68% Of Senior Payroll Professionals Claim The Affordable Care Act Is The Most Challenging Compliance Issue
Study Findings From The Hackett Group & Ceridian Identify Opportunities For Dayforce Human Capital Management Technology To Address ACA Requirements
Ceridian announces results from The Hackett Group’s “2014 Payroll & Tax Compliance Study” which indicate that The Affordable Care Act remains a top compliance concern facing the payroll tax environment for a majority of U.S. organizations.
Key findings include the following:
- 68% of respondents indicate that the ACA is the most challenging compliance issue facing senior payroll professionals.
- Under 40% of study participants report that their time and attendance technology is integrated with payroll. That leaves more than 60% of companies likely without technology that can handle compliance with the ACA, whose Employer Mandate makes the need for real-time data that represents time, attendance and payroll, simultaneously even more crucial.
* 69% of respondents indicate that their current (human capital management) system does not send immediate and electronic notification to appropriate parties when their part time employees have worked more than 30 hours per week, putting organizations at risk of non compliance
* Nearly a quarter (24%) of respondents indicate that their time reporting system does not show average hours worked on a weekly basis, an important “look back” period necessary to determine benefits eligibility
- 70% of respondents indicated that their payroll leaders have limited to no involvement in the decision making process related to the Affordable Care Act.
“There is no question that the Affordable Care Act will have an impact on payroll,” says Felicia Cheek, senior director of The Hackett Group’s global time-to-pay practice advisory. “Payroll leaders need to be engaged in the planning process at the start and be prepared to work across functional lines to ensure compliance. They need to insert themselves into conversations so they can be more strategic in their decision-making and impact on the organization.”
“Ceridian’s engagement with agencies and various industry forums gives us the insight to provide feedback on new reporting requirements related to ACA,” says Bill Blough, senior vice president of Operations and Tax, Ceridian. “Several Ceridian employees from our compliance team are active members of the National Payroll Reporting Consortium (NPRC). The Consortium recently provided feedback to the IRS including questions and suggestions related to the new ACA reporting requirements prior to their issuance. Payroll and HR leaders should be sure to educate themselves on these new reporting requirements.”
Dayforce HCM’s single application design means changes in working hours are seamlessly reflected in payroll, time and attendance, and benefits and that all information is available in real-time. Managers can see the impact of the allocation of service hours on benefits costs, allowing them to make business and human resource decisions with all relevant information, enabling them to reduce costs, increase profitability and monitor compliance.
Dayforce HCM is a cloud-based, single application for Payroll, Benefits, Workforce Management, Human Resources, Talent Management, Document Management, and Analytics. As a single application for HCM, Dayforce provides organizations with unprecedented access to real-time data and results across all domains of HCM. With one employee record, one user experience and no interfaces, organizations can find and hire the right people, process pay, manage benefits enrollment, maintain HR records, and schedule staff with work-life balance while managing compliance. For more information on how Dayforce HCM helps organizations comply with the ACA, click here.
For a more in-depth look at the key findings and conclusions from The Hackett Group’s 2014 Payroll Tax Compliance study, go here to register and view a webinar and learn how to best approach compliance with employment law.
About the Study:
All companies that participated in The Hackett Group’s study were based in the United States. On average, they employ 22,000 employees serviced by payroll in the United States. Just over four-fifths run payroll in-house. Sixty-seven percent run a corporate payroll structure, and 22 percent run shared services. Just 11 percent have a decentralized setup.
Ceridian is a leader in human capital management with more than 100,000 clients across the globe. Ceridian delivers trusted results and transformative technology. Our offering includes the award winning, cloud-based Dayforce HCM, LifeWorks, Powerpay and International Payroll. Ceridian is transforming the world of work. For more information about Ceridian solutions call 1-800-729-7655.
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.