Disclaimer

2. Disclaimer • The information in this webinar is generalized and is NOT intended to be legal advice or an authoritative reference. • We encourage you to benefit from resources and information provided in this webinar to further your own research and to learn more about the PPACA guidelines.

3. What this webinar will cover • What about PPACA? • Why is timekeeping important? • What tools are available in SwipeClock for PPACA? • What Now? SwipeClock has tools to help you share the message and “seize the opportunity” • Questions/Answers

4. In Summary • PPACA stands for the Patient Protection and Affordable Care Act • Signed into law in 2010 • Represents the most significant government expansion and regulatory overhaul of the U.S. healthcare system since the passage of Medicare and Medicaid in 1965. • “Shared Responsibility” puts the burden on employers and individuals, with the added burden on employers to track how many hours employees are working. • PPACA brings automated timekeeping to the forefront of tools your clients must have

5. Why Client’s Need Timekeeping for PPACA

6. Why Client’s Need Timekeeping for PPACA Additionally timekeeping is required for….

7. Part-Time Employees and PPACA • Part time employees Count for PPACA • Total hours of PT employees / 120 = count of Full Time Equivalents for a calendar month • Food for thought: Health Care Exchanges will be busy with part-time employees who do not have health care coverage, potentially increasing the “exposure” of your clients timekeeping records to regulatory audiences. • Automated timekeeping eliminates this “unknown”

8. Who is regulating PPACA? • IRS/DOL • IRS carries the bulk of regulation and assessed payments will be submitted to them • Recent Forbes article states: “the IRS will need more than 2,000 employees to monitor compliance with Obama’s health care law.  And that’s just for 2013.” (http://www.forbes.com/sites/merrillmatthews/2013/01/10/irs-to-employers-pay-obamacare-shared-responsibility-or-else/) • Department of Labor (DOL) should be expected to continue monitoring labor laws with respect to employee classification and wage and hour compliance

9. Why Automated Timekeeping Matters for PPACA • Automated timekeeping is a smart, cost saving, time saving option for employers as it is, but now: • Hours of service = Number of Employees • The IRS willcheck records • Consistent monitoring of hours • Ensures records are reliable and easily obtained

10. Applicable “Large Employer”??(50+ FTE’s) • Hours worked is how to determine your standing • 2013 Safe Harbor: • In 2013 only, employers can elect to use a 6 consecutive-month look back period rather than the entire 12 months to determine their “large employer” status for 2014 purposes • How it’s determined: • Employers with at least 50 FT and FTE employees • Hours worked or “intended to work” are included in the calculation

11. Employee Tracking Requirements Whether “Pay” or “Play” clients will need to track accurate timekeeping records to justify measurement look back and stability periods. Look Back/measurement periods: Standard measurement chosen by employer (3-12 months). Stability periods: minimum of 6 months, employer must provide . Employer required to provide affordable health care to FT employees based on “Look Back Period”

12. Information about Employees Source: http://www.slideshare.net/tasinquefield/ppaca-what-you-need-to-know “Large Employers” – Employers with 50 or more full time equivalents (FTE’s):

13. How about smaller employers? • Small Business Health Care Tax Credit for Small Employers: • Deductions for health care costs not eliminated by the credit are still in play, therefore the benefits are high for clients that fit this group • Example: • Client ABC pays $50,000/year in health care premiums • has under 25 FTE’s for the 2013 year • May qualify for a credit up to $25,000 (50% of $50k). • Note: The smaller the firm, the higher the percentage for the credit

14. How about smaller employers? (1-25 ee’s) • Small Business Health Care Tax Credit • for Small Employers: • IRS Says: “Small employer? Get the credit you deserve. If you are a small employer . . .with fewer than 25 full-time equivalent employees, pay an average wage of less than $50,000 a year, AND pay at least half of employee health insurance premiums . . .then there is a tax credit that may put money in your pocket.” • 2010 to 2013, percentages were 35% for small business and 25% for tax-exempt employers. • Starting Jan 1, 2014 the percentages will increase to 50% and 35%, respectively • NOTE: Employer can still take the applicable deductions for the premiums and receive a credit to offset tax obligations

15. Now is the Time! • It’s up to you to inform your clients • For those using manual timekeeping methods or an antiquated system without proper tools for PPACA, a time clock installed and implemented by June 1, 2013 is step #1 • PPACA affects small to large employers with tax credit options and assessed payment penalties • FT/FTE and how their hours are calculated determines the credits/penalties/requirements

16. How SwipeClock is a great PPACA solution for your clients? • Automated timekeeping has become a vital part of this equation: • Plug n’ play clocks • Quick implementation and training turn around • PPACA centered tools: • Work Week Report (available in Classic and Glue) • Hours Alerts (Glue only)

17. SwipeClock’s Work Week Report • Available in Both Classic and Glue • Report includes: • Total FT employees (Salary can be set to be included in this total) • Total Non-FT employees • Total hours for Non-FT employees • Total FTE’s/Total FT with FTE’s (if weeks chosen is divisible by 4)

18. Work Week Report • Includes all hours except “unpaid” hours • Salary employees can be turned on and off via “salary” in the Options field of Employee Setup making it unnecessary to track salary hours on time cards • Coming Soon: • Report by Calendar Month • “Seasonal” employee tracking • Option to select the exact pay categories to be included in the report • Etc. • Let’s take a look!

19. Additional Tools Available for your clients in SwipeClock Glue • “HoursAlert” rule (Glue only): • Set a maximum amount of hours, a threshold for the message to appear (e.g., remind me 12 hours before the employees reach the maximum), and whether to see hours, times or both in the message. • Can be configured to track only OT eligible hours, or ALL hours • Alert message on both the time cards and Daily Auto Email helps your client effectively manage their employees “hours of service”

20. So, What Now? • June 1, 2013 gives your client the minimum required 6 consecutive month measurement period • Get a clock on your client’s wall!

21. So, What Now? • To learn more: • Visit SwipeClock University and click on this guy: • Marketing Materials available for distribution to your clients: • A marketing email to send your clients regarding PPACA • One-page flyer for distribution • A newsletter article that can be shared with clients • A short-video promoting the importance for timekeeping with PPACA mandates

22. Resources for Additional Information IRS Q&A: http://www.irs.gov/uac/Newsroom/Questions-and-Answers-on-Employer-Shared-Responsibility-Provisions-Under-the-Affordable-Care-Act Employer Shared Responsibility info: http://www.irs.gov/irb/2012-09_IRB/ar10.html#d0e1759 Review of PPACA Details: http://www.slideshare.net/tasinquefield/ppaca-what-you-need-to-know