What “Full Service” ACA Filing Actually Means

Every ACA software vendor claims to make compliance easy. Upload your data, click a button, and you’re done. But when the IRS sends a penalty notice two years later, those same vendors are nowhere to be found.

The gap between “we file your forms” and “we handle your ACA compliance” is wider than most employers realize. Here’s what separates basic filing software from a full-service approach.

The DIY Software Model

Most ACA software follows the same pattern. You collect your employee data, figure out who qualifies as full-time, determine which codes apply to each employee’s situation, enter everything into the system, and hit submit. The software transmits your forms to the IRS and gives you confirmation.

Sounds straightforward. But every step in that process is an opportunity for error.

Did you count hours correctly for your variable-hour employees? Did you apply the right affordability safe harbor codes? Did you remember to check “Yes” in Part III of Form 1094-C? Did you use the correct Line 16 codes for employees who waived coverage versus those who weren’t offered it?

If you made a mistake, you won’t find out until the IRS sends Letter 226-J with a proposed penalty. At that point, your software can’t help you. You’re gathering documentation on your own, figuring out what went wrong, and responding to the IRS within the deadline.

And if you need to correct a prior-year filing? Your old software version may not support the current IRS schema, leaving you unable to submit corrections at all.

What Full Service Looks Like

When Tesseon handles your ACA filing, we take responsibility for the entire process.

Data collection that works for you.
We offer three flexible methods to get your employee information. You’re not stuck wrestling with a single import template that doesn’t match how your payroll system exports data.

We determine your filing requirements.
Instead of hoping you’ve correctly identified which employees need forms and which codes apply, we review your workforce data and make those determinations. You’re not guessing at the Line 14 and Line 16 codes that can make or break your compliance.

Validation before filing.
We review your data for errors, inconsistencies, and red flags before anything goes to the IRS. Catching a missing safe harbor code now is infinitely better than defending against a penalty notice later.

Correct forms, current schema.
We populate your 1094-C and 1095-C forms correctly and transmit them using the current IRS schema. This matters more than you might think. The IRS updates its Affordable Care Act Information Returns (AIR) system requirements, and prior-year corrections must use the current schema. Software frozen in time can’t handle this.

Transmission included.
No per-employee fees that make your costs unpredictable. Filing is part of the service.

We monitor acknowledgements.
After transmission, the IRS sends acknowledgement files indicating whether your forms were accepted or rejected. We monitor these and address any issues. With DIY software, this is on you to check and interpret.

Error correction and resubmission.
If something needs to be fixed, we handle it. You’re not left trying to figure out how to correct a rejected filing on your own.

Audit defense with 3-year retention.
If the IRS questions your filings, we retain your data and documentation for three years and can support your response. DIY software gives you a filing confirmation and wishes you luck.

The Real Cost of “Easy”

Basic ACA software is cheaper upfront. But the price difference looks different when you’re facing a $200,000 penalty notice and realizing that your software vendor’s support line can’t help you respond.

ACA compliance isn’t just about transmitting forms once a year. It’s about getting the details right, keeping records, monitoring for problems, and being able to respond when the IRS comes calling. Software handles one piece of that. Full-service handles all of it.

Your ACA software does one thing. We do everything else.

Ready to hand off ACA compliance entirely? Contact Tesseon to learn more about our full-service ACA filing and penalty resolution services.