Managing ACA Reporting Services feels like a heavy burden for many business owners. The ACA employer mandate requires you to track coverage as family premiums hit $27,000 in 2025.
You need accurate 1095-C Forms to prove you offer minimum essential coverage. Staying on top of 1094-C Compliance protects your bank account from fines starting at $60 per return. Professional ACA Reporting Services keep your business safe from shared responsibility payment penalties.
With health costs up 24% since 2019, 83% of small firms worry about rules. We help you maintain Affordable care act compliance without the stress.
Decoding Forms 1095-C and 1094-C
Effective ACA Reporting Services start with knowing which paper does what. You need to handle full-time employee reporting with total accuracy to avoid errors.
Form 1095-C: The Individual Coverage Statement
IRS form 1095-C tracks the health plan you gave to each person on your team. It lists minimum essential coverage and health coverage affordability for every month. You use ACA Reporting Services to generate these codes properly.
This form proves you met the ACA employer mandate. If you get the codes wrong, you risk shared responsibility payment penalties from the government.
Form 1094-C: The Employer’s Summary Transmittal
Your Form 1094-C filing serves as the cover sheet for the government. It groups all your 1095-C Forms into one package. To maintain 1094-C Compliance, you must show that you offered insurance to 95 percent of your staff.
Quick Glance: Decoding Your ACA Forms
Feature | Form 1095-C | Form 1094-C |
What is it? | An individual statement for each full-time employee. | A summary transmittal (cover sheet) for the IRS. |
Who gets it? | Sent to both the employee and the IRS. | Sent only to the IRS. |
Main Purpose | Details health coverage affordability and offers of coverage. | Summarizes total headcount and organization details. |
Key Information | Monthly IRS codes, employee costs, and enrollment. | Total 1095-C Forms count and ALE group status. |
Filing Status | One for every full-time worker. | One authoritative transmittal for the whole company. |
Quality ACA Reporting Services ensure your totals match your payroll records exactly. The IRS uses this data to check if your 2025 plan stays under the 9.02 percent affordability limit. Accurate forms are only half the battle because you also have to meet strict dates.
2026 Deadlines and the High Cost of Non-Compliance
Missing a date with the IRS costs you more than just a late fee. For the 2026 season, you must follow these strict timelines to maintain Affordable care act compliance:
March 2, 2026: You must give 1095-C Forms to your staff.
March 31, 2026: Your Form 1094-C filing and all IRS form 1095-C records must reach the IRS electronically.
Professional ACA Reporting Services prevent shared responsibility payment penalties from draining your funds. For the 2025 tax year, the IRS charges $2,900 per worker under Penalty A if you fail the ACA employer mandate by not offering minimum essential coverage to 95% of your team.
If your plan fails the health coverage affordability test, Penalty B hits $4,350 for every worker who gets a government credit.
Calculation example for a 100-employee company:
Penalty A Calculation: (100 employees - 30) x $2,900 = $203,000 total.
Penalty B Calculation: $4,350 x each employee receiving a subsidy.
Filing Errors: Up to $330 per incorrect IRS form 1095-C.
ACA Reporting Services help you avoid these massive risks by tracking every detail. Using reliable ACA compliance software ensures you meet 1094-C Compliance before the clock runs out.
Efficient ACA Reporting Services turn a complex mess into a simple win. Superior ACA Reporting Services protect your profit margins.Once you know the dates, you see why trying to track this by hand usually fails.
Why Professional ACA Reporting Services Outperform Manual Tracking
Trying to handle full-time employee reporting through manual spreadsheets often leads to disaster. Most businesses fail audits because their payroll, benefits, and HR systems do not sync up.
Specialized ACA Reporting Services solve this by creating a single database for your records. Companies using ACA compliance software reduce errors by 60 percent and reclaim roughly 15 hours of labor per week.
ACA Reporting Services manage the hard work for you:
Real-time tracking of eligibility and measurement periods.
Monitoring health coverage affordability against IRS limits.
Creating 1095-C Forms and handling 1094-C Compliance.
Filing electronically with the IRS via the AIR system.
Integrated ACA Reporting Services provide a clear source of truth. This ensures your IRS codes match your payroll and benefit data exactly. You avoid shared responsibility payment penalties while keeping your data safe.
Moving to an automated platform makes your filing season much smoother.
How DianaHR Simplifies 1095-C and 1094-C Filing
DianaHR uses AI to make ACA Reporting Services simple for small businesses. Our platform integrates with Gusto, ADP, and Rippling to automate 1095-C Forms and ensure 1094-C Compliance. You save 15–20 hours a week while reducing costs by 60 percent.
Special Capabilities:
AI-Driven Compliance: Automatically manages health coverage affordability and multi-state rules.
Human Expertise: A dedicated specialist reviews every IRS form 1095-C for accuracy.
Smart Task Automation: We eliminate repetitive ACA employer mandate tasks through intelligent workflows.
Scalable Operations: Our ACA compliance software grows with your team across 40+ states.
We transform full-time employee reporting from a chore into a streamlined process.
Book a demo with DianaHR today to automate your filing and protect your business from IRS penalties.
Conclusion: Securing Your Business’s Financial Future
Effective ACA Reporting Services are a non-negotiable part of running a large business. Many owners struggle with the pain points of shifting IRS rules and the manual tracking of full-time employee reporting. If you submit an incorrect IRS form 1095-C, you invite a federal audit.
Wrong filings trigger shared responsibility payment penalties that can wipe out your yearly profits in one letter. The government does not overlook errors regarding the ACA employer mandate.
DianaHR solves these risks by automating your 1094-C Compliance and monitoring health coverage affordability in real-time. We provide the ACA compliance software and human oversight needed to keep your finances safe.
Contact DianaHR to simplify your compliance and ensure your filing is always on time.
Frequently Asked Questions
1. Who must use ACA Reporting Services?
Any Applicable Large Employer with 50+ workers must handle full-time employee reporting. You must submit 1095-C Forms and ensure 1094-C Compliance to meet the ACA employer mandate. Accurate employer health insurance reporting prevents costly shared responsibility payment penalties from the government.
2. What is the "Minimum Value" standard?
To maintain Affordable care act compliance, your plan must pay 60% of total costs. It should include hospital and doctor services as minimum essential coverage. Tracking health coverage affordability is vital since the 2026 IRS threshold rises to 9.96 percent.
3. Can I contest shared responsibility payment penalties?
Yes. If you receive IRS Letter 226-J, you can appeal. You must provide your Form 1094-C filing and IRS form 1095-C records as proof. Specialized ACA Reporting Services help you gather documentation to show you followed the ACA employer mandate.
4. Is electronic Form 1094-C filing mandatory?
Yes. The IRS now requires electronic filing for businesses submitting 10 or more aggregate returns. You need ACA compliance software to transmit your 1095-C Forms securely. Digital employer health insurance reporting is the only way to ensure total 1094-C Compliance.
5. How does ACA compliance software improve accuracy?
Top-tier ACA compliance software automates full-time employee reporting by syncing with payroll. It monitors health coverage affordability in real-time, preventing errors on your 1095-C Forms. Professional ACA Reporting Services remove manual guesswork, keeping your Affordable care act compliance perfect.
Share the Blog on:
