Human-resources tech company Zenefits is launching a new, free product aimed to help business owners comply with upcoming Affordable Care Act regulatory and paperwork requirements.
Starting in 2016, employers will have to file every year with the Internal Revenue Service, reporting on the health insurance coverage provided to their employees. If businesses don’t report to the IRS, they will be hit with fees both for failing to file the required paperwork and for failing to provide coverage for employees where it is required.
The first deadline business owners will face in the coming year is Jan. 31, when they are responsible for having sent out a report notified their employees of their coverage options. The deadline for filing with the IRS is for Feb. 29 for paper filings and March 31 for electronic filings.
The new Zenefits tool, which will launch this fall, automatically generates and submit forms to the IRS. It also helps business owners determine which staffers they are required to provide health insurance for, as reporting and compliance responsibilities differ depending on a company’s headcount. If a part-time employee is working enough hours that he is approaching the threshold for being considered full time, the new tool will alert the business owner.
Zenefits offers the software to businesses for free because, like with the rest of its human resources software technologies, the company collects commission when it sells services, like health insurance to the businesses that use its platform.
The San Francisco-based technology company has been growing by leaps and bounds, its headcount surging from 15 early last year to 1,000 now. In May, Zenefits announced a $500 million funding round at a $4.5 billion valuation.