ACA and Workforce Planning: Connecting the Dots with ACA-Track
Navigating Affordable Care Act (ACA) compliance is no easy task for employers, especially for those managing a diverse workforce that includes full-time, part-time, and variable-hour employees. With complex rules around eligibility, reporting, and potential penalties, companies need robust tools and strategies to stay on top of ACA requirements and workforce planning. This is where ACA-Track shines—offering an integrated, data-driven compliance solution that connects the dots between ACA obligations and effective workforce management.
Understanding the ACA Impact on Workforce Planning
Before diving into how ACA-Track supports compliance and planning, let’s recap the ACA’s core impact on employers:
-
Applicable Large Employers (ALEs): Businesses with 50 or more full-time or full-time equivalent employees must offer affordable, minimum value health insurance or risk penalties.
-
Full-Time Definition: Employees working 30+ hours per week (or 130+ hours per month) are considered full-time under ACA.
-
Variable and Part-Time Workers: Tracking actual hours worked for these employees is critical to correctly determine ACA eligibility and avoid penalties.
-
Employer Shared Responsibility: If coverage is not offered or is inadequate, ALEs may owe significant penalties based on the number of full-time employees.
This means workforce planning isn’t just about scheduling—it’s about accurate, continuous tracking of employee hours and eligibility status, combined with seamless ACA reporting to the IRS.
How ACA-Track Bridges ACA Compliance and Workforce Planning
1. Collect: Comprehensive Hour Tracking
ACA-Track simplifies data collection by aggregating employee hours worked from various sources, including:
-
Timekeeping systems
-
Manual timesheets
-
Automated time clocks
-
Mobile device entries
-
Payroll systems
This holistic approach covers all employee types—variable hour, full-time, part-time, paraprofessionals, and substitutes—ensuring no gaps in eligibility tracking.
2. Monitor: Real-Time Eligibility and Alerts
ACA-Track’s monitoring features provide actionable insights by:
-
Tracking employee eligibility thresholds
-
Monitoring events like waivers, leaves, and status changes
-
Sending advance alerts when employees approach or exceed ACA thresholds
By doing so, workforce planners and HR can proactively manage employee status, avoid surprises during the measurement and stability periods, and ensure timely offers of coverage.
3. Report: Confident, Accurate IRS Filings
The platform handles the entire reporting process:
-
Producing and electronically filing IRS Forms 1094-C and 1095-C for both federal and state requirements
-
Performing monthly line code audits on 1095-C data for accuracy
-
Correcting reporting errors to prevent IRS penalties
-
Securely maintaining data for easy retrieval in the event of audits or exchange requests
With a dedicated Client Success Advisor guiding the process, ACA-Track removes the stress from ACA reporting deadlines and compliance risks.
Why ACA-Track is the Smart Choice for Employers
Seamless Integration
ACA-Track integrates with virtually any payroll system, HRIS, and financial management platform, enabling smooth data flow and minimizing manual data entry errors.
User-Friendly Interface with Powerful Features
The customizable dashboard lets users:
-
Choose and arrange data fields
-
Filter and group employees by ACA status, location, or employment type
-
View historical snapshots preserving payroll data as it was at any point in time
This design supports both novice and power users in analyzing and managing compliance details efficiently.
Security and Compliance
ACA-Track prioritizes data security with:
-
SAS 70, SSAE 16, and SOC 2 type 2 certifications
-
Encryption of personal data
-
Secure HTTPS data transfers
-
No HIPAA-protected medical information stored, reducing compliance complexity
The Role of Workforce Planning in ACA Compliance
Workforce planning must align closely with ACA compliance requirements to avoid costly penalties and maintain employee satisfaction. Key considerations include:
-
Tracking Hours Worked: Especially for part-time and variable hour employees, accurate tracking is essential to determine health coverage eligibility.
-
Measurement and Stability Periods: Understanding and configuring these ACA periods in your planning tools helps ensure offers of coverage are timely and compliant.
-
Interdepartmental Coordination: Payroll, HR, benefits, and finance teams must collaborate to consolidate and verify ACA data.
-
Managing Penalties and Corrections: In the event of discrepancies or IRS penalty letters (such as Letter 226-J), having a compliance partner like ACA-Track can expedite resolution and support documentation.
Avoiding Costly ACA Compliance Pitfalls
Non-compliance can lead to:
-
Penalties up to $2,700 per return (1095-C) for late or incorrect filings
-
Employer Shared Responsibility Payments reaching thousands per employee monthly
-
IRS penalty notices that require fast, thorough responses to avoid escalation
ACA-Track’s proactive error alerts, accurate reporting, and expert support minimize these risks and help employers maintain peace of mind.
In Summary
ACA compliance is complex, but it doesn’t have to be overwhelming. By connecting workforce planning with ACA tracking through a data-driven solution like ACA-Track, employers can:
-
Ensure accurate and comprehensive hour tracking for all employee types
-
Monitor eligibility and coverage status with real-time alerts
-
Confidently complete federal and state ACA reporting
-
Secure their data and reduce the risk of costly penalties
Employers who embrace this integrated approach can focus on strategic workforce management, knowing their ACA obligations are managed with precision and ease.
For companies ready to simplify their ACA compliance and workforce planning challenges, ACA-Track offers the plan and pricing that fits your business needs, complete with a dedicated Client Success Advisor to make ACA compliance effortless.
Explore more at ACA-Track.
