The Internal Revenue Service (IRS) has recently been ramping up its enforcement of employer requirements related to the Affordable Care Act (ACA), and the penalties for non-compliance can sometimes be severe. Employers with at least 50 full-time employees, considered an Applicable Large Employer (ALE), are subject to Employer Shared Responsibility Provisions of the ACA.

These provisions require organizations considered ALEs to either offer minimum essential coverage or make an employer shared responsibility payment to the IRS. With the IRS more aggressively targeting employers who are potentially not compliant with ACA requirements, it is critical for employers to make sure they are prepared in the event they are audited for non-compliance.

One way to help ensure your business is prepared for an ACA audit is to keep detailed records and documentation of your existing ACA process. In addition to serving as evidence that an organization is meeting its ACA regulatory requirements, the discipline of documentation also helps to foster a culture of accountability — helping reduce the risk of inadvertent violations and reinforcing a company's commitment to its legal obligations under the ACA.