Affordable Care Act (ACA) Requirements Employers Need to Know

What Are ACA Reporting Requirements?

Affordable Care Act (ACA) reporting requirements are healthcare coverage documents that employers must annually file with the IRS if healthcare is offered to employees.

Who Is Impacted By The Affordable Care Act?

Not all businesses are required to complete ACA reporting. If an employer has 50 or more full-time (or full-time equivalent) employees within the past year or is self-insured regardless of the number of employees, they must report healthcare coverage information to the IRS and employees. Full-time employment status is defined by the ACA as averaging at least 30 hours of service per week or an average of 130 hours of service a month.

What’s Required in ACA Reporting?

Employers required to report healthcare coverage must file one of two applicable forms, forms 1095-B or 1095-C, electronically or on paper. And according to the IRS, if an employer is required to file 250 or more information

returns during the year, they must do so electronically. Forms 1095-B and 1095-C typically require the employer ID number(s) or EIN, taxpayer identification number (TIN) of employees and their dependents, addresses, and months of coverage.

Paycor’s best-in-class ACA solution has helped thousands of clients successfully navigate ACA requirements—one of the most complex compliance regulations to date. Learn more about how we manage ACA compliance and 1095 reporting so you can focus on what you do best.

Download the Affordable Care Act Filing Guide

Get the help you need to manage your ACA IRS filing process.

Do Employers Have To Offer Health Insurance?

Depending on their size, some employers are required to offer health insurance to their employees. Large applicable employers are subject to an IRS tax penalty for not complying with health insurance coverage laws their full-time employees. Under the Affordable Care Act, a large employer is a company that has 50 or more full-time equivalent employees. Small businesses with less than 50 full-time equivalent employees do not have to provide full time health insurance.