Ask HR professionals about ACA reporting — many will tell you it's a daunting task. That's because reporting requirements leave no room for error. Even just one small error, if not corrected, can quickly add up to substantial costs. On top of that, ACA reporting is very time-consuming, which weighs heavily on HR teams, especially during busy Open Enrollment (OE) seasons.

The challenges of ACA reporting

ACA reporting is a challenge because there's multiple moving parts, each with their own set of complications. Below are common challenges that ACA reporting presents:

Gathering data

Employers risk facing penalties for inaccurate data. Ensuring that all information such as employee hours, eligibility, and coverage details is accurate quickly becomes a cumbersome, time-consuming task. Not to mention prone to human error.

Complex compliance rules

ACA rules include detailed eligibility criteria, affordability standards, and other coverage requirements. Navigating these rules can be a challenge for HR teams, especially without compliance experts on staff. If an employer has a distributed workforce across the country, HR teams will have to be on top of state specific requirements in CA, MA, NJ, RI, VT, or DC.

Ever-changing updates to requirements

ACA reporting requirements can change from year to year. HR teams must stay on top of updates to reporting requirements to avoid penalties associated with non-compliance.

Resource constraints

HR teams have many tasks on their hands, especially during critical periods like OE. ACA reporting can be burdensome for teams that are already swamped.

How a reporting provider can help

Outsourcing ACA reporting eases the burden of ACA reporting and reduces the risks of exposure to costly penalties. ACA reporting solutions ensure accurate and timely submissions of reports, giving employers peace of mind as they remove the guesswork and offload time-consuming tasks. Here's how reporting providers can help:

Completion of Forms 1094-C and 1095-C

The ACA mandates that employers submit Form 1094-C to the IRS and Form-1095-C to eligible employees. An ACA reporting solution ensures that these forms are accurately completed.

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Why employers should consider ACA reporting solutions

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