Tips for IT Managers to Ensure ACA Compliance

Here are seven tips to help IT managers contribute to an ACAcompliant environment:

• Coordinate with other departments to determine all of the data sets needed to meet compliance and map out where the data is housed. Large employers will need to integrate data from multiple workforce management platforms, including human resources, benefits, work time, leaves of absence, payroll, and Form I9 data.

• Launch a thorough review of system, network and software capabilities to determine whether the right tools are in place to merge, calculate and report the necessary data. If not, identify which systems need to be updated, supplemented or replaced.

• Store the data once it is aggregated—in some cases, for many years. Given that ACA penalties come in the form of a tax levy, employers need to be prepared to accommodate any future information requests from the IRS. If any data have been compromised, employers may face a barrage of correspondence and complaints. Additionally, faulty or inadequate information sent to the IRS may result in reporting penalties up to $100 per occurrence and a maximum of $1.5 million.

• Store information securely and share it securely, too. In some cases, employers will need to share employee data with Health Insurance Marketplaces and the IRS to confirm adherence with the law’s affordability requirement. Because transfer of this data can potentially expose employers to Health Insurance Portability and Accountability Act (HIPAA) violations, IT must ensure the necessary tools are in place for secure transfer.

• Prepare for the IT demands unique to your industry and business model. For example, organizations with primarily hourly workers, such as retail and restaurants, will have much higher populations that can claim premium tax credits because their employers may not provide access to affordable minimum coverage.

• Remain nimble and flexible enough to accommodate rule changes and state-specific regulations. Currently, 16 states and the District of Columbia have developed their own Health Insurance Marketplaces. IT managers will need to prepare to meet the unique requirements of each of the states in which the organization does business. The regulatory environment will also likely remain extremely fluid as the ACA continues to be defined and refined through new regulatory guidance or legislation.

• Consider partnering with a third-party that understands ACA compliance and the independency of ACA data sets to mitigate compliance risks. By choosing a partner that can build and support an infrastructure dedicated to ACA success, organizations are free to focus on their core business and grow top-line revenue while protecting themselves from bottom-line ACA penalty impacts.

There is no doubt that IT leaders will play an essential role in their organization’s successful navigation of this seismic shift in workforce management. A company’s IT infrastructure and valuable employee data are the first lines of defense against ACA penalties. For IT leaders to succeed, they must first acknowledge the importance of a comprehensive, data-driven approach to ACA compliance. With the right infrastructure in place, organizations can minimize inefficiencies, prevent burdensome administrative hassles and avoid millions of dollars in potential financial penalties for  noncompliance.