Streamline ACA Compliance Management
This post is for Applicable Large Employers (ALEs) required to comply with the Affordable Care Act. We hope you find it useful.
If you are manually tracking ACA-related data, keeping up with fluctuating employee hours or varying pay rates may be difficult.
Restaurants, staffing agencies, and companies with high turnover or seasonal employees may find ACA compliance management challenging.
In order to offer appropriate coverage, it is crucial to manage hours-worked data accurately. Knowing who is full time or trending towards full-time may be challenging without automation.
Being aware of the data management challenges you may face allows you to choose your ACA solution wisely. Utilizing ACA software or an ACA reporting service can help you more seamlessly manage employee data.
Streamline Data Management
Assigning one employee to manage and track ACA-related data can simplify the process if there are various personnel assigned to the task. Having one person manage data can help reduce errors.
If you are manually tracking, using comprehensive ACA software can help reduce the risk of errors. It’s crucial to know when to make appropriate offers of coverage to your full-time staff and dependents when needed.
It’s also important to record and report accurate data to the IRS, especially since Good Faith Transition Relief has ended (starting with the 2021 tax year). Filing inaccurate or incomplete forms could lead to penalties.
Staying on top of ACA data management is important, and aggregating data with ACA software can save time vs. manually sorting through employee records. Inefficient or haphazard tracking could lead to non-compliance penalties.
Offers of Coverage
The IRS has established criteria to determine if the coverage you offer is considered “affordable minimum essential coverage.” According to the IRS, “In general, under the employer shared responsibility provisions, an applicable large employer (ALE) member may either offer affordable minimum essential coverage that provides minimum value to its full-time employees (and their dependents) or potentially owe an employer shared responsibility payment to the IRS.”
If fewer employees than expected enroll in the coverage offered, it’s possible the pricing for your group plan will change.
Comprehensive ACA software that indicates when part-time employees are trending towards full-time can help you monitor hours to plan ahead. This allows you to be aware of forthcoming offers of coverage that will be needed.
Also, for staffing agencies and companies employing seasonal workers, tracking numerous termination dates may be challenging.
For those who are manually tracking, automation can help you easily track hours worked and termination dates.
If you are tasked with ACA compliance management, it’s important that you have the right tools to proactively manage ACA compliance. You are undoubtably familiar with the ACA and the importance of timely and accurate filing, as well as ensuring you remain compliant throughout the year.
You may have spent a lot of time learning about ACA compliance requirements, but are overwhelmed due to manually tracking or are doing most of the work for your outside reporting service. ACA compliance regulations are complex, and we can help you simplify the entire process.
Passport Software’s ACA Software can streamline ACA compliance management, provide reports that alert when an offer of coverage will be needed, and track affordability based on IRS criteria.
Our IRS-certified ACA software provides optional integration with PBS™ Payroll or our Food Service Payroll solution. You can reduce your operating budget by saving money on an outside payroll service.
And, our ACA software helps you easily track and manage ACA-related data year-round. We are IRS-approved for proxy submission as well.
Food Service Payroll can manage different pay rates for employees and handle multiple job functions at various locations.
Restaurants and food service operations that are manually tracking employee hours worked, perhaps at various locations, may be prone to tracking errors.
Errors in making appropriate offers of coverage can result in steep penalties under the Affordable Care Act. Now that Good Faith Transition Relief ended (starting with the 2021 reporting year) data-accuracy is crucial when filing to avoid possible penalties.