ACA Automation: How to Save Time and Reduce Errors
Navigating the complexities of the Affordable Care Act (ACA) compliance is a significant challenge for many employers. The requirements to accurately track employee hours, determine eligibility, and file detailed reports with the IRS are time-consuming and prone to costly errors if done manually. Fortunately, modern ACA automation solutions, such as ACA-Track, provide a comprehensive, streamlined approach that saves time, reduces errors, and ensures confidence in your ACA compliance.
Why ACA Compliance Is Complex — And Why Automation Matters
The Affordable Care Act places substantial reporting responsibilities on Applicable Large Employers (ALEs) — generally those with 50 or more full-time or full-time equivalent employees. Employers must track actual hours worked by full-time, part-time, and variable-hour employees to determine eligibility for health coverage offers and submit precise IRS forms 1094-C and 1095-C annually.
Manual tracking and reporting involve numerous challenges:
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Collecting accurate hours worked from multiple systems (payroll, timekeeping, HRIS, manual timesheets)
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Monitoring employee eligibility thresholds including full-time status, waivers, leaves, and employment changes
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Generating complex reports compliant with IRS specifications for both federal and state filings
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Avoiding costly errors that can trigger penalties or IRS audit scrutiny
Without automation, companies risk errors in data entry, missed deadlines, and inefficient use of HR, payroll, and finance teams’ valuable time.
How ACA-Track Simplifies ACA Compliance
ACA-Track is a powerful ACA automation platform that helps employers collect, monitor, and report ACA data seamlessly — from actual hours worked to electronic IRS filing. Here’s how ACA-Track can save you time and reduce errors:
1. Comprehensive Data Collection
ACA-Track collects actual hours worked across all employee types, including:
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Full-time, part-time, variable-hour, paraprofessional, and substitute employees
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Data from multiple sources: automated time clocks, mobile devices, payroll systems, manual entries, and timesheets
This integration eliminates manual data consolidation and helps ensure all employee hours are accurately recorded — crucial for determining ACA eligibility.
2. Real-Time Monitoring and Alerts
The software monitors employee eligibility against ACA thresholds in real time. ACA-Track provides:
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Advanced alerts when employees approach or exceed full-time hours
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Tracking of employee events such as waivers, leaves of absence, or status changes
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Customizable measurement, administrative, and stability periods to fit your company’s policies
By automating eligibility tracking, ACA-Track prevents missed offers of coverage and reduces risk of ACA penalties.
3. Error-Reducing Reporting and IRS Filing
ACA-Track automates the generation of required ACA reports, including:
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Federal and state forms 1094-C and 1095-C
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Electronic XML filing with the IRS, compliant with AIR schema requirements
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Monthly line code audits to ensure accuracy of 1095-C data
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Correction of reporting errors before submission
This automation dramatically cuts down on data entry errors and filing mistakes, ensuring timely, accurate compliance.
4. User-Friendly and Highly Customizable
ACA-Track offers a clean, intuitive interface with features designed for maximum efficiency:
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Customizable dashboards that let you choose and organize data fields
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Snapshot summaries preserving employee data as of any point in time
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Filtering, sorting, and color-coded alerts for quick identification of issues
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Flexible configuration of thresholds, waiver codes, and reporting periods
This flexibility makes it easy for HR, payroll, and benefits teams to use the system with confidence and clarity.
5. Dedicated Support and Security
ACA-Track pairs automation with dedicated client success advisors to guide you through setup and ongoing compliance. Plus, the platform is built on a secure, SAS 70 and SOC 2 compliant cloud infrastructure with encrypted personal data and HTTPS transfers — so your sensitive employee information stays safe.
The Cost of Not Automating ACA Compliance
Failing to automate ACA compliance increases risks including:
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Penalties for late or incorrect filings — fines can reach hundreds of thousands of dollars per year, depending on the severity and number of errors
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Shared responsibility payments if you fail to offer affordable coverage to eligible employees
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IRS audit exposure and administrative burden due to inaccurate or incomplete records
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Wasted time and resources spent manually tracking and reconciling employee data across multiple systems
Employers who rely on manual methods often find themselves overwhelmed during ACA reporting season, struggling to meet deadlines and maintain accuracy.
Why Choose ACA-Track for Your ACA Compliance?
ACA-Track has been designed with the employer’s needs front and center. It brings together decades of HR, payroll, finance, and benefits experience to deliver:
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Total integration with any payroll system, HRIS, or financial management platform
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All ACA data in one place for easy audit retrieval and compliance oversight
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Custom plans and pricing tailored to the size and complexity of your organization
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A dedicated Client Success Advisor committed to making ACA compliance easy for you
In short, ACA-Track transforms ACA compliance from a burdensome manual task into an automated, reliable process.
Final Thoughts
ACA compliance is a critical responsibility that requires precise data collection, careful monitoring, and accurate reporting. Automating this process is the smartest way to save your company time, reduce costly errors, and avoid IRS penalties.
Explore how ACA-Track can be your trusted partner in ACA automation — delivering peace of mind with proven solutions and dedicated support tailored to your business needs.
If you want to learn more or schedule a demo, visit ACA-Track today. Let automation simplify your ACA compliance journey!