How will the Affordable Care Act (ACA) impact your operations? More importantly, what is ACA reporting and how do you fulfill your requirements? 

As long as you have at least 50 full-time workers, you are required to meet ACA requirements. To fulfill this obligation, many employers turn to ACA reporting services. These professional services make it easier to turn in the appropriate forms to the Internal Revenue Service (IRS) each year. Additionally, the best reporting services can help you determine if you have crossed the threshold for providing health insurance. 

What Are ACA Reporting Services?

What is ACA reporting and how do you have to fulfill these obligations? One of the major ACA requirements is to report which employees were offered coverage and if they accepted that coverage. 

This is done through Form 1095-C. Each year, you must turn in paper copies of Form 1095-C for every worker by February 28. For electronic copies, you have until April 1 to submit them. If you have more than 250 workers, you are required to submit these ACA requirements digitally. 

ACA reporting services help in a few important ways. First, they help you determine how many full-time workers and full-time equivalents (FTEs) you have on your payroll each month. With this information, you can determine if you must offer insurance in the upcoming year. 

In addition, ACA reporting services help you figure out which employees must receive coverage. Under ACA rules for employers, you are required to offer insurance to your full-time employees. ACA reporting services can help you look at the measurement period and calculate which employees must be covered. 

There are other ACA reporting requirements for small employers as well. In addition to submitting Form 1095-C to the IRS, you must also send in a summary of the insurance offered through Form 1094-C. Then, you must give all of your employees a copy of their Form 1095-C. Employees must be given their respective copies of Form 1095-C by March 1. 

While these are the basic ACA reporting requirements for employers, each state has additional rules. By working with a payroll provider, you can easily learn about the rules in your state and how to meet ACA reporting requirements. 

The Advantages of ACA Reporting Services

You are legally obligated to follow ACA reporting requirements for employers. Because meeting ACA reporting requirements can be challenging, many business owners and managers hire outside experts to handle their ACA reporting services. With payroll and HR support, you can enjoy a number of benefits. 

Avoid Penalties 

If you don’t offer insurance to eligible workers, you can end up paying a penalty of $2,970 per employee, minus 30 employees. According to the ACA rules for employers, this penalty is applied even if you provided some of your workers with health insurance. You must offer insurance to at least 95% of your workers, or you are charged this penalty for everyone. 

Simplify Business Operations

If you already use a payroll provider, it makes sense to incorporate your ACA reporting into the same system. Your payroll provider already calculates hours and pay each month, so it only takes them a little more work to handle ACA reporting requirements for small employers. 

Incorporate ACA Codes 

When you work with the best payroll and HR company, ACA codes are automatically updated and incorporated. As a result, you can avoid paying ACA penalties. 

Enjoy Easy 1095-C Form Printing 

Through ACA reporting services, you can easily print and mail Form 1095-C to your workers. You can also access a monthly preview report, so you know what to expect.  

Get Support During Open Enrollment 

When open enrollment rolls around, you are required to offer insurance to eligible employees. The ACA also requires you to provide workers with a notice about the availability of insurance on the Health Insurance Marketplace, which your ACA reporting service can help you with. 

Ensure Compliance

Health insurance laws are incredibly complex, and each state has additional requirements. When you use reporting services, you can easily make sure that you are in compliance with applicable laws. 

Quickly E-File With the IRS

Through the top reporting service, you can get help filing Form 1094-C and Form 1095-C online. You must turn these in each year, so it is important to file them in a timely way. 

Better Accuracy 

Professional payroll and HR companies have experience meeting ACA requirements. Because of this, they can achieve a better level of accuracy. 

How Much Does ACA Reporting Cost?

The charge for ACA reporting services can vary based on where you go. If you use an e-file program where you do all the work yourself, it can cost a few dollars to file each form but you also have to account for the time you and/or your team spends on completing the intricate forms. To hire someone else fill out the forms, handle the coding, and submit them to the IRS, you can remove the administrative burden, while ensuring everything is accurate and complete.

The important thing is to make sure you meet all of your applicable ACA requirements. If you forget to file, you can get charged a penalty of up to $310 per missed return or statement. This figure increases and decreases based on how late you are, so it is important to file any missing forms as soon as possible. If the form is only 30 days late or less, the fee drops to just $60. 

What States Have ACA Reporting Requirements?

While the ACA is a national law, many states have additional insurance reporting requirements. If your business is in Rhode Island, the District of Columbia, Massachusetts, New Jersey, California, or Vermont, you must meet additional insurance reporting requirements. Each state’s rules vary, so it’s important to research and understand the rules in your specific state. 

What Is the Penalty for Not Following the ACA Rules for Employers? 

The penalty for not following ACA rules for employers is $2,970 per full-time employee, minus 30 employees. You must pay this penalty if you don’t offer health insurance to at least 95% of eligible employees. 

Beyond penalties for not offering insurance, there are also penalties for not following ACA reporting requirements for employers. For example, there is a $60 fee per statement if you file your forms up to 30 days late. The forms you provide must also be completed correctly. Otherwise, there is a different penalty you must pay for submitting incorrect statements and forms.    

Get Help With ACA Reporting Requirements for Your Business 

Whether you own or manage a business, there are certain ACA reporting requirements you must meet. These ACA reporting requirements can lead to costly penalties if they aren’t followed. As a result, many small businesses invest in ACA reporting services to help manage their ACA requirements. 

If you need support with your ACA reporting requirements, Asure’s team of payroll and HR experts can help. Reach out to our team today to learn more about our services and support.