The Top 4 Best ACA Compliance Solutions – 2022

The best ACA Compliance software, benefits, pitfalls, pricing and more

Chris Hatler
HR tech researcher, writer and editor
October 7, 2022

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Our Expert Picks: The Best ACA Compliance Solutions

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UKG Pro helps you file compliance documents on your behalf. The software includes a plethora of features, some of which are: a healthcare eligibility dashboard, automatic generation of forms, and pre-delivered reports for identifying ACA compliance.
Built from scratch with the help of experts, Paycor's ACA software is laden with best-in-class features; real-time alerts, error management system, in-app training for clients, comprehensive reports. Use it to eliminate complexities and ensure compliance.
Precise and accurate, ADP's Health Compliance solution saves time and money by helping you manage complex employer requirements. Get access to a complete employee communications toolkit, track your progress and stay up to date with changing legislation.
Zenefits' Compliance Assistant is a resource tool that ensures you don't miss deadlines. It can also help you get customized guidance, based on your business type.

The Top 4 Best ACA Compliance Solutions – 2022

The best ACA Compliance software, benefits, pitfalls, pricing and more

Chris Hatler, HR tech researcher, writer and editor Oct 07, 2022

HR teams were handed more responsibility after the passing of the Affordable Care Act (often referred to as Obamacare) in 2010. If your company has 50 or more full-time employees, it is considered an applicable large employer (ALE) under the ACA. This means your HR team has to file 1095-C forms with the IRS for every employee that qualifies for health insurance. It can be time consuming for your HR team to file all that paperwork, and if there is any misinformation the IRS may issue hefty fees to your organization. 

ACA compliance solutions are designed to keep your company compliant while reducing your human resources workload. The best software offerings will provide efficient, penalty-free compliance management in addition to detailed reporting. Some solutions are an add-on tool to your payroll or benefits administration software. Others are full service third-party companies who personally handle your filing, similar to how a PEO operates. In this guide, you can expect to find helpful advice for picking the right one for your organization, including key benefits, pitfalls, thoughts and more.

We spend hundreds of hours researching the best HR and recruiting software so you don’t have to.  We never take money from vendors during our research phase and rely heavily on practitioners and experts to help us recommend the right software.  However we may earn a fee if you click on vendor links on this page.

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20
Hours Researched
3
Experts Consulted
17
Vendors Reviewed

Our criteria: How we chose the best vendors

We take our research seriously and want to make sure we are presenting our readers with the very best solutions in a given software category.  Here's how we select vendors to be in our buyer guides:

  • Product: We want to have a deep understanding of a vendor's product before recommending it.  This usually means getting a demo by a senior executive (their CEO, head of product, etc), and/or using the product ourselves to make sure it has a solid UI, intuitive workflows, and the features to make it a best in class offering.
  • User feedback: We do our best to understand what users say when they experience this product.  User input allows us to accomplish a more thorough due diligence of products, put new vendors on our radar, and generally make sure we are presenting the right products to our readers.
  • Financial metrics: We are very much finance nerds and so use a product's retention rates, growth, profitability, and scale to understand whether or not it is truly best in class.
  • Best for a use case: Sometimes the best solution is the cheapest, the best tool for international companies, or the best for startups. We try to include a diversity of solutions so that our readers can find the tool that is best for what they need.

Here's more detail if you want to read further on how we research vendors.

In this guide you'll find

An Intro On ACA Compliance Solutions

HR teams were handed more responsibility after the passing of the Affordable Care Act (often referred to as Obamacare) in 2010. If your company has 50 or more full-time employees, it is considered an applicable large employer (ALE) under the ACA. This means your HR team has to file 1095-C forms with the IRS for every employee that qualifies for health insurance. It can be time consuming for your HR team to file all that paperwork, and if there is any misinformation the IRS may issue hefty fees to your organization. 

ACA compliance solutions are designed to keep your company compliant while reducing your human resources workload. The best software offerings will provide efficient, penalty-free compliance management in addition to detailed reporting. Some solutions are an add-on tool to your payroll or benefits administration software. Others are full service third-party companies who personally handle your filing, similar to how a PEO operates. In this guide, you can expect to find helpful advice for picking the right one for your organization, including key benefits, pitfalls, thoughts and more.

Featured in

Top ACA Compliance Tools for HR Teams

We track thousands of HRTech solutions daily. The following are the best ACA compliance software for HR per our research and expert council.

UKG

Review:

UKG Pro's ACA manager also offers the essentials for an HCM, including AI and other additional features. Because UKG's product is a full suite, the process is completely automated from start to finish. This is ideal for large and enterprise-level companies, whose HR teams simply don't have time to handle thousands of 1095-C forms.

