Dependent Social Security Number changes

Our entire HRCTS Team hope you and your Families had happy and healthy summer!

We appreciate your loyal business and the opportunity to help with your Benefit needs. Our daily mission is to provide excellent Customer Service and it is our primary goal to process each and every claim with complete accuracy. To do so we have implemented a process to help us properly identify employees and their dependents. This not only helps us for identification purposes but also with enrollment and claims processing.

To help us continue, we do require all Dependent Social Security numbers to be entered into our processing system at HRCTS for any HRA Accounts your Employees are enrolled in. (Dependents are not required to be enrolled for FSA or DCA accounts at this time)

This information should be provided at time of enrollment on our supplied forms, or can be easily added through your online portal. Your support in relaying this information to your Employee’s is greatly appreciated!

Please do not hesitate to reach out to us with any questions. We sincerely appreciate your cooperation and understanding as we progress to provide the best service possible.

2016 PCORI Fee Reminder

PCORI Fee Overview and Guidance

The Affordable Care Act imposes fees on issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans to help fund the Patient-Centered Outcomes Research Institute. The fees, required to be reported annually on the 2nd quarter Form 720 and paid by its due date, July 31st, are based on the average number of lives covered under the policy or plan. The fees apply to policy or plan years ending on or after October 1, 2012, and before October 1, 2019. HRCTS will make available an Average Covered Lives Report to all clients that are responsible to file and pay the PCORI fee each year. You can request this report by contacting your Account Management Team.

The IRS recently released the revised Form 720 that insurers and sponsors of self-insured plans will use to pay the Patient-Centered Outcomes Research Institute (PCORI) fee. The fee is due by July 31 of the year following the calendar year in which the plan/policy year ended. Sponsors of any plans that ended in 2015 must pay the 2015 fee by July 31,2016.  Plan sponsors can now complete their planning for payment of this fee. The IRS has also confirmed health insurers and self-insured health plan sponsors can deduct PCORI fees as ordinary and necessary business expenses. The fee is based on the number of covered lives including employees, retirees and COBRA participants along with their covered dependent spouses and children are all counted. However, only the employee, retiree or COBRA participant needs to be counted for an HRA or a health flexible spending account (health FSA) -- dependents covered by these accounts can be excluded.

The types of plans that must pay the PCORI Fees by July 31, 2016 include:

    Health/accident plans
    Health Reimbursement Arranagement (HRA) plans that are not an excepted benefit (Employer contribution is greater than $500)
    Health Flexible Spending Account (FSA) plans that are not an excepted benefit (Plan has employer contributions with the maximum reimbursement greater than two times an employee’s salary reduction election or employer contribution is greater than $500)
    Retiree plans

Calculating the Fee:

The amount of the PCORI fee is equal to the average number of lives covered during the policy year or plan year multiplied by the applicable dollar amount for the year.

    For plan years that end on or after October 1, 2014, and before October 1, 2015, the fee is $2.08.
    For plan years that end on or after October 1, 2015, and before October 1, 2016, the fee is $2.17.

For policy and plan years beginning on or after Oct. 1, 2016, and before Oct. 1, 2019, the applicable dollar amount is further adjusted to reflect inflation in National Health Expenditures, as determined by the Secretary of Health and Human Services.

IRS Form 720 and Instructions:

IRS Form 720 can be accessed at which is an interactive document so that can be completed on line.

The PCORI fees are entered on line 133 for the appropriate plans. See pages 8 and 9 of the IRS Instructions for completing these fields. Instructions can be found at

Complete the fields on page 7 and make your check or money order payable to “United States Treasury”.

Additional information on the PCORI fees can be found here:
• Patient-Centered Outcomes Research Trust Fund Fee (IRC 4375, 4376 and 4377): Questions and Answers

• An IRS chart that shows which types of benefits the fee applies to:  Application of the Patient-Centered Outcomes Research Trust Fund Fee to Common Types of Health Coverage or Arrangements

• IRS Form 720 Overview

• IRS Form 720 instructions (see pages 8 to 9)

Please Note:
This information is provided for educational purposes only. It reflects the understanding of HRC Total Solutions and our partners using the available guidance as of the date shown and is subject to change. It is not intended to provide legal advice.  You should not act on this information without consulting legal counsel or tax advisors.  (Updated June 16, 2016)

10 Questions about Transitioning Payroll

If you are reading this you have been through at least one payroll transition in your career or perhaps considering one in the not too distant future.  How many times have you thought about making a change to cut costs or improve your system or both and decided not to due to your previous experience or the experiences of others? Regardless of the company size and the capabilities of the payroll provider and the skill sets of your HR and Payroll staff, a payroll transition has historically been a challenging proposition.  Here are a few of the questions that may keep you from taking the next step but they don’t have to!

#1. When is the best time for our company to transition payroll?

Today! Okay maybe that is a little too fast, but the reality is with HRC Total Solutions, you can transition from your old payroll provider to HRCTS within 30 days. In today’s high tech, cloud based, integrated world we would expect to have seamless transitions at the push of the button, but the reality is, even the most flexible systems require planning.  However, rest assured that with the help and assistance of HRC Total Solutions transitioning your payroll can be stress free! The best time to begin the transition is up to you!

#2. How will HRCTS convert all the current data to the new system?

