How to Choose the Right ACA Reporting Vendor?
This article further explores the following points:
- ACA Reporting Vendor Checklist
- How to choose right ACA Vendor
- Why Choose ACAwise for ACA Reporting?
ACA Reporting Vendor - An Overview- Updated September 04, 2023 - 8.00 AM - Admin, ACAwise
Many employers are not able to put enough time and effort into finding the right ACA reporting solution for their organization.
ACAwise has created a helpful checklist for employers to choose the right vendor. Our checklist covers all the key requirements that employers should look for when choosing their ACA Reporting vendor for 2024.
ACA Reporting Vendor Checklist
Every year the IRS is changing the reporting requirements for ACA compliance. Choosing the right ACA reporting vendor prevents employers from paying unwanted ACA penalties. With the right ACA reporting vendor, your reporting process will be worry-free!
1IRS Approved Vendor
When choosing your ACA vendor, make sure that they are an IRS authorized provider. This guarantees that the vendor provides ACA reporting that is in line with the standards of the IRS.
Be sure that the vendor has the ability to file ACA Forms electronically with the IRS. This means that they have a transmittal control code that allows them to transmit your returns through the IRS AIR System.
The IRS makes changes in the ACA reporting requirements every year. The vendor’s software must be able to adapt to these changes.
Look for a vendor with an in-house expert or specialist. They will be able to guide you through the process. An expert will alert you to any changes in the ACA laws that apply to the specific needs of your business.
If possible, review the vendor’s previous reporting experience.
3Ability to Handle Sensitive Data
The vendor should have the ability to handle the expansive amount of employee data that you are providing to them. This data must be tracked and reported accurately to maintain ACA compliance. The vendor should be able to handle all of the file formats that you use, including Excel, and CSV
4Ability to Handle Different Scenarios
The vendor should have experience dealing with many types of reporting scenarios such as COBRA coverage, rehires, and terminations.
5Accurate Code Generation
The IRS requires employers to file an ACA Form 1095-C for every employee in their organization. This form should provide information about the offer of health insurance coverage as well as the safe harbor codes for every employee. Many employers don’t have enough experience in generating these codes and that can lead to errors and penalties.
Make sure that your vendor has experience in generating ACA codes with 100% accuracy.
6Ability to Provide Access for Review Forms
Most businesses have a payroll or benefits administrator and a risk management team that are responsible for payroll and IRS filings.
Confirm your vendor is able to send generated ACA 1095 Forms or has a risk department team available to review forms, as well as available to assist employers in avoiding common errors prior to submitting forms to the IRS.
7Ability to handle State E-Filing
A few states like New Jersey, D.C., etc. mandate health care reporting. So, before choosing a vendor make sure they’re capable of handling filing with these states as well.
8Timely Filing with the IRS and State
Late filing leads to tremendous penalties, confirm your vendor has provided you with a clear plan before signing for the reporting needs. As a result, employers are better prepared when it comes to ACA reporting prior to deadlines, ensuring ontime filing to avoid paying unnecessary penalties.
9Mailing Employee Copies
The IRS mandates employers to send copies to each employee. This can be more stressful for employers to print and mail copies to employees.
Be sure your vendor has the ability to handle high volume print and postal mailing for you and distribute the employee copies ontime.
After submitting your forms, the IRS validates them & provides a status update for each return. Sometimes forms are accepted with errors, while some forms may be rejected.
Your vendor should guide you on how to correct any errors & resubmit them with the IRS. Even though forms get rejected, your vendor should assist you further with understanding why your forms were rejected and assist with filing the correct information with the IRS.
Learn more about ACA Form corrections.
Other Key Points
- Risk Assessment: If you receive any letters related to penalties from the IRS, your vendor should be able to assist you in responding properly.
- Your vendor should be transparent during each step of the ACA Reporting process.
ACAwise covers all the key requirements mentioned above and provides you the accurate, secure, and error free ACA filing solution.
Choose ACAwise to make your ACA Reporting Successful
All our clients are happy with our process and referring our services to other employers for their