Common Challenges in ACA Reporting and How to Avoid Them

Simplify ACA Reporting with Our Affordable and Accurate Solution

For employers subject to the Affordable Care Act (ACA), annual data collection and reporting can be a complex process with various potential pitfalls. Accurate reporting is important to avoid penalties and ensure compliance. Here are some common challenges in ACA reporting and tips to navigate them effectively.

1. ** Tracking Full-Time Employee Status** The ACA requires that employers track which employees qualify as full-time (30+ hours per week) and must be offered health coverage. For companies with variable-hour employees, determining full-time hours can be challenging. To simplify, use a look-back measurement method to determine eligibility, which allows you to assess an employee’s status over a predetermined period. Refer to our prior articles on using the monthly measurement method or look back measurement method for determining full-time status. BAS can work with you to can automate look back measurement method hours tracking, reducing errors.
2. ** Aggregating Data Across Multiple Systems** ACA reporting requires comprehensive data from different sources, including payroll, HR, and benefits platforms. Without a system that can accept information across platforms, collecting data can be time-consuming and error-prone. BAS provides an ACA compliance solution that can streamline data collection and ensure compliance.
3. ** Accurately Reporting Offers of Coverage** Employers must report on whether they offered affordable health coverage to full-time employees and their dependents. Misreporting can lead to costly penalties. Regularly review your benefits eligibility rules and audit data to ensure accurate reporting of coverage offers.
4. ** Meeting Reporting Deadlines** The ACA imposes strict deadlines for transmitting forms to the IRS and furnishing forms to employees (1094-C and 1095-C). Missing deadlines can result in penalties. Set up reminders well in advance of key dates, and designate team members responsible for tracking and verifying all data for timely submissions.

By understanding these common ACA reporting challenges and implementing proactive solutions, employers can reduce the risk of errors, avoid penalties, and ensure smooth, accurate compliance with ACA regulations.