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The Affordable Care Act (ACA) is a law that requires all businesses that average 50 or more full-time employees to provide health insurance to at least 95% of their employees or face penalties (among other stipulations). Businesses that do not comply with this law may be subject to penalties, which is why it’s important to ensure you are ACA compliant. This guide will help you understand what ACA compliance is and how you can ensure that your business is compliant.

What Is ACA Compliance?

The ACA, sometimes known as Obamacare, is a law that requires businesses that average 50 or more full-time employees to provide health insurance to at least 95% of their employees or face penalties. Businesses also have to give an annual confirmation of benefits offered through Form 1095-C, a summary of plans and employee costs and the coverage and benefits they can choose from.

There are specific businesses required to be ACA compliant, and there are also specific employees who must be offered health insurance. Businesses that are required to be ACA compliant are known as Applicable Large Employers (ALEs). An ALE is a business that averages 50 or more full-time equivalent employees. An employee who works an average of 30 hours per week or more is considered a full-time employee. A part-time employee is an individual who works fewer...

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