Year-End Checklist for ACA Data Accuracy

As the year comes to a close, HR administrators play an important role in ensuring that Affordable Care Act reporting is accurate and complete. Clean data is the foundation for timely Form 1095-C distribution and successful IRS filing. A few targeted checks in December can prevent reporting delays and reduce the chances of receiving IRS penalty notices.

Verify Employee Hire and Termination Dates

Accurate start and end dates are essential for determining full-time status, tracking measurement periods, and reporting coverage months. Make sure all hires, rehires, and terminations are entered for the year, and confirm that rehire rules were applied correctly.

Review Coverage Records

Confirm that each employee’s medical coverage elections are up to date. This includes new enrollments, coverage changes, waivers, and termination of coverage after an employee leaves the organization. Pay special attention to dependents added or removed during the year.

Update Hours and Status Changes

ACA reporting relies heavily on accurate hours. Verify that all hours of service have been entered through the end of the year, including paid time off and any special categories your organization tracks. Review status changes for variable-hour, seasonal, or part-time employees to ensure their measurement and stability periods are applied properly.

Check Affordability Calculations

Review your affordability method and confirm that the data supporting it is correct. This includes employee wage information if you use the rate of pay or W-2 safe harbor. Ensuring the correct employee contributions for each month reduces the risk of incorrect codes on Form 1095-C.

Resolve Any Data Issues Before Filing

If your ACA system flags potential errors or inconsistencies, review and correct them now. Common issues include missing Social Security numbers, overlapping coverage dates, or incorrect employment status. Cleaning up these items before reporting helps avoid corrections later.

The Value of a Final Review

A thorough year-end review not only supports accurate ACA forms but also strengthens your organization’s overall compliance posture. Taking time now to verify data helps ensure a smooth reporting season and reduces unnecessary back-and-forth during IRS filing.