Item C16BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: July 15-2015 Department: Ernaloyee Services
Bulk Item: Yes X No Staff Contact.,-'Plione #: Teresa Amrar X4458
6_
AGENDA ITEM WORDING: Approval to negotiate a contract with Worxtime for assistance with
reporting requirements under IRS Section 6055 and 6056 (porto 1095-C) for a term of one (1) year for
the 2015 calendar year with staff signing the necessary forms and agreement.
ITEM BACKGROUND: Federal law requires the County to report information that includes which
individuals are enrolled in health coverage and information about the coverage (if any) offered to the
employee, by month, including the lowest employee cost of self -only coverage offered. An employer
that fails to comply with the reporting requirements risks penalty. The general penalty amount is $ 100
Zn
for each statement with the total penalty capped at $1,500,00R,
Two quotas were received in accordance with Purchasing Policy and are attached.
PREVIOUS RELEVANT BOCC ACTION: N/A
CONTRACT/AGREEMENT CHANGES: N."A
STAFF RECOMMENDATIONS: Approval
TOTAL COST:118.045 INDIRECTCOST: BUDGETED: Yes —No
DIFFERENTIAL OF LOCAL PREFERENCE:
COST TO COUNTY: SOURCE OF FUNDS:
REVENUE PRODUCING: Yes —No AMOUNT PER MONTH—,,, Year
r"A
APPROVED BY: County Attorney LR OMB/Purchasing 29 Risk Management
DOCUMENTATION: Included Not Required.
DISPOSITION. AGENDA ITEM
CONTRACT SUMMARY
Contract with: WORXFIBIE Contract#
Effective Date:
Expiration Date:
Contract Purpose/Description:
Approval to negotiate art. agreement for assistance with reporting restairements under IRS
Section 6055 and 6056 (Form 1095-C) for aterm of'sme year
Contract Manager: Maria Gonzalez_z 4449 Employee Services/Sto A
(Name) (Ext.) (Department/Stop #)
for BOCC meeting on Agenda Deadline: July 39,201
July 1, 2014
CONTRACT COSTS
Total Dollar Value of Contract: S 18,04-5 1 Current Year Portion: S
Budgeted? YesM No Account Codes: 602
Grant: $
County Match: $
ADDITIONAL COSTS
Estimated Ongoing Costs: $-/yr For:
(Not included in dollar value above) (e.g. maintenance, utilities, janitorial, salaries, etc.)
CONTRACT REVIEW
Changes
Date In
Department Head
Needed
YesF1 Nog
Risk Management
Yes[:] NoCJ
O.M.B./Purchasing
YesEl No[O
County Attorney So- ZA 57YesF] No�
I Comments:
Date Out
Final Regulations for E—D! r PPACA R
The IRS has issued final regulations addressing the type of information the government will collect under
health care reform. The details are essential for the government to set up an enforcement mechanism to
implement the law's employer mandate provisions.
The final regulations" implement requirements set forth in two separate sections of the Internal Revenue
Code addressing: (1) the reporting of enrollment in Minimum Essential Coverage (often called 'MEC',
under IRC Section 6055) and (2) employer reporting about the health insurance coverage offer (under
IRC Section 6056). Tax code sections 6055 and 6056 will work in tandem to help the agencies effectuate
enforcement activity.
What is Section 6055 reporting?
Enrollment demils: Tax code sections 6055 requires employers, insurance issuers and governments
providing individuals with any health plan coverage to convey information concerning the type and period
of coverage provided. The final rules set forth the general reporting method employers will use, with
options to streamline reporting if certain conditions can be satisfied. (Not surprisingly, the conditions
needed to shift to simplified reporting will require that the employer agree to heightened standards under
the mandate. In other words, the rules function as a 'carrot" to entice employers to consider shifting away
from strategies such as "skinny plans" and to press for coverage offers to broader numbers of
workers.) Section 6056 was enacted to provide assistance to the IRS and individuals for collecting the
requisite information under the individual mandate.
What is Section 6056 reporting?
Desole about coverage offered: Section 6066 creates a new IRS reporting obligation for an applicable large
employer that is intended to deliver information about the type of health coverage the employer offered to
full-time employees under health care reform. (The federal health care reform law defines large employer
as one with 50 or more full-time equivalent employees,)
"Smaller" large employers using the one-year delay still report. Note that under separately issued guidance,
employers with fewer than 100 employees are eligible for an additional one-year delay under the employer
mandate. (Please reference (lit! HUB International Client Bulletin for details.) An employer that is eligible for this
special relief is still required to report to the IRS in 2016, however that report will simply serve to certify that the
"smaller large" employer satisfies all of the eligibility conditions necessary to qualify for the delay. The IRS states
that it will soon publish health care reform related forms and it is anticipated that special codes will be used to help
the employer indicate it was not required to comply with the mandate in 2015.
