1. Leveraging Relationships With Payroll Vendors To Solve ACA Challenges
Bob Radecki President, Benefit Comply
Rick Chouteau SVP, Paycor

2. FOUR POTENTIAL SCENARIOS:
Industry Insight
Payroll, Benefit Administration and Clients
FOUR POTENTIAL SCENARIOS:
Payroll Vendor provides a Benefit Administration Platform within their offering
Payroll Vendor provides an integrated, 3rd Party Benefit Administration Platform
Payroll Vendor Interface with 3rd Party
Clients don’t use a Benefit Administration platform

3. Payroll Vendor Provides a Benefit Administration Platform Within Their Offering
SSO, Single entry of data
Increased Data integrity
Cost effective
Consistent UX
Advantages
Less sophistication
Responsiveness to market changes and consumer demands
Disadvantages
Investment $’s to compete with larger Benefit Admin applications
Historical data
Industry Challenges

4. Payroll Vendor Provides an Integrated, 3rd Party Benefit Administration Platform
Sophisticated offering
Defined Contribution
Decision Support tools
Increased consumerization of healthcare offerings
Responsive to consumer demands and market changes
Better visibility to employer/employee cost data
SSO can still be accomplished
Highly customizable
Improved Carrier Connections
Employee engagement
Advantages
More costly
Inconsistent UX
Customization brings costs and time challenges for implementation
Disadvantages
Product control
Lower margins
Historical data
Industry Challenges

5. Payroll Vendor Interface with 3rd Party
No change for client or their employees
Lower costs (sunk costs)
Leverage current technology and value
Advantages
Integrations come with potential data integrity concerns
Timing of updates can make one system show a different result than the other
Changes in 3rd party platform may affect the import file
Challenges/increased cost to provide a SSO experience
Disadvantages
There are many new horses in this race making it difficult to pick the winners
Industry Challenges

6. Clients Don’t Use a Benefit Administration Platform
No integration worries
No need to change
Let’s just keep doing what we’ve always done
Advantages
Manual = Errors and Costs
Poor user experience
Lack of employee engagement
Regulatory changes can challenge the clients ability to keep up
Disadvantages
Data availability to support regulatory changes
Historical data
Industry Challenges

7. Benefit Administration and ACA Filing
Clients Have 4 Choices for ACA Filing:
Contract with the Payroll and HCM provider
Utilize the technology of the Ben Admin systems
Outsource to a 3rd party provider
Manual entry

8. Contract with the Payroll and HCM provider
Advantages
Payroll data is a big component (hours/deduction)
IRS filing is done as a normal course of business
More product usage = less effort and review
Visibility to ALL employees
No one size fits all
Plan details are not readily available (unless using Ben Admin)
Disadvantages
Client education
Consistent product usage
Data import
Industry Challenges

9. Utilize the Technology of the Ben Admin Systems
Advantages
Benefit Costs, employee election and plan details are more apparent and consistent
Disadvantages
Lack of visibility to all employees
Lack of IRS filing process/experience
Determining employee eligibility
Industry Challenges
Access to all employees, records and hours worked

10. Outsource to 3rd Party Provider
Advantages
All they do is ACA = Consistent knowledge
Good option for employers processing payroll in-house
Disadvantages
Focused on the largest employers
Lack source data from benefits or payroll
Industry Challenges
Data collection
Data import
Data validation

11. Manual Entry
It just sucks!

12. Looking Ahead

13. ACA Reporting Readiness
5000+ EEs
EEs
<1000 EEs
Not yet considered/Don’t know
Plan to outsource but haven’t started considerations
Currently considering an outsourced solution
Committed to an outsourced vendor
Already implemented an outsourced solution
This data was reported in May of 2015 – shows the current state of ACA planning and readiness in the market. Produced by PriceWaterhouseCooper and Equifax.
26% of employers under 1K are still undecided regarding whether they will implement a solution in-house or an outsourced solution to facilitate reporting.
37% of large employers reported that they are in discussions with outsourced vendors while 12% are still unsure what their ACA strategy will be.
27% of employers in the 1k-5k space reported in equal numbers that they would either implement an in-house solution or an outsourced solution – but another 15% still don’t have a plan as of May 2015. 5 10 15 20 25 30 35 40
SOURCE: Affordable Care Act Reporting Survey Results May 2015, Equifax

14. ACA Vendor Type Breakdown
< 1000 EE EE
> 5000 EE
Benefits Administrator
10%
19%
29%
Tax/accounting provider 5% 2% 0%
Tax information reporting firm 7%
Payroll vendor
48%
25%
HRS provider
Dedicated ACA compliance vendor
13%
24%
35%
Do not know/undecided 8%
18%
14%
SOURCE: Affordable Care Act Reporting Survey Results May 2015, Equifax

15. 70% 46% Delivering IRS Forms 30%
of employers under 1000 EEs cite understanding their reporting options as their biggest ACA concern.
70%
46%
of employers are still undecided about how they are going to deliver the forms to the IRS and employees.
of employers plan to use a vendor.
30%
SOURCE: Affordable Care Act Reporting Survey Results May 2015, Equifax

16. Will Ben Admin Systems File with the IRS?
My prediction….yes!
ACA is a challenge for all
Changes will subside and normalcy will take its’ place
Education amongst all will improve
Technology and the market will catch up
1095-C’s will become just like W2 filing …commonplace.

17. ACA Filing Just like W2’s? …Close. W2 Wages end December 31
1095-C ends when the employer completes December’s review
Printing is not in-line with W2’s
Packaging and distribution is very consistent

18. Broker Involvement What is your value proposition?
Does it include Benefit Administration?
Enrollment?
Carrier Communication?
Employee Support?
Are you giving ACA advice and support?
What level of education are you providing?
Are you coaching on ALE status?
Are you ensuring MEC?
Coaching them on ‘Affordability’?

19. Broker To Do’s Educate yourself…Meet Bob Radecki!
Ask your clients about the steps they’ve taken to prepare
It’s important they start now
This is your opportunity to educate and provide ‘partner’ intros
Provide webinar and educational opportunities for your staff and clients
You don’t have to do it yourself!
Leverage partner materials and webinars
Be clear on your value proposition
Are you guiding or doing? i.e. Carrier Connection
Be clear on ALE, Affordability and Eligibility Calc
Set deadlines for your clients to act and follow up

20. Questions?