ACA-Track is a trusted ACA compliance and reporting solution designed for businesses, school districts, and organizations. It tracks employee hours, determines eligibility, and generates IRS-compliant 1094-C and 1095-C reports, helping employers meet ACA requirements with confidence.

Built by PSST, ACA-Track seamlessly integrates with payroll, HR, and financial systems to simplify compliance and reduce administrative workload.

The ACA-Track Learning Center is your go-to resource for guides, FAQs, and troubleshooting related to ACA compliance and system usage. Whether you need assistance with tracking employee hours, fixing reporting errors, or submitting IRS forms, this learning center provides the tools and support you need.

What You’ll Find Here

• Help Articles & Guides – Step-by-step instructions for using ACA-Track effectively.
• IRS Forms & Compliance Resources – Access official ACA-related documentation.
• Webinars & Tutorials – Learn best practices for tracking, reporting, and error correction.
• Troubleshooting Tips – Quick solutions for common ACA-Track system issues.
• Client Success Team – Connect with our experts for personalized assistance and guidance.

Section 4980H of the Internal Revenue Code under the ACA affects some employers. Certain employers, called Applicable Large Employers (ALEs), must either offer health coverage that is affordable and provides minimum value to full-time employees and their dependents or make an employer shared responsibility payment to the IRS if an employee receives a premium tax credit for purchasing coverage on a Health Insurance Marketplace.

A company is an Applicable Large Employer (ALE) if it has 50 or more full-time employees, including full-time equivalent employees (a combination of part-time employees whose hours add up to full-time).

The ALE status is determined based on the previous calendar year’s workforce size. Employers must review their workforce numbers annually to determine if they qualify as an ALE.

A full-time employee is someone who:

• Works at least 30 hours per week on average during a month, or
• Works at least 130 hours per month.

To calculate full-time equivalent (FTE) employees, employers sum the total hours worked by all non-full-time employees (up to 120 hours per employee) and divide by 120.

Tracking part-time and variable-hour employees helps determine whether they become eligible for employer-sponsored health coverage under ACA regulations. Employers must document hours worked to comply with ACA reporting and avoid penalties.

If an employer does not track hours and a part-time worker seeks medical insurance from the Marketplace, the employer risks penalties if they should have offered coverage. Employers must maintain documentation proving an employee worked less than 30 hours per week to comply with ACA regulations.

Yes. While the individual insurance mandate was rescinded in 2017, ALEs must still offer health insurance and report full-time employee coverage under the Shared Responsibility provision. The only way to determine part-time employee eligibility is by continuing to track and document hours worked.

ACA compliance involves multiple departments, including Benefits, Finance, Payroll, and HR. These departments work together to produce and validate required data. Some companies assign ACA responsibility to the CFO, HR Director, or Benefits Director.

ALEs must report whether they offered coverage to employees. The IRS requires:

• Form 1094-C (Transmittal of Employer-Provided Health Insurance)
• Form 1095-C (Employee Health Coverage Statement)

Employees must also receive their 1095-C form, which documents their employer-sponsored coverage.

Employers must track two types of data:

1. Employee Work Hours – To determine full-time eligibility using a measurement period of 3–12 months.
2. ACA Reporting Data – This includes payroll records, hire/termination dates, insurance details, waiver information, and IRS compliance documentation.

• Forms 1095-C (sent to employees): Due January 31 each year.
• Form 1094-C (submitted to IRS): Due March 31 each year (if e-filing).

The IRS may extend deadlines, but employers should prepare forms on time.

• Fully Insured: The insurance company assumes the financial risk for claims.
• Self-Insured: The employer pays for employees’ medical claims directly from company funds.

Self-insured employers must complete Part III of Form 1095-C for IRS reporting.

Employers file Form 1094/1095-C by default. However, if a company:

• Offers coverage AND
• Is self-insured

Then, Form 1094/1095-B must be filed instead.

Employers failing to comply with ACA regulations may face:

• Penalties for not offering coverage
• Fines for reporting errors
• Assessment fees for failing to meet coverage requirements

The penalty amount varies based on violation type and employer size.

Employers must make a per-employee, per-month payment if they fail to provide ACA-compliant coverage:

• $2,000 per full-time employee (if no coverage is offered)
• $3,000 per employee who receives cost assistance (but never more than $2,000 per full-time employee).

Penalties are calculated monthly.

An IRS 226-J letter is sent to employers suspected of ACA non-compliance. It:

• Details the penalty amount
• Lists affected employees
• Provides a response form (Form 14764)

Third-party ACA providers may charge:

• Flat fees
• Setup and data exchange fees
• Printing & IRS transmission fees
• Support fees (for additional assistance)

Employers should compare costs vs. benefits when selecting a provider.

Yes, most third-party providers require data in a specific format for ACA reporting. Employers should confirm file format requirements before outsourcing compliance services.

Support varies by provider and may include:

• Basic assistance (limited phone/email support)
• Full-service compliance support (dedicated staff for reporting & corrections)

Employers should choose a provider based on their support needs.

If an employer has 10+ employees, electronic ACA filing is required. Employers must ensure their payroll system meets IRS AIR (Affordable Care Act Information Returns) compliance.

To protect employee data, companies should:

• Limit the amount of personal data collected
• Encrypt and secure sensitive data
• Restrict access to essential personnel only
• Train employees on data privacy best practices

Employers should also verify that third-party vendors follow strict security protocols.