In E-filing Approval for Affordable Care Act Returns, Integrity Data a Step Ahead


Integrity Data, a software firm specializing in payroll and human resources technology, announces it is the first software company to pass all IRS check points for the upcoming electronic filing of employers' Affordable Care Act returns.

This discovery of early success with a new IRS system - which recently opened to employers, insurers, and any IT department and software company planning to file on behalf of an employer or insurer - was made over a week's worth of emails and calls with the ACA Information Returns (AIR) help desk, according to Patrick Doolin, CEO of Integrity Data.

"Initially, we learned that we were only the third organization to get this approval," Doolin said, referring to a phone call that Ernie Redfern, Integrity Data's ACA Compliance Director, had with the IRS on Friday morning, October 2, 2015. A post to the company blog on October 5 details that news.

"We since learned that the organizations ahead of us are an insurance company and a software company. When we cross-referenced transmission records, we learned we are that software company, too," Doolin said, referring to error-free submissions Redfern previously sent under Sypnio Software, the ACA reporting startup that Integrity Data acquired in June 2015.

The wow factor in discovery of such a first resonates as anxious U.S. employers and insurers prepare to comply with the intricate IRS reporting requirements of the far-reaching new health law.

"We compete with over 300 software vendors who also claim they can help employers fill out the most cumbersome forms the IRS has ever required," says Tim Strudeman, Integrity Data's business development manager and the company's point of contact for insurance and benefits brokerages seeking an ACA reporting solution for their clients.

"This achievement underscores Integrity Data's credibility and the thoroughness of our ACA offering," Strudeman said. "In successfully navigating the AIR system so soon, we stand by our word - and above the crowd."

The Affordable Care Act Information Returns Assurance Testing System (AATS) opened July 29, 2015. Registering for login credentials to this system is a process that can take weeks and which, in itself, requires close attention, according to Redfern.

At the center of the ACA compliance concern is the new 1095 series of year-end forms: the 1095-C for employers and the 1095-B for insurers. Both must be produced for individual recipients by February 1, 2016. 

  • All ACA-affected employers must give every full-time employee a 1095-C. This form will breakdown - in meticulous monthly detail - whether health insurance was offered and, if so, its attributes. Insurers must give a 1095-B to everyone who has one of their health plans.
  • Copies of these forms must then be filed with their transmittals, Form 1094-C and Form 1094-B, to the IRS, which is encouraging electronic filing. Any organization with 250 or more submissions must e-file. The e-filing deadline is March 31, 2016. Penalties for disregarding this filing are steep.

"Employers we talk to worry enough about filling out these forms. Uploading their files to a brand-new IRS system should not be a concern," Doolin said. "Our perseverance in navigating evolving processes demonstrates our leadership in being proactive. We want our customers to have a fuss-free filing experience, trusting we will handle what needs to be taken care of in this new compliance burden."

In the exacting format that the AIR system accepts - XML, not Excel-based nor PDF - Integrity Data's ACA form-generation software has been approved both for the returns that employers must submit and also for those that insurers must submit. As a transmitter, Integrity Data is approved for 1095-C/1094-C returns and for 1095-B/1094-B returns.

When the AIR system opens in November for voluntary testing of Tax Year 2014 data, Integrity Data will be uploading the files of customers who want to double-check their forms for proper formatting.

Learn more about Integrity Data's ACA Compliance Solution.


Integrity Data is a longstanding leader in development of software that improves businesses processed centered on payroll and human resources data. Headquartered in Lincoln, Ill., and founded in 1996, Integrity Data serves over 7,500 organizations worldwide. Integrity Data's ACA affiliates include McGladrey LLP, one of the nation's largest tax and accounting firms, and Hub International, a leading insurance brokerage that lists Integrity Data as an ACA Toolkit partner.

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