The ACA’s affordability standards require businesses to offer health coverage that meets specific cost thresholds for employees. Determining affordability can be complex, especially when managing a diverse workforce with varying pay rates and hours worked. ACA-Track automates affordability calculations, ensuring compliance while reducing administrative burden.
Understanding ACA Affordability Standards
Under ACA guidelines, health coverage is considered affordable if the employee’s required contribution does not exceed a certain percentage of their household income. Challenges businesses face include:
- Calculating affordability across different pay structures and employment types
- Monitoring changes in minimum wage or cost thresholds annually
- Ensuring accurate reporting on IRS forms 1094-C and 1095-C
- Addressing discrepancies in affordability determinations during audits
Errors in affordability assessments can lead to penalties and additional scrutiny from the IRS.
How ACA-Track Simplifies Affordability Management
ACA-Track offers advanced features to ensure compliance with affordability standards:
- Automated Calculations: Calculates affordability based on employee income and health coverage costs, aligned with ACA thresholds.
- Real-Time Monitoring: Tracks changes in employee wages and coverage contributions to ensure continued compliance.
- Customizable Configurations: Adapts to different affordability safe harbors, including Federal Poverty Line, Rate of Pay, and W-2 wages.
- Error Detection: Identifies discrepancies in affordability data to ensure accurate IRS reporting.
Proactive Compliance with Affordability Alerts
ACA-Track provides proactive alerts to notify businesses of potential affordability issues before they become compliance risks. This ensures that adjustments can be made promptly, protecting the organization from penalties.
Dedicated Support for Affordability Compliance
ACA-Track’s account managers offer personalized assistance with affordability calculations and compliance strategies. Their expertise ensures businesses remain compliant, even as regulations and thresholds evolve.
Case Study: Affordability Compliance for a Retail Chain
A national retail chain implemented ACA-Track to manage affordability calculations across its workforce. The automated tools reduced errors by 80% and enabled the company to make timely adjustments to health coverage contributions, ensuring full compliance.
Ensure Affordability Compliance with ACA-Track
Simplify the management of ACA affordability standards with ACA-Track. Visit our Retail Business Compliance Solutions page to learn more about how we can support your organization.
With ACA-Track, managing affordability is efficient and worry-free. Partner with us to ensure seamless compliance with ACA affordability requirements.
