Why is tracking employee hours critical for ACA compliance?

Tracking employee hours accurately is essential under the ACA to determine whether employees qualify as full-time based on working 30 or more hours per week. This affects eligibility for employer-provided health insurance and helps avoid penalties for noncompliance. ACA-Track simplifies this process by collecting actual hours from multiple systems to ensure accurate eligibility calculations.

How does ACA-Track handle variable and part-time employee hours?

ACA-Track is designed to capture and integrate hours worked for all employee types, including variable-hour, part-time, and substitute workers. It pulls data from timekeeping, payroll, manual entries, and mobile device inputs, providing a unified and accurate record needed to determine ACA coverage eligibility.

What are the benefits of integrating ACA tracking with payroll and HR systems?

Integration with payroll and HRIS systems allows ACA-Track to automate data collection and eliminate manual errors. This ensures real-time monitoring of employee eligibility and simplifies the preparation of IRS forms 1094-C and 1095-C, streamlining the entire ACA compliance workflow.

How does ACA-Track assist with ACA reporting and IRS filings?

ACA-Track generates accurate IRS-compliant electronic files for 1094-C and 1095-C forms and facilitates timely filing. It also provides tools for error detection and correction, reducing risk of penalties and easing responses to IRS audits or inquiries.

What makes ACA-Track secure for managing sensitive employee hours and ACA data?

ACA-Track employs advanced security measures including encrypted personal data, SAS 70 and SSAE 16 certifications, SOC 2 Type 2 compliance, and secure HTTPS data transfers. This ensures that all employee and ACA compliance data is protected from unauthorized access.

ACA Tracking and Employee Hours: How ACA-Track Simplifies Compliance

Navigating the complexities of the Affordable Care Act (ACA) can be daunting for employers, especially when it comes to accurately tracking employee hours and ensuring full compliance with ACA regulations. One trusted solution for businesses seeking to simplify this process is ACA-Track — a comprehensive ACA compliance service designed to help employers collect, monitor, and report employee hours and benefits data seamlessly.

In this detailed blog post, we’ll explore the critical importance of tracking employee hours under ACA regulations, the challenges employers face, and how ACA-Track’s robust tools and services make ACA compliance easier and more efficient for companies of all sizes.

Why Tracking Employee Hours Matters for ACA Compliance

The Affordable Care Act requires Applicable Large Employers (ALEs) — generally those with 50 or more full-time employees or full-time equivalents (FTEs) — to offer affordable health insurance coverage that meets minimum value standards to their full-time employees (and their dependents). Failure to comply can lead to significant penalties.

What Counts as a Full-Time Employee?

Under ACA rules, a full-time employee is defined as one who works on average at least 30 hours per week or 130 hours per month. But many organizations have complex workforces with full-time, part-time, variable-hour, substitute, and paraprofessional employees whose hours fluctuate. To determine eligibility for health insurance offers, employers must accurately track actual hours worked, especially for part-time and variable-hour employees.

The Risk of Not Tracking Actual Hours

If an employer does not track actual hours for part-time or variable-hour employees, they may be exposed to penalties. Without documentation showing an employee worked fewer than 30 hours per week, the burden falls on the employer to prove compliance. Inaccurate or missing data can lead to IRS penalties, especially if an employee receives a premium tax credit on the Health Insurance Marketplace due to the employer’s failure to offer coverage.

Challenges in ACA Employee Hour Tracking

Tracking employee hours for ACA compliance is no simple task. Employers face several challenges:

Multiple Data Sources: Hours worked data may come from various systems — time clocks, manual timesheets, payroll systems, mobile apps, and more.
Data Integration: Combining data from HR, payroll, and benefits to produce accurate ACA reports can be difficult.
Compliance Complexity: Rules around measurement periods, stability periods, affordability, and offer of coverage are intricate.
IRS Reporting: ALEs must file accurate 1094-C and 1095-C forms annually and respond to potential IRS inquiries or penalty letters.

These factors make it critical to have a reliable system to collect, monitor, and report employee hours and ACA-related information.

How ACA-Track Simplifies ACA Compliance with Employee Hour Tracking

ACA-Track is a proven ACA compliance solution designed to address the complex requirements of ACA tracking and reporting with ease and precision. Here’s how ACA-Track helps businesses stay compliant:

1. Comprehensive Employee Hours Collection

ACA-Track collects actual hours worked for every type of employee — full-time, part-time, variable hour, paraprofessional, or substitute — from multiple sources such as:

Automated timekeeping systems
Manual time sheets
Payroll systems
Employee mobile device entry

This ensures that all hours are accurately accounted for, providing a solid data foundation for ACA eligibility determinations.

2. Seamless Integration with Payroll and HRIS Systems

ACA-Track fully integrates with virtually any payroll system, HRIS, or financial management software, consolidating all employee data in one secure platform. This integration reduces data entry errors and streamlines the process of tracking and reporting.

3. Real-Time Monitoring and Alerts

The software monitors employee eligibility thresholds and alerts users when employees approach or exceed ACA-defined hours requirements. It also tracks employee life events such as waivers, leaves of absence, and status changes, helping companies proactively manage compliance.

4. Accurate ACA Reporting and IRS Filing

ACA-Track generates required IRS forms (1094-C and 1095-C) electronically, ensuring the files conform to IRS XML specifications. Employers can confidently file reports electronically with the IRS and provide employees with their 1095-C forms on time.

5. Error Detection and Corrections

The platform provides color-coded warnings for unusual data and errors, reducing the risk of costly mistakes. If errors are detected post-filing, ACA-Track helps correct and resubmit filings, minimizing penalty exposure.

Key Features That Make ACA-Track Stand Out

Customizable Dashboard: Tailor the user interface to show the most relevant ACA data fields and reports.
Snapshot Summary: Preserve payroll and ACA data views over time for easy reference during audits.
Flexible Configuration: Adapt measurement periods, thresholds, waiver codes, and affordability percentages to fit your business needs.
Data-Driven Reporting: Use powerful grouping, sorting, filtering, and export capabilities to analyze compliance data.
Top-Tier Security: ACA-Track ensures your sensitive employee data is encrypted and securely transferred using HTTPS protocols, with compliance certifications including SOC 2 Type 2.

Why Employers Trust ACA-Track

Developed and powered by PSST, a software development firm with over 30 years of experience in HR, payroll, and benefits data management, ACA-Track has become the trusted choice for employers seeking peace of mind with ACA compliance. The dedicated Client Success Advisors ensure ongoing support and make the entire ACA tracking and reporting process straightforward.

Final Thoughts

For employers navigating the complexities of ACA compliance, especially in tracking employee hours across diverse workforces, a reliable and integrated solution like ACA-Track is invaluable. From collecting detailed hours worked data to monitoring eligibility and producing IRS-compliant reports, ACA-Track streamlines every step — helping employers avoid penalties and maintain compliance confidently.

To learn more about how ACA-Track can fit your business needs and simplify your ACA compliance journey, visit ACA-Track today.

If you want a personalized demo or have questions about ACA tracking and reporting, don’t hesitate to reach out to ACA-Track’s team of experts who are ready to assist you.