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Mind the gap: Solution to ACA tax filing during a change in HCM or payroll platform

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Mind the gap: Solution to ACA tax filing during a change in HCM or payroll platform

A situation that we see very often is when one of our clients is converting from one payroll system to another or moving to a completely different HRIS during the calendar year. When the issue of ACA compliance comes up the client usually finds that the data required for preparing Form 1095C and eFiling to the IRS is not readily available from the vendor being replaced. This is what we refer to as the “GAP”.

The result is that the new ACA module from the new vendor has only a few months of data and cannot satisfy the compliance requirement for all 12 months.  Some vendors have begun to anticipate this problem and create workarounds. As the name implies these work around get the job done, but they require a significant amount of manual intervention and data wrangling by knowledgeable benefits, payroll and IT staff; resources that are often very scarce and year-end.

Our Solution: One time use of the ACATech Value Added Network (VAN)

The VAN transforms the Data from company semantic (Company language and format) to the IRS language required for compliance. The VAN takes data in its native format from the relevant systems including the legacy payroll or HRIS, and transforms it into the required format. Because this is a one time task it is a perfect candidate for outsourcing to a VAN. We work with clients in this area to either prepare the uploads to new ACA modules or more often take over the entire processing for the road related tax year; essentially combining the data from the various sources to produce the result. In future years we work with the client to migrate this information to the reporting application installed in the payroll or HRIS.

The result is a win-win , full compliance of the tax year and a roadmap to success for future tax year filings.

 

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