Affordable Care Act (ACA) Reference Checklist for Franchisees

Affordable Care Act (ACA) Reference Checklist for Franchisees

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The ACA is a federal law that requires larger employers to offer affordable health insurance to full-time employees and sets rules for employee count, affordability, and reporting.

ACA Service Providers:

• ADP

• Paycor

• Efficient Hire - EHX

• Trusaic

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 Use this checklist annually to determine whether your business is subject to ACA employer requirements and to confirm ongoing compliance.

1. Determine Applicable Large Employer (ALE) Status

- Did you average 50 or more full-time employees (or full-time equivalents) during the prior calendar year?

• All employees across commonly owned entities may to be combined.

• Typically, a franchisee with 5 or more stores.

2. Offering Health Insurance – Failing either requirement may result in IRS penalties

- Is health coverage offered to at least 95% of full-time employees?

- Does the plan meet Minimum Value (covers at least 60% of costs)?

• Affordability is based on employee-only coverage, not family coverage.

• Check with health insurance agent that employee plan costs meet ACA safe harbor requirements.

3. Reporting& Recordkeeping

- File required annual ACA forms (e.g., Forms 1095‑C / 1094‑C).

- Track employee hours accurately year-round.

- Document retention.

4. Annual Review Recommendation

- Reassess employee counts every year.

- Re-evaluate affordability if wages or premiums change.

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If, after review, you determine that your business does meet ACA requirements, we strongly recommend that you contact a licensed health insurance provider or benefits advisor. They can assist you with:

• Selecting an appropriate health insurance plan.
• Ensuring the plan meets ACA minimum value and     affordability standards.
• Establishing proper employee eligibility and hour‑tracking     procedures.

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Please note that D & S Management Services Inc. does not track employee hours for ACA purposes, administer health insurance plans, or file ACA‑related forms on behalf of clients.

Compliance with ACA requirements—including offering coverage, tracking eligibility, and completing required reporting—is the sole responsibility of the business owner.

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