Payroll companies need to help their clients prepare for some changes to Section 125 Premium Only Plans that will pave the way for the Affordable Care Act (ACA). While it is true that the ACA doesn’t come into full effect for another two years, there are some portions taking effect in 2012 and 2013. It is important for payroll companies to stay abreast of these changes so that they can help their clients maintain Section 125 compliance.

A standard summary of benefits will be required for new hires when employees first enroll in benefits and every year on their enrollment anniversary. While the insurance company is often the responsible party for sending these summaries, the employer will need to make sure that the copies are distributed, so it is important for them to have enough copies on hand to ensure compliance.

Another new proponent of the ACA is the ability of employees to automatically enroll in benefits. This will apply to companies with a minimum of 200 employees, but not all of the details are finalized at this point, so it is important to stay current on the status of this provision.

W-2s in 2012will need to include aggregate benefit costs. While this is officially not required until 2013, the number of W-2s will be determined by how many 2011 W-2s are prepared, so make sure your clients are aware of this.

A cap on the FSA will take effect in either 2012 or 2013, depending on whether or not the company has calendar-year plans. The Health Flexible Spending Account limit will be $2,500 pre-tax a year.

This fall, a fee that will pay for comparative effectiveness research and will apply to health plans. The IRS is still finalizing the regulations for this provision, which is supposed to start in November.

Payroll companies should take these changes into consideration when helping clients prepare for the New Year and the new changes to their Section 125 Premium Only Plans. It is also important to make sure that they comply with current state and federal regulations.

Clients count on you to provide them with advice regarding the services you provide. They also need fast solutions to their Human Resource services that you offer. Learn more about our online services to help your clients maintain their important employee human resource documents.