ACA Deadlines: What HR Needs to Know This Year

The Affordable Care Act (ACA) has profoundly impacted how organizations manage employee health insurance offerings and reporting requirements. For Human Resources (HR) professionals, keeping up with ACA deadlines, reporting, and compliance rules is essential to avoid penalties and ensure that employees are properly covered. This year, staying ahead of the ACA deadlines is more important than ever. With the potential for steep penalties and complex reporting requirements, it’s crucial for HR teams to be well-prepared.

In this post, we’ll walk through key ACA deadlines, HR responsibilities, and how ACA-Track can simplify the compliance process, ensuring your organization remains in good standing with the IRS.

Understanding ACA Deadlines: Why They Matter to HR

As part of ACA regulations, employers must meet specific deadlines related to reporting and offering health insurance to employees. Non-compliance can result in hefty fines, penalties, and even legal repercussions. Keeping track of deadlines and understanding your responsibilities is critical to avoiding these issues.

Key ACA Deadlines for 2025:

1. Forms 1095-C to Employees:

   • Deadline: January 31, 2025

   • Description: Applicable Large Employers (ALEs) are required to provide a Form 1095-C to their employees by this date. This form details whether health coverage was offered to the employee and the months in which it was available.

2. 1094-C Transmittal to the IRS:

   • Deadline: March 31, 2025 (If filed electronically)

   • Description: Employers must submit the 1094-C form to the IRS, which summarizes the 1095-C forms. This submission provides the IRS with a snapshot of the employer’s health insurance offerings and employee coverage.

3. Correcting Errors:

   • Deadline: As soon as possible (typically within 30 days of identification)

   • Description: If errors are found in the 1095-C forms (either during internal audits or IRS correction notices), they must be corrected and re-submitted.

4. IRS Penalties for Late Filings:

   • Late Filing Penalty: $50 per return if filed less than 30 days late, up to a maximum of $194,500.

   • 31 to 60 Days Late: $110 per return, up to $556,500.

   • After August 1: $270 per return, up to $1,113,000.

These penalties can significantly impact your bottom line, especially for large organizations with many employees.

How ACA-Track Can Help HR Stay Compliant

Managing ACA compliance can be complex, especially when dealing with variable hour employees, part-time workers, and multiple reporting systems. This is where ACA-Track comes into play. ACA-Track simplifies the compliance process by automating the data collection, tracking, and reporting needed for ACA compliance.

Here’s how ACA-Track can help streamline your ACA processes and ensure that you meet deadlines without stress:

1. ACA 1095-C Monthly Line Code Audits

ACA-Track conducts monthly audits to ensure that the 1095-C forms are completed accurately, addressing specific line codes and ensuring compliance for each employee. With this ongoing check, HR can be confident that they are not overlooking important data or making errors in reporting.

2. Variable Hour Employee Tracking

Tracking variable hour employees is essential for determining whether they meet the ACA’s full-time status for health insurance coverage. ACA-Track automatically monitors and tracks the hours worked by part-time and variable-hour employees, helping HR ensure that all eligible employees receive their health insurance offers in line with ACA requirements.

3. 1094-C & 1095-C Federal and State Reporting

ACA-Track provides comprehensive support for the creation and submission of Form 1094-C and 1095-C, ensuring that the data is in the correct format for both federal and state reporting. This helps HR meet reporting deadlines with minimal manual effort.

4. Electronic Filing with the IRS

With ACA-Track, employers can file the necessary forms electronically with the IRS, making it easier to meet the March 31 deadline. ACA-Track ensures that your filings are in compliance with IRS schema and regulations, providing a smooth and accurate submission process.

5. Fix ACA Reporting Errors

If there are any errors identified in your ACA reporting, ACA-Track allows you to easily correct these mistakes, ensuring that you stay compliant and avoid penalties.

6. Data Integration with Payroll Systems

ACA-Track integrates seamlessly with most payroll systems, ensuring that your employee data is accurate and up-to-date. Whether using time-keeping systems, manual time sheets, or mobile device entries, ACA-Track ensures that all data is collected for accurate reporting.

7. Dedicated Client Success Advisor

ACA-Track offers a dedicated Client Success Advisor to assist HR teams with ACA compliance. With expert guidance and support, HR departments can feel confident navigating the complexities of ACA requirements.

Key ACA Compliance Features to Keep HR in the Loop

Customizable Dashboard and User Interface

ACA-Track’s user-friendly dashboard allows HR to easily customize and access the data that’s most important for compliance. It lets HR filter, sort, and group information by ACA status, job type, or location, all in one convenient interface.

Snapshot Summary

One unique feature of ACA-Track is its snapshot approach, which preserves the employee data as it was at a specific point in time. This makes it easy to access and report on historical data in the event of an IRS audit or state healthcare exchange request.

Flexible Configuration

With flexible configuration options, HR can adjust settings for measurement, administrative, and stability periods, helping to manage ACA requirements for full-time, part-time, and variable hour employees. This customization ensures that all employee types are tracked according to ACA guidelines.

Security and Compliance

ACA-Track’s cloud-based system is certified under SSAE 16 and SOC 2 Type 2 standards, ensuring that sensitive employee information is protected. All data transfers are encrypted via HTTPS, and personal data is stored securely.

Consequences of Non-Compliance and How ACA-Track Helps

Failing to comply with ACA regulations can lead to significant financial penalties, as discussed earlier. These penalties can add up quickly and put unnecessary strain on an organization. By using ACA-Track, HR departments can automate much of the ACA compliance process, reducing the risk of error and the potential for penalties.

If your organization receives an IRS penalty letter, such as the IRS 226-J, ACA-Track can help you identify and correct any errors in your ACA filings, provide detailed reports, and streamline the process of responding to the IRS.

Conclusion: Be Prepared with ACA-Track

As ACA compliance continues to evolve, HR teams must stay on top of important deadlines and responsibilities. ACA-Track offers a proven, data-driven solution to ensure that your organization remains compliant with ACA regulations. With automated data collection, robust reporting features, and expert support, ACA-Track simplifies the complexities of ACA compliance, making it easier than ever to avoid penalties and ensure that your employees receive the benefits they’re entitled to.

To learn more about how ACA-Track can help your organization with ACA compliance, visit ACA-Track.

By adopting ACA-Track, HR professionals can focus on what matters most—ensuring their workforce stays healthy and productive while meeting all ACA requirements with confidence.