BTerrell Group Blog

How Ready Is Your Business For ACA Reporting?

Posted by Brian Terrell on Fri, Jan 15, 2016

Businesses have had several years to get to know the ins and outs of Affordable Care Act (ACA) reporting – although you aren’t alone if you still aren’t ready for the pending deadlines given regular updates on the act itself.  The required IRS forms are available, but the data required for them can be confusing and complicated to gather, especially with disparate business systems.  Is your business as ready as you think it is? 

Applicable large employers (ALEs), as described in “New Information-Reporting Requirements for Employers Under the AffordableACA_logo.ashx Care Act,” posted by Jenny Smerud on, need to complete IRS Form 1095-C for each full-time employee or full-time equivalent (FTE), as well as the IRS Form 1094-C. The data required for Form 1095-C includes the contact information and employer identification number (EIN) for the ALE and the contact information and the social-security number for each FTE.  In addition, you need to provide the type of coverage offered to each employee, whether the employee enrolled in that coverage or not, as well as the employee’s share of the lowest-cost monthly premium for self-only minimum value coverage.  The biggest challenge with this form is that employers need to track whether minimum coverage providing minimum value was offered to the employee, including spouse and dependents, by month.  Yes, this is a monthly calculation and it does add to the time and effort needed to remain compliant.  There are two ways to streamline ACA reporting and one includes the 98% offer method.  Or, we’ve heard this called the Simplified Reporting Method.  We call it the Not So Simplified Reporting Method.  When it is all said and done, an employer must still file a 1095-C for each full time employee but they do not have to track hours every month to determine each employee’s full time status.  See…not so simplified.

There is a strategy to maintaining ACA compliance and much more information that employers need to know to stay on top of these complicated forms.  With deadlines right around the corner, you don’t want to wait any longer to get your business ready.  Contact BTerrell Group for more information about gearing up for ACA reporting today!

By BTerrell Group, an Intacct Premier Partner and Sage ERP Partner

Keywords:  Affordable Care Act, ACA reporting, applicable large employers, reporting requirements for employers, IRS Form 1095-C, streamline ACA reporting, strategy to maintaining ACA compliance, gearing up for ACA reporting, Intacct Premier Partner, Sage ERP Partner