The Affordable Care Act (ACA), also known by some as "Obamacare," was a game-changer for employees and businesses alike. The ACA was established to encourage employees to provide affordable health benefits to all eligible employees. Find the best ACA compliance tool by visiting this website.

Companies that aren't ACA compliant could face penalties and fees, so handling all the necessary paperwork is a must. A feature-rich ACA compliance tool can take care of the logistics for you, but what forms do you need to submit?

1094-C

The 1094-C document provides crucial information to the IRS. The ACA requires companies with at least 50 full-time employees to offer health insurance. It also applies to full-time equivalent employees. Companies that meet pass 50-employee threshold are considered Applicable Large Employers (ALEs).

All ALEs need to file a 1094-C to the IRS. It's the first step in compliance and fulfills necessary reporting requirements. Companies need to file the 1094-C every calendar year based on the workforce of the previous year.

Generally, an aca compliance tool will take care of this form automatically. If your business qualifies as an ALE, platforms will generate and file the 1094-C with the IRS on your behalf.

The 1094-C must provide general information about the company like address, phone numbers, employer identification number, etc.

It should also contain data about employee numbers, how many 1095-C forms the business will send out, and other relevant information.

The 1095-C

The second piece of the compliance puzzle is the 1095-C forms. These forms go out to all employees of ALEs. Think of it as a letter of eligibility for ACA-compliant health coverage. To remain compliant, all businesses meeting that 50-employee threshold must send out a 1095-C to all employees.

It contains information about the coverage the organization will offer, the most affordable premiums available to the employee, and when that coverage will be available.

Complying with All ACA Regulations

It seems complicated, but complying with ACA regulations from a business standpoint is easier than you think. The only form you need to provide to the IRS is the 1094-C. Once you get coverage and send the 1095-C documents to your employees, you're all set.

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