Affordable Care Act (ACA) Reporting: Who Qualifies and What You Get
Learn if your business meets the requirements for ACA reporting and what paperwork is needed to stay compliant with federal mandates.
This is a reporting requirement for certain businesses to ensure they are meeting federal mandates regarding health coverage for their staff.
Who it's for
This scheme applies specifically to Applicable Large Employers (ALEs). To qualify as an ALE, a business must have 50 or more full-time employees.
What you get
Completing this reporting ensures your business remains in compliance with the employer mandate for health coverage. Meeting these requirements helps ensure that your company is following the rules established for providing health-related coverage to your workforce.
What it costs you
There is no direct fee to file, but there is a significant time and administrative cost involved in the process. You are required to handle the annual filing of specific documentation, specifically Forms 1094-C and 1095-C. These must be completed and submitted every year to remain compliant.
The catch to know
The most common difficulty involves the complexity of tracking employee status. Specifically, determining and recording the "full-time" status for employees with variable hours can be a complicated task. Ensuring these details are accurate for every qualifying worker is essential for correct reporting.
How to apply
- Determine if your business meets the threshold for large employer status based on your staff count.
- Monitor and track the hours worked by your employees throughout the year.
- Verify the health coverage status of your employees to ensure accuracy.
- Complete the necessary annual forms, including Forms 1094-C and 1095-C.
- Submit your information through the official IRS portal: https://www.irs.gov/affordable-care-act/employers