What is ACA reporting and why is it required?

ACA reporting requires Applicable Large Employers (ALEs) to submit information about health insurance offers to employees using IRS Forms 1094-C and 1095-C. This helps the IRS verify employer compliance with the Affordable Care Act’s employer shared responsibility provisions.

Who must file ACA forms 1094-C and 1095-C?

Employers with 50 or more full-time equivalent employees (ALEs) must file Forms 1094-C and 1095-C annually with the IRS and provide employees with their respective 1095-C forms to report health coverage offers and enrollment.

How does ACA-Track help with ACA form generation and filing?

ACA-Track automates the creation of fully compliant 1094-C and 1095-C forms, audits data monthly to prevent errors, and electronically files reports directly with the IRS, simplifying the ACA reporting process and minimizing the risk of penalties.

What data is needed for accurate ACA reporting?

Employers need accurate employee hours worked, health coverage offer status, employee identification, and enrollment information. ACA-Track integrates with payroll, HRIS, and timekeeping systems to collect and consolidate all necessary data in one secure place.

What happens if ACA reporting errors are found?

ACA-Track detects and helps correct ACA reporting errors before submission to the IRS, reducing the risk of penalties. If errors are found after filing, ACA-Track supports correction filings and maintains all data ready for IRS audits.

The Ultimate Guide to ACA Reporting & Forms: How ACA-Track Simplifies Compliance for Your Business

Navigating the Affordable Care Act (ACA) regulations can be daunting for many employers, especially those classified as Applicable Large Employers (ALEs) who must comply with rigorous reporting and tracking requirements. From understanding who qualifies as a full-time employee to correctly filing IRS forms 1094-C and 1095-C, the complexities of ACA compliance are ever-present.

Luckily, with the right tools and expertise, ACA compliance doesn’t have to be overwhelming. ACA-Track offers a comprehensive solution that streamlines ACA tracking, reporting, and auditing — giving you confidence and peace of mind.

What is ACA Reporting and Why Is It Important?

Under the Affordable Care Act, employers with 50 or more full-time equivalent employees (FTEs) — known as Applicable Large Employers (ALEs) — are required to offer health insurance that meets minimum value and affordability standards. Failure to comply can result in hefty penalties and IRS audits.

Employers must track employee hours worked, particularly for part-time and variable-hour workers, to determine eligibility for coverage offers. Additionally, ALEs must file detailed information returns annually to the IRS:

Form 1094-C: The transmittal form summarizing employer coverage offers
Form 1095-C: Individualized statements sent to employees outlining coverage details

These forms help the IRS determine if employers have met their shared responsibility obligations or owe penalties.

Meet ACA-Track: Your Trusted ACA Compliance Partner

ACA-Track is a leading ACA compliance solution designed to simplify every aspect of ACA tracking and reporting. From data collection to IRS electronic filing, ACA-Track covers all the bases with an easy-to-use platform and expert client support.

Core Services Include:

ACA 1095-C Monthly Line Code Audits: Regular verification to ensure coding accuracy
Variable Hour Tracking: Automated monitoring of employees with fluctuating schedules
1094-C & 1095-C Federal and State Reporting: Preparation and electronic filing directly with the IRS
Error Correction: Tools and guidance to fix ACA reporting mistakes swiftly

ACA-Track offers flexible pricing plans tailored to your business size and needs, plus a dedicated Client Success Advisor to guide you through compliance effortlessly.

How ACA-Track Collects, Monitors, and Reports ACA Data

Collect

ACA-Track integrates seamlessly with your payroll system, HRIS, and timekeeping platforms to collect actual hours worked for all employee types — full-time, part-time, variable hour, paraprofessional, and substitute. Data can come from multiple sources, including:

Manual time sheets
Automated time clocks
Employee mobile entries
Payroll data

This ensures accurate tracking needed to determine eligibility and reporting.

Monitor

The software continuously monitors employee eligibility thresholds and sends advance alerts when employees approach full-time status. It also tracks key employee events such as waivers and leave, helping employers stay ahead of compliance risks.

Report

With ACA-Track, employers generate comprehensive, IRS-compliant 1094-C and 1095-C reports electronically. All data is securely stored in one location for easy retrieval in case of IRS audits or state healthcare exchange requests.

Why Choose ACA-Track? Key Features that Make a Difference

Customizable Dashboard: Tailor the interface to display the exact data you need, improving workflow efficiency.
Snapshot Summary: Unique snapshots preserve employee ACA data views over time, maintaining historical accuracy for audits.
Advanced Filters: Quickly sort employees by ACA status, location, or employment type and drill down into individual histories.
Flexible Configuration: Adjust measurement periods, thresholds, waiver codes, and affordability calculations as needed.
Data-Driven Analytics: Export data to Excel, apply color-coded warnings for errors, and get detailed insights to make informed decisions.
Security: ACA-Track’s cloud platform is SAS 70 certified, SSAE 16 and SOC 2 Type 2 compliant, ensuring your employee data is protected with encryption and secure HTTPS transfers.

ACA Compliance Made Simple for Employers

What Employers Need to Know About ACA:

Applicable Large Employer (ALE) status: Generally employers with 50+ full-time or full-time equivalent employees are ALEs.
Full-time employee definition: Employees averaging at least 30 hours/week or 130 hours/month.
Tracking actual hours worked: Essential for part-time and variable-hour workers to determine eligibility.
Data collection complexity: ACA data involves HR, Payroll, Finance, and Benefits departments — ACA-Track consolidates this for you.

Reporting Deadlines:

Employee 1095-C forms: Typically due by January 31 each year (extensions possible).
IRS 1094-C transmittal: Due by March 31 each year with no extensions allowed after 2015.

Penalties for Non-Compliance:

Failure to comply can result in penalties up to $270 per return or statement (as of 2020) and shared responsibility payments up to $2,000 per full-time employee per year for failing to offer coverage.

Protect Your Business from ACA Penalties with ACA-Track

Employers receiving an IRS 226-J penalty letter need to act quickly. ACA-Track not only helps prevent errors in reporting but also provides expert guidance to respond to IRS penalty notices — ensuring you are prepared to contest or correct issues effectively.

Partner with ACA-Track for Hassle-Free ACA Compliance

Choosing the right ACA compliance solution is critical. Many third-party providers charge hidden fees for setup, printing, or support, but ACA-Track offers transparent pricing, robust customer service, and a dedicated Client Success Advisor.

Whether you have 50 employees or thousands, ACA-Track integrates your systems, simplifies complex regulations, and ensures your ACA reporting is accurate and timely.

Ready to simplify ACA compliance? Visit ACA-Track today and see how they can make ACA reporting effortless for your organization.

Summary

ACA compliance requires accurate data collection, continuous monitoring, and precise reporting to meet IRS requirements and avoid costly penalties. With its comprehensive platform, seamless integration, expert support, and commitment to security, ACA-Track is the trusted partner your business needs to stay compliant.

Don’t let ACA reporting stress you out — let ACA-Track handle the heavy lifting so you can focus on running your business with confidence.

If you want a deep dive on ACA regulations, penalties, or reporting requirements, or need help with IRS filing and audits, check out the ACA-Track website for detailed resources and expert assistance.