What Does the ACA Mean for Brokers?
Posted on April 10, 2017
Winning more deals, increasing existing client retention and growing the bottom line for your firm are likely top of mind these days. Competition among broker firms is putting pressure on you to stand out from the herd. Simply signing on clients won’t cut it anymore: It’s clear that you have to become a closer partner with your clients to differentiate yourself. But how?
Think of the Affordable Care Act (ACA) as an opportunity. It’s confusing, cumbersome, and time consuming. Managing the myriad rules and regulations around ACA can be stressful and extremely costly to businesses if they’re found to be out of compliance. While the law has been in effect for more than six years, a majority of small to mid-size business owners – 51% – still indicate that they have limited to no understanding of its impact on their businesses.
Filing regulations are continually changing, and unless they have staff dedicated to closely monitoring these modifications, your clients and prospects could very easily miss an update and incur some pretty hefty fines. For example, 36% of employers classified as Applicable Large Employers (businesses that employ an average of at least 50 full-time and/or full-time equivalent workers) indicated that they were completely unaware that they must begin reporting on their 2015 insurance offerings to the IRS to ensure compliance with the individual and employer mandate. Are your clients in that 36%? With a fine of $250 per un-filed form up to a maximum of $3 million, this could result in big problems.
Consider also the time commitment to managing ACA compliance. Businesses spend an average of 13 hours per month – that’s nearly 4 work weeks every year – to stay abreast of all the changes to health care. This is valuable time that’s being taken away from your clients’ businesses. This is where you can help.
Help Your Clients Navigate Open Enrollment
Benefits open enrollment season is quickly approaching. Recognizing the ACA reporting requirements now, and having the right plan and technology in place to see it through, is essential to your clients’ and prospects’ successful ACA compliance strategy. The key to a smooth open enrollment is to help them manage their employee benefits plan through an online platform that integrates with payroll, time, and an automated ACA IRS filing service. When you serve as their trusted advisor, you can take the burden off of your clients and their staffs and shift it to a provider who has the expertise to not only manage payroll and benefits, but also has the professionals on hand to understand and manage the extraordinary complexities of the ACA. Disparate systems and duplicate data will be eliminated come processing time. And, your clients don’t even have to lift a finger. It’s a win/win.
Helping our partners get the most out of our service so you can enable your clients to keep ahead of the curve is key to your success and ours. Let’s talk about how our integrations can improve your clients’ HR and payroll experiences today. Click here to refer a client today.