Setup

making it unnecessary to track salary hours on time cards Coming Soon:    Report by Calendar Month “Seasonal” employee tracking Option to select the exact pay categories to be included in the report  Etc.  Let’s take a look!

PPACA Webinar

Patient Protection and Affordable Care Act, What Now?

Additional Tools Available for your clients in SwipeClock Glue

 “HoursAlert” rule (Glue only):  Set a maximum amount of hours, a threshold for the message to appear (e.g., remind me 12 hours before the employees reach the maximum), and whether to see hours, times or both in the message.

 Can be configured to track only OT eligible hours, or ALL hours  Alert message on both the time cards and Daily Auto Email helps your client effectively manage their employees “hours of service”

PPACA Webinar

Patient Protection and Affordable Care Act, What Now?

So, What Now?

 June 1, 2013 gives your client the minimum required 6 consecutive month measurement period  Get a clock on your client’s wall!

PPACA Webinar

Patient Protection and Affordable Care Act, What Now?

So, What Now?

 To learn more:  Visit SwipeClock University and click on this guy:  Marketing Materials available for distribution to your clients:  A marketing email to send your clients regarding PPACA   One-page flyer for distribution A newsletter article that can be shared with clients  A short-video promoting the importance for timekeeping with PPACA mandates

PPACA Webinar

Patient Protection and Affordable Care Act, What Now?

Resources for Additional Information

• • • IRS Q&A: http://www.irs.gov/uac/Newsroom/Quest ions-and-Answers-on-Employer-Shared Responsibility-Provisions-Under-the Affordable-Care-Act Employer Shared Responsibility info: http://www.irs.gov/irb/2012 09_IRB/ar10.html#d0e1759 Review of PPACA Details: http://www.slideshare.net/tasinquefield/ ppaca-what-you-need-to-know

PPACA Webinar

Patient Protection and Affordable Care Act, What Now?