Section 6056 also requires employers to provide coverage details to workers to help enable individuals to
assess whether or not they are eligible for a federal premium tax credit to subsidize the purchase of
health insurance through a health insurance "Exchange." (Note: An individual's access to federal
subsidies for exchange coverage is blocked when an employer satisfies terms of the mandate by offering
minimal essential coverage that is considered both affordable and provides minimum value.) The
reporting requirement also assists the IRS in administration of the employer mandate. The government is
counting on information compelled under tax code Section 6056 to accurately evaluate tax credit
eligibility.
Streamlined Information Reporting (Combined form)
Since a large employer who offers self -insured coverage will have a dual reporting requirement, the final
rules provide for a single, consolidated form that employers will use to report to the IRS and employees
under both sections 6055 and 6056 (Form 1095-C). This combined approach is supposed to take less
time by avoiding duplicative efforts.
As envisioned, the combined form uses two sections: the top half includes the information needed for
section 6056 reporting, while the bottom half includes the information needed for section 6055. The rules
specifically allow employers to contract with outside parties for filing reports and furnishing employee
statements to comply with section 6056. The rules also note that the existence of any contractual
arrangements would not transfer or shield an employer from potential liability stemming from the third
party's error or omission. (Of course, if an employer was penalized due to the third party's error, that
employer might have a cause of action to recover against the outside party stemming from a reporting
problem.)
Section 6055 d1inimens Essential Coverage Reporting
This section is applicable to health issuers, employers, governments and other entities that provide
minimum essential coverage to individuals. The regulations refer to these entities as "persons' and we
reference them the same way in the following bullets.
Persons required to report
Sel(-Jinided, Plan sponsors for self -insured groups are responsible for the filing. The general aggregation rules Iss
controlled groups are not applicable for this requirement, thus, each employer in a controlled group is treated as a
plan sponsor and separately responsible for reporting.
Insured plans: Insurance carriers are required to report for employers sponsoring fully insured plans as well as
qualified health plans enrolled through a SHOP Exchange. Governmental employers are subject to the filing
requirement but may designate that responsibility to another person.
Excerxftms: Some types of programs are specifically excepted from a reporting obligation. The "exception" comes
as no surprise as it generally carries parward the same PPACA exception that has applied for other coverage, For
example, on -site medical clinics, or "wellness programs- that are an element of other minimum essential coverage
(such as wellness programs offering reduced premiums or cost -sharing under a group health plan) are excused. In
addition, programs "supplementing" as primary plan of the same plan sponsor or that supplements government -
sponsored coverage (such as Medicare) are also excused from reporting. (Of course, Medicare Secondary Payer
rules generally preclude an employer's ability to furnish Medicare Supplement coverage,)
Reporting: What details are required?
Federal law now calls for employers, insurers, and other reporting entities to report information that
includes:
For section 6055
Information about the entity providing coverage, including contact information.
,71 'which individuals are enrolled in health coverage, with identifying information and the number of months for which
they were covered.
For section 6056
c. Information about the employer offering coverage (including contact information and the number of full-time
employees).
For each full-time employee, information about the coverage (if any) offered to the employee, by month, including
the lowest employee cost of self -only coverage offered.
Simplified Reporting: Helpful Employer Option
Qualifying offer: Only employers providing 'qualifying offers" are eligible and conditions must be
satisfied. For employers providing a 'qualifying offer," an arguably more convenient reporting option is
available.
® It hat is a qualifying offer? A qualifying offer is an offer of minimum value coverage that provides employee -only
coverage at a cost to the employee of no more than 9.5 percent of the Federal Poverty Level in the 48 contiguous
states (estimates for 2015 are not yet available - but based on the 2014 number would equate to approximately
$1,108), combined with an offer of coverage for the employee's family, Nom- Although "skinny coverage"
represents a satisfactory form of MEC, it is not as comprehensive as Minimum Value (MV) coverage. An employer
solely relying on a MEC offer to discharge the mandate obligation does not satisfy the condition for "qualifying
offer."
• Fidlyear ofilualifying offer: For employees who receive qualifying offers for all 12 months of the year, employers
will need to report only the names, addresses, and taxpayer identification numbers fTINs) of those employees and
the fact that they received a full -year qualifying offer. Employers must also deliver a copy of that simplified
statement to the worker certifying that the employee received a full -year qualifying offer.
Less thanjull year: For employees who receive a qualifying offer for fewer than all 12 months of the year,
employers wilt be able to simplify reporting to the IRS and to employees for each of those months by simply
entering a code indicating that the qualifying offer was made.
Special rule: Employers certifying that they have made a qualifying offer to at least 95% of their full-time
employees (plus an offer to their families) will be able to use an even simpler alternative reporting method for
2015. Those employers will be able to use the simplified, streamlined reporting method for their entire workforce,
including for any employees who do not receive a qualifying offer for the full year. Those employers will provide
employees with standard statement: relating to their possible eligibility for premium tax credits.
Option for• blankeffidl-tone devignaflon: The final regulations also give employers the option to avoid identifying
in the report which of its employees are full-time, and in -stead to just include in the report an estimate of those
employees who may be full-time. As a condition of this option, the employer must document that it offered
affordable, minimum value coverage to at least 98% of the employees on whom it is reporting.
When does all of this go into efrect?
