ACA (Affordable Care Act) reporting services are essential for employers to meet the regulatory requirements set forth by the IRS and avoid penalties related to healthcare coverage. Under the ACA, businesses with 50 or more full-time employees (including full-time equivalents) must provide health insurance and report specific information about coverage offerings. Failure to comply with these reporting obligations can result in significant fines and administrative challenges.
ACA reporting services help businesses navigate the complexities of the two primary forms required for compliance: Form 1095-C and Form 1094-C. Form 1095-C is used to report detailed information about the health coverage offered to each employee, including the type of coverage, the months it was available, and whether it meets the ACA’s Minimum Essential Coverage (MEC) requirements. Form 1094-C is a transmittal form summarizing the employer’s 1095-C filings, which is submitted to the IRS.
These services streamline the collection of necessary data, ensuring that employee eligibility, coverage periods, and affordability tests are accurately tracked. Compliance services also help ensure that the forms are filed timely, usually by the deadline of January 31st for employee distribution and by March 31st for filing with the IRS, to avoid penalties.
In addition to managing the paperwork, ACA reporting services can provide support in interpreting ACA regulations and staying updated on any changes to the law. This enables employers to maintain compliance year-round without having to become experts in tax law and healthcare mandates.
With ACA reporting services, businesses can reduce the administrative burden, mitigate risks, and ensure that their workforce is properly covered, helping them focus on business growth while staying in good standing with the IRS.
