Avoiding Penalties & Risk Mitigation with ACA-Track: Your Trusted ACA Compliance Partner
The Affordable Care Act (ACA) compliance landscape can feel like navigating a maze for many employers. From tracking variable-hour employees to filing accurate IRS reports on time, missteps can lead to costly penalties and audits. For applicable large employers (ALEs), compliance isn’t optional—it’s a legal mandate that requires precision and vigilance.
That’s where ACA-Track comes in. With over 30 years of expertise powering seamless HR, payroll, and benefits data management, ACA-Track offers a comprehensive, secure, and user-friendly ACA compliance solution designed to help your business avoid penalties and mitigate risk effectively.
Understanding ACA Compliance Challenges
Before diving into how ACA-Track can safeguard your organization, it’s important to understand the core ACA compliance challenges:
1. Identifying Applicable Large Employer (ALE) Status
ALE status is determined by your company’s workforce size, counting both full-time employees and full-time equivalent employees (FTEs). If your company employs 50 or more FTEs, you must comply with ACA requirements—meaning offering affordable, minimum-value health insurance and filing the necessary IRS reports.
2. Tracking Hours Worked by Part-Time and Variable Hour Employees
ACA regulations require employers to track actual hours worked to determine employee eligibility for health coverage. Failing to track hours puts your company at risk of penalties, especially if employees claim marketplace subsidies due to lack of employer coverage.
3. Accurate and Timely IRS Reporting
Employers must file Form 1094-C and Form 1095-C annually with the IRS and provide employees with their individual 1095-C forms. Missing deadlines or submitting inaccurate forms can lead to significant fines.
4. Managing Complex Data from Multiple Departments
ACA reporting demands data from payroll, HR, benefits, and finance departments. Coordinating this data manually is error-prone and labor-intensive.
How ACA-Track Helps You Avoid Penalties & Mitigate Risk
ACA-Track is a data-driven ACA compliance platform designed specifically to address the complexities above, ensuring your organization stays compliant with minimal hassle.
1. Comprehensive Employee Hours Collection
ACA-Track collects actual hours worked across all employee types—including variable-hour, part-time, full-time, paraprofessional, and substitutes—from multiple systems like time clocks, payroll, manual timesheets, and even employee mobile devices. This means no hours go untracked, a key factor in avoiding penalties related to misclassification or underreporting.
2. Proactive Monitoring with Alerts
The system continuously monitors employee eligibility thresholds and tracks critical events such as insurance waivers, leaves of absence, or re-hires. Its alert system notifies you well in advance when employees approach or exceed eligibility hours, so you can act proactively to offer coverage and avoid penalties.
3. Accurate and Simplified IRS Reporting
With ACA-Track, generating the 1094-C and 1095-C federal and state reports is streamlined. The platform electronically files your ACA reports in the correct XML format directly with the IRS, significantly reducing the chance of filing errors that could trigger IRS penalties or audit notices like the dreaded IRS 226-J letter.
4. Robust Data Integration & Security
The software integrates seamlessly with any payroll system, HRIS, or financial management system, centralizing your ACA compliance data in one secure location. ACA-Track’s cloud-based infrastructure is SAS 70 certified, SSAE 16 compliant, and SOC 2 Type 2 certified, with encrypted personal identifying information and secure HTTPS data transfers, ensuring your sensitive employee data is protected at all times.
5. Customizable and User-Friendly Interface
The customizable dashboard and snapshot summaries allow users to view historical and current employee data with ease. Filtering, sorting, and exporting to Excel enable compliance teams to drill down into specifics quickly, saving time and reducing errors.
6. Dedicated Client Success Advisors
ACA-Track assigns a dedicated Client Success Advisor who helps you tailor the solution to your business needs, assists in setup, data exchange, and supports you throughout the reporting cycle. This personal support means you never have to navigate ACA compliance alone.
Why Risk ACA Penalties When You Can Have ACA-Track?
What Are the Risks of Non-Compliance?
Failing to comply with ACA regulations can cost your organization thousands—even millions—in penalties. For example:
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Penalty for late or incorrect ACA filings: Up to $270 per form, doubled to $540 if not filed or furnished at all.
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Employer Shared Responsibility Payments: $2,000 per full-time employee (minus first 30 employees) if minimum coverage isn’t offered.
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IRS 226-J Penalty Letters: Formal IRS notifications detailing penalties and requiring a response within 30 days.
Without proper tracking and reporting, your company could face steep financial consequences and operational headaches.
ACA-Track: Making ACA Compliance Easy and Risk-Free
By choosing ACA-Track, you are choosing a partner who understands the complexities of ACA compliance inside and out. Their proven solution helps you:
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Collect and monitor employee hours worked, including variable and part-time employees
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Track employee eligibility and waivers with advanced alerts
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Generate and electronically file accurate 1094-C and 1095-C forms to the IRS and states
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Maintain ACA data securely for quick retrieval in case of IRS audits or healthcare exchange requests
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Get full support from a dedicated client advisor focused on your success
Final Thoughts
ACA compliance is a critical responsibility for ALEs, but with the right tools, you can avoid penalties, minimize risk, and streamline your reporting processes. ACA-Track offers a comprehensive, secure, and user-friendly platform backed by expert support that ensures you meet ACA requirements with confidence.
Don’t wait for a penalty letter to take action—partner with ACA-Track today and turn ACA compliance from a complex challenge into a smooth operational process.
