The Affordable Care Act (ACA) carries many complexities for businesses. Mistakes in tracking and reporting can lead to costly penalties.
If your business qualifies as an applicable large employer or ALE, you must offer health insurance to your employees. This requires specialized software that automates employee eligibility tracking and offers guidance in preparing 1094/1095 forms for filing with the IRS.
Tracking
What is ACA Compliance? The Affordable Care Act (ACA) has made it possible for millions of Americans to gain access to health coverage. Unfortunately, the act has also brought a host of new compliance requirements for employers. Fortunately, many businesses are turning to ACA compliance software solutions to help them meet these new obligations.
Unlike traditional HR management tools, an ACA compliance solution is designed specifically to help you track employee eligibility and offer of coverage. To do this, it must be able to provide various features, including automatic tracking of employee hours and benefits, accurate generating and filing of 1094/1095 forms, and more.
In addition, an ACA compliance solution should also be able to handle HIPAA-protected personal health information (PHI) with caution. Often, this data is used to report workers’ hours and status to the IRS, so you must ensure that your solution takes the appropriate precautions when handling it.
Reporting
ACA reporting is a complicated and time-consuming task. Employers face numerous deadlines, leading to costly penalties if they are met. Selecting the right ACA compliance software is an important decision for small businesses, as it can help avoid penalties and ensure on-time filing.
An ACA reporting solution allows employers to streamline the process and eliminate errors. This software also helps reduce the burden on HR staff members, as they are not required to prepare and file forms manually. In addition, ACA compliance solutions can automatically generate 1094/1095 forms and offer guidance on the correct filing requirements.
When choosing a vendor, ensure they can handle federal and state filings. Additionally, a reputable business can support and assist with any issues arising during the filing process. Lastly, verify that the vendor can generate accurate IRS safe harbor codes for each employee. This will help to prevent any issues when filing with the IRS. Moreover, choosing a company that can deliver live data throughout the year is recommended, as this will provide peace of mind and ensure on-time filing.
Compliance
The ACA requires businesses that employ 50 or more full-time equivalent employees (FTEs) to offer healthcare coverage to them or pay a penalty. It also mandates that these large employers use forms 1094 and 1095 to report the offer of coverage to the IRS.
Using an ACA software solution to manage ACA compliance will help you ensure that your business remains compliant. Your team will be able to track and record coverage for each employee and keep a storehouse of ready-to-go data for the ongoing requirements of the ACA.
Depending on your ACA compliance software, you might be handling HIPAA-protected personal health information (PHI). If this is the case, look for an ACA software solution that treats worker data carefully to avoid violating PHI regulations.
Integrations
The Affordable Care Act, or Obamacare, aims to make healthcare accessible and affordable for all Americans. The government has established specific regulations that apply to businesses over a certain size threshold, requiring them to offer employees health insurance and keep meticulous records of their coverage to prove compliance.
ACA reporting software aims to ease the burden on businesses by automating key tasks and providing real-time data and visibility. It offers an easy-to-use dashboard that displays employee information in a single location, eliminating the need to track and enter data across multiple spreadsheets manually. It also offers accurate generating and filing of 1094/1095 forms, helping businesses meet deadlines and avoid penalties for non-compliance.
The best ACA compliance management tools are fully integrated with payroll, time-capture, and benefits systems, ensuring accuracy and reducing the risk of error in manual processes. With these tools, organizations can focus more on achieving their business goals and less on handling complicated administrative duties. The top ACA compliance solutions also feature customizable workflows and alerts to ensure the timely delivery of required documentation.
Security
The ACA (Obamacare) has created new challenges for small businesses. Maintaining the requirements and tracking employee eligibility status is complex and time-consuming. But, some solutions can help you manage the complexities of the ACA while saving you time and money.
Compliance software is designed to automate and elevate the ACA reporting process; compliance software eliminates the need for manual work, saves you time, guarantees adherence to compliance standards, and shields you from fines. The best ACA reporting software allows you to track employees’ eligibility status, generate and file 1094 and 1095 forms with the IRS, and provide detailed feedback on submission status and full history.
