ACA Compliance and Reporting

ACAwise and Benefitbay Partnership

Updated over a week ago

Are you prepared for ACA Reporting to the IRS?

While information required for ACA reporting can be found in benefitbay, we do not do the filing on behalf of groups. Benefitbay has partnered with ACAwise to offer an ACA Compliance Reporting solution to our customers. A one time set up fee is charged to partner with ACAwise.

One Sheet - Click to Download

ACA Reporting Details

As a part of the benefitbay ICHRA experience, you worked on setting up your employer contribution with ACA requirements in mind. Affordability testing and non-discrimination testing are important aspects of building a complaint ICHRA contribution strategy and even if you didn't know it, the benefitbay system was helping all along the way.

Your benefitbay ICHRA uses the required Lowest Silver Plan (LSP) premium based on the individual's zip code to calculate affordability based on the Rate of Pay Safe Harbor. This most commonly maps to codes 1N and 1R which you can review codes by looking at the ICHRA Code cheat sheet here.

Because the benefitbay system is pulling the LSP premium during the initial contribution strategy, this information is stored and used to calculate if an individual was offered affordable or unaffordable coverage during the year. This information is visible on your employer dashboard and will define the employee journey as they use the system to enroll. It is also used for the ACA reporting process to define which Line 14 code will be used.

  • For 2022 the ACA required affordability was 9.61% of employee annual income

  • For 2023 the ACA required affordability is 9.12% of employee annual income

  • For 2024 the ACA required affordability is 8.39% of employee annual income

Other primary data points for ACA reporting details are:

  • Age

  • Address

  • Social Security Number

  • Date of Birth

  • Start Date

  • Employment Type

  • Annual Income

  • Employer-Defined ICHRA Contribution

Now is a great time to review your group census to ensure all of these data points are up-to-date. You can download the census data for a more streamlined review.

I signed up, next steps...

The steps and process are a little bit different depending on when you started with ICHRA and benefitbay, as well as if you also need to report non-ICHRA coverage for compliance.

Non-ICHRA Coverage Details

If you joined the ICHRA party after January 1, 2022, and have other information that needs to provide for ACA reporting we've got a solution for you there as well. Through our partnership with ACAWise you can provide your non-ICHRA reporting information and our team will merge those months' worth of data into the system for a single output.

You will use this template to see the required information as well as view the ACA code cheat sheet to determine which codes you'll enter for the non-ICHRA offering of coverage.

You will provide the form with details for months and individuals not offered ICHRA and we will provide the data for the months you did offer ICHRA. Once completed, please provide your details to our secure ACA Upload by January 27th, 2023 so our team can get your information merged into the system.

Great news!

Next year you shouldn't need two data sources because by offering ICHRA all year that data will be in the system already.

If you need additional assistance or would like help determining the correct template to use for your data, please reach out to our team, and we'd be happy to help.

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