If you are a busy HR professional, administrator, or company owner, there may be a lot of responsibilities on your plate. Handling compliance management may be an important part of your job. Effective compliance management is crucial as penalties and fines can be costly.

Affordable Care Act compliance management provides its own unique set of challenges. Our customers often tell us that successfully managing compliance was extremely challenging before they found us.

Data accuracy may be complicated or time-consuming, and making eligibility determinations can be a challenge, especially if employee hours/statuses fluctuate monthly.

Also, there may be a need for more external expertise and support regarding compliance. Here are several common compliance pitfalls that can result in penalties:

• Failing to correctly identify full-time employees can lead to misclassifying employees as part-time or independent contractors.
• Failing to file Forms 1094-C and 1095-C accurately or on time. This includes data errors, such as incorrect EINs or employee information.
• Offering coverage that is too expensive or does not meet minimum value standards.
• ALEs must offer coverage to at least 95% of their full-time employees and their dependents.
• Leaving Line 16 blank on Form 1095-C or using incorrect codes.
• Miscalculating the measurement period for employees with fluctuating hours.
• Delayed or no response to notices from the Health Insurance Marketplace (which notify when an employee has received a subsidy).
• All entities under common control (an “ALE Group”) must be considered together. The IRS does not look at companies solely by their individual tax ID numbers (EINs). Instead, they look at all related companies under common ownership as one single employer.
• If the combined total of full-time employees in an “ALE Group” (including full-time equivalents, or FTEs) across all companies is 50 or more, the entire group is considered an Applicable Large Employer (ALE).

Affordable Care Act compliance software streamlines the management of employee-related data. Status reports provide data for compliance-related decision, and automation can also simplify reporting.

Comprehensive ACA software differs from forms-only reporting software in that it provides data for year-round compliance management: Hours worked, offers extended, criteria for affordability evaluation, and more.

For some companies, forms-only software is enough for year-end filing. However, many Applicable Large Employers benefit from year-round compliance management, using the reports that comprehensive software provides.

Passport Software

Passport Software’s ACA solutions can help if you are tracking manually or your current tracking software or solution is too expensive.

Our IRS-certified ACA software is easy to use, and we are IRS-approved to optionally file on behalf of our software customers.

If you would like to turn over the entire process to us, our Full Service option will help ease the burden of compliance and reporting – just provide a spreadsheet with employee data, and we do the rest.

Our experts are knowledgeable and friendly, so if you are tired of the burden of ACA compliance management, we can help.  We also provide penalty relief consultation services and have helped many companies drastically reduce or avoid 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.