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ACA Compliance

The Compliance Management add-on includes everything you need to remain compliant with the ever-changing tangle of regulations and legal requirements.

Staying on top of employee benefits eligibility using the required ACA methods is time-consuming and complex. Employers should already be collecting and managing data, such as hours worked, employee status, offers of coverage and more. With ACA Compliance added to your isolved HCM software, you can capture much of the data you need automatically, and automate key tasks at the end of employee measurement periods.

ACA Compliance is an employer solution that helps you make sure that employee benefit eligibility and enrollments are tracked and maintained correctly to keep you in compliance.

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You need to be reviewing data now to determine eligibility, offers of coverage and affordability. The IRS will use the data on the forms you file to determine compliance with the employer-shared responsibility provisions, so having accurate data that’s readily available is critical.

With ACA Compliance, you can:

Establish categories of employees for ACA purposes

Set standard measurement, administrative and stability periods for ongoing employees and initial measurement, as well as administrative and stability periods for new hires

Show current ACA status and applicable measurement, administrative and stability periods on each applicable employee record

Identify the measurement method (monthly or look-back) for each employee

Review status change reports highlighting ACA status changes based on measured hours of service category

Automate updates to employee records at each measurement period based on life events, ACA status and coverage stop dates.

Do you have to comply?

A company that employs 50 or more full-time equivalent employees is defined as an Applicable Large Employer (ALE). The employer mandate requires all ALEs to offer minimum essential coverage that is both affordable and provides the minimum or face a penalty called the Assessable Payment (play or pay). This coverage must be offered to all full-time (FT, defined by total hours of service) employees and is determined by using either a monthly or look-back measurement period.

Built-in isolved ACA reporting and information access tools enable:

  • Downloadable forms to produce and file applicable 1094 and 1095 submittals
  • ALE test to calculate FTEs and determine ALE status
  • Look-back reporting to identify changes in employee ACA status and benefit eligibility
  • Affordability report to determine if health benefits are in-range based on ACA safe harbors
  • Projection tools to estimate new affordability
  • Draft versions of ACA annual forms available to run on demand for pre-filing verification
  • Override options for employee, dependent or benefit
  • Annual 1095-C form production and delivery

Employers that do not have a solution for collecting and managing the necessary employee and benefit data to satisfy Section 6055 and 6056 reporting requirements run a significant risk for incurring reporting penalties and ACA excise taxes.

Call us today at 800-733-8839 to learn how to add ACA Compliance to your People Cloud!