ACA Compliance and Payroll Processing – How We Can Help
The following was written by Adam Miller, Passport Software’s HR Compliance Manager – we hope you find it useful.
One weekend in the early days of Affordable Care Act reporting, my boss was paired up with another golfing straggler at the local course.
Between the beers, bogeys, and (perhaps not so credible) number of birdies, conversation drifted to “What do you do?” – ERP, Financials, and Manufacturing software for “The Boss”, and for the other golfer, owning an expanding group of fast-food restaurants that was facing challenges of processing multiple payrolls every week and, the brand-new ACA.
In addition to the uncharted waters of the healthcare legislation, groups like my boss’s golfing partner face even more challenges due to common-ownership reporting complexities and identifying multi-store employees with enough combined hours to make them full-time.
We were able to offer solutions.
Our ACA software printed the 1095-C forms and created the electronic files for the IRS, of course. But it also gave the user the power to identify employees who were full-time, as well as employees trending that way for the next year. Even better, it could do this across all 11 franchises. Problem #1 solved.
Every week, only one consolidated payroll instead of 11 smaller ones
When we spoke to their HR Manager she explained how long it took her to process their weekly payroll for 11 restaurants. We presented Passport Software’s Multi-Corp Payroll solution.
She would be able to import employee hours from a spreadsheet by store or combined, calculate payroll for review, and do a single check/direct deposit run. Individual store SUI rates were maintained.
All payments originated from a single account, yet funneled into their new Passport General Ledger. G/L liabilities were automatically recorded to each store and financial statements were available.
Integrated Accounts Payables for shared expenses
Given the daily cash receipts nature of restaurants, there was little need for our Accounts Receivable module, but A/P was another matter. We made it possible for them to enter one time shared expenses like food vendor orders, but easily distribute costs among the stores—again flowing into their General Ledger automatically.
How have things changed?
Our software has allowed them to turn 1.5 days of payroll processing each week into a single afternoon. Vendor payables no longer had to be entered 12 times.
And their greatest source of anxiety—the looming Affordable Care Act- is now being managed by people who know the intricacies of such complex legislation.
So what’s next for this restaurant group? They have added new registers at all the stores and will be integrating those points of sale with our Inventory Control module which will give them better control over shrinkage and inventory between physical counts, and allow them to cost their recipes and meals.
If you are not satisfied with your current ACA compliance management solution, we offer easy to use, IRS-certified ACA Software. And, we are IRS-approved to optionally file on your behalf.
Or, if you would like to turn over the management to us, we can help with our ACA Full Service – just provide a spreadsheet with employee data, and we do the rest.
We also offer penalty relief consultation and have helped many companies avoid, or drastically reduce penalties.
In addition, we can help you with in-house payroll processing, and our desktop payroll software can offer ongoing ROI due to costs saved on an outside payroll service.