Possibly.
The HCI Team performed our first Play-or-Pay analysis in June 2013 for a franchise with three locations and 153 employees, including 19 full-timers. We spent 32 hours collecting and organizing the information we needed from the business, and then “running the numbers”. Today, because we are more practiced with our Play-or-Pay Package, we could generate these results in about 20 hours.
How much does your CPA or attorney charge by the hour? Multiply that hourly rate times the number of hours you think it might take them to prepare this calculation. The amount you can expect to pay them for this service would indicate whether YOU are willing for them to perform this calculation.
HCIʼs Play-or-Pay step-by-step compliance instructions involve the following steps, each supported by an easy-to-use HCI Worksheet:
- Step 1 – Classify employees using employee census and payroll information.
- Step 2 – Calculate Large Applicable Employer status.
- Step 3 – Prepare cost/benefit analysis of existing group health insurance coverage using coverage renewal documents.
- Step 4 – Prepare cost/benefit analysis of ACA-compliant group health insurance coverage using insurance carrier documentation.
- Step 5 – Calculate potential 4980H penalties.
By the way, our first Play-or-Pay case analysis ended up having 51 full-time equivalent employees (based on the average monthly hours worked by 134 part-timers). So, this businessʼ Large Applicable Employer number was 70: 19 full-time employees + 51 part-time equivalents = 70. This owner decided to no longer offer employees a choice of one of three insurance plans, due to the complexity of determining the “minimum value” calculation of three separate plans, and now offers only one.
Do you want to “Do It Yourself”?
Healthcare Compliance Inc. provides information about this Play-or-Pay calculation, including HCIs 5 worksheets, in the Employer Mandate section of our Advanced ERguide. We also offer these worksheets, with complete instructions, separately in HCIs Play-or-Pay Package.
Do you want to “Hire a Professional”?
Contact the HCI Team to inquire about how we might assist you to: determine your Large Applicable Employer status & your potential Play-or-Pay liabilities; & prepare a cost/benefit analysis of your current employer-sponsored coverage & ACA-compliant coverage. We can assist you with our Play-or-Pay Worksheets.