Real-Time ACA Tracking: The Benefits for Large Employers
For large employers, staying compliant with the Affordable Care Act (ACA) can be a complex and time-consuming challenge. The rules require precise tracking of employee hours, eligibility monitoring, and accurate reporting to the IRS — all while minimizing costly errors and potential penalties. That’s where real-time ACA tracking shines as a game changer.
In this blog post, we’ll explore why real-time ACA tracking is essential for large employers, the specific benefits it offers, and how a dedicated solution like ACA-Track can make ACA compliance simpler, more accurate, and less stressful.
Understanding the ACA Compliance Challenge for Large Employers
What Makes an Employer “Applicable Large Employer” (ALE)?
Under Section 4980H of the Internal Revenue Code, employers with 50 or more full-time employees (including full-time equivalents) are considered Applicable Large Employers (ALEs). ALEs must offer affordable health insurance that meets minimum value standards to their full-time employees or risk facing IRS penalties.
Why Tracking Hours Matters
A full-time employee, for ACA purposes, is anyone who works on average 30 or more hours per week or 130+ hours per month. However, many employers have a workforce that includes variable hour, part-time, and seasonal employees, making it critical to monitor actual hours worked closely.
Without accurate tracking, employers may miss offering coverage to employees who qualify, exposing themselves to penalties and IRS scrutiny. Conversely, overestimating hours can lead to unnecessary benefit expenses.
What Is Real-Time ACA Tracking?
Real-time ACA tracking means continuously collecting and monitoring employee hours worked as they occur, integrating data from multiple sources such as payroll systems, time clocks, mobile apps, and manual timesheets. It provides an up-to-date view of each employee’s eligibility status under ACA rules.
Benefits of Real-Time ACA Tracking for Large Employers
1. Proactive Eligibility Monitoring
Real-time data helps employers identify when employees cross eligibility thresholds—such as averaging 30 hours per week—well in advance. This allows organizations to make timely offers of health coverage and avoid penalties.
ACA-Track’s system, for example, sends advance alerts when employees exceed eligibility thresholds or when certain employee events like leave or waivers occur, enabling proactive management.
2. Accurate Reporting with Less Risk of Error
ACA reporting requires submission of Forms 1094-C and 1095-C to the IRS and providing individualized 1095-Cs to employees. The data comes from HR, payroll, benefits, and time tracking, making it complex to compile.
By integrating all data sources into one centralized platform, real-time tracking reduces errors and ensures consistent, reliable data for IRS reporting. ACA-Track even supports monthly line code audits and error corrections before filing, minimizing the chance of penalty-triggering mistakes.
3. Streamlined Compliance and Auditing
Maintaining all ACA compliance data in a single, secure location makes it easy to retrieve information quickly during an IRS audit or state healthcare exchange requests.
ACA-Track’s snapshot summary feature preserves employee ACA data views over time, showing payroll data, hours worked, and insurance status as they were at specific points. This historical data tracking is invaluable for audits and compliance verification.
4. Simplified Data Integration
Large employers often operate multiple payroll and HRIS systems. Real-time ACA tracking platforms like ACA-Track are built to integrate smoothly with nearly any payroll or HR system, consolidating data effortlessly.
5. Enhanced Security and Privacy
Employee data security is paramount. ACA-Track operates in a cloud-based, SAS 70 certified data center with encryption, Secure HTTPS transfers, and compliance with SOC 2 type 2 standards, ensuring personal and ACA data remains protected.
6. Dedicated Client Support
Beyond technology, real-time tracking services like ACA-Track provide a dedicated Client Success Advisor who assists with setup, configuration, and ongoing compliance questions — reducing the burden on internal teams.
Why Choose ACA-Track for Real-Time ACA Tracking?
ACA-Track is a proven ACA compliance solution trusted by large employers nationwide. It offers:
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Comprehensive ACA Compliance Services: From collecting actual employee hours (variable, full-time, part-time, substitute) to monthly line code audits and federal/state reporting.
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Full Data Integration: Seamless connection with any payroll or HRIS system to collect hours worked.
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Flexible Configuration: Customizable measurement, administrative, and stability periods; affordability thresholds; waiver codes, and more.
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User-Friendly Interface: Customizable dashboards, filters, color-coded alerts for errors, and export functionality for deep analysis.
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Secure Cloud Hosting: Ensuring data privacy and compliance with industry security standards.
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Electronic IRS Filing: Generates IRS-ready XML files and supports electronic submissions with TCC approval management.
Find out more about how ACA-Track can tailor its plans and pricing to fit your organization’s unique needs and take the guesswork out of ACA compliance at ACA-Track.
Conclusion
For large employers facing complex ACA regulations, real-time ACA tracking isn’t just a luxury — it’s a necessity. It enables proactive eligibility monitoring, reduces reporting errors, streamlines compliance efforts, and safeguards against costly IRS penalties.
Leveraging a robust solution like ACA-Track empowers your organization to confidently manage ACA requirements, freeing your HR, payroll, and benefits teams to focus on other strategic initiatives.
Stay ahead of the curve. Stay compliant in real time with ACA-Track.
If you’d like to learn more or request a demo, visit ACA-Track today!
