Employer Shared Responsibility


On Thursday, May 4, 2017, Republican leaders in the U.S. House of Representatives ushered through a vote on the American Health Care Act (AHCA) to repeal and replace various provisions in the Affordable Care Act (ACA). There is no impact at this point as we are still very early in the legislative process through Congress.

Paychex will continue to monitor legislative developments and work with you to ensure you have the most up-to-date information and compliance support.

Health Care Reform Help is Here, Get Started

Under the Affordable Care Act (ACA), employers with 50 or more full-time employees (including full-time equivalents) face significant penalties if they don’t offer adequate, affordable coverage to their full-time employees. They are also required to submit informational reporting about their full-time employees’ health care coverage to the IRS. The data collection and calculations needed to complete these new IRS forms is a formidable challenge to many employers. If you are unsure about where to begin, or don’t think you can meet these requirements on your own, rest easy — Paychex is here to help you complete and file these forms so that you can concentrate on what’s most important, your business.

Filing Deadlines

  • February 28 - to manually file the Forms 1094-C and 1095-C with the IRS (for employers not filing electronically).
  • March 2 - to deliver the Form 1095-C to employees.
  • March 31 - to electronically file the Forms 1094-C and 1095-C with the IRS.

If your business is subject to the employer shared responsibility (ESR) provisions of the Affordable Care Act, you are responsible for:

  • Providing detailed reporting to the IRS on how many full-time employees work for your business.
  • Identifying all full-time employees as defined in the law.
  • Determining the coverage, if any, you offer to these full-time employees.
  • Tracking personnel changes that may put your business over the 50 full-time employee (including full-time equivalents) threshold subject to the provisions.
  • Assessing the group coverage you currently offer to see if it meets the affordability and quality standards established in the ESR provisions in the ACA.

Employers need to complete at least twelve months of extremely complex and difficult tracking and reporting on employee hours, wages, and coverage to determine how many full-time employees they have, and the adequacy and affordability of the coverage (if any) offered to these employees, in preparation for open enrollments and offering health coverage the coming year.



Paychex explains the ESR provisions of the health care reform law and how they may impact your business.

Applicable large employers that fail to comply can face tens- to hundreds-of-thousands of dollars in penalties assessed based on size:

  • 100 full-time employees: $151,200 per year
  • 200 full-time employees: $367,200 per year
  • 500 full-time employees: $1,015,200 per year

Paychex Can Help You Avoid These Costly Scenarios
No matter the size of your business, Paychex and its unique ability to integrate payroll with benefits gives you the analysis, reporting, and monitoring to help determine:

  • If your business is an Applicable Large Employer
  • How many full-time employees you have based on the law’s definitions
  • Whether you offer adequate and affordable coverage for clients with insurance service through Paychex Insurance Agency

Paychex will also prepare and file the new, complex tax Forms 1094-C and 1095-C for you!

Act Today on the Affordable Care Act
Call 844-802-2248 or complete the form below to have a Paychex representative contact you.

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For clients of Paychex Insurance Agency, Paychex Professional Employer Organization (PEO), or BeneTrac.
Insurance offered through Paychex Insurance Agency, Inc., 150 Sawgrass Dr., Rochester, NY 14620. CA license #0C28207.