The Top 4 Best ACA Compliance Solutions – March 2021

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

Author Phil Strazzulla, HR Tech Expert, Harvard MBA, Finance and Software Nerd
Phil Strazzulla,HR Tech Expert, Harvard MBA, Finance and Software Nerd - Oct 15, 2021

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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A Quick Breakdown: Best ACA Compliance Solutions

ADP automatically determines FTE status through integration with your HCM, saving you the headache of checking.
UKG Pro is the strongest choice in ACA compliance for enterprise companies.
Zenefits' Compliance Assistant ensures you don't miss critical deadlines.
Paycor has an entire resource center dedicated solely to your ACA needs.

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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 suites, 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

  • Customers include more than half of Fortune 1000
  • Glassdoor 2020 Best Places to Work
  • Used by 3.2 million employees

UKG

Pricing

Pricing for UKG Pro is not available on their website. However, it is likely on a per employee per month basis, either billed annually or monthly. Contact a sales representative for more information.

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.

Worth Checking Out:

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

  • 40,000 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.

Worth Checking Out:

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.

Worth Checking Out:

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.

Worth Checking Out:

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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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