Although these reporting rules were originally planned to go into effect with the PP ACA employer
mandate, reporting requirements were delayed for 2014 (along with the general employer mandate delay)
under previously issued Notice 2013-45. This means that the first reporting will not generally become due
until early 2016.
Filing deadlines, The final regulations provide that health coverage reports must be filed with IRS annually, no later
than February 28 (March 31 if filed electronically) of the year immediately following the calendar year to which the
return relates. (In other words, the same filing schedule cycle that employers use for Form W-2.) Due to the
reporting postponement under Notice 201345, the first required reports to be filed are for the 2015 calendar year
and must be filed no later than March 1, 2016 (because February 28, 2016 is a Sunday), or March 31, 2016, when
filed electronically.
Employee stationents: Also under the final regulations, employee statements must be famished annually to full-time
employees on or before January 31 of the year immediately following the calendar year to which the employee
statements relate. This would mean that the first employee statements for 20 15 must be delivered by February 1,
2016 (because January 31, 2016 is a Sunday),
Electronic reporting, The final regulations make electronic filing of information returns mandatory except for
organizations filing fewer than 250 W-2 returns during the calendar year. The final regulations allow electronic
delivery of employee statements for smaller groups when certain standards are met.
Possible Penalties
An employer that fails to comply with these reporting requirements risks a variety of possible penalties,
including assessment for failure to file an "information return" or "failure to furnish payee statements." The
general penalty amount is $100 for each statement with respect to which the failure occurs, with the total
penalty amount capped at $1,500,000. In addition, other provisions allow for "reduced penalties" if
corrections are made within a specified period, or further reductions may be available based on the gross
earnings of the employer organization. Penalties may even be waived if the failure is due to reasonable
cause, and not to willful neglect.
The bottom line, however, is that as the IRS is relying on employer reports as its central enforcement
mechanism, informational accuracy will be carefully scrutinized and employers could be may be subject to
penalties for failure to file a correct information return or failure to furnish correct payee statements.
M332MM
The County received two proposals to perform ACA reporting to the IRS and employees: one from Worxtime and one
from ACAVVorks.
am=
Both vendors charge a one-time set up fee and Per Employee Per Month charges. I've highlighted the Year One costs for
each below. There are unique charges for each vendor as follows:
• Worxtime will assess a surcharge to have a contract of less than 3 years. For a 3 year contract, there is no
surcharge.
• Warxtirne's fees will include both the preparation of the employee forms and electronic copies to the County for
the County's distribution. Worxtime's fees also include submission to the IRS.
• ACAWorks proposal includes preparation of the employee forms and mailing the forms to the employees. They
will not send electronic copies to the County for the County's distribution, There is also a fee assessed for the
IRS submission.
ZEMM=
a 7 separate EIN numbers
0 1,600 employees/retirees
Wonstime 3-Year Contract
One Time
PEPIVI
Surcharge
IRS Filing
Electronic
Total Year
Total
Set Up
Fee
Fee
1095-Cs to
One
Year Two
Fee
County for
County
Distribution
$795 per
$0.50
N/A
included
included
EIN
TOTAL
$5,565
$9,600
$0
$0
$0
_$15,165
$9,600
Note: If County wants Worxtime to print and mail the 1095-Cs to each employee, there will be an additional
cost of $4.00 per employee, for a total of $6,400.
Worxtime 1-Year Contract
Note: Worxtime will charge a 15% surcharge on the PEPM fee for each year the 3-year term is reduced (i.e., a
15% surcharge for a 2-year contract; a 30% surcharge for a 1-year contract).
One Time
PERM
Surcharge
IRS Filing Fee
Electronic 1095-Cs
Total Year
Set Up Fee
Fee
to County for
One
County
Distribution
$795 per
$0.50
30%
Included
Included
EIN
I
I
I
I
I
TOTAL
$5,565 __]
$9,600
1 $2,880
1$0
1 $o
1 $18.045
TMOMM
One Time
PEPM
Surcharge
IRS Filing
Electronic i�
Total Year
Total
Set Up Fee
Fee
Fee
1095-Cs to
One
Year Two
County for
County
Distribution
I
$5,500* I $0L85**
$0
$520 1st
Not available
EIN; $100
each
additional
EIN
I
I
I
FTOTAL
$5,500*
$16,320
$0
_$1,220
1 Not available
1 $23,040
1 $17,540
*Fees may increase based upon payroll data file complexity and/or changes to any of the proposal assumptions.
**A change in employee population of +/- 20% may result in the re-evaluation of the monthly administration fees.
Note: If County wants ACAWorks to prepare and mail employee statements, there will be an additional cost of
$1.30 per employee, for a total of $2,080. Alternatively, the County could download a report from ACAVVorks
and prepare the 1095-Cs themselves.
