Paychex ESR Video Series
Welcome to the Paychex Employer Shared Responsibility video series, Affordable Care Act compliance.
If you've seen our review of Employer Shared Responsibility, or ESR, provisions of the Affordable Care Act you now know how difficult it may be to comply with ESR and avoid potentially costly penalties.
But you don't have to go it alone.
Paychex has a robust solution for ESR that helps you with each aspect of the provisions, tracking, coverage, and reporting.
Let's take a look at three important ways our ESR services can help your business avoid tens to hundreds of thousands of dollars in potential penalties.
Our ESR tracking service can help you determine if ESR applies to your business by figuring out if you have 50 or more full-time employees, including full-time equivalent employees. That may sound easy enough, but it's not about what you consider full-time. It's how the IRS defines it that counts.
The service also helps you find out whether your employees meet the IRS full-time definition by tracking and monitoring at least 12 months of employee work hours.
When determining your coverage, Paychex uses data analytics that help you determine if you're an applicable large employer and perform the needed calculations on your employee information, benefits levels, tax rates, and other relevant data. We even alert you if your business is nearing the threshold.
Here's the reporting you can expect as a Paychex client.
This monthly report captures the automated calculations and tracking done on your behalf — including an alert if you're nearing or exceeded 50 full-time employees, including full-time equivalent employees — a listing month by month of the hours worked by all of your employees divided into full-time and part-time categories, and the opportunity to look back on up to 12 months of employee work hours in order to project to the end of the current year.
Your ESR requirements may seem complex, but there's no need to feel overwhelmed. Paychex can help you know for sure whether you're subject to the ESR provisions.
Now let's take a look at the next step in ESR compliance, full-time employee tracking.