ACA Errors Management & Cleanup FAQ
This guide covers the most common ACA questions we hear from clients. It’s meant to be a self-serve resource so you can quickly resolve issues on your own.
If your question isn’t answered here, you can also:
- Ask our AI assistant AskRocky
- Watch training videos (AllPay → Company → ACA → ACA Year End Problems)
- Or contact your dedicated ACA Coach (their name is listed on your AllPay dashboard) for advanced support
How do I access the ACA tools?
Go to Configuration > ACA. You’ll find:
- Setup information
- Measurement periods
- The employee dashboard with eligibility status and average hours
How are measurement periods defined?
- Standard: A 12-month cycle (e.g., Nov 1 – Oct 31) tied to your plan year
- New Hires: Measured for 12 months from hire date; if eligible, coverage must be offered within 28 days after that period ends
- Plan Year Changes: Measurement periods must be updated whenever your plan year changes
Why does ACA use pay period dates instead of check dates?
Eligibility is based on hours worked in the pay period, not paycheck dates. That’s how the law requires it to be tracked.
What hours count toward ACA eligibility?
All hours worked or paid in place of work (PTO, vacation, holidays, training, etc.) must be counted.
** Tip: Review your ACA Hours Setup every quarter to make sure new earning codes are included.
What’s the difference between Initial and Ongoing measurement periods?
- Initial Period: First 12 months from an employee’s hire date
- Ongoing Period: The company’s standard cycle (e.g., Nov 1 – Oct 31)
These can overlap. For example, an employee may not qualify in their Initial Period but could qualify during the Ongoing cycle.
How can I track employees who may soon qualify for coverage?
Use the Employee Dashboard:
- Filter by Measurement Ends Between dates
- Sort by projected average hours to spot employees trending toward eligibility
- Export results to Excel for open enrollment planning
When do I need to offer coverage?
- New Hires: Within 28 days after the Initial 12-month period (if eligible)
- Ongoing Employees: By the start of the plan year (e.g., Jan 1)
** Missing these deadlines can result in IRS penalties.
How often should I check eligibility?
We recommend reviewing eligibility after each payroll run (or at least monthly). This helps ensure you don’t miss the 28-day offer window.
What if an employee shows as eligible but doesn’t have coverage?
Run the report “ACA Status Eligible but No Offer of Coverage.”
It flags employees who qualify but don’t yet have coverage records entered.
Do I need the Benefits module?
Not required — but it helps:
- Without Benefits: You’ll need to enter coverage manually
- With Benefits: Coverage, deductions, and dependents flow automatically, saving time and reducing errors
What are common ACA cleanup steps?
- Remove outdated benefit setups from prior company records
- Delete incorrect contact information to prevent stray notices
- Verify all eligible employees have coverage attached
- Run cleanup reports before open enrollment
What happens if I don’t offer required coverage?
If an eligible employee buys coverage through the Marketplace with subsidies, the IRS may assess penalties up to $10,000 per employee per month.