ACA reporting can become stressful when ALEs discover problems right before filing deadlines. Missing information, inaccurate employee records, and incomplete documentation can create extra work and make it more difficult to complete accurate 1094-C and 1095-C forms.

Many reporting issues are caused by mistakes that happen months before filing season begins. By identifying common compliance challenges early, employers can reduce errors and make the reporting process easier.

Comprehensive ACA software can help Applicable Large Employers (ALEs) organize important data, track changes, and maintain more accurate records throughout the year.

Here are some common Affordable Care Act compliance mistakes employers should avoid before filing season.

Incorrect Employee Status Tracking

Employee status changes can have a significant impact on reporting requirements. A part-time employee may become full-time, a variable-hour employee may need an eligibility review, or an employee’s position may change during the year.

When these changes are not tracked correctly, employers may report inaccurate information or miss important eligibility requirements.

Maintaining accurate employee records helps ensure reporting is based on current information. Comprehensive ACA software can help ALEs manage employee data and identify changes that may affect compliance reporting.

Documentation Errors

Affordable Care Act reporting requires ALEs to review employee information for each month of the reporting year. Changes in eligibility, coverage offers, enrollment status, and employment status can all affect the information reported on 1094-C and 1095-C.

One of the most common mistakes is waiting until filing season to review these details. By then, it may be difficult to determine when changes occurred or correct missing information.

Passport Software’s IRS-certified ACA software gives employers a more organized way to monitor compliance and prepare accurate reports.

Employers should maintain accurate records that support their reporting, including employee eligibility information and coverage offers. Without reliable documentation, companies may spend significant time searching for information or responding to questions about their filings.

Keeping compliance records organized throughout the year helps employers quickly access the information they need when filing deadlines arrive or if additional documentation is requested.

Discovering reporting issues right before a deadline can create unnecessary pressure. Employers may find missing employee information, incorrect data, or inconsistencies between systems when there is limited time to make corrections.

Last-minute data cleanup can increase administrative work and raise the risk of filing errors.

Reviewing Affordable Care Act information before filing season allows employers to identify problems earlier and make corrections before forms are prepared.

Make ACA Reporting Easier and More Accurate

Payroll systems provide valuable employee information, but payroll data alone may not include everything required for complete reporting.

Employers may need additional information related to employee eligibility, coverage offers, affordability, and enrollment details. Depending only on payroll exports can leave gaps that affect reporting accuracy.

A complete compliance process requires reviewing all necessary information—not just what is available from payroll.

ACA compliance does not need to become a last-minute challenge. Companies that maintain accurate records, monitor employee changes, and keep proper documentation can reduce the time and effort required during filing season.

Passport Software’s IRS-certified ACA software helps simplify compliance management year-round. The Full Service option is even easier. Just provide a simple spreadsheet with employee information, and we do the rest—including filing.

Our experts can answer any compliance management questions you may have. We also provide penalty response consultation services and have helped many companies avoid or drastically reduce penalties.

To learn more about how our ACA software and services can ease the burden of compliance, call 800-969-7900. Or, contact us – we are here to help.