3
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■
Proposal Submitted By:
Lori Haynes
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Com,121ying with ACA it rats
As a part of the Health Care Reform compliance, the IRS issued rules and
regulations associated with the ACA. The marketplace is a viable option for health
insurance however if an eligible employee applies for a subsidy, it is very possible
that a questionnaire will be sent to the employees' employer. Hefty penalties may
apply if the employer has over 50 full time equivalent employees and fails to offer
affordable coverage.
tools at their finger-tips to help determin which employees are eligible for health
benefits and the probability of the remaining part-time employees reaching full-time
status; enabling employers to budget effectively.
As the rules, regulations and reporting requirements change, so does Worxtime. In
preparation for achieving AA compliance, Worxtime will guide you through the process
to ensure that you are in compliance and ready for any and all reporting requirements.
The Worxtime program is intended to benefit Employers by assisting with the
administration Elighbilify and Employer Mandate requirements of the Affordable
Care Act. As ACA continues to change, be re -defined and updated via
numerous rules and regulations that are being released, Worxfime commits
that upgrades and updates will be made to the program in a reasonable time
and manner to reflect all future adopted rules and regulations related to the
ACA.
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The WorWinte Solution:
The Worxfime system makes it easy for employers to plan and manage employee's
hours and track employee benefit eligibility status as mandated by IRS regulations.
Secure / Web -based
Worxtime has successfully completed its audit for SSAE16, thereby ensuring complete security
protection for all data submitted and stored.
Monitors Employees Hours
The Worxtime dashboard displays a significant amount of important data such as calculated
probability of benefit eligibility by providing the total numbers of hours worked, and projected
eligibility date.
11
Projects Probability
Based on the measurement periods chosen by the Employer, Worxtime utilizes the pay period
hours upload provided regularly by the employer to project the probability of an employee
becoming eligible for benefits.
0
Automated Alerts
Scheduled, automated e-mails are sent to pre -defined Administrators, based on probability
selected.
Forms and Reporting
Standard and customized reports are available as a one-time download or future scheduling of
reports. IRS regulations 6055 and 6056 reporting capabilities, as defined by the IRS.
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Management
A dedicated Account Manager is assigned to assist you through the data setup, initial
imports and system training.
3
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The Worxtime Advantage
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self-service, online enrollment solutions to clients.
ABC has provided enrollment services to over 5 million employees. Some of our brand
name clients have been; Russell Athletic, O'Charleys Restaurants, Appleftee's
Restaurants, Swift Trucking, LKQ Corporation, Burger King and Armstrong Worldwide
Industries.
NMI
The complicated and consistently moving PPACA rules continue to challenge
employers to maintain compliance.
Worxtime works very closely with the IRS, Human Resource experts and our legal
counsel, Seyfarth Shaw, in developing a solid, mature, secure, easy -to -use software
application that will provide employers with relief in complying with the government
guidelines.
0 Our commitment to customer satisfaction, vision for success and desire to be the
best make us a leader in the industry.
new healthcare reform guidelines.
Our mission is to provide cutting edge solutions to meet all PPACA guidelines to
avoid severe monetary penalties, when to offer coverage and assist in benefit
budgeting.
4
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All rules and regulations associated with A are built into the Worwime system.
Measurement periods, administration periods and stability periods are measured,
captured and reported, as required by the ACA, Standard and customized reports and
alerts provide clients with needed information for workforce management, benefit
offering and reporting requirements. This information can be viewed in the employee
profile screen. For individual calculations, the dashboard contains a collaborated data
analysis.
DATA SECURITY AND COMPLIANCE
Worxtime data center facilities have successfully completed the audit for SSAE16
thereby ensuring complete security protection for all data submitted and stored within
the Worxtime client. In addition, to ensure secure data management by Woratime team
members, all data is stored according to the Worxtime Information Security Incident
Management Policy and Procedure.
Some of our other security measures include:
a Redundant data centers.
• Our primary data center is in Chicago
• Our secondary servers are in Dallas.
• Daily backups of all data.
• Database server sits behind the firewall and is not directly accessible from the
web.
• All code is backed -up in a secure repository.
• Alert -Logic Threat Manager that constantly tests our servers for exploits and
holes.
Web Application Fire all or WAF in place that manages and scans traffic and
helps to prevent attacks such as DOS or Denial -Of -Service attacks and Brute
Force attacks.
• All traffic to and from the web application are secured via SSL encryption.
• Passwords are stored in the database as an MD5 encrypted hash. The
hashes are compared to authenticate users therefore we cannot decrypt or
provide users passwords, Only option is to reset the password.
5
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• All SSN's are stored in the database using a two -level encryption
process. First encryption step is using AES-256 (same encryption the NSA
uses to encrypt their data) with a SALT value to encrypt the SSN and then we
take an additional step by converting the encrypted string to HEX before
storing it in the database. So no SSN's are stored in plain -text at rest.
• All forms that are submitted within the application require unique randomly
generated tokens to prevent CSRF or Cross -Site Request Forgery to ensure
that all data being posted to our application is only from our application and no
outside systems.
• All query statements are utilizing parameterized queries to prevent against
SQL Injection Attacks.
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6
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entation
Due to the complexity of ACA, it is important to provide you with knowledgeable and
experienced resources. A dedicated Account Manager is assigned to setup and assist
you through the data setup, initial imports and system training. Your account manager
will be your point of contact with any questions you have while you are a Worxtime
client.
