Ease the Pain of ACA Reporting Requirements


It’s every agency’s nightmare: more, new or changing federal reporting requirements. The Affordable Care Act, or ACA, reporting requirements are in effect, and we have until the beginning of next year to determine how to effectively and accurately report a variety of health care and employee information or face penalties and excise taxes.

In order to successfully fulfill the ACA reporting requirements, it is important to understand what ACA reporting is, when it is required, what it involves, and what your software vendor is doing to assist with an easy transition. This most certainly will affect your administrative process, and the software tools and support to comply will be more important than ever.

But Black Mountain Software is working closely with clients to make sure the process is as simple and seamless as possible.

What is ACA Reporting?

The Affordable Care Act (ACA) employer reporting requirement is the set of federal reporting requirements mandated for employers to comply with the ACA. Employers are required to report a long and complex amount of individual health care coverage data or details and employee information. It includes a long string of reporting and implementation considerations
such as:

Knowing and reporting who is eligible for coverage
Determining if coverage is affordable
Determining the financial impact of coverage
Deciding what data and systems are needed and involved for reporting
Obtaining information about who is enrolled
Understanding which entities and subsidiaries are required to report

When did ACA Reporting go into affect?

January 1, 2015. While some employers began to migrate the reporting requirements on last year W2s, it had not been a requirement until this year. The first reports are due to employees in January 2016. The first reports are due to the IRS in either February or March 2016, depending on filing method: paper or electronic.

The issue with ACA Reporting…

Failure to comply with federal mandates puts you at risk for reporting penalties and underlying ACA excise taxes. Navigating the ACA rules of collecting, reporting and validating employee, HR, payroll and benefits data in new ways is complex and challenging. Many offices are finding hurdles in reporting compliance and looking for a sustainable process for reporting that is easy to implement and changes as regulations and reporting requirements change.

How Black Mountain Software is helping clients with ACA Reporting issues:

Here at BMS, we have developed efficient, easy-to-use tools, forms and reports in an effort to make ACA reporting as smooth as possible. Once the required information is defined and documented in the appropriate form, our software will then track and store data for compliant ACA reporting. For example, in our HR/Mini HR software, users can define which employer type applies to their entity (ALE, ALE, Self-Insured, or Non-ALE Self-insured) and generate appropriate employee forms. For Self-Insured employers, the system will provide reporting on all covered individuals and their dependents, including monthly offers of coverage. For ALE employers, the system will provide reporting for minimum value coverage amounts and Safe Harbor Codes, as appropriate.

Our HR/Mini HR software also allows users to create forms 1095-B and 1095-C, to be distributed by paper or by email. Users will also be able to produce a 1094 Summary report to assist in filling out the 1094-B and 1094-C forms to submit to the IRS.

Most of these developments have already been completed and tested by Black Mountain Software, with installations beginning in September 2015. Rest assured, as always, BMS will ensure the changes are rolled out with easy step-by-step instructions on how to use these software tools and to generate the right reports.

For more information on the ACA reporting requirements, please see the official IRS Affordable Care Act page.

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