ACA Made Simple
The Affordable Care Act (ACA) set guidelines to ensure employees have access to affordable health coverage. For employers, his means following specific rules around coverage, reporting, and affordability
Essential HR helps employers understand how these rules apply to your business, whether you’re a small employer looking to grow or an organization already classified as an Applicable Large Employer (ALE).
Key Areas of ACA Compliance
- Employer Mandate (Employer Shared Responsibility): Determining whether your business qualifies as an ALE and ensuring you’re offering affordable, minimum essential coverage to full-time employees.
- ACA Reporting Requirements: Preparing and filing required IRS forms such as 1094-C and 1095-C accurately and on time.
- Measurement and Tracking: Monitoring employee hours to determine full-time eligibility and ensure compliance with look-back measurement periods.
- Affordability Calculations: Evaluating your benefit contributions to ensure coverage meets IRS affordability thresholds.
- Penalty Prevention: Identifying potential risks and helping you take proactive steps to avoid costly IRS penalties.
How We Help
Our team combines compliance expertise with hands-on support by:
- Reviewing your current benefits structure to identify ACA risks.
- Tracking and report employee data in compliance with IRS standards.
- Coordinating with your payroll and benefits systems for accurate reporting.
- Provide ongoing guidance as regulations evolve.
Whether you need a one-time compliance review or year-round ACA management, we tailor our services to fit your needs.
Contact us today to schedule a compliance review or learn how we can streamline your ACA management.
Frequently Asked Questions
What forms are required for ACA reporting?
Most Applicable Large Employers (ALEs) must file Forms 1094-C and 1095-C with the IRS each year and provide 1095-C copies to full-time employees.
What counts as affordable coverage under the ACA?
Coverage is considered affordable if the employee’s required contribution for self-only coverage does not exceed a set percentage of their household income (adjusted annually by the IRS).
Do part-time and seasonal employees count toward ACA requirements?
Yes. Their hours are converted into full-time equivalents to determine if your organization meets the 50-employee threshold for ALE status.
Can Essential HR assist with ACA filings for us?
Yes. We provide full-service ACA compliance, including eligibility tracking, affordability analysis, and electronic filing of required IRS forms.