The post below is a guest blog from Rachel Richards who serves as Enrollment Services and Voluntary Benefits Solutions Team Lead for CAI’s employee benefits partner Hill, Chesson & Woody.
Until recently, HR Technology was reserved for employers with more than 100 employees and true Human Capital Management was for +1,000 employers. The landscape of HR technology is swiftly changing, especially with the implementation of the Affordable Care Act.
Having benefits, payroll, and time keeping is more important now than ever, and easily accessible for employers all the way down to 50 employees. New HR technology companies are popping up on a weekly, sometimes daily, basis.
See the top 5 reasons to have HR technology:
1. ACA Tracking & Reporting
Companies with over 50 full time equivalent employees (FTE) will need to be able track variable hour employees to determine eligibility. Employers will also need to illustrate whether benefit eligible employees were offered employer-sponsored health care coverage and whether that coverage meets minimum essential coverage (MEC) standards. Employers will need to capture this information and report on the IRS Forms 1094 and 1095. In addition, specific enrollment information is required on the 1095-C form which can be handled easily by a benefit administration system.
2. Streamline Processes Through Integration
Whether you put in a “single source solution” where the same HR technology vendor provides you with payroll, benefits, and other HR technology modules or you find the best in class for each type of technology, information should flow from one area to another seamlessly. This can be done through integration – integration with payroll, integration with your benefit carriers, and integration with your time keeping system. It’s important to have one core system of record that is feeding all other systems, typically this is either payroll or core HR.
3. Electronic Onboarding
Removing paper from the onboarding process will bring efficiency to your entire HR department. Imagine once an offer of employment is accepted, a link with your entire onboarding process is delivered to the new employee before they even start their first day of work. This feature is available in MOST benefit administration systems, however, the way these systems capture and store this information can vary greatly. Be sure to ask questions, request demonstrations, and have a solid understanding of the onboarding capabilities before executing any agreements.
4. Simplify Administration
Whether you have 3 or 1,000 employees, a benefit administration along with other HR technology modules will eliminate paperwork and multiple points of entry. In addition, having the ability to run reports to gather and share information about your workforce allows HR to provide information to the executive level team easily.
5. Notifications and Electronic Disclosures
There are many notices required under ERISA, ACA, and other regulatory agencies. As an employer, you are required to notify your employees and keep a confirmation on hand with a time and date stamp of the notification. A benefit administration system can allow you to notify your employees electronically and can even capture and store acknowledgements of receipt.
For more information on how HR Technology can streamline your benefit administration, contact HCW’s Enrollment Services and Voluntary Benefit Solutions team.