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Navigating the Evolving Landscape of ACA Compliance: A Practical Guide for HR Professionals - Arcoro

Written by Erin Sandage | Jan 16, 2025 6:42:08 PM

While the Affordable Care Act (ACA) has been navigated by HR teams for years, recent legislative changes through the Employer Reporting Improvement Act (ERIA) and the Paperwork Burden Reduction Act (PBRA) bring new considerations.* It’s crucial to stay informed and adapt your strategies to ensure ongoing compliance and minimize potential penalties.

Understanding the Recent Legislative Updates

These recent changes aim to streamline reporting and reduce administrative burdens, but they also introduce new responsibilities. Let’s break down the key updates: 

Employer Reporting Improvement Act (ERIA):

  • Identification Numbers: While the IRS has previously provided guidance allowing the substitution of birthdates for SSNs or TINs for some time, the ERIA officially codifies this practice, providing legal certainty. 
  • Letter 226-J Response Time: The extension of the response time to IRS Letter 226-J (Employer Shared Responsibility Penalty notices) from 30 to 90 days provides more breathing room to gather necessary documentation and formulate a response. 
  • Statute of Limitations: The ERIA establishes a statute of limitations for assessing penalties for returns due after December 31, 2024.  
  • Electronic Delivery: The ERIA codifies the existing practice of electronic delivery of 1095 forms to employees who have provided consent. 

Paperwork Burden Reduction Act (PBRA):

  • Form 1095-B and 1095-C Distribution: HR teams are no longer required to proactively distribute Forms 1095-B and 1095-C to employees unless they specifically request them. 
  • Notice of Availability: This new responsibility requires HR to clearly inform employees of their right to request these forms.  
  • Delivery Timeline: HR must provide requested forms by January 31st or within 30 days of the request, whichever is later.  
  • State Requirements: The PBRA does not override state-specific requirements for states with individual health insurance mandates, like California or Massachusetts.  

The Strategic Advantage of ACA Compliance Software

These changes, while designed to simplify certain aspects, add complexity in others. This is where an ACA compliance software like Arcoro’s becomes an important asset. Automating key processes and ensuring accurate data mitigates risk but also enhances audit readiness, making it easier to demonstrate compliance. These tools free up valuable time, allowing you and your HR team to focus on more strategic initiatives.  

The Arcoro ACA solution includes:  

  • 1094/1095 forms generation and IRS filing service to streamline your process 
  • Multiple EIN reporting for Aggregated Applicable Large Employers (AALEs) 
  • FTE/ALE forecasting that helps you see around the corner 
  • Eligibility alerts to ensure you offer coverage to the right employees 

Embracing Technology for ACA Compliance

The recent legislative updates to the ACA present both opportunities and challenges. By understanding these changes and leveraging technology like Arcoro’s ACA compliance solution, you can confidently navigate the evolving regulatory landscape, minimize risk, and ensure your organization remains in full compliance.  

In today’s dynamic and often unpredictable environment, embracing technology is not just an advantage—it’s a necessity for effective HR management. 

*Note: The content on arcoro.com is for informational purposes only and should not be considered legal advice. 
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