Navigating Health Reform Mandates

Affordable Care Act Compliance for Restaurants

With over 1 million locations in the U.S. employing over 15 million people, restaurants represent a driving force in the economy. The service-based nature of restaurant jobs, however, often translates to volatile schedules, consistent onboarding, and benefit complexities. Under the Affordable Care Act, restaurant companies can face health coverage requirements and tax penalties.
Customers enjoying food

Understanding Applicable Large Employer Status

The ACA’s employer shared responsibility provisions apply to companies with 50 or more full-time or full-time equivalent employees. Determining when restaurant groups cross this threshold can be confusing. To calculate Applicable Large Employer status:

  • Count all full-time employees who work 30+ hours per week (or 130 hours per month)
  • Add up total monthly hours worked by part-time staff with a max of 120 hours for individual employees.
  • Divide the aggregated part-time hours by 120 to determine full-time equivalents for the month.
  • Add full-time and full-time equivalents to see if you hit the 50+ employee threshold.

This monthly calculation must factor in fluctuations in hours and staffing. ACA Reporter offers real-time tracking and alerts to monitor Applicable Large Employer status. This protects against penalties for inadvertent non-compliance.

People with checklist

Simplifying ACA Compliance for Restaurant Chains

For multi-location and franchised restaurants, ACA compliance becomes exponentially more challenging. Keeping current with reporting requirements across hundreds of sites strains resources, requires a lot of time, and raises the risk of error.

To help combat the complexities of multi-location tracking, ACA Reporter allows restaurants to:

  • Centralize employee hour tracking across all locations
  • Continuously monitor full-time employee counts
  • Generate required IRS returns for timely filing
  • Maintain records digitally for easy access when needed
  • Update compliance processes as regulations change

Automating ACA compliance also provides clarity. IRS penalties reaching into the millions make non-compliance a substantial risk. ACA Reporter enables restaurant ACA compliance so they can always remain audit-ready.

Restaurant workers with computer

Managing Health Coverage Responsibility

Once you are classified as an Applicable Large Employer and are compiling your hours correctly, a restaurant must determine compliance obligations. To make sure you comply with ACA’s affordability rules, you have to analyze whether the coverage you have offered is affordable, meaning it meets the minimum value requirements.

To help restaurants comply to affordability requirements, ACA Reporter helps:

  • Calculate affordability relative to employee wages
  • Track eligibility for health plan enrollment
  • Contain costs through dashboard-powered oversight

The Affordable Care Act and Restaurant Employees


Restaurant IRS Reporting Requirements

Once qualified as an Applicable Large Employer, ongoing IRS reporting is required. This includes furnishing Form 1095-C to each full-time employee and filing copies alongside transmittal Form 1094-C with the IRS.

ACA Reporter simplifies the process by:

  • Populating Forms 1095-C with required employee data and ACA codes
  • Generating Form 1094-C for aggregate filing
  • E-filing directly with the IRS to meet deadlines
  • Maintaining digital copies for easy access

Without the right software, IRS reporting can become an overwhelming annual burden. Leveraging ACA Reporter helps you stay compliant while freeing up managerial bandwidth.

Server helping customers
Manage Compliance

Maintaining Compliance and Audit Readiness

In the event of an IRS audit, detailed documentation is required to demonstrate ACA compliance over multiple years. With compliance data at your fingertips, each audit notice can be addressed calmly and systematically. ACA Reporter enables restaurants to remain audit-ready by:
  • Storing hourly data, health plan offer info, and IRS forms
  • Generating custom reports for any date range
  • Providing clear audit trails to verify calculations
  • Supporting data corrections in case of errors
Restaurant window
Navigating Change

Navigating Ongoing Regulatory Changes

Over the decade since the Affordable Care Act’s passage, regulations have continued to evolve. Changes occur through federal rulemaking and court rulings, and they can easily change from year to year.

ACA Reporter helps restaurants adapt through:

  • Alerts and updates on regulatory changes
  • Continually updated reporting forms
  • Ongoing support for new requirements
  • Resources to explain new provisions.

With compliance experts monitoring developments, restaurants can trust their processes reflect current standards.

Compliance overview

Points North: Restaurant Compliance Simplified

With expertise across industries and compliance areas, Points North offers restaurant owners and operators a customized path to ACA compliance. Our team of specialists will assess your needs and tailor a solution to fit your operations.

Leveraging ACA Reporter, you get:

  • Simple monthly measurements of full-time employees
  • Eliminating manual Form 1094/1095-C filing
  • Intuitive online platform requiring minimal training.
  • Ongoing compliance support from experts
  • And more!

Get in touch today to discuss how ACA Reporter can strengthen your restaurant business. Points North is ready to guide you towards efficient, sustainable ACA compliance. We are here so you can focus on what matters most – your restaurant business.