ACA Made Simple
The Affordable Care Act (ACA) requires many employers to meet specific rules for offering health coverage and reporting information to the IRS. Staying compliant means more than filing annual forms—it requires ongoing tracking, accurate recordkeeping, and a clear understanding of your responsibilities.
Whether you’re determining Applicable Large Employer (ALE) status, monitoring employee eligibility, evaluating affordability, or preparing annual IRS filings, every step matters. As your workforce changes, so do your compliance obligations. Having the right processes in place can help reduce administrative burdens, avoid costly penalties, and give you confidence that your organization remains compliant.
Essential HR Can Help
ACA compliance is an ongoing process, not a once-a-year event. We work alongside employers to simplify compliance by helping determine ALE status, track employee eligibility, monitor affordability, prepare and file Forms 1094-C and 1095-C, and maintain the documentation needed to support compliance.
Whether you’re approaching the 50-employee threshold or already subject to ACA reporting requirements, we provide practical guidance and ongoing support to help you navigate the ACA with confidence.
Frequently Asked Questions
What forms are required for ACA reporting?
Most applicable employers must file Form 1094-C and Form 1095-C under the Patient Protection and Affordable Care Act. The 1094-C is submitted to the IRS as the transmittal summary, while the 1095-C is provided to employees and reports the health coverage offered throughout the year.
Employers with self-insured health plans may also have additional reporting requirements, such as Form 1095-B, depending on how the plan is structured
What counts as affordable coverage under the ACA?
Coverage is considered affordable if the employee’s share of the lowest-cost self-only plan does not exceed the IRS-set percentage of household income (or meets approved safe harbor methods such as W-2, rate of pay, or federal poverty level).
Who counts toward ACA requirements?
- Full-time employees
Employees who work 30 or more hours per week (or 130 hours per month) are fully counted. - Full-Time Equivalent (FTE) employees
Part-time employee hours are combined to calculate FTEs (e.g., multiple part-time workers may equal one full-time employee for counting purposes). - Seasonal employees (in certain calculations)
They may be included in the count unless the employer qualifies for the seasonal worker exception