Understanding Affordable Care Act (ACA) Requirements and Tracking Options

Our goal is to provide you with a clear understanding of Affordable Care Act (ACA) requirements for employers and the tracking solutions available to ensure compliance. Whether you're an organization with 50 or more full-time and/or FTE employees or exploring ACA tracking options, this article will guide you through the essential details.


Key Takeaways

  1. Employer Requirements: Organizations with 50+ full-time/FTE employees must offer affordable healthcare to employees and dependents up to age 26. ACA doesn't mandate coverage for companies with under 50 FTEs. If you have 50 or more full-time employees, including full-time equivalent employees, you are an applicable full-time employer and need to issue statements to employees and file an annual information return reporting detailing the health insurance you offered to your employees, including when it was offered. 

  2. ACA Companion for Tracking: The ACA Companion is a transactional data-driven tool integrated with Avionte's Back Office Payroll System. ACA is not set up until you are live in the BOLD platform. 

  3. Tracking Options: Choose between ACA Companion and HRLogic ACA. ACA Companion suits those with in-house ACA knowledge, while HRLogic offers an outsourced solution with comprehensive expertise.


ACA Requirements for Employers:

The Affordable Care Act mandates that employers with 50 or more full-time and/or FTE employees must offer affordable and minimum-value medical coverage to their full-time employees and their dependents up to the end of the month in which they turn age 26. Failure to meet these requirements may result in penalties.

Note: Companies with fewer than 50 FTEs are not obligated to provide health insurance as per the ACA regulations.


Utilizing ACA Companion for Tracking:

Our ACA Companion solution utilizes transactional data to help you track and manage ACA compliance. To benefit from this tool, your company should be using the Avionte Back Office payroll system to sync transactions. Please be aware that ACA Companion becomes operational once you are live on the BOLD platform, ensuring seamless integration and accurate tracking.

If you have met the criteria and still need to set up the ACA Companion, please use the following resources that are available to your organization as a guide for setting up the ACA Companion:


ACA Companion Application setup course - This course is the first in a series of ACA trainings and will cover the setup and configuration of your ACA Companion Application. Because the tracking and reporting of the Affordable Care Act can be handled in various ways, it is important that you complete your ACA Companion Workbook before beginning the course, as it will be referenced throughout to assist in your configuration.

ACA Tracking and Reporting course - Once you have completed the ACA Companion setup, it is important to understand the tracking process required to collect all the information needed for the 1095-C. While Avionté's ACA tracking component automates the measurement of employees' hours and full-time statuses, your users are responsible for offering healthcare coverage, recording the offer, and tracking employees' responses and enrollments. This course will show you how to properly record all the necessary information and properly produce 1095-C reports at the end of the year.


Integration with Offers and Measurement Periods:

ACA Companion streamlines tracking by utilizing a transactional approach. However, for companies offering healthcare benefits upfront to talent, particularly if these offers preceded the minimum 3-month period used by the ACA Companion, the process may require more manual steps for tracking.


Comparing Tracking Options: ACA Companion vs. Syncstream:

We offer two distinct options for ACA tracking: ACA Companion and Syncstream. The choice between these options depends on your organization's needs and expertise.

  • ACA Companion: This option suits companies with in-house ACA expertise, seeking software to facilitate tracking. ACA Companion provides a robust tool to help manage compliance efficiently, leveraging your existing knowledge.
  • HRLogics ACA: Alternatively, HRlogics offers a fully outsourced solution, providing software and expertise to manage your ACA tracking. This option is beneficial for organizations looking for a comprehensive, external solution.

If you have further questions, require assistance in selecting the right tracking solution, or wish to explore ACA Companion and HRlogics in more detail, please don't hesitate to connect with our team. We're committed to helping you achieve ACA compliance seamlessly and effectively.


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