The Top 5 Best ACA Compliance Solutions – October 2020

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

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.

Human Resource professionals discussing ACA Compliance

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Top ACA Compliance Tools for HR Teams

We track thousands of HRTech solutions, these are the best ACA compliance software for HR per our research and expert council as of October 2020.

Paychex's ACA reporting solution is actually a fully functional insurance agency, appropriately named Paychex Insurance Agency. The agency provides dedicated licensed agents to handle health care coverage and consequently ACA compliance for ALEs that use their service.

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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.

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UKG, the recent joint company of Kronos and Ultimate Software, offers an ACA compliance solution that branches out from their widely-used human capital management software. Branded as UltiPro's ACA Toolkit, the solution includes:

  • A Healthcare Eligibility Dashboard
  • Auto-generation of 1094-C and 1095-C forms
  • Tracking of employees' electronic consents
  • Measurement period, administrative period, and stability period tracking
  • Pre-delivered reports for identifying compliance

The ACA Toolkit is an add-on to their HCM.

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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.

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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.

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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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