HRlogics ACA & Clear ACA Reporting Software Is a ‘Lifesaver’ for PEOs

Companies seeking high-quality Human Resource services and employee benefits often rely on Professional Employer Organizations (PEOs) for assistance. The rapid expansion of the PEO industry highlights their crucial role in this area. In light of growing regulatory complexities, PEOs are developing innovative strategies to reduce their risk of door-closing penalties.

One of these strategies includes implementing Affordable Care Act (ACA) tracking and filing with the IRS on behalf of their clients. The ACA establishes precise parameters for essential employee healthcare plans, posing a particular challenge for smaller enterprises. PEOs emerge as a pragmatic solution for small businesses grappling with ACA requirements and looking to simplify HR functions.

The Pain Points for PEOs

ACA reporting can pose several pain points for PEOs. Some of the common challenges faced by PEOs in managing ACA reporting compliance for their clients include:

• Not having a seamlessly integrated “Full-Service” ACA partner solution to keep track of each PEO client

• Auto-notifications of employees meeting ACA thresholds (variable-hour employees are tricky to track)

• Pre-audit of forms for potential penalties before filing with the IRS

• Audit trail, including notification of transmission and acceptance of forms by IRS for each client

• Dedicated ACA Customer Support specialists

Also, the cost implications associated with ACA reporting can be burdensome for PEOs. It is essential to invest in advanced technology, compliance expertise, and staff training, but these investments can be costly.

Moreover, the evolving nature of ACA regulations adds a layer of complexity. PEOs need to stay updated on changes in legislation, updates, and nuances related to ACA reporting requirements. This ensures continuous compliance for both their operations and the businesses they serve.

The Burden on Employers

IRS tax codes and healthcare compliance are among the most significant challenges for business owners, particularly small businesses. In a Benefits Pro survey, 53% of respondents labeled ACA regulations as "overly burdensome."

This shouldn’t be surprising, as the ACA has some of the most intricate employer reporting requirements. This complexity is where PEOs can step in and provide maximum healthcare compliance coverage by incorporating tracking and reporting software into their tech stacks.

Beth Eckert from Pinnacle Employee Services shares her experience using one of these solutions, HRlogics ACA. “My confidence level has gone up tremendously since we started working with the HRlogics team. HRlogics (formerly SyncStream) proactively helps Pinnacle protect our clients from crippling IRS penalties because the solution automatically notifies us of potential issues and directs us to correct the reporting problem before e-filing for our clients with the IRS.” 

“The team not only alerted us about report issues but also trained us on ACA compliance, making it easier for us to handle problems correctly, unlike other solutions,” Eckert adds. “Having the right partners in place, like HRlogics ACA, has been critical to my success.”

The Value of Partnerships

A partnership between a PEO and an ACA solution provider can yield several benefits:

• Stay ahead of changing requirements. A dedicated solution provider ensures PEOs stay informed about regulatory changes, reducing their clients’ risk of non-compliance and penalties.

• Streamlined reporting processes. PEOs can streamline their reporting process by integrating with an ACA solution provider. These providers often offer specialized software and tools for automating data collection, ensuring accurate reporting, and aiding in timely submissions. As a result, this improves efficiency and minimizes errors that might otherwise occur.

• Leverage expert knowledge for maximum compliance. Partnerships allow PEOs to leverage the expertise of the ACA solution provider. Navigating ACA regulations demands specialized knowledge. A reliable partner enables PEOs to access this expertise, helping their clients maintain compliance.

• Retain clients longer. Partnering with an ACA solution provider enhances PEO service offerings and showcases a commitment to comprehensive solutions for client businesses. This instills confidence in the PEO's ability to effectively manage complex regulatory requirements.

Partnering with an ACA solution provider empowers your PEO to navigate ACA compliance more efficiently, stay current with regulations, reduce errors, and enhance the overall value proposition for client businesses.

JoAnn Jones from America’s Back Office says, “HRlogics ACA (formerly SyncStream) saved my life! There was so much confusion about all the rules, and HRlogics ACA made sure we were doing everything correctly. HRlogics ACA has been helpful, saving a lot of money and time.”

A Stable Choice for an Uncertain Future

Healthcare’s continued uncertainty makes it both a valuable asset and a risky endeavor. Intelligent solutions and informed professionals are the best ways to help employers with their compliance needs. Partnering with a company like HRlogics, with all the infrastructure to help employers already set up, can make a huge difference to your customers, and make your PEO a more valuable asset to them.

Beth Eckert adds, “Our partnership with SyncStream has made it easier for Pinnacle to remain compliant with the ACA. The expertise and support provided by SyncStream has instilled confidence in our team’s compliance efforts.”

PEOs can significantly benefit from partnerships with compliance-focused solutions providers like HRLogics ACA. These partnerships not only manage healthcare compliance solutions but also offer valuable services to customers. By shouldering the burden of healthcare regulations, PEOs can continue providing highly valued benefits to their clients.

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