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Health Care Regulations: Who's Looking Out For Mid-sized Businesses

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A recent ADP study details the top concerns of business owners in 2013 including compliance with ACA regulations. Many HR-benefits decision makers at midsized businesses are not confident they understand ACA.

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  • 1. ADVERTISEMENT Who’s Looking Out for Midsized Businesses? AN ADP survey shows THAT THE cost of medical benefits, understanding the Affordable Care Act (ACA) and the level and volume of government regulation are top challenges for midsized businesses Health care and regulations ADP recently conducted a survey to examine the concerns of more than 1,000 business owners and executives at U.S. midsized companies. The whitepaper, “Top Concerns and Challenges of Midsized Business Leaders in 2013,” showed— not surprisingly—that the cost of health coverage and other employee benefits, the Affordable Care Act (ACA), and the level and volume of government regulations were the top three issues of concern to midsized businesses. “After examining top concerns among midsized business owners this year, we noted that health care and related topics continue to dominate,” says Regina R. Lee, President of Major Account Services and Canada for ADP. “Whether it is the cost of benefits, understanding ACA or remaining in compliance, midsized businesses continue to grapple with human capital management challenges.” Specifically, 70 percent of those surveyed were concerned about the cost of health-care benefits, 59 percent were worried about ACA, and 54 percent were concerned about the volume and number of government regulations. Overconfidence about compliance While midsized business executives express a lack of understanding related to ACA regulation, many are, ironically, overconfident regarding their ability to comply with Top Three Concerns of Midsized Business Owners Cost of benefits 70% ACA 59% Volume and number of government regulations 54% government regulation. A full 80 percent of midsized business owners felt they were compliant with government regulations, even though nearly one-third of owners were fined or penalized in the last year because of unintended noncompliance. This overconfidence merits careful attention, especially when midsized businesses are trying to manage costs in a recovering economy. “There are diverse regulatory compliance requirements under the ACA, including tracking employee hours to determine eligibility for health-care benefits, and calculating the affordability of benefits as a percentage of employee income,” says Lee. “ADP’s dedicated team of professionals carefully monitors all federal and state legislative and regulatory measures to ensure ADP systems are updated as relevant laws evolve. The ADP logo, ADP, ADP Workforce Now, and the ADP Research Institute are registered trademarks of ADP, Inc. All other marks are the property of their respective owners. Copyright © 2013 ADP, Inc. While headlines today are dominated by news of companies on Wall Street, and there’s no shortage of political rhetoric about the mom-and-pop businesses on Main Street, who’s looking out for midsized businesses—the backbone of the U.S. economy? ADP has its finger on the pulse of midsized businesses—an area that too few people are paying attention to right now.
  • 2. ADVERTISEMENT “ADP sits at the intersection of payroll, time and attendance, and benefits administration, and is uniquely positioned to help companies manage the full spectrum of compliance requirements,” adds Lee. Globalization strategies Midsized businesses are also affected by globalization. Nearly half of all survey respondents indicated that globalization impacts their operations, showing that midsized businesses are playing a larger role in the global economy. “When asked how globalization specifically affects their business activities, respondents of the ADP survey cited the cost of labor, a growing number of competitors, social media distribution and the need to establish global partnership strategies,” says Lee. Records at risk As a group, midsized businesses are suffering from a dangerous lack of digitization. ADP’s survey found that a majority of midsized business owners still rely on paperbased records for managing employee files, and nearly six in 10 have felt a financial impact of inaccurate data. Even worse, 20 percent said their companies had been hurt in the past two years by a natural disaster. “Companies that still rely on paper records find themselves at risk of costly security breaches, natural disasters and other potentially damaging business interruptions,” says Lee. “By digitizing HR records, midsized employers can minimize risk and improve access to employee data.” To meet the needs of midsized business owners, ADP offers a number of sophisticated tools that can help businesses adapt to changes in the nation’s legislative landscape. The ADP Workforce Now® platform is specifically designed for midsized businesses, and helps employers strategically manage their employees, simplify regulatory compliance and minimize time allocated for administrative tasks. By managing the full array of human resources functions, from employee recruitment to retirement, ADP Workforce Now gives midsized companies insight into ways to optimize their workforce. “The ADP Workforce Now platform helps midsized organizations simplify compliance with ACA requirements and other complex government regulations by giving them greater control in a single, integrated human capital management platform,” says Lee. for an ADP white paper on this topic, visit ADP.com/MidsizedBusinessConcerns