Dealing with the complexities of the Affordable Care Act (ACA) is a reality for many small businesses in the United States. While the intention of the ACA is commendable, the number of administrative intricacies involved in its reporting often proves challenging for small businesses. Payroll teams and human resources departments often feel overwhelmed by the fine details of form submissions and compliance checks, which demands precision, understanding, and timeliness. One slight misstep or oversight can lead to an IRS penalty or compliance problems. In a previous post, we briefly discussed some mistakes that could lead to ACA penalties, but this blog post dives deeper into the traps that may trip up small businesses during ACA form preparation and submission. Unnecessary mistakes can be avoided, and ACA reporting can become a seamless part of your business operations if you know what to watch out for and how. 5 Common ACA Form Mistakes SMBs Make Let's dive into the most frequent ACA form mistakes made by small businesses and find out how to avoid them: 1. Failure to Perform an Aggregated Employer Group Analysis A common oversight by employers is failing to include all employees across every business entity when determining their company's Applicable Large Employer (ALE) status under the ACA. Remember that every employee, regardless of their role or location, is essential for correctly calculating your ALE status. Many businesses may not meet the ALE threshold individually, but when grouped together, they form an ALE and must comply with the ACA's Employer Mandate. We discussed the ACA Employer Mandate in a previous post. To avoid this mistake, small businesses should consider outsourcing their ACA compliance to a reputable vendor specializing in this area. These vendors have the expertise to accurately perform the Aggregated Employer Group Analysis and ensure compliance with ACA responsibilities. 2. Incorrect Application of IRS-Approved Measurement …
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