Resource Center

How to Determine if Your Health Benefits Are Affordable

Wed, 22 May 2013 01:03:00 -0400

The Affordable Care Act (ACA) has many implications for employers that will require a great deal of analysis and decision-making. One of the major provisions employers should be planning for is employer shared responsibility, or the mandate that large employers must provide affordable health coverage of a minimum value to their full-time employees. This brings up many questions for employers:

Do I qualify as a “large” employer?
What counts as “affordable” coverage?
What does “minimum value” mean?
Who counts as a “full-time” employee?

These questions and more are addressed in our Employer’s Guide to Health Care Reform, but let’s take a closer look at the second question: What counts as “affordable” coverage?

Affordable coverage under the ACA means, for the lowest-value health benefits plan you offer to an employee, their contribution cannot exceed 9.5% of their household income. Since employers generally do not know the exact amount of each employee’s household income, current IRS guidance allows you to use employees’ annualized wages for this calculation.

Consider this example:

Your lowest-value health benefits plan costs $70 per month for single-only coverage.
You compare this against 9.5% of each full-time employee’s annualized wages (divided by 12 months) to see what is considered affordable.
You notice that, for three of your employees, 9.5% of their monthly wage only equals $65.
Since this is less than the $70 per month you are charging for coverage, your plan would be considered unaffordable.
You would need to lower your employee contribution to $65 to meet the requirement, or face the shared responsibility penalty of $2,000-$3,000 per employee.

Fortunately, Paycor has created a standard ACA Affordability Report in Custom Web Reporting that performs these calculations for you, helping you easily see whether your plan meets the affordability requirement or not. These reports provide the necessary information to help you comply with the Affordable Care Act.

Learn more about how Paycor can help you navigate health care reform, and remember to speak with your HR or benefits professional to make sure you are prepared for compliance.

How Can HR Technology Help Me Prepare for an EEOC Investigation?

Tue, 21 May 2013 02:03:00 -0400

The ins and outs of employment law can be puzzling, but it’s essential that every business has a working knowledge of EEOC regulations—and if you don’t have the time or resources to learn, it’s important that you find a partner you can trust.

EEOC basics

The Equal Employment Opportunity Commission (EEOC) enforces federal laws having to do with employment-related discrimination based on race, natural origin, religion, sex, age or disability. Depending on the specific type of discrimination alleged and the laws under which the EEOC operates, a claim may not be considered for very small businesses with a limited number of employees. This threshold does not apply for the Equal Pay Act (EPA), which applies to virtually all businesses. A charge of discrimination must be filed with the EEOC within 180 days of the alleged discrimination except when the employee is also covered under state or local discrimination laws, when the time limit is extended to 300 days.

The EEOC does not cover a number of employment-related laws that one might assume. For instance, issues regarding overtime pay are handled by the Department of Labor, Wage and Hour Division along with disputes that arise from the Family and Medical Leave Act (FMLA). Some employee allegations can conceivably be under the jurisdiction of one or more federal agencies in addition to any applicable state agencies.

The charge handling process

The EEOC website states that you will be notified within 10 days of an employee’s charge of discrimination. This initial process is an investigation and does not constitute a finding that your business has engaged in discrimination. An assigned investigator will request information from the employee, “the Charging Party,” and you, the employer.

Specifically, you will be asked to:

Submit a Statement of Position outlining your side of the dispute
Respond to an official Request for Information (RFI): Documents requested may include copies of your personnel policies, the employee’s personnel files, the personnel files of other individuals and any other relevant information
Allow an on-site visit, an option that can often complete the fact-finding process and resolve the issue faster
Provide contact information for other employees for witness interviews

Value of HR technology in preparing for an EEOC investigation

Paycor’s HR application can prove to be very valuable to preparing for an EEOC investigation, especially when used in conjunction with our online payroll application. Having both systems in place means that the majority of the information needed to resolve the claim is already available to the agency and reportable with any metrics included. All the necessary information—aside from your Statement of Position—is instantly available. In addition, the HR application’s powerful reporting includes dozens of standard report templates, including some of the most commonly requested federal compliance reports.

