Since being enacted in 2010, the Affordable Care Act (ACA) has continually evolved with new reporting requirements at both the federal and state levels. The IRS regularly updates its affordability thresholds and business rules for the ACA, and a growing number of states now enforce their own mandates, too. The result is a complex patchwork of regulatory frameworks for employers.
These regulations can make tax season even more stressful, especially for organizations that manage their ACA reporting entirely in-house. The amount of paperwork, the errors and corrections that need to be made, and the ongoing updates to the law itself and how it’s enforced all stretch many employers thin. But ACA compliance doesn’t have to be onerous.
As one of the first service providers to roll out an automated ACA solution, CIC Plus can help simplify your reporting every tax season. Let’s look at some of the common problems that employers face in staying current with the ACA and explore how our proven approach and technologies can solve those issues.
A Moving Target: The Challenges of ACA Reporting
ACA reporting is challenging in two main ways.
First, the rules and regulations surrounding the ACA are both complicated and always changing. For example, most reporting requirements do not apply to employers with fewer than 50 employees, but there are exceptions for self-insured firms and those that are members of affiliated or controlled service groups.
Add that complexity on top of the big changes like the ones in the Tax Cuts and Jobs Act of 2017, which effectively eliminated the individual mandate at the federal level. Multiple states responded by passing their own mandates and associated reporting requirements. That shift forced employers to keep up with varying requirements by state, in addition to the normal tasks of furnishing full-time employees with 1095s and completing filings with the IRS.
Second, in-house processes for managing ACA reporting usually don’t scale to the size of the challenge. Preparing reports, printing and mailing forms, paying for postage, responding to employees’ questions about reissues and corrections, making changes, and getting everything into the proper format are all time-consuming activities that are difficult enough on their own, and much more so in the context of ongoing regulatory change.
An ADP survey published in 2019 provided a good overview of these challenges and others:
- More than one-third (36%) of large organizations reported trouble with data collection, while 31% identified “calculating, determining, and documenting affordability” as an issue.
- Among all companies, managing deadlines and handling the vast time commitment of ACA compliance were flagged as major obstacles as well.
- Shifting regulations, multiple locations, and huge volumes of paperwork and phone calls were also cited by many survey respondents.
Fortunately, there is a viable alternative to doing all ACA reporting in-house. An automated and streamlined ACA reporting service from CIC Plus simplifies reporting while preserving compliance. We do the heavy lifting so that you can focus on more strategic priorities in payroll and HR.
Need help addressing these challenges?
With our solution, HR teams spend less time fielding employee questions, making corrections and print/mailing reports, so you can focus on your core HR or Benefits responsibilities.
Interested in receiving a quote? Fill out the form and a CIC Plus representative will get in contact with you.
How CIC Plus Can Transform Your ACA Reporting
By partnering with CIC Plus, your organization can free itself from the common complications and anxieties of ACA reporting. Concerned about your 1094 B/C and 1095 B/C validation against IRS business rules? Wary of the annual wave of correction requests? Overwhelmed by the prospect of printing out and then mailing the right forms to every necessary employee?
Don’t worry. Our service provides peace of mind, through major improvements to ACA reporting workflows:
- Employee Self-Service: Our mobile-friendly online portal makes it easy for any employee who didn’t receive a form to get one on demand.
- Corrections Made Simple: In our system, you can make real-time corrections and let administrators and employees track their progress.
- Straightforward Form Distribution: Instead of printing and mailing everything yourself, just click a button and we’ll do it for you.
- Assured Compliance: CIC Plus keeps pace with all regulatory changes at all levels of government so that you’re never out of sync with the latest requirements.
In the 2019 tax year, CIC Plus processed more than 9 million ACA reports for customers, with a 100% success rate in delivering forms on time and in compliance with applicable regulations. Over 500 companies rely on CIC Plus for their ACA reporting, including almost half of the Fortune 100. Each year, CIC Plus saves its clients substantial resource time thanks to more efficient ACA reporting.
Clients like Cornell University have experienced productivity gains from relying on CIC Plus to manage their ACA reporting each tax season.
The Benefits of a Charting a New Path With ACA Reporting
Moving away from highly manual processes for preparing, distributing, and correcting ACA reports not only saves time that can then be reallocated to other projects, but it helps your organization avoid costly mistakes and the penalties that can come with them. The same ADP survey cited earlier found that for tax year 2015 alone, employers were liable for as much as $4.5 billion in IRS penalties.
By automating ACA reporting and aligning it with the latest government statutes, CIC Plus will ensure that you have one less thing to worry about this tax season. Contact a member of our team today to learn more about how to get started.