ACA Compliance

ACA compliance means meeting the rules the Affordable Care Act sets for employers, covering the employer mandate, annual IRS reporting, and coverage standards. Under the law, any employer with 50 or more full-time equivalent employees has to offer health insurance that is both affordable and meets a minimum value standard, or pay a penalty.

Reporting and recordkeeping

Each year, those employers also have to file Forms 1094-C and 1095-C, reporting the coverage they offered to the IRS and to employees. Staying compliant means tracking hours worked, figuring out who counts as full-time, checking whether the coverage offered is affordable under the law's thresholds, and keeping records of all of it, since any of this can come up in an audit.