BeneTrac Simplifies W-2 Tax Reporting on Benefits and Other Emerging Healthcare Reform Requirements
Human resources software helps to decrease administrative burden of W-2 reporting during tax season, reduces benefits management risk for brokers, HR, employers
San Diego, CA (PRWEB) March 05, 2013
BeneTrac, a Paychex company and provider of powerful, web-based electronic enrollment and employee benefits administration software, is announcing its technology further supports healthcare reform compliance, with enhanced capabilities to satisfy recent W-2 reporting requirements to report the cost of employer-provided health coverage on employee W-2 forms. The latest software enhancements make it easy to report the aggregate cost of “applicable employer-sponsored coverage” through its robust reporting tool. This new mandate applies to all companies processing more than 250 W-2 forms for tax years beginning January 1, 2012.
“As compliance deadlines for new healthcare reform provisions move forward and organizations navigate new W-2 reporting requirements during the busy tax season, we have seen an increase in urgency from businesses that need help to quickly comply,” said Summer Hamilton, vice president of sales for BeneTrac. “W-2 reporting is just one of the many aspects of healthcare reform that is simplified with the BeneTrac platform. Brokers and HR managers consistently tell us that BeneTrac´s online solution reduces this reporting burden, adding day-to-day efficiencies that greatly simplify benefits administration and more than justify the return on investment.”
The new mandate from the IRS requires the portions paid by both the employer and the employee to be included in the information reported on the W-2. The intent is to provide useful and comparable consumer information to employees on the cost of their healthcare coverage. If the employer fails to correctly file by March 31, 2013 for this tax year, penalties may apply.
While many software packages track the contribution the employee pays, BeneTrac includes premiums from both the employee and the employer. The enhanced software offers a full electronic report that details contributions and total aggregation to simplify compliance with the W-2 reporting requirement. The system also accounts for changes in enrollment status updates that affect contributions, including life events such as getting married, divorced, having a child and others.
“In addition to assisting with compliance reporting, our benefit cost reporting functionality provides our clients and brokers with an effective analysis tool for shopping new insurance coverages and aids with budgetary planning,” said Michael House, vice president of product management for BeneTrac.
BeneTrac´s technology helps HR administrators, brokers and others prepare for other pending requirements including:
–Auto-enrollment of employees in benefits — The Department of Labor reported the auto enrollment mandate (which requires companies with more than 200 full-time employees to automatically enroll employees in their medical plans) has been delayed until final guidelines are released in 2014. Though employers are not required to comply until final regulations are issued, organizations wanting to prepare for this impending requirement can use BeneTrac´s feature to automatically enroll employees in a given plan and give them the option to opt out.
–Emerging requirements on providing Summary Plan Descriptions — BeneTrac helps benefits administrators to publish existing plan summaries online.
–Tracking benefit declinations for coverage from employees — Beginning in 2014 employers with more than 50 employees may have to pay a penalty if they fail to insure employees. For example, in a company with more than 50 employees, if at least one employee receives a premium tax credit or a cost-sharing subsidy in an Exchange, the employer may be required to pay a penalty for not offering coverage. BeneTrac can capture and report on allowable declination information from employees such as “coverage under spouse” and others to show that coverage was offered and declined by an employee receiving such credits or subsidies.
Additionally, BeneTrac´s free monthly billing audits help to ensure accuracy of data and identify potential discrepancies in payments and/or service.
BeneTrac currently works with thousands of brokers and over 600 carriers and data partners to help organizations manage benefits for over a million members throughout the United States. Its software helps HR professionals more efficiently manage benefits online through automatic electronic transfers of employee benefit elections and eligibility information.
For more information, please contact 619.788.5800 or salessupport@BeneTrac.com.
BeneTrac, a Paychex company, is a provider of powerful, web-based electronic enrollment and employee benefits administration software. The company´s online benefits management technology enables employers and human resources professionals to eliminate paperwork and automate management of their complete benefits packages through a single, customized portal. BeneTrac´s one-stop-shop platform for automatically adding, updating and managing information, and exchanging data with providers, capitalizes on relationships with more than 600 carriers and data partners. The technology offers a robust, affordable, user-friendly system that simplifies benefits administration. A pioneer in online benefits management, BeneTrac was founded in 1999. It was acquired in September 2007 by Paychex, Inc., a recognized leader in the payroll and human resource services industry. Its customers range in size from 50 to 12,500 employees.
For more information, please visit http://www.benetrac.com.
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