As you know, beginning in 2014 (after being delayed a year), all businesses will need to report to the IRS their Full Time Equivalent (FTE) employee count so that the business can verify with the IRS where they stand on ACA compliance. No matter how many employees you have, you need to have the capability to generate that information, for a number of reasons. A quality Automated Time & Attendance (ATA) system will meet those needs.
If you have more than 50 FTE’s you will need to comply with the ACA’s mandatory requirement of providing health insurance for all full-time employees. Failure to provide that health insurance will result in a penalty of up to $3,000 per employee.
Businesses required to provide health insurance only have to provide that health insurance for full-time employees, that is those employees who work more than a stipulated 30 hours a week. Thus you will need to provide hard data showing hours worked for all employees verifying their hours worked, showing that it is more or less then 30 hours per week. Time & Pay’s ATA systems quickly and easily provide that verifiable data. Hand written time sheets or punch cards will be a lot more difficult to compile in IRS acceptable formats.
If you have less than 50 FTE’s, you will need to provide this information to the IRS to verify to them that you are not required to comply with the mandate. If you are not able to verify FTE’s, you may be subject to a penalty for non-compliance.
If you have less than 50 FTE’s and you are providing health insurance for your employees, then you may qualify for tax credits on the cost of that health plan, tax credits that will save your company money on the cost of that plan.
The Advi$or also reminds you that you need to take into account your salary employees for your FTE compliance report. In the past, your salary employees probably did not generate hours worked information. Time & Pay’s ATA system can be set up to easily generate hours worked data for those salary employees. If you need assistance on how to make that happen, contact your CSR and they will explain the easy set up in our ATA system.
The ability to prove FTE’s is critical for ACA compliance and controlling costs related to this national health care plan.
Time & Pay’s SwipeTime ATA system is capable of easily generating the FTE information you need for compliance. If you are not able to easily generate that information, here is another reason you need to look at Time & Pay’s ATA systems.
About Time & Pay:
Time & Pay is a professional payroll service provider located in Johnson City, TN. We service businesses of all sizes and types throughout the United States. Founded in 1992, Time & Pay provides businesses with complete payroll services , guaranteed payroll tax compliance, automated timekeeping systems and services, pay-as-you-go worker’s comp, human resource management systems and services, and more. We provide our customers with the cost effective tools you need to better manage your payroll, your employees and your business. Time & Pay’s services guarantee you will save money, time and aggravation and we back them up with the customer service you expect and deserve. Contact us today to learn why business owners throughout the country are saying:
“Time & Pay! Why would you do payroll any other way?”