What does ACA-Track do to simplify 1094 and 1095 reporting?

ACA-Track automates the entire ACA reporting process by collecting employee hours from multiple systems, monitoring eligibility, generating accurate 1094-C and 1095-C forms, and electronically filing them with the IRS, reducing manual work and minimizing errors.

How does ACA-Track handle variable hour and part-time employee data for ACA reporting?

ACA-Track tracks actual hours worked by all employee types, including part-time and variable-hour workers, to accurately determine full-time equivalent (FTE) status, ensuring correct eligibility assessment and compliance with ACA measurement and stability periods.

Can ACA-Track electronically file ACA reports directly with the IRS?

Yes, ACA-Track generates IRS-compliant XML files for 1094-C and 1095-C forms and supports direct electronic filing with the IRS, including managing necessary approvals such as the Transmitter Control Code (TCC) for employers required to file electronically.

How does ACA-Track help prevent ACA reporting errors and penalties?

ACA-Track includes built-in validation tools and color-coded alerts to identify data inconsistencies and errors before submission. It also maintains secure, centralized records to support quick corrections and efficient responses to IRS penalty notices or audits.

Is ACA-Track secure and compliant with data protection standards?

ACA-Track operates within a SAS 70 and SSAE 16 certified data center, is SOC 2 type 2 compliant, encrypts personally identifiable information, and uses secure HTTPS transmissions, ensuring high standards of data privacy and security for ACA compliance data.

How ACA-Track Automates 1094 and 1095 Reporting: Simplifying ACA Compliance for Employers

The Affordable Care Act (ACA) imposes rigorous requirements on Applicable Large Employers (ALEs) to offer qualifying health coverage and accurately report this information annually to the IRS. Meeting these requirements can be complex and time-consuming, especially for organizations with large or variable workforces. That’s where ACA-Track comes in—a comprehensive, automated solution designed to simplify ACA compliance, especially the critical 1094 and 1095 reporting processes.

What Are 1094 and 1095 Forms and Why Are They Important?

Before diving into how ACA-Track automates these forms, it’s important to understand their roles:

Form 1095-C: Provided to employees, this form details the health insurance coverage offered (or not offered) by their employer during the year. It includes information on coverage affordability, minimum value, and employee status.
Form 1094-C: The transmittal form sent to the IRS summarizing the 1095-C forms filed by the employer. It acts as a cover sheet to the bulk IRS submission.

Failure to file these forms correctly and on time can result in significant penalties for employers, including fines that can reach into the hundreds of thousands or more.

The Challenge of ACA Reporting

ACA compliance requires accurate tracking of every employee’s hours worked—including full-time, part-time, and variable-hour employees—to determine eligibility for coverage and report it accordingly. Data needed for ACA reporting comes from various departments: payroll, HR, benefits, and finance, often in different formats and systems.

Manually collecting, reconciling, and reporting this data for hundreds or thousands of employees can lead to errors, missed deadlines, and costly penalties.

How ACA-Track Automates 1094 and 1095 Reporting

1. Seamless Data Collection and Integration

ACA-Track automatically collects actual hours worked for every employee, including variable-hour and part-time workers, by integrating with virtually any payroll system, HRIS, or financial management software. It supports multiple data sources:

Timekeeping systems
Manual timesheets
Automated time clocks
Employee mobile entries

This integration eliminates the need for manual data gathering and reduces errors caused by fragmented data.

2. Advanced Monitoring of Employee Eligibility

ACA-Track monitors employee eligibility thresholds such as average weekly hours to determine full-time equivalent status. It provides advance alerts if an employee’s hours exceed ACA thresholds, ensuring timely offers of coverage. The software also tracks employee events such as leaves and waivers that impact coverage eligibility.

3. Accurate, Customizable Reporting

ACA-Track electronically generates IRS-compliant 1094-C and 1095-C forms. It organizes all required employee data into the correct format, ensuring that the filings meet IRS schema requirements. Key features include:

Customizable dashboards to view the data that matters most
Snapshot summaries that preserve data views at specific points in time
Color-coded alerts for missing or unusual data
Flexible configuration options for measurement and stability periods, waiver codes, and affordability thresholds

4. Electronic Filing with the IRS

For employers with 250 or more employees (who are required to file electronically), ACA-Track creates and submits the XML files directly to the IRS through the AIR (Affordable Care Act Information Returns) system. The software also helps employers obtain and maintain the necessary Transmitter Control Code (TCC) for electronic filing.

5. Error Detection and Correction

One of ACA-Track’s strengths is its ability to identify and help fix reporting errors before submission. With built-in validation against IRS rules, ACA-Track reduces the likelihood of receiving costly IRS 226-J penalty letters by catching common mistakes related to coverage offers, employee statuses, and data consistency.

6. Centralized Data Storage for Easy Audit Retrieval

All ACA-related data—hours worked, coverage offers, waivers, and reporting forms—are stored securely in the ACA-Track cloud environment, ensuring easy retrieval in case of IRS audits or state healthcare exchange requests. The platform maintains SAS 70, SSAE 16, and SOC 2 type 2 compliance to safeguard sensitive employee information.

Additional Benefits of Using ACA-Track for ACA Reporting

Dedicated Client Success Advisors to help your organization every step of the way
Flexible pricing and plans to fit businesses of all sizes
Supports monthly ACA 1095-C line code audits for ongoing compliance assurance
Detailed reporting and exporting options (Excel, PDFs) to facilitate internal review and record keeping
Handles both fully insured and self-insured plan reporting requirements seamlessly

Why Automate ACA Reporting?

By automating 1094 and 1095 reporting with ACA-Track, organizations avoid:

Manual errors and misclassifications
Missed deadlines risking penalties up to $270 per return (increasing for late or missing filings)
The headache of collating data from multiple sources and formats
Complex IRS schema validation and electronic filing challenges
Difficulty responding promptly to IRS penalty notices (like Letter 226-J)

Automation helps keep compliance straightforward, reliable, and audit-ready.

Final Thoughts

ACA compliance doesn’t have to be overwhelming. The ACA-Track platform offers a proven, data-driven, and secure solution to manage ACA reporting requirements—automating 1094 and 1095 forms creation, electronic IRS submission, and ongoing employee eligibility monitoring.

For employers looking to simplify ACA compliance and avoid costly penalties, ACA-Track is the tool designed to make reporting effortless, accurate, and compliant.

To learn more about how ACA-Track can transform your ACA reporting process, visit ACA-Track today and explore their tailored solutions.

This article is intended for informational purposes only and is not legal or tax advice. Employers should consult with qualified professionals for specific guidance on ACA compliance.