The Affordable Care Act (ACA)

ACA reporting and & compliance solutions

Our ACA compliance software solution helps you track the information you need to offer the right health insurance plans to the right employees at the right time.

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The Affordable Care Act (ACA) is a healthcare reform law that introduced protections for pre-existing conditions and made essential health benefits more accessible to Americans.

For entrepreneurs, it dictates that businesses with 50 or more full-time employees and full-time equivalents (FTEs) must offer employees ACA-eligible health insurance coverage or risk IRS penalties for non-compliance.

Timeline of ACA events

The Affordable Care Act passes. Businesses with 49 full-time employees and FTEs or less are not impacted.

Employers are required to begin reporting on health plans and associated employee elections.

Technology helps monitor ACA eligibility, helping businesses avoid costly non-compliance fees.

How do you stay out of hot water? That depends.

If you have less than 50 FTEs and choose to provide health insurance, you may have reporting obligations. If you have over 50 FTEs, you’re an Applicable Large Employer (ALE) and are required to do all of the following.

Navigate ACA complexities with confidence

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Run monthly reports on full-time employees and equivalents

Use our pre-built full-time employees and FTEs report to determine your ALE status over a designated measurement period, potentially saving you fees and frustration.

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Receive real-time eligibility notifications

Integrate payroll, benefits administration and Nimble, our ACA reporting partner to track which employees are eligible for coverage and who accepted or waived coverage.

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Track ACA data throughout the year

Say goodbye to system lockdowns. Our tech is here for you year-round, recording the data you need on ACA-compliant plans, eligibility, employee health plan elections and more.

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Outsource year-end completion and filing of tax forms

Let us complete and file the necessary 1094 and 1095 forms to report to employees and the IRS on coverage offered, open enrollment periods and premium costs.

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Fix problems with HR on Demand service and resources

Receive unlimited assistance from a team of certified HR professionals on ACA-related questions and so much more. Paired with a 24/7 resource hub, you’ll get the support you need to manage every stage of the employment lifecycle.

Key features:

  • Timely compliance alerts
  • Employee handbook development
  • Document and policy customization
  • State and federal postings

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Get proactive with a personalized HR Complete plan

Combine all the features of HR on Demand with a dedicated, full-time HR partner. They’ll create a custom plan to increase business stability, minimize compliance anxiety and help your business flourish.

Partner milestones:

  • Intake questionnaire and data analysis
  • 12-month improvement plan
  • Monthly check-in meetings
  • Quarterly business report
  • Annual Q4 report

Discover Payroll+

From open enrollment to time tracking and everything in between, over 50,000 clients trust our tech to streamline operations, boost efficiency and prevent painful payroll errors.

ACA compliance FAQs

If you have 50 or more full-time equivalent (FTE) employees, the ACA requires that you offer health insurance and report this to the IRS. ACA software automates and streamlines many of these tasks. Even if your business has less than 50 employees, while the mandate may not apply, ACA software can still provide insights on medical care and mental health benefits management. 

When choosing ACA compliance software, consider the size of your business, your specific needs, the software's user-friendliness and its integrations with other systems you use.

In addition to managing compliance and avoiding potential penalties, ACA compliance software can simplify administrative tasks, reduce reporting errors and assist you in making informed decisions about health insurance product offerings based on employee data like household income or number of dependents.

The cost of ACA compliance software varies based on features, the complexity of integrations, and the size of the business it's serving. Most providers offer scalable solutions, and the cost of non-compliance (penalties and legal issues) can far outweigh the software's price.

As part of the Affordable Care Act (also sometimes called Obamacare), the government requires business owners to submit reports on the ACA-compliant health insurance you may be offering eligible employees. ACA compliance software assists everyone from small groups to big businesses in tracking employee hours, determining eligibility, generating necessary reports and generally meeting ACA standards.

Two women standing behind a check-out counter talking in a store.
What is ACA reporting?

The federal government requires business owners like you to submit specific, sometimes complicated, reports on the healthcare coverage being offered to employees. In this article, we take a detailed look at the IRS requirements for ACA-compliant reporting.

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If you’re considering investing in employee wellness by offering a 401(k) plan, this educational guide has everything you need to know, including key changes for 2023 and beyond.

Get preventative care for your compliance woes

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