HR professionals and accountants have not necessarily been trained in ACA compliance. ACA reporting is a record keeping process, not actually an accounting method.
Understanding the ACA requires very specific knowledge, and it’s important to track data on a monthly basis throughout the year in order to avoid penalties.
Here are some tips for tracking employee status:
If you own more than one business and an employee works for more than one of your companies, their work hours must be combined in order to identify their full or part-time status.
Monitoring variable hour employees can be a challenge, and it becomes more difficult when employees routinely trade shifts. Restaurant and food service operations are especially vulnerable, as well as businesses with seasonal workers or hours.
In cases where an employee works for more than one common ownership EIN, the IRS has very specific instructions on handling the multiple 1095-Cs for that employee: On a month-by-month basis, the company where most of the hours were performed should report the actual coverage information in Part 2. Any other companies should code the employee as if they were not employed for that month. This method is repeated each month. Doing this by hand would be tedious, but our software handles it automatically.
Passport Software’s ACA Tracking Software – ACA groups screen
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ACA Tracking Software
Passport Software’s comprehensive ACA tracking software identifies full-time employees and tracks part-time employees trending towards full-time. You can track employees adding coverage, statuses changing, and contributions going up or down.
Our ACA tracking software consolidates an employee’s hours across multiple companies, and is intelligent enough to handle the complex reporting rules affected by common ownership.
For restaurants and food services operations, our Food Service Payroll and Affordable Care Act Software simplifies ACA compliance and reporting.
Comprehensive reporting: Identify when an offer of coverage will be needed, and it ensures that coverage meets affordability standards. Other reports help you stay on top of things, including the ALE Calculation, Insurance Eligible & Offered, the Initial Measurement Period, the Standard Measurement Period, and the Safe Harbor Comparison reports.
Our ACA tracking software provides electronic submission for companies with 250+ forms to file, as well as tracks and manages data throughout the year.
Passport Software’s friendly ACA experts provide excellent consulting, and we are IRS-approved for optional proxy submission for our software users. We can also help with social security validation and filing corrections.
We even offer ACA Full Service – just provide employee spreadsheets and we do it all for you, year-round.