Common Payroll-Related ACA Reporting Mistakes

ACA Reporting Checklist Fidelity Blog Here’s a list of five common ACA reporting mistakes and what you can do to prevent them.

Not offering insurance to employees with variable hours—If they average at least 30 hours of work per week during a month or work at least 130 hours during the month.
Not offering (at least) minimal essential coverage (MEC)—An MEC health plan pays at least 60% of the costs of benefits for a standard population and provides substantial coverage of inpatient hospitalization and physician services (e.g., emergency services, pediatric and maternal care, and preventive services). It’s important that the coverage you offer is affordable to your employees. If not, and they go to the exchanges and qualify for a federal subsidy, you could be subject to a hefty penalty per employee.
Not properly documenting the coverage you offer—You’re required to distribute Forms 1095-C to eligible employees and to file Forms 1094-C and 1095-C with the IRS each year, specifying what coverage you offer your employees and the minimum monthly payment they would pay for self-only MEC.
Not ensuring your payroll service is HIPAA-compliant—Required ACA reporting includes social security numbers linked to specific health plan details that your employees chose. So, your payroll service has a legal obligation to encrypt this information, as well as to follow HIPAA guidelines for accessing and retaining data.
Not having a trusted source for the preparation of required forms and filings—Fidelity can assist with your payroll needs, including ACA reporting.