Why You Need an ACA Tracking Software: A Comprehensive Guide
The Affordable Care Act (ACA) is a monumental piece of legislation that imposes compliance obligations on employers of certain sizes, particularly Applicable Large Employers (ALEs). For businesses, especially those with over 50 full-time employees (or full-time equivalent employees), ACA compliance can be complex, requiring meticulous tracking, reporting, and documentation of employee healthcare benefits. Without the right tools in place, the consequences of noncompliance can be costly. This is where ACA tracking software like ACA-Track can make a significant difference.
The Importance of ACA Tracking
The ACA imposes requirements on employers to provide affordable health insurance to their full-time employees or face potential penalties. To ensure compliance, employers must track a variety of employee data points, including hours worked, eligibility for coverage, and whether the coverage provided meets the standards set by the ACA. The complexities of this process can overwhelm even the most organized HR departments, especially when working with variable-hour employees, part-timers, and large employee bases spread across multiple systems.
Here’s why your business needs ACA tracking software:
1. Comprehensive Employee Data Collection
Tracking employee hours and eligibility can be daunting, particularly for businesses with variable hour employees. ACA-Track simplifies this by offering a robust system that collects actual hours worked for all employee types, from full-time to part-time, variable hour, and even substitute workers. This data can be sourced from multiple systems including timekeeping tools, payroll software, and manual time sheets, ensuring that all your data is captured accurately.
In addition to the raw data, the software integrates seamlessly with existing payroll systems, HRIS platforms, and financial management tools. This integration streamlines the entire process of gathering and verifying employee information, making it easier to ensure full compliance with ACA rules.
2. Monitor Employee Eligibility with Ease
Once the data is collected, ACA-Track helps monitor employee eligibility for healthcare coverage. The system alerts you in advance when an employee is about to reach an eligibility threshold, ensuring that your organization provides coverage at the right time. This is especially crucial for employers with variable-hour employees who may qualify for coverage based on the hours worked over a measurement period.
By constantly monitoring employee status—whether they’re on leave, have opted for a waiver, or reached the threshold for coverage—ACA-Track reduces the risk of errors and missed deadlines. These proactive alerts help businesses stay ahead of compliance requirements, avoiding the risk of penalties for failing to offer coverage when it’s due.
3. Simplified Reporting for ACA Forms
ACA-Track takes the headache out of filing the required IRS forms. Generating and submitting Forms 1095-C and 1094-C (the primary ACA reporting forms) can be an arduous task without the right software. ACA-Track automates this process, ensuring that the information required by the IRS is accurate, comprehensive, and submitted on time.
Whether you’re filing electronically through an XML file or need assistance with state-level reporting, ACA-Track has you covered. The software is designed to generate the necessary reports, file them electronically with the IRS, and even manage corrections if mistakes are found, which is a common challenge for businesses navigating the intricacies of ACA compliance.
4. Customized Dashboards and User Interface
Navigating the complexities of ACA compliance reporting can be overwhelming. ACA-Track solves this by providing a highly customizable dashboard, allowing businesses to tailor the data and fields they need to see. You can sort, filter, and group data to make the process more efficient and aligned with your specific needs.
Additionally, ACA-Track’s “Snapshot Summary” feature preserves your employee data over time, allowing for an easy comparison of the data in its original form. This feature ensures that you’re able to quickly retrieve past records if an audit or investigation occurs, offering additional peace of mind.
5. Data-Driven Insights for Decision Making
ACA compliance is all about precision. ACA-Track provides users with powerful tools to analyze the data thoroughly. With options to filter data by ACA status, full-time or part-time status, location, and more, ACA-Track enables decision-makers to dive deep into the details. Color-coded warnings for errors or unusual data increase efficiency and minimize the chances of overlooking important compliance information.
The software also offers features like the ability to export data to Microsoft Excel for further analysis. Whether you’re a novice or a power user, ACA-Track is designed to provide all the functionality you need, in a format you can understand and use to make informed decisions.
6. Secure, Cloud-Based Solution
Security is a paramount concern when dealing with sensitive employee data. ACA-Track’s cloud-based infrastructure is designed with security in mind. The platform is SAS 70 certified and follows the SSAE 16 standard, ensuring your data is protected with the highest level of encryption. Personal identifying information is encrypted, reducing the risk of exposure in the event of a data breach.
Data transfers are conducted using Secure Hypertext Transfer Protocol (HTTPS), further safeguarding the integrity of your information. ACA-Track’s secure design ensures that your business complies not just with ACA regulations, but also with privacy laws governing employee data.
7. Dedicated Client Success Advisor
ACA compliance isn’t a one-time event; it’s an ongoing responsibility. That’s why ACA-Track provides each client with a dedicated Client Success Advisor who offers personalized support and guidance throughout the compliance process. Whether you need assistance setting up your system, handling reports, or addressing complex issues, your advisor is always there to help.
With ACA-Track, you can rest assured that you’re not only using top-tier software but also receiving the human support necessary to make ACA compliance a seamless part of your business operations.
8. Affordable and Scalable Plans
Every business has different needs, and ACA-Track understands that. The software offers flexible plans and pricing that can be tailored to fit the size of your organization, whether you’re a small business, a growing startup, or a large enterprise. No matter your industry or workforce size, ACA-Track ensures that your business can scale its compliance efforts without breaking the bank.
Consequences of Non-Compliance: Why You Can’t Afford to Skip ACA Tracking
Failing to comply with ACA regulations can lead to severe financial penalties. The IRS imposes significant fees for employers who don’t file timely or accurate reports. For example, penalties for failing to file ACA forms or provide them to employees can reach up to $270 per return, with maximum penalties in the millions of dollars. Beyond financial penalties, non-compliance can also result in audits and additional scrutiny from regulators.
Given these high stakes, investing in ACA tracking software like ACA-Track is a smart and cost-effective way to ensure compliance and protect your business from potential fines and penalties.
Conclusion: ACA-Track Simplifies Compliance
Tracking and reporting ACA compliance data doesn’t have to be complicated. With ACA-Track, your business can easily collect, monitor, and report on employee health insurance coverage and eligibility. From full-time employees to variable-hour workers, ACA-Track streamlines the entire process, giving you peace of mind that you’re meeting your ACA obligations.
With its user-friendly interface, secure cloud-based platform, and dedicated client support, ACA-Track offers a comprehensive solution that businesses of all sizes can rely on to stay compliant. Whether you’re dealing with hundreds of employees or need to ensure ACA compliance for your clients, ACA-Track is the tool you need to simplify your ACA compliance efforts and avoid costly penalties.
Don’t wait until it’s too late—get started with ACA-Track today and safeguard your business against the risks of noncompliance.
