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Ensure ACA Compliance With Paychex ESR Services

Streamline Affordable Care Act (ACA) compliance with Paychex Employer Shared Responsibility (ESR) services. Get automated tracking, comprehensive reporting, and cost-effective coverage solutions for your full-time workforce and their dependents.

Understanding Your ACA Employer Responsibilities

When your business averages 50 or more full-time employees (including full-time equivalents) in the previous calendar year, you are required to:

  • Provide 60% minimum value, affordable health coverage to full-time employees and their dependents
  • Maintain organized annual reporting to the IRS

Successfully meeting these requirements helps you build a stronger workforce while staying fully compliant with the Affordable Care Act (ACA).

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Get Help Managing ACA and ESR Requirements

The Affordable Care Act requires compliance and meeting its requirements can be complex. From data collection to IRS reporting, Paychex licensed agents and ESR Services are here to help.

Form Preparation & Filing

Our ESR services team helps prepare and file complex tax forms on your behalf, including Forms 1094-C and 1095-C.

Employee Communication

Direct distribution of completed Forms 1095-C to your employees.*

Ongoing Monitoring

We continuously track your applicable large employer designation, full-time equivalent staff counts, and ACA coverage compliance.

Policy Support

Our agents help you find and compare health plans that meet ACA requirements. You'll have a dedicated representative to guide you.

Packages Built with Flexibility for You

You can choose ESR services as a standalone product or get it as part of some of our HR packages. Our team can help choose what works best for your needs and budget.

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Prevent Penalties for Missing ESR Requirements

With comprehensive support from Paychex, you can take steps to comply with ESR requirements and avoid costly penalties. Here are the annual penalty ranges for 2025 by company size:

  • 100 full-time employees: Up to $203,000
  • 200 full-time employees: Up to $493,000
  • 500 full-time employees: Up to $1,363,000

Our experienced team helps ensure accurate reporting, timely submissions, and ongoing compliance monitoring to keep your penalty-free.

Penalties for Missing ESR Requirements

How to Get Started with Paychex ESR Services

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Get in Touch

Complete our form to connect with an ESR specialist about your ACA compliance needs.

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Talk to Our Experts

Our team will help you find the ESR services and ACA solutions that fit your specific needs.

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Stay Compliant with ACA Requirements

Maintain ACA compliance with our ESR services and direct access to your representative.

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Frequently Asked Questions

  • What are ESR Services?

    What are ESR Services?

    Paychex ESR services help your business comply with applicable requirements under the ACA, such as offering affordable minimum essential coverage that provides your full-time employees and their dependents with a certain minimum value, or potentially making an employer shared responsibility payment to the IRS.

  • What triggers the employer shared responsibility penalty?

    What triggers the employer shared responsibility penalty?

    Your business could face an ESR penalty from the IRS if your business qualifies as an applicable large employer (ALE) with a certain number of full-time-equivalent employees and you do not offer affordable minimum essential coverage that provides minimum value to at least 95% of your full-time employees and their dependents.

  • How much is the employer shared responsibility penalty?

    How much is the employer shared responsibility penalty?

    Businesses face an ESR penalty of $2,750 per full-time employee after the first 30 and any of them obtains coverage from an insurance exchange.

  • What are group health insurance benefits?

    What are group health insurance benefits?

    Group health insurance benefits such as those offered through Paychex Insurance Agency bring together employees from multiple employers in order to help maximize the cost effectiveness of offering health insurance to employers and their employees.

  • Where can I find help to prepare for ESR reporting?

    Where can I find help to prepare for ESR reporting?

    When preparing reporting information at tax time to meet your requirements, it’s helpful to fill out our ESR checklist with what you need to provide to the IRS.

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