How is ACA Impacting the Payroll Industry?
UNLESS PREPARED, THE PAYROLL INDUSTRY WILL LIKELY SEE A CLIENT EXODUS LIKE NEVER BEFORE – ONLY THE ACA FITTEST WILL SURVIVE!
The ACA honeymoon is over; we’ve heard the threats and promises of the infamous “repeal and replace”. Now here we are post-election and well into the third reporting season, and ACA reporting is very much here to stay. So, the big question is how does this impact the Payroll industry?
Many payroll vendors/service bureaus now find themselves in a predicament where sophisticated customers are now looking for a compliant based platform – rather than a Form 1095-C generator. This noise will only increase as time goes on and more of your payroll clients get audited and/or penalized.
To date, only a select few payroll companies went about building an ACA module of their own. Those who have, have oversimplified their tools by making broad assumptions. As an example, in an effort to provide a seamless reporting process, one very big player has developed a fantastic ACA client facing module – which works fine assuming every one of the companies’ employees are Full Time. Unfortunately, this has left industries, such as hospitality, in the dark.
From a platform perspective, most major (payroll) platforms have all rolled out lackluster ACA tools. Most require employers to qualify the actual form indicator codes. Some platforms offer a free ACA add-on, but “you get what you pay for”. Client feedback has been less than complimentary on the (payroll) platform ACA tools.
As we’ve all come to realize that many industries require a functional measurement tool that is nimble enough to stand up to the test of the ACA audit. So many ALE payroll customers are now frustrated as they’ve been pushed around over the past 3 years not knowing who to turn to. They’ve sought the advice of the Healthcare Broker/Carrier who can’t offer up any real viable solution – as measuring employees does require a number of key payroll data-points they (brokers/carriers) don’t have access to.
Why worry about this now?
Well the IRS has stated that it expects to pull in $228 billion in ACA penalties. Now here’s what’s likely to happen. You have payroll customers who may have followed your lead and have used your platform (custom or your recommended third-party 1095C forms populator). Now as these IRS audits start raining down on your customers, who do you think they will reach out to first? You get the idea…
You can be sure that smart payroll vendors/service bureaus will be using this to their advantage to snatch as many ALE customers as they can.
It would be wise for payroll vendors/service bureaus to consider a strong compliant based ACA platform. Of course, it’s a bit late to consider building one of your own now. But you should seek out a compliant partner who is able to convince your clients to stay.
About Nimble Reporting: Nimble Reporting is an ACA Compliance and Reporting platform that integrates with all payroll platforms. Nimble has transformed ACA into a simple streamlined process – using simple and easy to understand terminology along with automated alerts your users are already accustomed to.