Mitigate risk and ensure all compliance requirements are being fully met. PeopleFluent VMS manages compliance during the pre-engagement, engagement, onboarding and off- boarding processes ranging from NDAs and certifications to drug screens and security access.

1. What you need to know…
Don’t Let The Affordable Care Act Turn
Your Business Upside-Down
Presented by:
Mark Young
Senior Vice President, Human Capital Practice
Synergy Services
Sponsored by: PeopleFluent

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Mark Young
SVP, Human Capital Practice - Synergy Services
• With Company Since 2009
• Responsible for:
• - Internal & External HR
• - Independent Contractor
• Classification Compliance
• - Human Capital Management
• Consulting for Contingent Labor
• ACA Compliance Strategy and Implementation
Your Speaker Today

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PeopleFluent & Synergy Services
Your Sponsor:
PeopleFluent
• Leader Human Capital
Management
• In over 5,200
organizations
• 214 countries and
territories
• 80% of the Fortune
100
• 170 VMS customers
• $7B managed spend
Your Speaker is with:
Synergy Services
• Headquarters in Denver, CO
• Specialization and focus:
• IC Compliance
• Discovery and Analysis
• Compliance Validation and
Engagement
• Employer of Record Services
• Vendor Compliance Services
• Contractor Reutilization Programs
• Human Capital Practice
• Flexible Workforce Consulting Services

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What Will You Learn Today?
1
Why Labor Supplier Compliance with the ACA
should matter to you and your business.
Suggestions on how to work with your Labor Suppliers
on Next Step Solutions for ACA Compliance.3
Client Case Study: Lessons Learned and Best Practices
from an End Client perspective on Supplier Compliance
with the ACA.
2

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Have you been approached by your contingent
labor suppliers about the impact of the ACA on your
business?
Poll Question:

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The Affordable Care Act
The Basics of the ACA

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• Pay or Play Mandate - Large Employers
Effective 1/1/15 (100+ employees)
• Pay or Play Mandate - Small Employers
Effective 1/1/16 (50+ employees)
• IRS responsible for policing this law
• Annual reports due: April 2016
• Impacts nearly every single company in America by
virtue of the Individual Mandate
ACA Highlights

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2015 Employer “Play or Pay”
Penalties
No offer of “minimum essential
coverage” (MEC) for full-time
employees* (and children)
- and -
At least one employee obtains
subsidized exchange coverage
Offer of MEC but offer is not
also Qualifying and Affordable,
and FTE obtains subsidized
exchange-based coverage
Tier 1 Penalty
$2,080 annually per
total number of
FTEs in EIN
Tier 2 Penalty
$3,120 annually per
each FTE that receives
subsidies from an
Exchange

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The Affordable Care Act
Why Should Labor Supplier
Compliance with the ACA
Matter to Me?

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Why Compliance Matters
Who’s on First Base?
• Co-Employment
• Classification Matters
• IRS Common Law Test
• Solution to avoid ACA Co- Employment Concern:
• Treasury Regulation Section 54.4980H-4(b) (2)
and -5 (b)
• Take Credit for Suppliers ACA compliant plan

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Why Compliance Matters
It’s Time to Get Ready
• Supplier’s decision to Play or
Pay
• Client is at risk for Supplier’s
decision to Pay rather than
Play
• Third Party relationships
through existing suppliers
matter too

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Do you have a strategy regarding your labor suppliers’
compliance with the ACA?
Poll Question:

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Lessons Learned and Best Practices
The Affordable Care Act

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Common Law Gut Check
Best Practices
• Does the client company exercise direction &
control over the services of the contingent
worker?
• Does the client have the right to direct and control
the services of the contingent worker?
• IRS 3 main aspects of the Common Law Test:
- Behavioral Control
- Financial Control
- Relationship of the Parties

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Best Practices
Possible Consequences “if”…
Supplier does not offer
compliance coverage
(does not “Play”)
- OR -
The offered coverage
in not “affordable” or
of “minimum value” -
Worker may go
to the Exchange
for coverage
and identify the
client as his/her
“Common Law
Employer”

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Best Practices
But…here’s the GOOD News
• Treasury and IRS provide a Safe Harbor for Clients with
Suppliers offering ACA qualifying benefits to their
employees
• The IRS will allow Clients to “take credit” for Supplier’s
qualifying plans “if” the fee the Client pays for workers
participating in the Supplier’s plan is reasonably higher than
the fee for non-participants

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• Educate Senior Leadership
• Create Cross-Functional Committee
• Not just HR and Employee Benefits personnel
• Supply Chain / Procurement
• Legal
• Educate Manager / Supervisor Level
• Compliant Suppliers
• Internal Resource for Questions
• Matrices for appropriate actions
Best Practices
Gain Internal Support

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• Create Model Contract Language
• Require to work with W2’s
• Require to provide ACA Compliance Coverage
• Notice of Rehire of former Employees of Client
Reporting Requirements
• Facilitate greater Collaboration with
Suppliers
• Educate Suppliers on your Requirements
• Strategic and Creative Solutions
• Transition Plan if unable to meet requirements
Best Practices
Strategize with Suppliers

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The Affordable Care Act
Next Step Solutions

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• Survey your Suppliers
• Employment Size: Form 941
• Letter from suppliers insurance carrier certifying
ACA compliance
• Business Decision:
• Continue services if coverage is not provided?
Next Step Solutions
Survey Says…

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• Discrimination
• Hiring Decisions
• Continued Engagement
• Conversion to Full-Time
• Privacy
• Personal Benefit Elections
• Unnecessary Visibility
• Special Issues Around Retirees
• Retiree Benefits
Next Step Solutions
Consider the HR Issues

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• Application of the Co-Employment remedy, Safe
Harbor
• Obligations of the Supplier
• Offer of Coverage
• Necessary Tracking
• Reporting
• Indemnification
Next Step Solutions
Creating Contracts & Amendments

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• How You Are Invoiced Matters
• Reporting Requirements
• Avoidance of Privacy and
Discrimination Issues
• Invoice Options
• Conformity to business needs
• 1 solution for multiple suppliers
Next Step Solutions
Check Please!

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• Supplier ACA Compliance is Important to You
• What have other Organizations done to prepare for Jan.
1, 2015
• Preparation Suggestions
Summary

25. THANK YOU!
QUESTIONS?
Mark Young
myoung@synergyservicescorp.com
720-240-9971
Sponsored by: PeopleFluent
peoplefluent.com