Chapter 4

Benefits Administration

  • Meet the ADP Experts

    Sushma Tripathi
    Vice President, Workforce Planning and Benefits Consulting

    Ellen Feeney
    Vice President Legal Counsel

    How is the conversation changing around benefits?

    “Where benefits used to be seen largely as an administrative burden, now they’re used as a competitive advantage to help organizations attract and retain the best people.”
    Sushma: The really interesting developments are around how benefits tie in with the other major trends at play, namely skills shortages and the ‘gig economy’. Increased competition for talent has led to a big shift: where benefits used to be seen largely as an administrative burden, now they’re used as a competitive advantage to help organizations attract and retain the best people.

    How are employers responding?

    “If benefits are buried five clicks deep on your HR system, no one will find them.”

    Sushma: Employers are responding in two main ways. First, by looking beyond non-discretionary benefits and offering more discretionary or voluntary benefits. These include things like more tuition and training, guidance on financial literacy and wellbeing, and help with work-life balance.

    Second, employers are focussing on the packaging and communication of their benefits programs. They’re looking to personalize benefits for multi-generational workforce, catering to the needs of Baby Boomers, millennials, Gen Z, and more. And they’re making sure employees are given all the information and support they need in order to take advantage of the benefits on offer. After all, if benefits are buried five clicks deep on your HR system, no one will find them.

    How is the law evolving around health care coverage?

    “Since nothing has changed about the employer mandate or ACA reporting, employers need to stay the course with ACA compliance.”

    Ellen: For now, compliance with the Affordable Care Act (ACA) remains as it was in 2017, although the penalties for non-compliance with the employer mandate are now higher:

    • The penalty for not offering coverage is $2,320 per employee (minus the first 30 employees), and the fine for offering coverage that is unaffordable or does not provide minimum value is $3,480 multiplied by the number of full-time employees who receive a premium subsidy in the exchange.
       
    • The penalty for failing to correctly file and distribute Forms 1094/1095-C increases from $260 per employee for the 2017 tax year to $270 per employee for the 2018 tax year.

    Since nothing has changed about the employer mandate or ACA reporting, employers need to stay the course with ACA compliance.

    Going forward, significant health care reform legislation at the federal level is unlikely in the near future. Individual market stabilization measures may be implemented, but they are not expected to affect the rules that apply to large employers.

    State legislatures are considering a wide variety of bills, including efforts to implement state-based individual mandates, various provisions aimed at stabilizing the individual insurance market and potential employer penalties if employees receive Medicaid benefits, which is not a factor under ACA rules.

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    Stay ahead of the changing healthcare landscape by following the latest news, information and perspectives at our health care reform webpage.