These standard report templates are also easily customized to include other information that might be relevant to the dispute, such as training administration, performance management and employee development. Having these reports instantly accessible means you can stop wasting time photocopying employee files, benefit manuals, payroll records, attendance files and organizing the information you need.

Learn more about how Paycor’s technology can help you resolve any EEOC compliance issues quickly. Get in touch with us today.

How Do You Know When It’s Time to Change Providers?

Mon, 20 May 2013 03:01:00 -0400

Companies are often daunted by the idea of changing to a new payroll and HR provider. Change management can be complicated, and organizations will frequently tolerate considerable pain before deciding to make a switch. For Brad M., Director and CEO of KH Network Credit Union in Dayton, OH, issues with his previous payroll provider, Horizon Payroll Services, drove him to realize that change was necessary.

Brad had been content with Horizon until the provider underwent a change in ownership a few years ago. “The service level immediately went down,” said Brad. He explained that the breaking point came after multiple errors were made payday after payday. “I noticed that there were even errors on my paycheck,” said Brad. “And when the boss isn’t happy, nobody’s happy.” He decided that a switch needed to be made, so he began the search for a new provider.

After considering several options, Brad ultimately chose Paycor. One of the most important factors in his choice was the ability to use a web-based time and attendance system that would flow into the payroll system, eliminating the time-consuming double entry that previously plagued his staff. He also wanted to avoid installing any software, so an online system like Paycor’s Perform was a must.

But above all, he has found client service to be the most valuable aspect of partnering with Paycor. “Our specialist, Vicki, quickly takes care of any issues we may have,” he said. Responsive service paired with the right technology allows company leaders like Brad to focus their full attention on what matters most: their business.

Are you facing similar issues with poor service, payroll errors or wasted time? Learn more about why our intuitive, cloud-based technology and award-winning service makes switching to Paycor an easy choice.

Announcing the Summer Product Update

Fri, 17 May 2013 01:02:00 -0400

Paycor clients will be seeing several new updates and features in their payroll, HR and reporting products this week. Among them are many popular client-requested features, including the top two vote-getters based on user feedback. We continue to listen to our clients’ ideas and use them to continuously add updated functionality that serves their needs.

Product Manager Brian Craft gave a brief overview of the key features in this update: “We wanted to try a few new things, so we’ve introduced the first of many visual analytics within Custom Web Reporting. Our focus on delivering client-suggested ideas carries on as well, with several updates in Perform, a major Employee Mobile App update and extended Carrier Connect capabilities.” Here’s a closer look at of some of the features and functionality that rolled out in the Summer Product Update:

Perform

Pay stub and W2 integration: Clients can now view and print pay stubs and W2s directly in Perform, our top user-suggested idea. Clients can also enable direct access for their employees, letting them print their own pay stubs and W2s.

Manual check printing: For anyone who has ever forgotten to pay an employee: now users can calculate and distribute checks on the spot, including gross-to-net detail.

Tablet capability: Run payroll on-the-go with an iPad or Android tablet, starting at the end of May.

Learn more about Perform.

Employee Mobile

Time off management: Our free mobile app lets employees of Paycor clients check their time off balances and request time off from their smartphone, in addition to viewing paycheck information. (Update available for download starting at the end of May.)

Learn more about Employee Mobile.

Custom Web Reporting

Affordable Care Act reports: New Standard Templates for ACA reports have been added to help our clients make decisions about compliance with health care reform.

Analytics dashboard: See analytics at-a-glance with basic graphs and charts right on the dashboard.

Learn more about Custom Web Reporting.

HR Management

Evidence of insurability: Set business rules to ensure employees meet certain requirements before applying for various life insurance plans. This feature simplifies a time-consuming process, and helps identify benefit elections that need evidence of insurability paperwork follow-up.

Carrier Connect expansion: Administrators using our Carrier Connect service can automatically send their employees’ benefit enrollments and changes to the life or disability insurance carrier, eliminating a cumbersome manual process.

Learn more about Paycor’s HR application.

Want to know more about our unique client-driven development process? This infographic explains how a client idea becomes a product feature. If you’re interested in learning more about Paycor, contact us today.