• Completion of Wbrxtirne Setup
Document
• Dedicated Account Manager assigned
and Implementation Call scheduled
- System training
7
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Benefits of the Worxtim2 System
Home dashboard for quick company, location, department or employee view.
Displays charts showing trends in employee eligibility
0 Comprehensive Solution or Single Solution- Benefit Administration, Time &
Attendance and/or A compliance
Data Mapping Tool for easy data uploads. Export data from any source and
utilize the data mapping tool to convert to Worxtime format for simple uploads
Employer defined measurement and stability periods. Tracks new hires (initial
measurements), simultaneously, while tracking standard measurements
-mail alerts to designated individuals, determined by Administrator, to receive
notification of employees reaching desired probability of eligibility, admin period
start stability period start/end and other actions as so requested by the client
* Automated notifications to employees
0 IRS Section 6055 & 6056 Reporting Requirements
* Automatic error reporting within uploads to resolve discrepancies
* Ability to make manual adjustments to hours with user accountability
0 Monitor Employee hours real time
* Reserve hours of part-time employees for utilization during peak times
8
wor -dime
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0 Part-time to Full-time probability projections
0 Calculate penalties under section 4980H of the IRS Code
0 Benefit Eligibility Reports
* Automated ALERTS
@ Affordability Testing
* Rate of Pay Safe Harbor Testing
9
worztime
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The setup fee includes support for training,
alerts, initial measurement period setup
and support in setting up data file with
payroll and/or time and attendance. A
one-time payment of $795 applies for each
individual company.
*This applies for separate FEIN numbers
ow
toG1 employee headcount, customized
programming requirements, teru of contract,
etc. Our fee structure is based on a PEPIN
(Per Employee Per Month) basis. The
lima
are comirmeu. Pricing-17 1115175 on ZTF-z�-j
contract. Annual fee is based on
approximately 1,200 employees.
scans or me# for record keeping at a cost of
$4. 00 per employee.
10
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11
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COMMON QUEATIONS
Does WorAlme have the ability to handle
secure, Id -directional file transfers?
or time is an Internet -based software
package, which can be accessed by a user
with an internet connection. There are two
ways to administer data transfers: direct client
upload or through a SFTP site assigned and
created by the Worxtime Implementation
Manager. With direct client uploads, the user
has the ability to access Worxtime directly and
upload files.
A data mapping tool takes the Employers
data and manipulates it into a format which
will provide all necessary information for
reporting and determination of benefit
eligibility. The Worxtime Implementation
Manager assigned to the account will
complete a thorough training process to assist
in setup, information download and file
formatting.
Users may upload files and generate report
downloads as often as you choose.
Is Worxtime flexible In allowing for manual
(off -cycle) pay cycles
The Worxtime client will allow for multiple pay
cycles to be created, administered and
measured. Once hours are submitted for each
pay cycle, the system will tie each hour
submission with an individual employee to use
in calculation for determining eligibility
purposes.
Wondime also has the capability to accept
hourly, daily or per pay period hours
submissions for upload.
What if I want to set up varying lengths of
measurementiadministrative and stability
periods, and multiple overlapping
measurement/administrative and stability
periods for new hires and ongoing
employees?
Wondime will allow your organization to select
both Initial and Standard Measurement
Periods for your employees as well as the
Administrative and Stability Periods (in
accordance with ACA regulations) for your
employees. This is standard in the Worxtime
software client. The Worxtime client will also
automatically input and analyze time
parameters to ensure that your organization
does not fall outside any IRS imposed time
limits.
The Worstime client is set up to accept any
number of measurement periods as needed
by your organization Each employee will be
`tied to' a particular measurement period
therefore a specific date range is assigned to
each individual employee based upon the
measurement period dates provided.
Because of this, the hours submitted for the
employee that fall within that date range are
calculated appropriately towards benefit
eligibility.
As new hires enter the organization, the
demographic information for these individuals
will be submitted via the employee
demographic uploads which are submitted
each pay period (or as often as required by
your organization). In doing so, each
employee is assigned a measurement period
based on their hire date immediately upon
entering them into the system therefore the
date range for each employee is determined
and assigned immediately.
As an ongoing employee completes one
measurement period, the hours submitted for
that date range will then be stored in the
appropriate measurement period within the
Wcrxtime client and can be seen in the
Employee Profile. Unless an alternate
schedule for the following Standard
Measurement Periods is requested, the
selected period wil I remain the same and 'roll'
from one measurement period to the next.
The system will collect, analyze and monitor
hours to ensure that they are appropriated to
the correct measurement period.
Can Worxtime track hours for salaried and
Per Diem employees using IRS -approved
equivalencies?
IRS regulations require that all employees
(both hourly and salaried) must be measured
the same therefore hours must be submitted
for all employee classes each pay period.
These hours will be included in the hours
upload that will be provided by your
organization to Worxbme each pay period.
These will be tracked and added appropriately
based on AA regulations to determine
eligibility for all employees.
