Financially and operationally speaking, The Affordable Care Act is one the most massive and complex HR compliance challenge for employers in U.S. history. It comes as no surprise then, that the recently conducted ADP Research Institute survey indicates very mixed levels of awareness of and preparedness for specific upcoming ACA requirements. While human resources and employee benefits decision makers in four out of ten large companies express a high level of confidence that they understand employer obligations under the ACA, only half as many small and midsized employers feel this way.
As many ACA provisions go into effect on Jan. 1, 2014, there is still some time to learn how take a proactive approach in this endeavor, make the transition effective, and keep the cost low. As the ACA clock is ticking, here are the steps, as listed by Jackson Lewis LLP in the article Six Steps to Prepare for the Affordable Care Act, that employers should take while formulating their action plans:
1. Recognize that many of the ACA’s requirements become effective on Jan. 1, 2014.
2. Identify workers who are misclassified as independent contractors.
3. Investigate the application of the controlled and affiliated service group rules.
4. Examine temporary and leased employee agreements.
5. Avoid “messing” with your insurance contract renewal dates.
6. Take the time to model the impact of the ACA’s mandates and penalties.
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