December, 2015

Ensuring Compliance with the ACA – Part 1

Great Information

Awesome content, even better software. Just think what our technology could do for you.

Ensuring Compliance With ACA: Part 1

The Affordable Care Act (ACA) aims to improve Americans’ access to quality, affordable health care. The Act was passed by Congress and signed into law by President Obama on March 23, 2010, and the Supreme Court upheld the health care law on June 28, 2012. The ACA was upheld again on June 25, 2015, when the Supreme Court ruled that the law allows federal income-based subsidies nationwide (not only in states that have set up their own health care exchanges).

The ACA has led to important health care delivery changes that affect employers and employer-sponsored health plans nationwide.

Let’s take a look at some of the ACA compliance tools employers should be looking for in a total workforce management solution.

APS’s total workforce management solution includes ACA compliance tools that make it much easier to track all the information you need in a single, unified system. These compliance tools are easy to use and greatly reduce the risk of penalties for non-compliance and reporting errors:

A total workforce management solution that includes ACA compliance tools makes it much easier to track all the information you need in a single, unified system. This greatly reduces the risk of penalties for non-compliance and report errors. ACA compliance tools may include:

  • Aggregate cost of health insurance reporting: Employers are required to report the cost of coverage under an employer-sponsored group health plan in Box 12 of the form W-2. This includes any amounts deducted from employees and amounts paid by the employer on behalf of employees. With ACA compliance tools, organizations can track the employer amount, and when W-2s are processed, the employee and employer amounts are automatically combined and added to the W-2 in box 12, code DD. This functionality takes the headache out of year-end calculations since the employer amounts automatically populate on W-2s.
  • Applicable large employer calculation (FTE): If your organization is an applicable large employer (ALE) – defined as having 50 or more full-time equivalent (FTE) employees – it is subject to the ACA. To determine an organization’s status, compliance tools calculate the number of full-time equivalent (FTE) employees for a specified lookback period.
  • Health Insurance Marketplace notices: In accordance with the Department of Labor (DOL), all employers covered by the Fair Labor Standards Act (FLSA) are required to provide a notice about the state’s Health Insurance Marketplaces to new employees within 14 days of their hire date. APS’ compliance tools feature model notices, including one for employers who offer a health plan to some or all employees and one for employers who do not offer a health plan.
  • Variable hour staff management: Employers with variable hour staff need the ability to easily manage their employees’ hours of service to limit the number of employees exceeding the 30-hour threshold. (Variable hour employees who exceed the threshold during a measurement period are reclassified as full-time, which makes them eligible for company-sponsored health coverage.) APS’ advanced systems provide compliance tools that include alerts to help companies proactively manage their variable hour staff under the established ACA hours of service regulation.

To learn more about additional ACA compliance tools a total workforce management solution should include, see Ensuring Compliance with the ACA - Part 2.

The APS Experience



Receive lifetime training from our team of experts to help you master the APS system at no additional cost to you.


Your dedicated support team is just a phone call, email, or support request away to answer any questions you may have.
Employee Communication


Work with APS experts who understand your business, your challenges, and your goals for a quicker return on your investment.

Recent Posts

Check out more great articles from the APS Blog covering HR, payroll, and everything in between.

Do Churches Pay Payroll Taxes?

Do Churches Pay Payroll Taxes?

Church administrators often ask, do churches pay payroll taxes? We explain exactly what churches’ and church employees’ tax obligations are. Find out!

Pin It on Pinterest

Share This