If you’ve ever found yourself squinting at ACA terms that read more like acronym soup than common sense, you’re not alone. For many employers, keeping up with the Affordable Care Act still feels like navigating a maze — one lined with confusing terms, shifting standards, and high-stakes consequences. The frustration is real. So is the risk.

Employers often turn to Affordable Care Act (ACA) compliance solutions offered by their Payroll or HRIS platforms, believing they have everything covered. However, many of these solutions fall into a category known as "ACA Light”, a term for compliance tools that lack the depth and logic necessary to handle complex employer situations and IRS regulations. Unfortunately, many Applicable Large Employers (ALEs) only discover the limitations of these solutions when they receive a 226J penalty from the IRS. By then, it’s often too late, and the financial repercussions can be severe.

If you thought last year’s compliance season was a challenge, buckle up. 2025 is already shaping up to be a regulatory rollercoaster, with HR teams in the front seat. Executive orders are emerging, ACA reporting requirements are shifting and IRS scrutiny is on the rise. And that’s just the stuff we know about.

Selerix, a leading provider of cloud-based benefits administration solutions, announced today that it has acquired SyncStream Solutions, LLC, the pioneer of Affordable Care Act (ACA) reporting technology. Financial terms of the transaction were not disclosed.

Employers often turn to Affordable Care Act (ACA) compliance solutions offered by their Payroll or HRIS platforms, believing they have everything covered. However, many of these solutions fall into a category known as "ACA Light”, a term for compliance tools that lack the depth and logic necessary to handle complex employer situations and IRS regulations. Unfortunately, many Applicable Large Employers (ALEs) only discover the limitations of these solutions when they receive a 226J penalty from the IRS. By then, it’s often too late, and the financial repercussions can be severe.

As part of the Tax Cuts and Jobs Act (TCJA), the Affordable Care Act’s (ACA) individual mandate penalty was repealed effective January 1, 2019; however, the TCJA did not repeal the employer mandate nor its reporting requirements. Employers should be prepared to respond to IRS Employer Shared Responsibility Provision (ESRP) penalty letters and continue to prepare for 2024 reporting, which will occur in the first quarter of 2025.

The Affordable Care Act (ACA) annual filing deadline is March 31, 2025. All applicable large employers (ALEs) should complete their year-end reviews and prepare to file before the deadline. Let’s review the key requirements of the ACA’s Employer Mandate, followed by a guided checklist to assist ALEs in completing their year-end review. Utilizing this year-end guide of questions and checklist will confirm that your ACA reporting provides the necessary data, proper coding, and correct calculations each filing year.

Navigating ACA Reporting Can Still Be Challenging. Despite the significant progress that has been made in recent years, dealing with the intricacies and complexities of ACA reporting can still be quite challenging and time-consuming for employers. It is essential to ensure that all the necessary information is accurately reported to avoid any potential errors that could lead to costly IRS penalties, which can pose a significant problem for employers of all sizes. One of the main challenges that employers face when it comes to ACA reporting is understanding the intricate details and nuances of the regulations. The ACA reporting requirements are not always clear-cut, and there are various factors that need to be considered, such as determining which employees are eligible for coverage, calculating the affordability of the offered plans, and properly documenting and reporting all the necessary information to the IRS. Click below to read about the Top 7 ACA Reporting Common Mistakes.

Downloadable infographic on the most received IRS penalty letters.