What to Do If You Get an IRS Tax Notice

Thu, 16 May 2013 03:03:00 -0400

Each year, the IRS sends millions of letters and notices to taxpayers for a variety of reasons. The IRS has provided these ten things you should know about notices in case one shows up in your mailbox:

10 things businesses should know about IRS notices

Don’t panic. Many of these letters require a simple response.
There are many reasons why the IRS sends correspondence. If you receive an IRS notice, it will typically cover a very specific issue about your account or tax return. Notices may require payment, notify you of changes to your account or ask you to provide more information.
Each notice offers specific instructions on what you need to do to satisfy the inquiry.
If you receive a notice advising you that the IRS has corrected your tax return, you should review the correspondence and compare it with the information on your return.
If you agree with the correction to your account, then usually no reply is necessary unless a payment is due or the notice directs otherwise.
If you do not agree with the correction the IRS made, it is important that you respond as requested. You should send a written explanation of why you disagree. Include any information and documents you want the IRS to consider with your response. Mail your reply with the bottom tear-off portion of the IRS letter to the address shown in the upper left-hand corner of the notice. Allow at least 30 days for a response.
You should be able to resolve most notices that you receive without calling or visiting an IRS office. If you do have questions, call the telephone number in the upper right-hand corner of the notice. Have a copy of your tax return and the notice with you when you call. This will help the IRS answer your inquiry.
Remember to keep copies of any notices you receive with the related income tax return for your records.
The IRS sends notices and letters by mail. The agency never contacts taxpayers about their tax account or tax return by email.
For more information about IRS notices and bills, visit IRS.gov or see Publication 594, The IRS Collection Process.

Or, leave it to the experts

For Paycor clients who use our tax-filing services, the process of handling an IRS tax notice is much simpler. While the above tips provided by the IRS are still good to know—especially the one about not panicking—the Paycor Tax Department will do the legwork for you.

Our tax experts take care of researching the notice, communicating with the agency and following up with you if there is any other action you need to take, such as providing more information. The Tax Department will get to the bottom of the issue, and clearly communicate with you about anything you need to do.

So, what should you do if you get a tax notice? Paycor tax-filing clients should remember these three simple things:

Don’t panic!
Contact your specialist. They will work with the Tax Department to ensure the notice is accurate, communicate with the IRS and determine next steps.
Always send anything payroll tax-related to your specialist to make sure our records are up-to-date.

Find out more about Paycor’s tax-filing services and see how letting the experts handle it can allow you to get back to growing your business.

Paycor Receives Cincinnati USA Partnership Annual Growth Award

Wed, 15 May 2013 02:05:00 -0400

Paycor recently received the Cincinnati USA Partnership Annual Growth Award for our contributions to the regional economy. A select group of only four companies—Paycor, dunnhumby, Mazak, and Emery Oleochemicals—were recognized for leading projects that attract and retain jobs, businesses, and capital investments in the area.

Our growth and commitment to the region has also been demonstrated by our recent Fast 55 recognition and our Tri-State Success Award. We will continue to strive for success, enabling us to serve our clients and our community even better in the future.

Arlene Baker Receives APA Citation of Merit

Tue, 14 May 2013 02:04:00 -0400

At the 31st Annual American Payroll Association (APA) Congress, long-time Paycor employee Arlene Baker was awarded the APA Citation of Merit, recognizing her contributions to the payroll profession. Arlene has been a payroll professional for more than 20 years and currently works in the Paycor Training Department. When she isn’t working, she is an active APA volunteer on numerous committees. We are proud to congratulate her on this well-deserved award.

Deadline Announced for Affordable Care Act Exchange Notices

Mon, 13 May 2013 19:10:00 -0400

The Department of Labor (DOL) has released more information about the Exchange Notices required by the Affordable Care Act. By October 1, 2013, employers must deliver written notices with details about health insurance Exchanges to all employees. Effective October 1, 2013, notices must be given to new hires within 14 days of their start date.

