How ACA-Track Supports IRS XML File Submissions
Navigating Affordable Care Act (ACA) compliance is a complex task for many employers. From tracking employee hours and eligibility to generating and submitting accurate IRS filings, every step requires precision, security, and timeliness. This is where ACA-Track shines as a comprehensive ACA compliance solution that not only simplifies the entire process but also fully supports electronic IRS XML file submissions, a critical component of ACA reporting.
In this detailed blog post, we’ll explore how ACA-Track supports your IRS XML file submissions, ensuring your company stays compliant with federal ACA regulations with confidence and ease.
Understanding ACA Reporting and IRS XML File Submission
Under the Affordable Care Act, Applicable Large Employers (ALEs)—generally those with 50 or more full-time or full-time equivalent employees—must report information about the health insurance coverage they offer. This involves submitting Form 1094-C (Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns) and Form 1095-C (Employer-Provided Health Insurance Offer and Coverage) to the IRS. The IRS requires these forms be filed electronically if the employer has 250 or more employees, using the IRS XML (Extensible Markup Language) format to transmit the data.
The IRS enforces strict formatting rules and validation schema for these XML submissions. Any errors or deviations can result in rejected files, penalties, or costly delays.
How ACA-Track Simplifies IRS XML File Submission
1. Automated XML File Generation
One of the standout features of ACA-Track is its ability to electronically generate IRS-compliant XML files directly from your ACA data. Once all employee data—including hours worked, insurance coverage, waivers, and eligibility—is collected and validated within ACA-Track, the system seamlessly compiles this information into the IRS-mandated XML format.
This automation eliminates manual file creation or the need for third-party XML converters, reducing human error and saving time.
2. Compliance with IRS AIR Schema
ACA-Track rigorously adheres to the IRS Affordable Care Act Information Returns (AIR) schema. This schema dictates the structure, data elements, and format for XML files submitted for Forms 1094-C and 1095-C. ACA-Track continuously updates its platform to comply with IRS schema changes or reporting requirement updates, ensuring your submissions will be accepted without issue.
3. Pre-Submission Validation and Error Checking
Before submitting XML files to the IRS, ACA-Track runs a comprehensive validation process. This check ensures all data fields meet IRS requirements and highlights errors or inconsistencies in real time.
For example, if an employee’s coverage dates, Social Security numbers, or employer identification numbers are missing or improperly formatted, ACA-Track flags these issues immediately. Early detection means you can resolve errors before submission deadlines, preventing rejections.
4. Electronic Filing Support
For employers with over 250 employees who must file electronically, ACA-Track supports the full electronic transmission process. The platform guides users through obtaining and renewing the IRS Transmitter Control Code (TCC), which is mandatory for electronic filing. ACA-Track also assists in submitting the XML files securely through the IRS AIR system.
5. Secure Data Handling
Security is paramount when dealing with sensitive employee data. ACA-Track’s cloud-based platform is SAS 70 certified and SOC 2 Type 2 compliant, ensuring that your data is encrypted and securely transmitted over HTTPS protocols.
No HIPAA-protected medical information is stored within ACA-Track, and personal identifying data is encrypted at rest. This level of security protects your organization against data breaches during XML file preparation and transmission.
6. Comprehensive Reporting & Audit Support
Beyond IRS XML submission, ACA-Track maintains all ACA compliance data in a centralized location. This data-rich environment enables:
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Generation of IRS forms 1094-C and 1095-C in multiple formats.
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Easy access to historical data snapshots preserving payroll and coverage info as it was at the time of reporting.
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Quick retrieval of data in the event of IRS audits or state healthcare exchange requests.
This makes post-submission correction and response to IRS penalty letters (such as Letter 226-J) more manageable.
Why Use ACA-Track for Your ACA Compliance?
ACA-Track stands out by offering an end-to-end ACA compliance solution that encompasses:
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Monthly line code audits to verify accurate insurance offer codes on 1095-C forms.
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Variable hour employee tracking to properly determine employee eligibility.
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Seamless integration with your existing payroll, HRIS, and financial management systems.
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A dedicated Client Success Advisor to guide you through ACA complexities.
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Customizable dashboards, filters, and export capabilities to give you data-driven insight into compliance status.
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Flexible configuration of measurement, stability periods, affordability percentages, waiver codes, and more.
These features make it easier than ever to compile accurate employee data, create IRS-ready XML files, and submit filings on time — all with minimized risk of penalties.
The Bottom Line
For ALEs facing the demands of ACA compliance, electronic IRS XML file submission is a non-negotiable obligation. ACA-Track supports this process with a robust, secure, and user-friendly platform that automates XML file creation, validates data, and handles the entire electronic submission lifecycle.
Whether you’re just beginning your ACA reporting journey or seeking a better solution to streamline filings and reduce penalties, ACA-Track provides the tools and expertise you need to stay compliant.
To learn more about how ACA-Track can simplify your ACA compliance and IRS XML filing needs, visit ACA-Track today.
