Proactive ACA Monitoring: Catch Problems Before They Start
Navigating the complex world of Affordable Care Act (ACA) compliance can be daunting for many employers, especially Applicable Large Employers (ALEs) who must meet stringent requirements for health coverage offers and reporting. Missing a deadline or overlooking employee eligibility can lead to costly penalties and IRS scrutiny. That’s why proactive ACA monitoring is critical—not just to stay compliant, but to catch potential issues before they snowball into major problems.
In this post, we’ll explore how businesses can benefit from a proactive approach to ACA compliance, how modern technology solutions like ACA-Track simplify the process, and why early detection is the key to peace of mind.
Why Proactive ACA Monitoring Matters
ACA compliance is not a once-a-year chore. It requires ongoing attention to employee hours, eligibility, and documentation to ensure employers offer appropriate coverage and accurately report to the IRS. Here’s why proactive monitoring is essential:
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Avoid Penalties and Fees: The IRS imposes substantial fines for late or incorrect ACA reporting and for failing to offer minimum essential coverage to full-time employees. Penalties for 2020 filings alone could reach up to $270 per form, doubled if the filing or furnishing is neglected entirely.
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Stay Ahead of IRS Audits: The IRS sends penalty notices (such as Letter 226-J) to employers suspected of non-compliance. Early detection of data errors or coverage gaps can prevent these costly letters and the stressful audit process.
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Manage Variable Hour and Part-Time Employees: Employers must track actual hours worked by variable and part-time workers to determine their eligibility for coverage. Without proactive tracking, it’s nearly impossible to accurately assess employee status and avoid liability.
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Streamline Reporting Processes: Accurate and timely reporting of Forms 1095-C and 1094-C requires integrating data from payroll, HR, benefits, and timekeeping systems. Proactive monitoring keeps data clean and compliant throughout the year.
ACA-Track: Your Partner in Proactive ACA Monitoring
For employers looking to stay one step ahead, ACA-Track offers a comprehensive ACA compliance solution that automates tracking, monitoring, and reporting — all in one secure, easy-to-use platform.
How ACA-Track Supports Proactive Compliance
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Complete Data Collection: ACA-Track collects actual employee hours worked across all employee types—full-time, part-time, variable hour, substitute, and paraprofessionals. It integrates seamlessly with payroll, timekeeping, mobile, and HRIS systems to ensure no data gaps.
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Real-Time Eligibility Monitoring: ACA-Track monitors employee eligibility thresholds and sends advance alerts when employees approach or exceed the 30-hours-per-week ACA full-time threshold. This allows HR and benefits teams to proactively address coverage offers or waivers.
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Customizable Dashboard and Snapshots: The platform’s customizable interface provides quick views of ACA status, with snapshot summaries that preserve historical payroll and insurance data. This makes it easier to track changes over time and respond promptly to anomalies.
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Accurate Reporting with Confidence: ACA-Track electronically generates IRS-compliant XML files for Forms 1094-C and 1095-C, simplifying federal and state reporting requirements. Plus, all employee ACA data is maintained in a single location for audit readiness.
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Flexible Configurations: ACA-Track adapts to your company’s unique ACA measurement, administrative, and stability periods. It allows you to configure hours worked thresholds, waiver codes, and affordability percentages as your needs evolve.
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Secure Cloud-Based Platform: ACA-Track’s data center is SAS 70 certified and SOC 2 Type 2 compliant, with encrypted personal data and secure HTTPS transfers, ensuring that your sensitive employee information is protected.
Catch Issues Before They Become Problems
Imagine the advantage of knowing well before the end of the year that certain employees are trending toward full-time status, or that data inconsistencies exist in your hours tracking. This foresight enables you to:
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Correct Data Errors Early: Identifying and fixing reporting errors months before IRS deadlines prevents last-minute scrambling and costly mistakes.
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Communicate with Employees Promptly: Proactive alerts help HR manage waivers, leaves, and coverage elections in a timely manner, avoiding compliance gaps.
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Prepare Accurate Filings: Early monitoring ensures that all necessary data—from hire dates to coverage offers—is compiled correctly for IRS submissions, reducing the risk of receiving IRS penalty letters like the 226-J.
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Demonstrate Compliance During Audits: Having detailed, date-stamped snapshots of employee hours and coverage offers simplifies audits, helping you prove that your company has met ACA obligations.
Why ACA-Track is the Right Choice for Your Business
ACA compliance requires coordination across multiple departments—benefits, payroll, HR, and finance. Without a centralized solution, this process becomes error-prone and inefficient.
With ACA-Track, you get:
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Dedicated Client Success Advisors who assist you every step of the way, making ACA compliance manageable and less stressful.
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Scalable Pricing and Plans that fit your company or clients’ specific ACA needs.
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Data-Driven Insights with advanced filtering, sorting, and color-coded alerts to highlight unusual data or errors quickly.
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Seamless Integration with your existing payroll, HRIS, or financial management systems for a frictionless experience.
Final Thoughts: Don’t Wait for IRS Notices—Be Proactive
ACA compliance is complex and ever-changing. Waiting until IRS deadlines or penalty notices arrive puts your company at significant financial and operational risk. By adopting proactive ACA monitoring with a trusted partner like ACA-Track, you can catch potential issues early, keep your data accurate, and file with confidence.
Take control of your ACA compliance today—because catching problems before they start isn’t just smart, it’s essential.
For more detailed information on how ACA-Track can help your organization stay compliant and ahead of the curve, visit ACA-Track.
This blog post is intended for informational purposes and does not constitute legal advice. Employers should consult legal or tax professionals for specific guidance related to ACA compliance.
