Make no mistake, there’s a lot of work ahead for HR professionals and benefits managers in order to comply fully with the Affordable Care Act. An HRMS (Human Resources Management System) can ease the burden of implementing the Affordable Care Act because it is designed to centralize HR and benefits information, so you can easily access the data you need for compliance and decision making. Here are some examples of how automation and HRMS is the HR key to success, especially with Healthcare Reform:
Stay current with compliance requirements. An HRMS receives regular software updates that keep the system updated for legislative changes, such as the Affordable Care Act. This means that you would not have to do all of the research to stay in compliance. Your HRMS solution would include things like employee notifications, revised forms, and more. It would also help keep your company in compliance with EEO-1, EEO-4, I-9 Citizenship Verification, Vets-100, Vets-100A, Family and Medical Leave Act (FMLA), and OSHA record-keeping requirements.
Better track and manage benefits plans. An HRMS allows you to define and set up unlimited benefit plans and carefully track the costs associated with each plan. You can also project future costs.
Simplify record-keeping and improve data accuracy. With all of your data in one central location, it’s easier to determine which of your employees participate in each benefit plan. An HRMS greatly reduces the risk of inaccurate data in your database.
Communicate more effectively with employees. An HRMS enables you to produce employee communications more easily. Announcements can be distributed in an online secure portal using employee self-service. Or you can easily use your employee database to create a letter or email and distribute it.
Perform open enrollment more quickly and with less expense. Online benefits enrollment functionality enables employees to choose the benefits packages they want on a secure website. HR can track the status of enrollment and report on results.
Calculate accurate payroll. Integrated payroll software is also updated to reflect current tax rates and rules. It will be ready to produce the new W-2s with health coverage costs included when you are required to print and deliver them (January 2013).
To learn more about how staying compliant with government regulations can help your organization, download our white paper, the Healthcare Reform Survival Guide. With it you’ll prepare yourself for hidden surprises, attain clarity on compliance issues, and discover the most common changes facing employers.