The DOL has provided model notices for employers who offer health plans, as well as for employers who do not offer health plans. Exchange notices must:

Inform employees of the existence of state health care Exchanges
Explain what services will be provided
Explain how the employee may contact the Exchanges to request assistance
Detail how employees may be eligible for a premium tax credit or cost-sharing reduction if the employer’s plan does not meet certain requirements
Explain that the employee may lose employer contributions for health care benefits if he/she enrolls in the Exchange, and that all or some portion of such a contribution may be excludable from income for federal income tax purposes

Learn more about the implications of health care reform for your business: visit our Affordable Care Act resources page or speak with a Paycor representative.

Is It Vacation or Paid Time Off?

Mon, 13 May 2013 03:24:00 -0400

From the HR Pros of the HR Support Center

Traditionally, employers offered separate paid time off benefits to employees, such as paid vacation, sick leave and personal days. However, in the past decade, many companies have moved to a more flexible Paid Time Off or “PTO” benefit that incorporates all policies into one all-inclusive PTO plan.

The debate as to whether employers benefit from offering PTO verses separate vacation, sick and personal leave plans is constantly being researched. In an effort to assist employers in making an informed decision in this regard, below are some advantages and disadvantages of combining the company’s separate paid time off benefits into a single Paid Time Off (PTO) plan.

Advantages of a Paid Time Off (PTO) Policy:

Employees are not incentivized to lie about being sick or having a doctor’s appointment in order to use all of their annual sick days, resulting in more transparency in the employee/employer relationship.
Research consistently illustrates that incorporating a PTO policy will result in employees taking more vacation time and less sick days. This benefits employers in two ways; first, employers typically receive more notice about scheduled vacations, affording more time to plan for adequate coverage. Second, most mental health professionals agree that employees return to work more refreshed and productive following vacation leave. The same results do not hold true for employees utilizing sick days.
Employees tend to value the flexibility that PTO provides.
Employers only have to track PTO hours, as opposed to separately tracking hours for vacation, sick and personal days.

Disadvantages of a Paid Time Off Policy:

Employees are more likely to consume all of their PTO, whereas they may not have expended all of their sick or personal days in the past.
Employees tend to save all of their PTO time for vacations and come to work when they are sick, at times causing illness among other employees.
In some states, all earned PTO must be paid out upon separation of employment. Should the company have separate sick leave and vacation policies, state law often mandates that only unused, accrued vacation time be paid out upon separation of employment, sparing the employer from compensating the departing employee for his/her unused, accrued sick leave.

The HR Support Center’s Policy Library contains sample separate paid time off policies (such as vacation, sick and personal leave policies) and also a sample all-inclusive PTO policy.

Want more helpful answers to your HR questions?

Subscribe to Paycor’s HR Support Center to access the Policy Library, as well as more HR resources and guides. Or, upgrade to HR On Demand to get personalized answers and advice from an HR professional. Contact us to learn more.

Paycor’s Perform Named Finalist for American Business Award for Best New HCM Solution

Fri, 10 May 2013 05:20:00 -0400

Paycor’s cloud-based HR, payroll and timekeeping platform, Perform, has been named a finalist in the American Business Awards category of “Best New HCM Software Solution.” Perform will ultimately be named a Gold, Silver or Bronze Stevie® Award winner.

The American Business Awards are the nation’s premier business awards program. All organizations operating in the U.S.A. are eligible to submit nominations—public and private, for-profit and non-profit, large and small.

The American Business Awards will be presented at two awards events: the ABA’s traditional banquet on Monday, June 17—in Chicago for the first time, after 10 years in New York; and the new product & technology awards event on Monday, September 16 in San Francisco. Perform’s award status will be announced at the San Francisco awards event.

More than 3,200 nominations from organizations of all sizes and in virtually every industry were submitted this year for consideration in a wide range of categories. Perform is being recognized for its emphasis on intuitive design based on client feedback, and overwhelmingly positive reaction from clients who are currently using the platform.

Finalists were chosen by more than 140 business professionals nationwide during preliminary judging in April and May. More than 150 members of nine specialized judging committees will determine Stevie Award placements from among the Finalists during final judging, to take place May 13-24.

Details about The American Business Awards and the list of Finalists in all categories are available here.