Affordable Care Act (ACA) Processing
Staying ACA compliant means keeping up with forms, fees, and deadlines. Netchex makes it simple with clear costs, built-in reporting, and easy employee access. You meet every requirement with confidence.
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Compliance made simpler with Netchex
The Affordable Care Act (ACA) requires certain year-end reporting for employers. Netchex helps you manage these requirements directly in your payroll system, so you stay compliant, avoid penalties, and give employees a clear picture of their benefits.
Thank you for partnering with Netchex for your Benefits and ACA administration needs. The Netchex Team is here to guide you through Open Enrollment and ACA Reporting, so your employees are in good hands.”
Affordable Care Act (ACA) Reporting Requirements
Under the Affordable Care Act, Section 6056 of the Internal Revenue Code requires Applicable Large Employers (ALEs) to submit information returns to the IRS and give full-time employees a statement outlining the health insurance coverage they were offered.
- Forms required: Form 1094-C and Form 1095-C.
- Applicable Large Employer (ALE): Defined as a business that averaged at least 50 full-time employees during the prior calendar year.
- The calculation is based on business days across that year.
- ALEs may be a single entity or a group of related entities (parent/subsidiary or affiliates). Each is considered an ALE member and must file separately.
- The IRS uses this information to administer employer shared responsibility provisions (Section 4980H).
- Employees and the IRS also use the data to determine available eligibility for the premium tax credit (Section 36B).
Visit ACA Central in Netchex to confirm your setup is correct. For more details, review the IRS Affordable Care Act guidance.
1095 Processing
Staying ACA compliant means keeping up with 1095 forms, fees, and delivery rules. Netchex takes the complexity out of the process by handling IRS transmittals, creating employee forms, and giving you flexible ways to deliver them on time.
1095 Processing Fees
- $100 base fee – Includes IRS transmittal of your company’s 1095 data and electronic copies of 1094 and 1095 forms.
- $8 per employee 1095 form – Fees debited from your Operating Account in March 2026.
- An invoice will be provided before the debit.
| YE Data Sent to Netchex | W-2 Forms | Company Forms | Additional Payroll Fees |
|---|---|---|---|
| By 1/31/2026 |
$100.00 Base $8 per 1095 Form |
Included | None |
| Between 2/1 – 2/14 |
$100.00 Base $8 per 1095 Form |
Included | $500 |
| Between 2/15 – 2/28 |
$100.00 Base $8 per 1095 Form |
Included | $1000 |
| 3/1 and after |
$100.00 Base $8 per 1095 Form |
Included | $2000 |
1095 Delivery Updates
The Paperwork Burden Reduction Act (Dec 2024) changed ACA reporting rules:
- Employers are no longer required to automatically send Form 1095-C to employees — they only need to provide it if an employee requests it.
- Employers must notify employees by Jan 31 of their right to request a 1095C.
- If requested, a 1095C must be furnished within 30 days.
- States with ongoing requirements: California, New Jersey, Rhode Island, Washington, DC.
In Netchex
- Employees download their 1095C via Employee Self Service.
- Netchex will not print 1095C going forward. Admins can download via the Year-End Tax Forms page or the 1094C/1095C Report in Payroll Reports.
Disclaimer: Netchex does not give legal, tax, or accounting advice. You are responsible to ensure your use of Netchex product meets your individual business and compliance requirements.
Sign-Up to Receive Year-End Reminders
Deadlines don’t have to sneak up on you. Netchex keeps you informed with reminders, clear timelines, and direct support, so your year-end closing stays on track.
Sign up for Netchex Year-End Reminders and we’ll email you as frequently as you want. That way, you’ll never miss a deadline.
Upcoming Live Webinars
Year-End Closing Q&A: Last-Minute Guidance from the Experts
Netchex Supports You Every Step of The Way
Netchex pairs smart tools with real people who know payroll inside and out. Our industry-leading Services team is here to guide you through submissions, resolve Experience Hub cases, and review your reporting to ensure nothing slips through the cracks. From quick answers to hands-on support, we’re committed to making your year-end smooth, accurate, and stress-free.
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