ADP SmartCompliance® Health Compliance

Proactively manage Affordable Care Act (ACA) compliance

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ACA Compliance: The Devil’s In The Data

ACA penalties and increasing complexity burdens for employers are real

Employers can receive multiple penalties for the same FEIN for any or all of the following:

  • Failure to provide timely offers of coverage
  • Failure to offer affordable coverage
  • Failure to furnish or file forms
  • Failure to file on time, complete, or accurate forms

With the expiration of the Good Faith Penalty Relief provision as of 1/1/2021 and penalty notices expected starting November 2023, the financial impact can be staggering.

86M forms to the IRS since 2015

Steer clear of penalties with proactive ACA penalty avoidance

Awarded the 2020 BIG Innovation award, the ADP SmartCompliance Health Compliance solution is a cloud-based platform that can integrate with many systems of record to help you efficiently meet the demands of the federal ACA employer reporting mandate (Forms 1094-C & 1095-C) and state health coverage reporting requirements — as well as help identify where there may be potential risk for penalties if your business does not remain compliant.

ADP's intelligent technology and deep ACA expertise provide employers automated monthly compliance calculations (ACA eligibility and affordability) and a simplified and streamlined reporting experience for year-round Forms 1094-C/1095-C monitoring, and year-end furnishing and electronic filing with the IRS and applicable states (CA, DC, NJ, RI).

Proactive ACA Penalty Avoidance

ADP Health Compliance’s core value. This propels your organization’s ability to understand where you stand with your ACA strategy with the support of intelligent technology and an assigned Service associate with deep ACA expertise. The three pillars that uphold your organization’s proactive ACA penalty avoidance include:

Unmatched Visibility

  • 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 1094-C/1095-C – at any time of the reporting year
  • Past filing assessment to help identify potential penalties based on forms and data already sent to the IRS

Intelligent Technology

  • Integration. Set-up & manage automated data capture from any Payroll, HR or Benefits system
  • Constant Data Hygiene. Automated validation to help spot & fix potential penalty & compliance scenarios and data anomalies – for a simplified year-end
  • Automated ACA SSN solicitation and tracking* integrated communications to notify and request data updates for employee and dependent data in response to returned IRS name/SSN mismatch errors
    (*additional available module)

Holistic Compliance

  • Automated Calculations - Monthly ACA Eligibility (full-time, LOAs, rehires), Affordability safe harbors, monthly MEC threshold per FEIN
  • Regulatory Management for federal & state reporting; forms furnishing & filing; ACA specialists to help resolve exchange notices or penalties
  • Agency Monitoring to proactively prepare for federal/state requirements (IRS, NJ, DC, CA, RI)
Screenshot of IRS and State Reporting for 2023 Tax Year

Keep up with changing legislation

ADP® has dedicated professionals who continuously monitor and track evolving legislation, regulations and guidance.

We can help you stay ahead of ACA and ACA-like state reporting changes with the latest news, information and perspectives.

Subscribe to SPARK blogs powered by ADP and follow all topics including Changes, Legislation, People, Risk and Trends for the latest news.

See how ADP works with others like you

See Case Studies
2020 Big Innovation Award Winner

ADP Health Compliance – State Employer Reporting

2020 Big Innovation Award Winner.

Targeted solutions for workforce, HR and business challenges

ADP SmartCompliance is a suite of technology solutions backed by ADP’s experts to help you simplify compliance complexity, close technology gaps and minimize business disruptions.

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