How are the hours assigned to my pay
cycles? (Le 30 hours per week etc.)
The data uploads submitted each pay period
require hours for each employee, These
hours will then be tracked in the system
appropriately to determine benefit eligibility.
Is Worxtime SSAE16 compliant?
Our data center facilities have successfully
completed the audit for Alb. Worxtime is
a complete, standalone as (Software as a
Service) application. (For additional
information concerning Worxtime Security
Specifics, please see pages 14-16.)
And, what Is the redundancy policy and
disaster recovery plan?
A Worxtime Information Security Incident
Management Policy and Procedure
Document, Worxtkne Business Continuity
Plan and Worxtime Security Policy & Disaster
Recovery Plan have been created for these
types of situations, This is available for client
review upon request.
Can I configure eligibility rules (ACA
compliance, Lem rehires, leaves of absence,
changes In job position or title, etc.)?
The Worxtime client has measures built into
the system which will allocate hours
appropriately for employees according to AA
guidelines. During the implementation period,
the Implementation Manager will work with
you to ensure that data supplied by your
organization is accurate and appropriate for
system usage. In addition, the rules and
regulations built into the or time client will
notify the system to generate an error should
data not be consistent.
The requirements of the per pay period
uploads include information which will allow
the Worwime client to appropriately monitor
hours and eligibility for each employee no
matter his/her status, position or title. Rules
and regulations concerning rehires are built
into the Worxtime client to measure those
hours in accordance with AA requirements
as well. In addition, the Worxtime
Implementation Manager assigned to your
organization will be yet another resource in
place to ensure AA compliance for any
rehires or other employees within your group
that may have special requirements.
Will Wormilme measure hours and warn the
identified User when an employee is
nearing benefit eligibility?
The Worxtime client takes all data supplied in
each upload and provides a total as well as a
per pay period breakdown for each employee.
As these hours are fed into► the Worxtime
client, a profile is then created for each
employee therefore any user (with appropriate
permissions) can view particular hours
submitted for an individual at any point in
his/her measurement period. used on hours
submitted, the profile provides a percentage
probability of the employee becoming eligible
for benefits at any point in his/her
measurement period. In addition, each
employee's profile contains bar graphs which
outline the number of hours, per month, that
have been submitted as hours worked for the
individual. Worxtime also has the capability to
provide benefit eligibility information for groups
13
wor ft1me
or specific locations and/or job titles at any
point during a measurement period. As the
employee's hours accumulate to a point
nearing eligibility, the color of the graph
changes to yellow. This can be customized to
the client's needs at their requested
thresholds.
In addition to these bar graphs, the Worxtime
client also has built in Alerts and Notifications
that can be sent to anyone (or any group of
individuals) within the organization, as
requested by the client Administrator. Alerts
can be adjusted to accommodate any
percentage or number of hours by your
organizational administrator. The Worxtime
client will allow you to customize Alert notified
personnel, at what point they are sent and any
additional requirements for your organization.
The Alert setup allows you to choose who in
your organization receives the alerts based on
different criteria. For example, a manager of a
particular location may only want to receive
their location alerts, however, the Regional
Human Resource Manager may be set up to
receive all alerts for the locations within their
territory.
According to the IRS, I must offer benefits
to 70% (2015) and 95% (2016)4 Does
Woretime track the employees' acceptance
and declination of coverage?
The ability to track acceptance and declination
of coverage is tracked in the Compliance
portion of the Worxtime system. The
Compliance section provides a listing of
employees as they become benefit eligible. Ai
this point, the user may capture the 'Offered
Coverage' status of an employee as well as
the method by which coverage was offered as
well as whether or not the coverage was
accepted or declined. This will act as a record
for the employer to ensure that benefits are
offered and a response is received from all
benefit eligible employees.
Can I adjust my home page to provide a
bone spot' overview of my organization?
When entering the system, the user is
immediately directed to the dashboard which
provides an immediate look at the entire
employee population. The dashboard will
outline the status of the employee with respect
to the current measurement period, the last
completed measurement period and also the
full time to variable hour ratio.
How robust is the reporting feature?
The Worxfime client currently offers several
standard reports that can be downloaded and
exported into formats which can be used for
any type of data manipulation. In addition,
Worotime also provides additional reporting
tools which can be used for a variety of uses.
The Custom Analysis tools offers on screen
reporting with the ability to do a real-time
breakdown of your population based upon
average hours per week as well as any
customized reporting fields added by the
client. The Advanced Reporting Wizard
allows for the client to create virtually any
report by pulling individual fields into the report
as needed by the user. The Report Group
function can be used in conjunction with the
Advanced Reporting function to pull out
specific portions or segregate a part of the
organization as needed for reporting
purposes. Between our Worxtime Standard
Reports, Custom Analysis Tool, Advanced
Reporting Wizard and Report Group
functionalities, the client can pull virtually any
report containing any information captured
within the WorxUrne system.
Also, If additional reports or customized
downloads are needed, we do offer support in
the form of internal programmers who can
create reports for the specific needs of your
organization.
What formats can I export the data?
