Many businesses are walking a fine line with Affordable Care Act (ACA) reporting and without close attention to the details, are at risk for falling into trouble with expensive penalties. Don’t let ACA reporting leave you tied up in knots, gain the control and insight you need to manage the data, answer the questions, and accurately prepare the reports required by the IRS.
It already takes a great deal of time to manage industry-specific regulatory requirements and ACA has added to that burden, and then some. The IRS reporting required for the ACA stretches the limits for many employers. As noted in “ACA Reporting Have You Walking The Tightrope?,” an ACA Checklist for 2016 Reporting for you to download, the data needed for Form 1095-C goes well beyond quarterly or annual summaries of payroll data. Businesses need to report payroll and benefits data for each employee, for a full year, broken down on a monthly basis.
You need to capture accurate data - monthly - pertaining to:
Hours of service: The number of hours each employee is available to the employer, as well as paid hours on the job, including sick and vacation time, FMLA absences, jury duty, military deployment, holiday and other time off.
Employee eligibility: You must identify which employees are ‘full-time’ and meet eligibility requirements for health insurance, as well as monitor and be prepared to offer insurance as new employees become eligible.
Testing affordability of coverage: Monitor each employee’s self-only cost of coverage and determine whether it is ‘affordable’ according to ACA requirements. Keep calculation records for each employee case of affordability.
The data you’ve collected then helps you prepare a 1095-C form for each full-time employee at year-end, then file copies using the 1094-C transmittal form to the IRS by the designated deadline.
The type and volume of data required for ACA reporting can be daunting and so are the penalties for getting it wrong. Avoid missteps by deploying our ACA Compliance Solution which offers a 360-degree tracking system, automated data collection and reporting, and seamless integration with your payroll system or with the payroll module of an enterprise resource planning (ERP) solution. Download the infographic and contact Integrity Data to learn how our ACA Compliance Solution can get you off the tightrope and on a secure path toward ACA compliance.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.