- 02/05/2025
- Posted by: Matt Muriel
- Category: Uncategorized

As 2025 gets underway, it’s crucial for businesses to understand the latest changes to the Affordable Care Act (ACA) and their compliance responsibilities. Staying updated on ACA regulations helps employers avoid penalties and maintain a competitive edge in attracting talent by offering comprehensive healthcare benefits. SolveHR is here to guide you through what’s new in ACA compliance for 2025, so you can meet all obligations smoothly and stay focused on growth.
Overview of ACA Compliance Requirements
The ACA mandates that employers with 50 or more full-time employees (or full-time equivalents) offer affordable, minimum essential healthcare coverage to their staff. Businesses that fail to meet these standards may face fines under the Employer Shared Responsibility Payment (ESRP) provisions. Key areas of ACA compliance include:
- Offering Minimum Essential Coverage (MEC): Employers must provide plans that meet ACA’s minimum essential coverage standards.
- Meeting Affordability Requirements: Employee contributions for self-only coverage can’t exceed a certain percentage of their income, as specified by the IRS.
- Annual Reporting: Employers are required to report healthcare coverage details to both the IRS and employees via Forms 1094-C and 1095-C.
Key Updates for ACA Compliance in 2025
Each year, there are typically adjustments to certain ACA thresholds and requirements, and 2025 is no exception. Here are some of the critical updates for this year:
- Adjusted Affordability Threshold The IRS adjusts the affordability percentage each year, affecting how much employees can pay toward their self-only healthcare premiums. For 2025, be sure to review this threshold and adjust your offerings to ensure compliance.
- Updated Penalty Amounts ESRP penalty amounts also tend to increase annually with inflation. In 2025, penalties for failing to offer adequate and affordable healthcare coverage are expected to rise again. Staying informed on penalty rates can help your business avoid unexpected costs.
- Reporting Changes The IRS may update ACA reporting requirements or adjust deadlines for 1094-C and 1095-C forms. In 2025, be sure to verify any changes in filing dates, especially if your business files these forms electronically.
- Increased Emphasis on Mental Health Coverage Although not mandated, many ACA-compliant plans now include expanded mental health benefits, aligning with the growing importance of mental health in employee benefits. Offering mental health support can enhance your benefits package and ensure it meets ACA standards for comprehensive care.
Essential Steps for Maintaining ACA Compliance
Meeting ACA compliance obligations requires careful planning and regular review of your healthcare offerings. Here’s a step-by-step guide to ensure your business is ACA-compliant in 2025:
- Review and Update Coverage Options: Make sure your healthcare offerings meet the minimum essential coverage requirements and provide adequate options for employees at every coverage level.
- Calculate Affordability: Verify that self-only premiums remain affordable under the new 2025 thresholds. Adjust contributions if needed to avoid affordability-related penalties.
- Stay on Top of Reporting Requirements: Forms 1094-C and 1095-C must be filed with the IRS and distributed to employees by the required deadlines. Using a reliable payroll system or partnering with a PEO like SolveHR can simplify this process.
- Consider Adding Mental Health Benefits: Expanding your coverage to include mental health resources can help you meet employee expectations while also aligning with the ACA’s emphasis on comprehensive care.
- Conduct Regular Audits: Regular audits of your health benefits program can help identify compliance gaps before they become issues, reducing the risk of penalties.
Common ACA Compliance Challenges and How to Avoid Them
ACA compliance is complex, and businesses often encounter challenges in keeping up with annual changes. Here are some common issues to watch for:
- Misclassification of Employees: Properly classifying employees as full-time or part-time is essential, as ACA requirements apply only to full-time employees (or full-time equivalents). Misclassifying employees can lead to significant penalties.
- Inaccurate Reporting: Errors on Forms 1094-C and 1095-C are common, but they can trigger costly IRS penalties. Ensure your payroll and HR systems are equipped to handle ACA reporting requirements.
- Late Filings: Missing IRS filing or distribution deadlines for ACA forms can result in penalties. Set reminders and work with a trusted payroll provider to ensure all filings are completed on time.
How SolveHR Can Support Your ACA Compliance Efforts
Navigating ACA compliance requirements can be challenging for any business. At SolveHR, we offer comprehensive support to simplify your compliance obligations. As a Professional Employer Organization (PEO), we handle ACA reporting, benefits management, and more, freeing you up to focus on running your business. Our team of HR experts stays updated on regulatory changes, so your business remains compliant year-round.
With new updates to ACA requirements, 2025 is an important year to ensure your business is compliant with healthcare obligations. By staying proactive and addressing these updates early in the year, you can avoid penalties and provide your employees with the coverage they need. Contact SolveHR today to learn how we can help streamline your ACA compliance and provide essential HR support for your team.