UKG

Stats:

  • Ranked #6 on Fortune 100 Best Companies to Work for list
  • Valued at $22 billion after the merger 
  • Included on Glassdoor’s 2020 Best Places to Work ranking
  • Named as a Magic Quadrant Leader 2021 in Cloud HCM Suites by Garner, for the fifth consecutive year
  • Customers include more than half of the Fortune 1000 listed companies
  • Handling over 51 million People records in the cloud
  • Generating an estimated $3 billion in revenue per year
  • Customers in 165 countries
  • A customer base of more than 50,000 businesses and 3.2 million users
  • UKG Pro customers on average get an ROI of $3.88 on each dollar invested
  • Consistent 96% customer retention
  • 12,000+ employees

UKG

Pricing:

Pricing for UKG Pro is not available on their website. However, it is usually on a per-employee-per-month basis, either billed annually or monthly. You’d need to contact a sales representative for an accurate quote. However, our research has shown that licenses tend to start at $600.00 per year for every 5 users.

Best For:

UKG software is best used by large and enterprise corporations. Their ACA compliance module fits right into a whole host of other functions that streamline HR processes for big businesses.

Zenefits

Review:

Payroll & employee benefits administrator Zenefits offers automated ACA compliance alongside their flagship HRIS product. The tool will generate, review, and provide forms to employees electronically while e-filing everything with the IRS. Perhaps the best feature is Zenefits' Compliance Assistant, which is a dashboard that offers detailed explanations on critical compliance deadlines and allows you to set reminders to avoid IRS penalties.

Zenefits

Stats:

  • 11,000 customers
  • Serves 35 different industries

Zenefits

Pricing:

Zenefits has two methods of subscription, per employee per month or per employee per year. The three tiers are:

  • Basic: $8/month billed annually or $10/month billed monthly (per employee)
  • Growth: $14/month billed annually or $18/month billed monthly (per employee)
  • Zen: $21/month billed annually or $27/month billed monthly (per employee)

The Basic plan features ACA compliance. If you have 50 employees, the ACA minimum, it will cost $400 per month at its least expensive. However, if you use your own insurance broker, its an extra $5 per employee per month. They offer a free two week trial before you have to buy.

Best For:

Zenefits' main customer base is small to mid sized businesses. Therefore for ACA, they will be best utilized by companies with between 50 and 100 employees.

ADP

Review:

ADP's SmartCompliance Health Compliance module is cloud-based and integrates with your existing HCM system. This makes it so all of your employee data automatically transfers over, saving your company the headache of collecting that information. Subsequently, it uses that data to determine FTE status and health coverage affordability. ADP also provides personalized service from healthcare reform specialists.

ADP

Stats:

  • 52 million forms to the IRS since 2015
  • Calculated the eligibility for 16.3 million employees and prepared over 11.5 million Forms 1095-C in 2019

ADP

Pricing:

ADP's SmartCompliance Health Compliance software is available as a stand-alone module. You have to contact their sales team for a quote.

Best For:

Any company looking for a stand-alone module that can integrate with their existing systems will find value in ADP.

Paycor

Review:

Paycor offers their ACA Connect service to ensure that your business is compliant. In fact, they created an entire support team dedicated to just that. They offer e-filing, real-time reporting tools, interactive dashboards, and an online resource center. ACA Connect comes in a bundle along with HR and benefits administration software.

Paycor

Stats:

  • 29,000 customers
  • Hundreds of integration and partner softwares on Paycor Marketplace

Paycor

Pricing:

Paycor's ACA Connect service is an add-on to their greater HR software. Therefore, you're paying for an entire HCM. The ACA is relevant only to companies with over 50 employees. This means you'll have to pay for their Mid-Market plan, which doesn't have listed prices online. You'll have to meet with their sales team to negotiate pricing. However, you do get the bonus of a free first three months.

Best For:

Best for mid-sized companies looking for an entire HCM but specifically needs a robust ACA compliance tool with it.

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Final Advice on ACA Compliance Software

ACA compliance software is going to streamline your company's compliance process while avoiding big penalties. It's going to take a load off of your HR team's shoulders. It's going to help you keep better track of your employee benefits. 

Our final advice is to make sure you find a solution that works well for you. It might be one that your vendor can add-on to your existing payroll platform. It might be an agency that takes all of your information and files it for you. It might be a tool that integrates with your other software. Regardless, it has to make sense for your company in terms of pricing and ease of implementation.

Are we missing something?Let us know and we’ll research it for you. Better yet, join our expert council and lend your expertise! We rely heavily on the thoughts of forward thinking People professionals to help us put together useful and unbiased research. Thanks for reading!

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