Affordable Care Act (ACA) reporting season is here! Even with the IRS extending the deadline for delivering the 2019 1095-C forms to employees (to March 2, 2020), the time to tackle this daunting task is upon US employers with more than 50 full-time employees…Understandably, after the holiday season, this is the last thing employers want to think about. That’s why more and more employers are outsourcing this task to a qualified ACA Reporting Service – freeing them up to focus on other important tasks and leaving the nitpicky reporting to the pros.
Here are five crucial factors employers must consider when choosing an ACA reporting service:
1. What data is required and how hard is it to collect and format?
Any ACA reporting service vendor will need data from you to correctly pull reports and populate the required IRS forms, proving you are compliant with the ACA. Make sure to check exactly what data they need from you and how hard (or easy!) it is for you to collect and organize that in the proper format so you can estimate your work effort around this.
At a minimum, they’ll request the following information from your payroll system:
- Employee demographic data (e.g. name, address, SSN, date of hire/termination)
- Employee hours by month (or by pay period)
From the benefits system, they may also need to know which employees and employee dependents enrolled into coverage each month.
Ideally the data is easy for you to generate, the vendor has a secure way for you to transfer the (sensitive!) employee data to them, and the vendor takes care of organizing the data for you.