All reports can be exported into pdf, html, cav
and xlsx format. This will allow for data
manipulation, graptVchart population and
viewing as needed.
14
wor-ftime
ACAWorks (powered by RiskRTI) empowers employers to make informed and accurate
decisions as they plan and manage health benefits and ACA compliance. Our cloud -based
platform allows for access anytime, anywhere! ACAWorks provides security, availability and
performance without having to purchase, install and maintain expensive hardware or software.
Accurate Calculations I Accurate Reports I NO Surprises
ACAWorks: by do I need it?
Beginning in March 2016, the IRS will require all companies with 50+ employees to file 1094-C and 1095-C forms under Sections
6055 and 6056, Rules under Section 6055 require entities providing minimum benefits coverage to an individual to file a return and
transmittal form with the IRS for every calendar year of coverage. Section 6056 requires you to report information to both the IRS
and your respective employees on the healthcare coverage you offer to your employees.
Preparing for the ACA reporting requirements requires a recordkeeping system that delivers appropriate information and reports
so there are no surprises at reporting time. As an employer you must be aware of at least 15 different situations to stay on top of
your compliance with the ACA, Combining payroll data, benefits enrollment information, and complex ACA rules-, the ACAWorks
control center will summarize the actions required for each of those 15 situations. Because the information is coming in real-time,
making analysis possible at any time, you can evaluate your risks month by month.
Using the innovative software solution, ACAPPorks, you gain a real-time recordkeeping tool that will not only determine which of
your employees are eligible for coverage, but also give you the information you need to automatically populate your annual ACA
reports. Let us worry about the complicated regulations so that you can focus on your business.
ACAWorks: Key Objectives
• Applicable Large Employer Status: Calculate and determine your status as an applicable large employer (ALE) using extensive
algorithms.
• Payroll Data Configuration: Import your payroll data from any payroll system that can export to a CSV file. if you have more than
one payroll system, RIskRT* allows multiple payroll systems to be combined into one location for quick and convenient analysis.
• Detailed Employee Information: Track a wide range of your employee information, such as paycheck history, gaps in service, and
benefit eligibility using specific measurement periods. Additionally, RIskRT* can forecast future results, and has options for pay
code exclusions for entries that do not represent paid hours of service.
• Employee Status Alerts: Monitor individual employees and provide alerts for those who may need re-classification due to a status
change.
• Seasonal and Educational Tracking: Track employees in agricultural, education, and service Industries, as required.
• IRS Reporting: Generate information for IRS reports 1094-C and 1095-C.
• Virtual Training Center: Deliver program implementation with full step-by-step instructions for payroll/benefits Integration and
product education.
• Strategize With an Expert: Connect you with trusted ERISA attorneys who specialize in the mandates of the Affordable Care Act
if you should need assistance with your ACA strategy.
® Technology: Provide security, availability, and performance without having to purchase, install and maintain expensive hardware
or software and, with no change required to your existing FIR and Payroll systems.
ACAWorks: Implementation
With the help of our dedicated team, you will be guided through a series of steps to unheard your organization into the
ACAWorks recordkeeping system. Successful implementation requires your attendance at a general information webmar to
become familiar with ACA recordkeeping best practices. We will also need to gather specific data about your organization,
Including payroll data in a defined format. once implementation begins and data is imported, our Fast -Track process can have
you up and running in ACAWorks in as little as five business days. Regular communication between your team and the
ACAWArks team will be necessary throughout implementation. Much of this communication can happen simply through e-
mail and webmars. Our ACAWorks team members are not authorized to give any legal or tax advice. We are happy to refer
you to one of our trusted ACA legal experts if you require legal or tax advice.
ACAWorks: Features & Functionality
• Cloud-based/Web Services independence creates compliance for employers! existing FIR systems,
including benefits administration, payroll, and HRIS.
TECHNOLOGY - Automated and ongoing employer ACA compliance with no change required to existing HR systems
• Imports payroll data from multiple systems
• HIP Compliant
• Complete tracking and eligibility are available across complex employee environments.
• Automatic eligibility tracking for all employee status - variable, FT, PT, rehire, seasonal, LA and
educational
• Detailed employee information tracks paycheck history, gaps in service and benefit eligibility and
AAA COMPLIANCE enables forecasting of future results
MANAGEMENT - Real-time visibility for month by month risk evaluation
• Set Look back, Measurement, Administrative and Stability periods
• Modeling and analytics facilitate the optimization of the 23 data elements and the 15 different ACA
compliance scenarios,
• Extensive algorithms calculate and determine Applicable Large Employer Status (ALE)
• Automatic status alerts for those employees that may need re-classification
* IRS 6055 & 6056 Reporting
REPORTING - Generates Information for 1094-C A 1095-C reports
* Employee and Employer report distribution Using and distribution fees apply)
• Step One. Initial Webinar Orientation, Assign Dedicated Team
• Step Two, Master Implementation Plan, Statement of Work, Identify payroll data fields, Employer
FIVE -STEP sign off
IMPLEMENTATION - Step Three. Data scrubbing and export, ACA info database
• Step Four: System Configuration - Pay Code Set up, EE classifications, Measurement Periods,
Benefit plans, System Training
• Step Five. Go Live
ONGOING - Virtual Training: Videos, Tutorials, Email ticket support
- Strategists With An Expert: Trusted ACA specialist attorneys
ACAWorks: Extended Peace of Mind
ACAWorks gives you the opportunity to manage your exposure under the Affordable Care Act (ACA) by empowering you to
make informed and accurate decisions regarding your health benefits. You've reduced your risk of compliance penalty fees to
the best of your ability with the ACAWorks software, but are you still looking for peace of mind?
