A top benefit of implementing a Human Resource Information System (HRIS) is leveraging the enrollment module to generate insightful reports of a company’s employee benefits program. These reports serve as valuable tools for offering key information that can guide decision-making, ensure accurate plan administration and compliance, and improve overall satisfaction with a company’s benefits offering. In this article, we will explore the various employee benefits reports that are typically available in an HRIS and delve into why they are essential.
Enrollment Summary
An enrollment summary report provides a comprehensive overview of employee benefit selections during a specific enrollment period. It includes details such as the number of employees and dependents enrolled, the benefits they selected and coverage levels, and any changes made to their coverage. This report helps employers gauge the effectiveness of their benefits offerings, identify trends, and make informed decisions about future plan designs and offerings.
Cost Analysis
A cost analysis report allows employers to assess the financial impact of employee benefits. It breaks down the total cost of benefits by category, such as medical, dental, life insurance, and disability. This report helps employers understand the allocation of resources and make data-driven decisions regarding benefit costs. It also aids in budgeting and forecasting for future benefit expenses.
Insurance Carrier Billing
The primary purpose of the carrier billing report is to compare the employee benefit elections and premium amounts reported and billed by the insurance carriers with the data reported from the enrollment system. Discrepancies between these two sets of data could indicate errors in either the billing process or a programming issue in the enrollment system. The carrier billing report should be reviewed on a monthly basis to catch any errors or discrepancies early. Regular reviews help ensure accurate insurance carrier billing and correct payroll deductions.
Participation Rates
Participation rate summaries provide insights into the percentage of employees who have enrolled in each benefit offering. It allows employers to identify the popularity and utilization of specific benefits, what benefits employees value and by which demographic groups. Low participation rates in certain programs may indicate a lack of employee awareness or a need for better communication and training. Employers can leverage this information to develop a strategic engagement plan in order to maximize participation in valuable benefit programs.
Payroll Deductions
A payroll deductions report is an important tool that employers use to ensure that their payroll system is accurately matching the enrollment system for employee benefits. This report provides a detailed breakdown of the various deductions taken from each employee’s paycheck, specifically related to their benefits and other withholdings. It allows employers to verify that the correct amounts are being deducted from employees’ salaries based on their benefit choices and enrollment status. Review of this report each payroll cycle is recommended to maintain accurate employee records and ensure that employees receive the benefits they are entitled to without any inaccuracies or discrepancies.
Overage Dependents
Age 26 marks the point where dependents are no longer eligible to receive health insurance or other benefits under their parent’s plan. The primary purpose of the overage dependents report is to identify all dependents that will turn age 26 within a specified time frame (i.e., the next month or quarter). Employers typically notify both the employee and the dependent affected by the upcoming change in eligibility and coverage status. Simultaneously the dependents are informed of their option to continue coverage under the rules of the Consolidated Omnibus Budget Reconciliation Act (COBRA) or by enrolling in an individual policy with the carrier.
ACA Compliance and Data
The Affordable Care Act (ACA) introduced various reporting requirements for employers offering health insurance to their employees. To meet the ACA mandates and annual IRS reporting requirements, employers rely on ACA data reports generated from the enrollment system. ACA data reports provide a comprehensive overview of the health coverage offered to employees, including the type of coverage, the number of employees enrolled, and dependents information. Employers use these reports to verify that the data is accurate and up-to-date, ensuring that all necessary information is correctly recorded before submission to the IRS. By reviewing ACA data reports throughout the year, employers can plan and prepare well in advance to meet deadlines and avoid potential penalties for late or incorrect filings.
Conclusion
Configuring and utilizing the employee benefits reporting capabilities of an enrollment system is essential for employers to make informed decisions, manage costs, comply with regulations, enhance employee satisfaction, and develop a competitive benefits package that meets the diverse needs of their people. Utilizing data-driven insights helps create a more engaged and loyal workforce, ultimately contributing to the company’s overall success and growth.
HCM Tech Advisory has the expertise and experience to help answer your questions related to benefits and HR data or provide a deeper dive into best practices for migrating data into new HRIS systems. To learn more and for a complimentary consulting review, contact us at info@hcmtechadvisory.com.
