Are You Really ACA Compliant? 10 Questions Every ALE Must Ask
Navigating the complexities of the Affordable Care Act (ACA) is no small feat for Applicable Large Employers (ALEs). With strict mandates, intricate reporting requirements, and heavy penalties for non-compliance, staying ACA-compliant demands vigilance, precision, and the right tools.
If you’re an ALE, you probably ask yourself: Are we truly compliant? To help you assess your readiness and ongoing compliance, here are 10 essential questions every ALE must ask — along with insights on how ACA-Track can simplify and secure your compliance journey.
1. Is My Company an Applicable Large Employer (ALE)?
Determining ALE status is the foundational step. Under ACA, ALEs are employers with 50 or more full-time employees (including full-time equivalents) in the previous calendar year. This means combining your full-time staff plus part-time hours converted to full-time equivalents.
If you’re unsure about your ALE status, it’s critical to run the numbers carefully because ACA compliance requirements only apply if you meet this threshold.
2. Are We Accurately Tracking Hours for All Employee Types?
ACA defines full-time employees as those working 30 hours or more per week on average. This includes variable-hour, part-time, seasonal, and substitute employees.
Without precise tracking of actual hours worked, your company risks misclassifying employees and potentially facing penalties if those employees obtain Marketplace subsidies.
ACA-Track specializes in variable hour tracking, collecting actual hours worked from multiple sources such as time clocks, mobile entries, and payroll systems, ensuring no employee falls through the cracks.
3. Are We Monitoring Eligibility and Notification Periods Correctly?
Employers must monitor measurement, administrative, and stability periods to determine when employees become eligible for coverage and when offers must be made. Missing these windows can result in non-compliance penalties.
With ACA-Track’s customizable dashboard, you get alerts when eligibility thresholds are exceeded, so you can act proactively, not reactively.
4. Are Our Offers of Coverage Affordable and Providing Minimum Value?
The ACA requires that coverage offered to full-time employees meets standards of affordability and minimum value. Misjudging affordability percentages or coverage value can lead to penalties.
ACA-Track’s system supports configurable affordability percent settings and helps you ensure your benefits package meets ACA standards with detailed, data-driven insights.
5. Are We Accurately Reporting to the IRS With Timely 1094-C and 1095-C Forms?
ALEs must file Form 1094-C (transmittal) and Form 1095-C (employee statements) annually with the IRS and furnish 1095-C forms to employees, typically by January 31. Missing deadlines or filing errors can trigger steep penalties.
ACA-Track automates the generation and electronic filing of IRS-compliant XML files, reducing human error and saving your team valuable time.
6. How Do We Handle Employees Who Waive Coverage or Take Leave?
Employees may waive coverage or have intermittent work periods due to leave. Correctly tracking these events is essential to avoid inaccurate ACA reporting.
ACA-Track tracks waiver codes and employee events like leave, maintaining accurate records to support compliance and audit readiness.
7. Is Our Data Secure and Confidential?
Handling sensitive employee data requires robust security. ACA-Track’s cloud-based platform is SOC 2 Type 2 compliant, uses encrypted personal data storage, and transfers data only via HTTPS, ensuring your company meets or exceeds security standards without hosting HIPAA-protected medical info.
8. What Is Our Plan for Responding to IRS Penalty Letters (Form 226-J)?
Receiving a 226-J penalty letter means the IRS has identified discrepancies in your ACA reporting. The letter details proposed penalties and requires a response within 30 days.
ACA-Track clients benefit from a dedicated Client Success Advisor who guides them through penalty resolution and helps gather supporting documentation, minimizing risk and stress.
9. Are We Using a Proven ACA Compliance Solution Tailored to Our Needs?
Many companies underestimate the complexity of ACA compliance and either do it manually or use fragmented systems. This leads to costly errors.
ACA-Track offers a comprehensive, data-integrated solution that fits your business or clients’ needs, whether a small organization or a large enterprise. Features like customizable user interfaces, snapshot summaries, and robust filtering put full control at your fingertips.
10. Do We Have Internal Accountability Across Departments?
ACA compliance crosses departments — payroll, HR, finance, and benefits must collaborate closely. Lack of coordination can cause missing or incorrect data, increasing risk.
ACA-Track consolidates all necessary data in one place, providing a single source of truth to empower your teams and streamline communication.
Why Choose ACA-Track for Your ACA Compliance?
ACA-Track is not just software — it’s a partner in ACA compliance offering:
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End-to-end ACA compliance services, including 1095-C monthly line code audits and error fixes.
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Seamless integration with payroll, HRIS, and financial systems.
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Electronic IRS filing, including obtaining and renewing Transmitter Control Codes (TCC).
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A user-friendly interface with powerful reporting and color-coded warnings.
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Dedicated client success advisors to make ACA compliance easy and stress-free.
Find out more about how ACA-Track can help you stay confident and compliant with a proven solution: ACA-Track.
Final Thoughts
The Affordable Care Act continues to challenge employers, but compliance is critical to avoid costly penalties. Asking the right questions and leveraging a trusted solution like ACA-Track will keep your organization on solid ground.
Are you confident your ACA compliance program passes the test? If you’re unsure, it might be time to ask these 10 questions — and see how ACA-Track can help you answer them with certainty.
Explore ACA-Track’s services and features today at ACA-Track and take the guesswork out of ACA compliance.
