--- title: Simplifying Affordable Care Act (ACA) Compliance description: Learn how small businesses can simplify ACA compliance with key tips, challenges, and filing deadlines. See how Megapay helps you stay compliant easily. image: https://www.megapayusa.com/hubfs/Canva%20images/affordable%20care%20act.png --- [![Megapay](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/logo-1.svg) ![Megapay](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/logo-white.svg)](https://www.megapayusa.com/) [How We’re Different](https://www.megapayusa.com/how-we-are-different) Payroll + More ## Feature-rich software. Stress-free services. A full suite of payroll, timekeeping, and Human Resources tools and services helps your business run – and grow. ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/service-menu.png) [Meet the platform.](https://www.megapayusa.com/platform) Harness the power of our cloud-based, fully integrated platform, customized to 10+ industries ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/service-menu-icon-3.svg) [Payroll](https://www.megapayusa.com/payroll) [Pay Options](https://www.megapayusa.com/payroll#payroll-pay-options) [Reporting](https://www.megapayusa.com/payroll#payroll-reporting-tracking) [Tracking](https://www.megapayusa.com/payroll#payroll-reporting-tracking) [Financing](https://www.megapayusa.com/payroll#payroll-financing) [Compliance](https://www.megapayusa.com/payroll#payroll-compliance) [Deductions](https://www.megapayusa.com/payroll#payroll-additional-services) [Workers Comp](https://www.megapayusa.com/payroll#payroll-additional-services) ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/service-menu-icon-2.svg) [Timekeeping](https://www.megapayusa.com/timekeeping) [Scheduling](https://www.megapayusa.com/timekeeping#timekeeping-scheduling) [Tracking](https://www.megapayusa.com/timekeeping#timekeeping-tracking) [Compliance](https://www.megapayusa.com/timekeeping#timekeeping-compliance) [Devices](https://www.megapayusa.com/timekeeping#timekeeping-devices) ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/service-menu-icon-1.svg) [Human Resources](https://www.megapayusa.com/hr) [Onboarding](https://www.megapayusa.com/hr#hr-onboarding) [Compliance](https://www.megapayusa.com/hr#hr-compliance) [Benefits](https://www.megapayusa.com/hr#hr-benefits) [Pricing](https://www.megapayusa.com/pricing) [Become a Partner](https://www.megapayusa.com/partners) Resources ## Resources for growing companies. A suite of videos, tools, and templates for you and your people. ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/resources-menu-icon-2.svg) [Video Library](https://www.megapayusa.com/videos) Learn the ins and outs of the Megapay platform - and get it all done even faster. ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/resources-menu-icon-3.svg) [HR Tools](https://megapayusa.portal.zywave.com/) HR videos, customizable handbook templates, onboarding & offboarding forms, and more. [Human Resources NEW](https://www.megapayusa.com/human-resources) [News](https://www.megapayusa.com/the-mega-pulse) Client Login ## Select an account to log in. Payroll [Payroll (new)](https://megapayusa.evolutionpayroll.com/hcm/#/) [Payroll (old)](https://secure.netlinksolution.com/nextgen/?firm=404480) [Payroll + HR](https://megapayusa.evolutionadvancedhr.com/Secure/Home.aspx) [For Employees](https://megapayusa.evolutionpayroll.com/ess#/login) Swipeclock [For Employers](https://megapayusa.payrollservers.us/pg/login.aspx) [For Employees](https://clock.payrollservers.us/#/clock/web/login) HR Support [HR Live Support](https://www.megapayusa.com/human-resources) [HR 360](https://www.megapayusa.com/hr) [Contact Sales](https://www.megapayusa.com/contact) [Home](https://www.megapayusa.com/) [How We’re Different](https://www.megapayusa.com/how-we-are-different) Payroll + More ## Feature-rich software. Stress-free services. A full suite of payroll, timekeeping, and Human Resources tools and services helps your business run – and grow. ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/service-menu-icon-1.svg) [Payroll](https://www.megapayusa.com/payroll) [Pay Options](https://www.megapayusa.com/payroll#payroll-pay-options) [Reporting](https://www.megapayusa.com/payroll#payroll-reporting-tracking) [Tracking](https://www.megapayusa.com/payroll#payroll-reporting-tracking) [Financing](https://www.megapayusa.com/payroll#payroll-financing) [Compliance](https://www.megapayusa.com/payroll#payroll-compliance) [Deductions](https://www.megapayusa.com/payroll#payroll-additional-services) [Workers Comp](https://www.megapayusa.com/payroll#payroll-additional-services) ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/service-menu-icon-2.svg) [Timekeeping](https://www.megapayusa.com/timekeeping) [Scheduling](https://www.megapayusa.com/timekeeping#timekeeping-scheduling) [Tracking](https://www.megapayusa.com/timekeeping#timekeeping-tracking) [Compliance](https://www.megapayusa.com/timekeeping#timekeeping-compliance) [Devices](https://www.megapayusa.com/timekeeping#timekeeping-devices) ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/service-menu-icon-3.svg) [Human Resources](https://www.megapayusa.com/hr) [Onboarding](https://www.megapayusa.com/hr#hr-onboarding) [Compliance](https://www.megapayusa.com/hr#hr-compliance) [Benefits](https://www.megapayusa.com/hr#hr-benefits) ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/service-menu.png) [Meet the platform.](https://www.megapayusa.com/platform) Harness the power of our cloud-based, fully integrated platform, customized to 10+ industries [Pricing](https://www.megapayusa.com/pricing) [Become a Partner](https://www.megapayusa.com/partners) Resources ## Resources for growing companies. A suite of videos, tools, and templates for you and your people. ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/resources-menu-icon-2.svg) [Video Library](https://www.megapayusa.com/videos) Learn the ins and outs of the Megapay platform - and get it all done even faster. ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/resources-menu-icon-3.svg) [HR Tools](https://megapayusa.portal.zywave.com/) HR videos, customizable handbook templates, onboarding & offboarding forms, and more. [Human Resources NEW](https://www.megapayusa.com/human-resources) [news](https://www.megapayusa.com/the-mega-pulse) client login ## Select an account to log in. Payroll [Payroll (new)](https://megapayusa.evolutionpayroll.com/hcm/#/) [Payroll (old)](https://secure.netlinksolution.com/nextgen/?firm=404480) [Payroll + HR](https://megapayusa.evolutionadvancedhr.com/Secure/Home.aspx) [For Employees](https://megapayusa.evolutionpayroll.com/ess#/login) Swipeclock [For Employers](https://megapayusa.payrollservers.us/pg/login.aspx) [For Employees](https://clock.payrollservers.us/#/clock/web/login) HR Support [HR Live Support](https://www.megapayusa.com/human-resources) [HR 360](https://www.megapayusa.com/hr) [contact sales](https://www.megapayusa.com/contact) [![Megapay](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/logo-footer.svg)](https://www.megapayusa.com/) Payroll, personally™ Megapay is an all-in-one customizable payroll, timekeeping and HR software that offers built-in support from dedicated personal payroll experts. 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[< Return to the blog](https://www.megapayusa.com/blog/all) ![](https://www.megapayusa.com/hubfs/Canva%20images/affordable%20care%20act.png) [Federal](https://www.megapayusa.com/blog/tag/federal) [Timekeeping](https://www.megapayusa.com/blog/tag/timekeeping) # Simplifying Affordable Care Act (ACA) Compliance Managing a business comes with significant challenges, from overseeing daily operations and managing your employees to staying compliant with regulations that are constantly changing.  The [Affordable Care Act (ACA)](https://www.insurance.ca.gov/01-consumers/110-health/10-basics/aca.cfm), while aimed at increasing access to healthcare, may add another layer of complexity for you. If you have 50 or more full-time equivalent (FTE) employees, ACA compliance isn’t just important, it’s the law. But don’t worry, we’re here to help simplify and [navigate it!](https://www.megapayusa.com/blog/aca-compliance) ## **What Does ACA Compliance Mean for Small Businesses?** At its core, ACA compliance means providing health insurance that meets certain minimum standards and affordability guidelines to your full-time employees (those working 30+ hours per week). Non-compliance can result in [hefty penalties](https://www.shrm.org/content/dam/en/shrm/topics-tools/legal-compliance/FED_ACA-Penalties.pdf), so understanding your obligations is critical. Here’s what you need to know as a small business owner: 1. **Affordable Coverage:** The [ACA defines coverage as affordable](https://www.healthcare.gov/glossary/affordable-coverage/#:~:text=In%202025%2C%20it%20is%20considered,%2Donly%20(individual)%20coverage.) if an employee’s premium for self-only coverage doesn’t exceed 9.02% of their household income in 2025. 2. **Minimum Value Standard:** [Health plans must cover at least 60%](https://www.irs.gov/affordable-care-act/employers/minimum-value-and-affordability) of the total allowed cost of benefits. But how do you determine who qualifies, track hours, and ensure your plan meets these requirements? Let’s get into this together! ## **The Challenges of ACA Compliance for Small Businesses** For many small businesses, ACA compliance can feel like a complex process. Some of the most common challenges we’ve heard are: - **Tracking Employee Hours:** Calculating hours accurately is crucial, especially if you have variable-hour employees. Failing to account for their status could result in non-compliance. - **Understanding Coverage Requirements:** Many small business owners struggle to determine whether their plans meet the ACA's affordability and minimum value criteria. - **Filing Deadlines:** Annual reporting, like[IRS Form 1095-C](https://www.irs.gov/pub/irs-pdf/f1095c.pdf), can be time-consuming and very easy to make errors. Mistakes can lead to fines of up to $280 per form in 2025. - Do the math, if you have 50 employees and make a mistake on half of their 1095-C forms, that could cost you $7,000 in penalties!  ## **4 Tips on How to Simplify ACA Compliance** Fortunately, there are ways to make ACA compliance more manageable for your small businesses: 1. **Automate Tracking:** Use [timekeeping](https://www.megapayusa.com/blog/timekeeping-software) software to monitor employee hours accurately, especially for those with fluctuating schedules. 2. **Review Your Health Plans:** Work with a benefits advisor to ensure your plans meet ACA standards for affordability and coverage. Learn more about what a [Benefits Advisor can do for you](https://www.navabenefits.com/resources/what-is-a-benefits-advisor). 3. **Stay Organized with Reporting:** Keep meticulous records of your employees' hours, coverage offers, and premium contributions to simplify Form 1095-C filing. 4. **Seek Expert Help:** Consulting with ACA compliance specialists or using a comprehensive HR and payroll platform can save time and reduce stress. ## **How MegaPay Makes ACA Compliance Easier** MegaPay is designed to take the guesswork out of ACA compliance. [Our all-in-one payroll, timekeeping, and HR platform](https://www.megapayusa.com/how-we-are-different) offers tools to help you: - **Track Employee Hours:** [Automated timekeeping](https://www.megapayusa.com/blog/time-and-attendance-system) ensures accurate calculations for determining full-time status. - **Simplify Reporting:** MegaPay provides easy-to-use reporting tools for preparing and filing Form 1095-C, reducing the risk of costly errors. - **Access Expert Support:** Our team of payroll specialists are here to prevent mistakes and error when filling out this form. Just get us your information and we prepare your filings! At Megapay, our goal is to guide you through the complexities of ACA compliance, so you can focus on growing your business. Learn more about our [Megapay’s Fractional HR Service](https://www.megapayusa.com/blog/fractional-hr)!  ## **ACA Compliance Doesn’t Have to Be Overwhelming** By taking proactive steps and leveraging the right tools, ACA compliance can become just another task you check off your list. MegaPay is here to help you navigate the challenges of the Affordable Care Act with confidence (and of course, ease). Remember: The ACA filing deadline for form 1095-C is January 31st for employee statements and February 28th for IRS submissions (or March 31st if you're filing electronically).  Don’t let compliance stress you out. [**Contact MegaPay**](https://www.megapayusa.com/contact) to learn how we can support your business in staying compliant while saving time and resources. Related articles [Browse all articles](https://www.megapayusa.com/blog/all) [Federal](https://www.megapayusa.com/blog/tag/federal) [Payroll & Tax](https://www.megapayusa.com/blog/tag/payroll-tax) [HR](https://www.megapayusa.com/blog/tag/hr) ### Can I Hire an Employee Without a Social Security Number? Simply put, no. A person needs a Social... [Read more](https://www.megapayusa.com/blog/hire-employee-without-social-security-number) [Timekeeping](https://www.megapayusa.com/blog/tag/timekeeping) [State](https://www.megapayusa.com/blog/tag/state) ### New York’s Spread of Hours: What Employers Need to Know When managing a business in New York,... [Read more](https://www.megapayusa.com/blog/spread-of-hours) [Federal](https://www.megapayusa.com/blog/tag/federal) [Payroll & Tax](https://www.megapayusa.com/blog/tag/payroll-tax) [State](https://www.megapayusa.com/blog/tag/state) ### Get Tax Credits for Helping Employees With Childcare We recently recorded a conversation... 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Website content provided is for informational purposes only and is not legal or professional advice. Each situation is unique; please consult a qualified professional for guidance specific to your case. We are here to answer your questions and help you with any of your payroll processing, time-keeping, and HR compliance needs. ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/pop-btn-icon-1.svg)Payroll ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/pop-btn-icon-2.svg)HR ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/pop-btn-icon-3.svg)Timekeeping ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/pop-btn-icon-4.svg)Benefits ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/pop-btn-icon-5.svg)Onboarding Download our Chrome Extension! Make your Megapay online experience more simple and seamless than ever with our free Chrome extension. 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