For self-funded employers, ACA compliance isn’t just another HR chore — it’s a legal must with real financial risks. Over the past year, the IRS has been sending out more 226J letters than before, hitting many employers who thought they were doing everything right.
When you’re self-funded, you control both your plan design and administration. That also means if something slips through the cracks, the responsibility — and the penalties — are on you.
That’s where ACA-Track comes in. We help self-funded employers, TPAs, and brokers cut through the confusion with a mix of smart software and hands-on support. Every client works with a dedicated ACA compliance specialist who knows their plan inside and out. This way, issues get spotted early, explained clearly, and fixed before they turn costly.
Here are a few common mistakes that often trigger penalties:
- Missing eligibility for variable-hour, seasonal, or rehire employees
- Not meeting the 95% MEC (minimum essential coverage) rule
- Misusing measurement or stability periods under the look-back method
- Submitting late or incorrect IRS filings
- Employee data mismatches with IRS or SSA records
We’ve seen each of these lead to a 226J penalty notice — usually for groups that thought they were covered. But for self-funded employers, these aren’t just small slip-ups. They can easily grow into six-figure liabilities.
In the next article, you’ll read about one employer who was staring down a $130,000 penalty but avoided it with ACA-Track — for less than $3,000.
About ACA-Track
ACA-Track was built to protect employers, TPAs, and brokers from ACA reporting risks. For 35+ years, we’ve supported clients across the country, processing millions of forms since the ACA began. The result? 100% IRS compliance — no client has ever paid a penalty.
Our services include complete year-end ACA reporting and real-time eligibility tracking. But we don’t stop at software. Each client is paired with a compliance specialist who provides proactive communication, hands-on solutions, and peace of mind year after year.
