Navigating ACA Compliance and Reporting

Staying compliant with the Affordable Care Act (ACA) is a critical responsibility for payroll service providers and accounting firms. With regulations that shift based on company size, coverage, and employee classification, it’s easy to get lost in the details. And failing to meet compliance requirements? That can lead to serious financial penalties for both you and your clients. 

But compliance doesn’t have to be a headache. With the right approach—and the right technology—you can simplify ACA reporting, reduce risk, and keep your clients on track. Here’s what you need to know. 

ACA Compliance: Who Needs to Pay Attention?

ACA requirements depend on business size, but the rules don’t just apply to large employers. 

• Employers with 50+ full-time employees: Must offer affordable minimum essential coverage—or face an employer-shared responsibility payment. 
• Employers with fewer than 50 employees: Still subject to ACA regulations and may qualify for tax credits if they provide coverage. 
• Employers with fewer than 25 full-time employees: Can qualify for the Small Business Health Care Tax Credit if they cover at least 50% of employee premiums. 

Understanding these thresholds is key to helping your clients stay compliant while maximizing any available benefits. 

ACA Reporting: What’s Required?

Regardless of business size, all employers must document and report health coverage information. Key requirements include: 

• Generating and submitting coverage reports for employees 
• Providing details on W-2 forms, including employer- and employee-paid portions 
• Distinguishing required vs. optional reporting (e.g., major medical coverage is required, but HSA or HRA contributions are not) 

The challenge? Keeping track of all these moving parts while ensuring accuracy—especially when reporting mistakes can lead to costly penalties. 

The Smarter Way to Manage ACA Compliance

Manually handling ACA compliance is possible, but it's time-consuming, complex, and prone to errors. Payroll providers and accountants need a better way. That’s where automation makes all the difference. 

Payroll software with built-in ACA tools helps you: 

• Streamline compliance by automating tracking and reporting 
• Reduce risk by ensuring accurate filings and avoiding penalties 
• Improve efficiency by consolidating payroll, benefits, and ACA data in one place 

Simplifying ACA Compliance With IRIS Payroll Solutions

IRIS’s payroll solutions take the guesswork out of ACA compliance, helping payroll providers and accounting firms: 

• Connect directly to payroll data for real-time monitoring 
• Automate tracking for full-time, part-time, and variable-hour employees 
• Track when employees are due for coverage offers 
• Generate and electronically file Forms 1094-C and 1095-C 
• Manage health plan coverage information seamlessly 

With the right tools, you can help clients stay compliant while minimizing administrative burden—and position yourself as a trusted financial partner in the process. 

Stay Ahead of U.S. Payroll Compliance

Navigating ACA is just one part of the bigger compliance picture. Download the “Mastering U.S. Federal Payroll Compliance” whitepaper to learn about FLSA, FMLA, ERISA, employee classification rules, EIN requirements, and more. 

Click here to see how an IRIS ACA On-Demand software solution makes compliance easier.