A lot of changes have occurred within the last year which will require attention to detail when preparing for the 2016 tax season. The good news is that your HR department can play a supporting role to ensure important goals are met. Below are some things to keep in mind for this year:
Pay Attention To Forms
2016 marks the first year that certain employers will be required to complete the reporting forms which are listed under the Affordable Care Act. These forms are used to provide both the IRS and workers with info on the type of insurance the employer provides. These forms can be confusing to employees because they will need to determine if they’re eligible for coverage via exchanges.
This means that the HR department could find itself flooded with inquiries from employees regarding this issue, and depending on the size of the company, this could cause considerable consternation. To avoid this problem Human Resources must communicate with employees in advance to inform them of the coverage options which are available.
Use SaaS Solutions
Some employers may find that the easiest way to manage complex enrollment, taxation and reporting challenges is through outsourcing their needs to a SaaS payroll provider. Those who choose this option must select a partner that will offer the type of support that their business needs. When you have a good set of SaaS payroll system to work with, all your tax matters can be organized easily. If you face a situation where you have certain doubts on how to stay compliant, tap on the customer support of your SaaS payroll partner and get their useful advice.
Beware Of The Cadillac Tax
Although the Cadillac Tax is postponed for the time being, you will need to pay close attention to it to navigate the various political changes which are taking place. Should this tax arrive, it could very well have a form or name which is different. Paying attention to this tax is important because the last thing you want is to be surprised by its arrival, which will then require you to catch up with its requirements. The best way to keep up-to-date on this tax is to speak with a benefits advisor to determine what rules would apply in your case.
Open Enrollment For The Year
Employers who are not preparing for open enrollment for fall 2016 are running out of time. When you consider the software, resources and forms which are available today this process should be quick and effortless. Now is the time to put your plan in motion. Employers should begin reviewing various types of coverage and options for their workers, because while last minute changes to ACA may occur, if your foundation isn’t established now you will have to rush at the last minute.
Benefits administration is a field which is in a constant state of flux. There are always new things to learn, and it offers numerous opportunities for HR managers to brainstorm and strategize. Most important, it presents a chance for these managers to lead their enterprises in a manner that helps strengthen the business. Instead of focusing on how things have been done in the past, focus on adapting to the changes that will occur tomorrow.