Florida Association of Professional Employer Organizations

Now that healthcare reform has been signed into law by President Obama, Florida-based small businesses are understandably asking: ``What does this mean to me?''

The ultimate answer to this question is complex and depends on a variety of factors related to the business in question. These factors include the number of full-time employees, industry, current health coverage, business objectives and more. There is, however, one undisputable area that will impact all businesses -- the significant administrative burden that will be required to navigate the new regulations associated with healthcare reform.

The legislation has broad implications regarding the future of healthcare in the United States, and is structured with employer-based financial incentives and penalties to help ensure that the new mandates are properly implemented. The key for any business to successfully navigate this new legislation will be its ability to optimize these incentives and minimize any risk or penalties. Said another way, the ability to turn incentives into financial opportunities, e.g., tax credits, and penalties into completed administrative tasks, e.g., reporting requirements, can make a substantial difference in a business' ability to remain an employer of choice while ensuring the integrity of the bottom line.

Due to the complex nature of the legislation, this will not be an easy task for most businesses. This is especially true for small- and medium-sized firms that do not have the manpower or infrastructure to adequately understand and fulfill the new requirements. Efforts to meet the substantial administrative mandates could result in less time being spent on key business activities and/or increased costs.

Under the new law, mandated employer administrative tasks run the gamut from having to calculate and report the aggregate value of employer-provided coverage on each employee's W-2 to providing statements on ``Minimal Essential Coverage'' to the IRS and covered employees.

For larger firms, the use of technology to automate certain processes -- such as new hire onboarding and healthcare insurance enrollment -- can help with some of the administrative burdens in the long-term.

Larger companies may also have some ability to absorb some of the administrative burden by training existing employees, if extra bandwidth is available to do so.

These solutions may not be viable for small- to medium-sized businesses, which will be the first to recognize -- and feel the impact -- that healthcare reform represents administratively. It is likely that future upgrades to standard small business accounting software programs will help accommodate some of the payroll-related administrative burdens to a limited extent.

Smaller employers can also utilize partners with the specific expertise and infrastructure required to meet the requirements of healthcare reform. Outsourcing some or all of the administrative tasks associated with the legislation can help ensure that requirements are met, all appropriate credits are received and potential fines and penalties are avoided.

The services, individually outsourced from various vendors or a comprehensive professional employer organization (PEO) that coordinates and provides all of the aforementioned services, can be utilized to help ensure that key activities are handled in an accurate and timely manner.