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ACA compliance

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What is ACA compliance?

Businesses that are subject to the ACA must offer affordable health insurance that provides minimum essential coverage and minimum value to at least 95% of their full-time employees (including dependents). They’re also required to provide employees with the following information:

In addition, Forms 1094-C/1095-C must be filed with the IRS and all applicable state agencies each tax year, confirming that timely, affordable and ACA-compliant coverage was offered to eligible full-time employees every month. Data and business practices should be aligned so that these forms present accurate and complete information. Otherwise, the IRS and state agencies may issue penalty notices.

Who must comply with the ACA?

The ACA applies to applicable large employers (ALEs), which are businesses that had 50 or more full-time and full-time equivalent (FTE) employees on average during the previous year. When determining full-time status, it’s best practice to measure all employees within an organization because traditional HR status does not always reflect ACA benefits eligibility.

Note that businesses with multiple federal employer identification numbers (FEINs) are not counted separately, but are considered parent and child organizations. For more information, employers should refer to the following IRS resource: Determining if an Employer is an Applicable Large Employer.

Account Executive, β Division

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