ACAWorks has partnered with ACA Assured" to provide you
with that peace of mind by assuring that you're an track in your
ACA strategy. ACA Assured is powered by legal experts of the
Cicotte Law Firm, PLLC - a group who has worked with the ACA
rules and regulations since its inception.
ACA Assured works to help you avoid unexpected liabilities by
verifying the results of the ACAWorks software, answering your
unique questions, and reviewing your compliance strategies.
ACA Assured can even review your end-cf-year forms to verify
compliance with reporting requirements. Knowing that your
company is using accurate data in ACACorks will help you plan,
strategize, and implement changes to prevent unexpected ACA
penalties and issues.
The biggest comfort afforded by ACA Assured is Audit
Representation. An IRS audit could consume the time, energy,
and resources of valued members of your organization that are
much better suited to be developing your business. ACA Assured
will work directly with IRS auditors to resolve the audit - saving
you time and money in the process.
With the ACAWarks software paired with the guidance and
assistance of ACA Assured, you have the best tools available for
handling the mandates, requirements, and regulations of the
Affordable Care Act.
ACA ASSU..RED
132MME=0
PROPOSED EFFECTIVE DATE: TOD
NUMBER OF EMPLOYEES3: 1,600
ONE-TIME SET-UP FEEL: $5,500
!I%
17-r-111117 ml-
ACA ASSURED BASIC; Pricing & Package Inclusions to be Released in July 201S
ACA ASSURED PLUS: Pricing & Package Inclusions to be Released In July 2015
Fees may Increase based upon pastel I data file comp!wlty and/or changes to the assumptions I fisted below.
Ongoing fees Include all full-time, part-time, variable, and seasonal employees.
A change in employee population of+/- 20% may result In the re-evaluation of monthly admirestuspon fees.
Assumptions,
(7) payroll engine(s) (1) employee chosificationo) fur insurance p!ards) (1) employee firouldsl1bargaming units}
(1) medical Insurance plan(s) (7) Help) (2) client -user logins
ACAWorks (powered by RiskRr) is an At CA tracking and Informational tool only; to be used by the client to assist with reporting
and compliance needs at the client's speed and direction. The client is responsible for all compliance requirements and shall
indemnify, defend and hold ACAWorks harmless from and against any liabilities, claims, penalties, damages, and expenses
arising from or claimed to have arisen from the performance by ACAVAorks as it Is not responsible for ensuring the accuracy,
completeness, or final compliance of IRS laws and regulations.
PROPOSAL EXPIRES 90 DAYS FROM: June 23, 2015
Term for Rate Guarantee: 1 Year from Effective Date
FOR QUESTIONS OR ADDITIONAL INFORMATION RELATED TO THIS PROPOSAL, YOUR PRIMARY CONTACT IS:
Regis Zezulewicz, BOO
412-446-4608
reglsz@benxcel.com
To begin ARAWORKS Implementation, please use the primary contact listed on the fees page of this proposal to get
started. Remittance of the set-up fee listed in, the invoice below to Benefit Coordinators Corporation is required t
begin ACASporks Implementation, along with additional forms to be provided by your primary contact.
BENEFIT COORDMAT SCORPORATION
ATTN: ACCOUNTING
TWO now ROBINSON PLAZA, STE. 200
PI BURGH, PA 15205
I ICE DATE R L1P E COUR i E IFI
Eo- 23f 1 DIR E C LI{UTY E AR F C t�t�TY C h+11 ISS1 lERS ACAWORKS IV �rCGTION�
DESCRIPTIONF SERVICES INVOICE AMOUNT AMOUNT DUE
A W RKS; SET -LIP FEE $ 5,500 S 5,500
PAY THIS AMOUNT'==> $5,500.
MAKE CHECK PAYABLE TO: BENEFIT COORDINATORS CORPORATION
FILL IN ORGANIZATION ADDRESS IN FROM BOX It ENTER AMOUNT OF PAYMENT BELOW
DETACH BOTTOM PORTION AND RETURN WITH YOUR REMITTANCE
EATrN:
FIT COORDINATORS CORPORATION INVOICE DATE AMOUNT DUE
T ACCOUNTING
TWO ROBINSON PLAZA, STE. 200 6/23/15 $ 5,500
BUR H, PA 1 205
PRINT ADDRESS HERE; ENTER U T
GROUP IDENTIFICATION F PAYMENT
FROM MOLAR E COUNTY BOARD OF
COUNTY COId MISSIONERE
ACAWORKS - NEW CROUP