How can ACA-Track help me prepare for an IRS audit?

ACA-Track simplifies the IRS audit process by securely storing all your ACA compliance data, including employee hours worked, eligibility tracking, and 1095-C forms. The platform ensures that your data is accurate and accessible, reducing the risk of penalties during an audit.

What kind of data does ACA-Track collect to support IRS audit readiness?

ACA-Track collects all necessary data to support IRS audit readiness, including employee hours worked, eligibility thresholds, waiver information, and the details of health insurance coverage offered. It integrates with your payroll and HR systems to ensure the accuracy and completeness of the data.

How does ACA-Track handle ACA form generation for IRS filing?

ACA-Track automates the generation of 1094-C and 1095-C forms, ensuring that the data is correct and up to date. It also handles e-filing directly with the IRS, simplifying the reporting process and reducing the chances of errors that could trigger an audit.

Can ACA-Track help with correcting ACA reporting errors during an audit?

Yes, ACA-Track can detect and correct errors in ACA reporting before forms are submitted to the IRS. If errors are found during an audit, ACA-Track provides a detailed audit trail and makes it easy to correct discrepancies to avoid penalties.

What should I do if I receive an IRS penalty notice related to ACA compliance?

If you receive an IRS penalty notice, ACA-Track helps you understand the source of the issue and supports you in resolving it. With ACA-Track, you can access detailed records and provide the necessary documentation to respond to the IRS, reducing the chances of ongoing penalties.

IRS Audit? Here’s How to Be Prepared with ACA-Track

Navigating the complexities of the Affordable Care Act (ACA) can be a daunting task for employers. From tracking hours worked by employees to submitting intricate IRS forms like 1094-C and 1095-C, the process is filled with potential pitfalls. One area that can be especially overwhelming is the threat of an IRS audit, where companies are required to demonstrate their compliance with ACA regulations. Luckily, ACA-Track is here to simplify the entire process and ensure that your company remains compliant—giving you peace of mind if the IRS comes knocking.

What is ACA-Track?

ACA-Track is a comprehensive ACA compliance tracking system designed to help businesses stay in full compliance with ACA regulations. Powered by PSST, a software development firm with over 30 years of experience, ACA-Track integrates seamlessly with your payroll, HRIS, and financial management systems. This makes it easy for employers to track employee hours, determine eligibility, generate necessary reports, and ensure compliance, all while keeping data secure and easily accessible.

You can find out more about ACA-Track here.

Key Features of ACA-Track:

ACA 1095-C Monthly Line Code Audits: ACA-Track audits 1095-C forms to ensure that they are accurate, reducing the likelihood of reporting errors.
Variable Hour Tracking: Tracks variable hour employees, ensuring you don’t miss out on any ACA compliance requirements.
Electronic Filing: ACA-Track can electronically file 1094-C and 1095-C reports with the IRS, ensuring compliance and eliminating paperwork hassles.
Dedicated Client Success Advisors: A team of experts is available to guide you through every step of ACA compliance, from setup to ongoing support.

How ACA-Track Helps in Preparing for an IRS Audit

1. Centralized Data Collection

An IRS audit typically involves an in-depth review of employee records, including how many hours your employees worked, whether they were eligible for health coverage, and if the necessary forms were filed with the IRS. With ACA-Track, you can easily collect all employee data from various systems—whether it’s timekeeping software, manual timesheets, or mobile entries. This centralized system makes it easy to retrieve and present the data in an IRS-compliant format when you need it most.

Employee Hours Worked: ACA-Track tracks the actual hours worked by all employees, including full-time, part-time, variable-hour, and seasonal workers.
Employee Eligibility Monitoring: ACA-Track helps you monitor employee eligibility for health coverage by tracking their hours and sending alerts when thresholds are exceeded.

2. Comprehensive Reporting and 1095-C Forms

One of the key requirements during an IRS audit is the submission of accurate 1095-C forms, which outline the health insurance coverage offered to your employees. ACA-Track generates these forms electronically and ensures they are accurate and complete. The system also allows you to report information to both the IRS and employees—something that’s vital in the event of an audit.

1095-C Monthly Line Code Audits: ACA-Track automatically audits your 1095-C forms for accuracy, preventing potential issues that could arise during an audit.
Electronic Filing: ACA-Track allows you to file your reports directly with the IRS in the required XML format, ensuring that your reporting is up to date and compliant with all IRS regulations.

3. Error Prevention and Correction

If there are any discrepancies or errors in your ACA reporting, ACA-Track helps you identify and fix them early. The platform provides detailed audit trails and allows you to make corrections before you submit your reports to the IRS, reducing the likelihood of penalties or fines.

Error Notifications: The system provides color-coded alerts for any data inconsistencies, making it easy to spot and fix errors before they become a major issue.
Fix ACA Reporting Errors: If errors are found after submission, ACA-Track offers tools to help correct them and file corrected reports promptly.

4. Data Security and Compliance

Data privacy and security are critical concerns, especially when handling sensitive employee information. ACA-Track provides a cloud-based platform that is compliant with strict data security standards. Your employee data is encrypted and stored securely, and all transfers are done using HTTPS, ensuring that your data remains safe, even in the event of a breach.

Secure Data Storage: ACA-Track’s SAS 70 and SSAE 16 certified cloud data center ensures your data is always safe and compliant.
Confidentiality: Personal identifying data is encrypted, providing an added layer of security in case of any breaches.

5. Automatic Updates and Flexibility

The ACA regulations are subject to changes over time, and staying up to date with these changes is essential for compliance. ACA-Track keeps you updated with the latest rule changes and automatically adjusts your system to reflect new requirements. You also have the flexibility to configure the software based on your company’s unique needs, including measurement periods, affordability percentages, and more.

Up-to-Date Regulations: ACA-Track automatically updates to reflect any changes in ACA compliance rules, ensuring you always meet the latest requirements.
Customizable Configuration: Tailor ACA-Track to meet your organization’s specific needs, such as setting up employee measurement periods, waiver codes, and other customizable fields.

Why is ACA Compliance So Important?

Failing to comply with ACA regulations can lead to serious consequences. The IRS has the authority to impose penalties for non-compliance, which can add up quickly, especially if errors are discovered during an audit. For example:

Fines for Non-Compliance: If you fail to file accurate 1095-C forms, you could face fines of up to $270 per form. If you miss the filing deadlines or make mistakes, the penalties increase significantly.
Employer Shared Responsibility Payment: If you do not offer adequate coverage to your employees, you may be required to pay a per-employee, per-month penalty. This can be up to $2,000 per full-time employee (excluding the first 30 employees).

How ACA-Track Helps You Avoid Penalties:

By streamlining the entire ACA compliance process—from data collection and reporting to error correction—ACA-Track minimizes the risk of non-compliance. The system ensures that your company files accurate forms on time and provides you with the necessary tools to make corrections if needed. This significantly reduces the risk of costly fines and penalties.

Conclusion

Being prepared for an IRS audit is crucial for any employer, especially in the era of the Affordable Care Act. ACA-Track simplifies the process by offering a user-friendly, secure, and comprehensive solution for ACA compliance. With features like monthly line code audits, error prevention tools, electronic filing, and robust data security, ACA-Track makes it easier for employers to stay compliant, even under the scrutiny of an IRS audit.

Whether you’re managing ACA compliance for a single company or handling it for multiple clients, ACA-Track has the flexibility and support you need. With the help of a dedicated Client Success Advisor, you can confidently navigate the complexities of ACA reporting and avoid costly mistakes.

To learn more about how ACA-Track can help your business stay ACA-compliant, visit their website.