ADP SmartCompliance®
for Health Compliance

Navigate the Affordable Care Act (ACA) compliance complexities for IRS Forms 1095C/1094C and state employer reporting with award-winning, cloud-based ACA software, Health Compliance

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Take a proactive approach to ACA requirements for employer reporting and penalty avoidance

When you partner with ADP, your organization's ACA compliance is backed by real-time status visibility, and seamless data integration all designed to help you keep your business in compliance and penalty-free.

Intelligent Technology

Streamline your ACA tracking and reporting with our ACA Dashboard’s proactive, flexible features, including

Flexible integration allows you to set up and manage automated data capture from any payroll, HR or benefits system
Constant data hygiene simplifies year-end ACA data with automated validation to help identify and correct potential penalty or compliance risks or data anomalies
Automated ACA Social Security Number solicitation and tracking* helps you respond to IRS name or SSN discrepancies by streamlining communications regarding employee or dependent data errors

(*additional available module)

Unmatched Visibility

Stay ahead of penalties and get peace of mind with real-time, actionable insights regarding your ACA compliance status

On-Demand View of ACA compliance status – anytime, anywhere
Proactive awareness of compliance issues – by employee, by month, by FEIN
Forms access to always-available, populated Forms 1095C/1094C – at any time of the reporting year
Past filing assessment to help identify potential penalties based on forms and ACA data already sent to the IRS

Holistic Compliance

With ADP Health Compliance ACA solution, you get comprehensive compliance solution to help you stay proactive when adhering to ACA regulations, including:

Automated calculations, such as monthly ACA Eligibility (e.g., full-time, Leave of Absence and rehires), affordability safe harbors or monthly minimum essential coverage threshold per Federal Employer Identification Number
Regulatory management for federal and state reporting, forms furnishing and filing and ACA specialists to help resolve exchange notices or penalties
Agency monitoring to prepare for federal and state requirements (IRS, NJ, DC, CA, RI)

Health Compliance and ACA FAQs

ACA compliance means adhering to the ACA and its regulations. The ACA is intended to ensure that certain employers offer health coverage to their employees that meets the ACA's requirements for coverage and affordability. For employers subject to the ACA, compliance entails offering the required health coverage to full-time employees, submitting health coverage information to the IRS, and following specific guidelines for employee classification. It’s crucial for businesses to understand and comply with the ACA’s requirements to avoid penalties.

Under the ACA, employers with 50 or more full-time employees (including full-time equivalent employees) are required to provide health coverage to anyone who averages at least 30 hours per week or 130 hours per month. This obligation extends to non-traditional workers, including seasonal employees and F-1 visa holders. It’s important for employers to assess each employee’s hours of service in relation to the ACA's full-time definition, regardless of how they classify full-time and part-time employees internally.

The Employer Mandate, also known as the employer shared responsibility provision, requires that employers with 50 or more full-time employees (including full-time equivalent employees) offer coverage that is affordable, provides minimum essential coverage, and meets minimum value standards to at least 95% of their full-time employees. Failure to comply may result in penalties.

Every year, employers must file Form 1095-C with the IRS and provide it to all full-time employees or those enrolled in self-insured coverage for any month during the year. This essential document details the type of health coverage offered, the lowest premium available to each employee, and the specific months when coverage was accessible, including when the employee and dependents were enrolled. Additionally, employers are required to submit Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, solely to the IRS. This form acts as a cover sheet including aggregate data, such as the number of full-time employees per month and the tally of issued 1095-C forms. Some states have implemented laws similar to the ACA, mandating annual reports with varied reporting methods, formats, and deadlines. Despite these differences, they all share a similar compliance approach.

Employers are responsible for transmitting the required Form 1095-C information to the applicable states and the IRS by documented deadlines. This important form details the health coverage provided to employees during the previous calendar year. ADP has filed and furnished over 99 million Form 1095-C to employees, accounting for 1 in 5 forms produced in the United States.

The IRS deadlines for ACA reporting are critical: the IRS deadline for Forms 1095-C to be furnished to employees is by March 3, 2025, while the IRS deadline to file Forms 1095-C and 1094-C is March 31, 2025. Additionally, applicable state reporting deadlines for 2024 follow a specific timeline as noted

California: 1/31/2025 (furnishing to employees), 6/2/2025 (filing with state agency)
New Jersey: 3/3/2025 (furnishing to employees), 3/31/2025 (filing with state agency)
Washington, DC: 3/3/2025 (furnishing to employees), 4/30/2025 (Filing with state agency)
Rhode Island: 3/3/2025 (furnishing to employees), 3/31/2025 (filing with state agency)