ACA Compliance Checklist: Is Your Organization Ready?
The Affordable Care Act (ACA) introduced significant reporting and compliance requirements for businesses. While these regulations aim to ensure access to affordable healthcare, they also present challenges for employers navigating eligibility, affordability, and IRS reporting. This checklist provides actionable steps to simplify ACA compliance and avoid costly penalties.
Understanding the Basics of ACA Compliance
Employers with 50 or more full-time equivalent employees (FTEs) are required to offer health coverage that meets minimum standards of affordability and file the necessary IRS forms. Falling short can lead to significant penalties. Tools like Paycor’s ACA solutions make this process manageable by automating key components.
Steps for Ensuring ACA Compliance
1. Determine Your Employer Status
Are you classified as a large employer under the ACA? Paycor’s Large Employer Analysis Report allows businesses to calculate whether they meet the 50 FTE threshold. For employers on the edge, managing employee hours strategically can make a critical difference.
2. Assess Health Plan Affordability
Affordable coverage is a cornerstone of ACA compliance. With Paycor’s ACA Affordability Report, employers can compare taxable income to health plan deductions, taking the guesswork out of affordability calculations.
3. Identify Full-Time Employees
Not all employees are eligible for health coverage under the ACA. Paycor’s Employee Eligibility Report identifies which employees meet the ACA’s definition of full-time status, helping organizations determine eligibility quickly.
4. Define Measurement and Stability Periods
Keeping track of measurement and stability periods is essential. Time and Attendance tools simplify this process, ensuring accurate tracking for ACA reporting.
5. File IRS Forms 1094-C and 1095-C
Filing accurate IRS forms is critical to ACA compliance. Paycor’s ACA IRS Filing solution guides employers step-by-step through the reporting process, reducing errors and ensuring timely submissions.
Why Compliance Matters
Non-compliance with the ACA carries steep penalties, including fines of up to $100 per return, capped at $1.5 million annually. Beyond the financial implications, non-compliance can damage an organization’s reputation, affecting both employee trust and business operations.
Tools to Simplify ACA Compliance
HR tools, such as those offered by Paycor, automate and streamline ACA compliance tasks. From analyzing eligibility to generating reports, these solutions reduce administrative burden and provide peace of mind for employers.
Take Action Today
ACA compliance may seem daunting, but with the right tools and approach, it becomes a manageable task. Start by reviewing your organization’s readiness using this checklist. Ensure you have the necessary systems in place to track eligibility, assess affordability, and file IRS forms accurately. Tools like Paycor’s suite of HR solutions can help simplify the process and reduce the risk of penalties.
Don’t wait—ensure your ACA compliance readiness today. Your employees and your bottom line depend on it.
Ready to Transform Your Employee Benefits Operations?
Encourage employers to review their ACA compliance readiness using the checklist and consider using HR tools like Paycor to streamline the process.
Contact EvolvHR today to learn how we can help you implement these strategies and build a stronger, more resilient organization.