2016 has been a learning year for many companies when it comes to compliance and reporting. Unfortunately, that learning curve may carry stiff penalties and fines with it if companies fail to meet mandated requirements. The stark reality is that many companies simply don’t have the technology infrastructure in place to gather and compile necessary data for reporting and filing.
Even among companies with an HRIS in place, the requirements associated with the Affordable Care Act (ACA) and the Fair Labor Standards Act (FLSA) overtime rule have introduced new dynamics that left many scrambling to gather needed data. For those without the right technology, reporting and filing can appear to be nearly insurmountable challenges.
The good news is that the right HRIS can help you address those issues and take the guesswork out of the reporting process. Let’s look at five of the top reporting challenges facing companies this year:
- Data integration—Integrating data across payroll, benefits, timekeeping, and personnel records can be a expensive and labor intensive, especially if your system wasn’t set up to handle the necessary flow of information.
- Generating reports—Generating 1094 and 1095 forms in preparation for filing will require extensive effort if modules aren’t integrated to track the right data and generate reports based on that data.
- Employee classification—Misclassifying employees can lead to problems with the IRS, whether the error is intentional or not. You need a reliable way to track full-time vs. part-time employees and to correctly classify contractors.
- Tracking overtime exemptions—The new FLSA overtime rule will be a game-changer for many employees. Now is the time to prepare your organization by evaluating current employees and their status as well as ensuring that you have a reliable timekeeping solution that tracks hours and type of work.
- Tracking employee health coverage—Accurate ACA reporting will require companies to track employee healthcare benefits, determine which employees have opted for alternative healthcare solutions, and ensure that the correct information is in place for tax filing.
Compliance Made Easy
One of the most effective things you can do to protect yourself from compliance problems is choose an HRIS that has been built to help you prepare for filing and reporting in accordance with the new requirements. Look for a system that:
- Tracks FTE’s—Keep track of FTE’s effortlessly when your software system automatically calculates status based on hours reported in the timekeeping module.
- Offers affordable integration—Whether you choose a best of breed or single source ERP solution, look for one that integrates data seamlessly across all modules. There are pros and cons to each type of system, but both offer affordable options depending on the needs of your business.
- Generates required reports automatically—Not all software systems have addressed the issue of ACA reporting effectively. Look for one that accurately generates the right reports to eliminate filing errors.
- Automates the collection of needed data—Employee information, healthcare coverage, time and attendance, and other relevant data should be collected automatically, streamlining the process of generating and distributing necessary reports.
- Can handle employee data across multiple locations—If you operate in multiple states or countries, look for an HRIS that can handle the specific reporting requirements of each location. While ACA and FLSA standards will be the same nationwide, other regulations may differ from state to state. Global organizations will need a solution that can manage region-specific regulations for every country in which they operate.
Compliance issues can eat up time and money if you don’t have the technology in place to manage them. But with a comprehensive HRIS solution designed to address those issues, you can streamline data collection, reporting, and filing to eliminate your compliance headaches this season.
Ready for a new system? Our HRIS comparison tool gives you an unbiased look at how different software systems measure up to your business requirements.