Unlike some payroll vendors HRCTS, assigns a dedicated account manager to work with you through your payroll transition. This person can assist you with pulling necessary reports and gathering pertinent information from your old provider. Then account manager enters all the information into your new cloud based payroll system. HRCTS sets up the platform and do all the work, so that when you are ready to go ‘live’ all you need to do is log in, and you’ll be ready to rock and roll!

#3. Can our company check accuracy prior to the first payroll run?

Of course! We pride ourselves on accuracy. Prior to running your very first payroll with HRCTS we run a “mock” payroll simultaneously with the last payroll you want to run with your current vendor. We then allow you to pull the necessary reports to compare and ensure all of the information matches and can customize these reports to your exact specifications.

#4. What types of resources are available to us during implementation and after?

Your #1 resource will be your dedicated account manager! This account manager, who specializes in payroll, will be your point of contact throughout the implementation process and beyond. Your account manager assists with the transition, training, and all questions from the moment you become an HRCTS client!

#5. How long does a transition take?

This is a tricky question. Our goal is to have the transition take 30 days. This is why we assign an account manager to help you gather all the reports needed to transition you as quickly and as smoothly as possible. This allows us time to enter all the historical data, and all the employee and company information. However, sometimes this time frame can be lengthened depending on how quickly you can get the necessary reports to us.

#6. What type of integration capabilities exist?

HRCTS has the capability to integrate with many accounting software platforms with the exception of the online version of QuickBooks. We will take the time during implementation to better understand what your team uses so we can integrate our technology with yours to provide a streamlined and efficient transfer of data.

#7. What additional capabilities and functionality does the system have?

The better question may be “what doesn’t our cloud based system have?” Our system is capable of not only payroll, but Benefits and Insurance Management, Carrier Connections, Worker’s Compensation Management, Time and Labor, Electronic Open Enrollment, Applicant Tracking, and so much more. For a complete list of what our cloud based system can do please visit our website,

#8. What kind of customer service support do we have?

You’ll receive exceptional customer service from the HRCTS team; in fact, we take great pride in the high level customer service that we provide to our clients! This is why we assign one person to your account for you to reach out to with any questions or concerns you may have. You are not just a number to us. We learn about your needs and we make sure we are providing you with what YOU want, not what we think you need. Behind your Account Manager is a dedicated HR and Payroll team which works together to ensure you get the attention you need.

#9. How do I get the specific reports needed to transition payroll?

You have a couple of options. Each payroll vendor may name the reports differently, so to assist you with this process your dedicated account manager can either send you the templates of the reports we need for you to populate, or you can create a login for your account manager to be able to go into the system and pull the reports for you. We realize your time is important, and changing payroll vendors may seem time consuming. We want to alleviate that burden by being an extension to your team and getting everything you need to make this a smooth and seamless transition for you and for your employees.

#10. How do I handle the exceptions and “Out of the Ordinaries” in my current system?

All companies have special variations in their payroll, like a special earnings code, or deductions, or an employee who may receive pay different than everyone else. We can walk you through all your exceptions and out of the ordinary needs. This is why having a dedicated account manager is so important. We want to ensure they get to know you and your company, get to know your special payroll needs and cater to that. During the implementation process tell your account manager about all your “out of the ordinary” payroll items and we will ensure it gets built into the system to work just the way you want.

Contact our Sales team to request a live demo!

HSA and Retirement Savings

Our friends at the Healhcare Trends Institute have provided some great insight into the value of HSA plans towards retirement planning.  If you are considering an HSA plan for your clients or your business please contact our sales team right away to find out why an HSA with HRC Total Solutions is a great choice!

Everyone is often so busy with their day-to-day tasks that it’s hard to think past what you’ll be doing tomorrow, let alone 20 or 30 years from now. But this interesting statistic about retirement will give you moment to pause. According to Fidelity Investments, a 65-year-old couple retiring last year will need about  $220,000 to cover future medical bills in retirement.

Now you consider that statistic in conjunction with a finding from Employee Benefit Research Institute that notes 60 percent of workers report that they or their spouses have saved only $25,000 or less for retirement (not including pension plans or the value of their homes). So where’s that money for healthcare costs going to come from?

For some, it can start with a health savings account. While more employers are turning to high deductible health plans to keep in check current health benefit costs, for employees the additional value comes from the health savings account portion that can be used to help save for retirement medical costs.  The employee funds the HSA while they are active and working and then uses the money later in life, realistically when they’ll probably have more medical expenses.

With this strategy the younger you are the better, and the wiser you are about investing the more it will help you. Here’s why.

According to an example in the February issue of Workforce magazine, a person who contributes the maximum amount of $3,350 for 40 years and acquires a 2.5 percent ROI could save $360,000. Great. Now if that person earned 5 percent on his account each year his savings would be at $600,000 and over $1 million if 7.5 percent could be earned yearly until retirement.

With this example though, the employee cannot take any money out to pay for current healthcare costs. This may be tough for some participants. For those that can, the numbers above are pretty impressive. It’s the reason employers, health benefit advisors, financial institutions, etc. need educate and engage their audiences about the value of HSAs.

And remember, HSAs are designed so that you can pay for health bills today and save over time. Even if you use some of your account money, the rest is still growing exponentially, tax-free for you to use in the future.

(Source: Healthcare Trends Institute

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