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ACA Requirements for Employers in the Construction Industry

Craig Rees • Nov 22, 2022
The latest ACA requirements for construction employers might seem confusing. This blog will walk you through the steps to take when analyzing your company for ACA compliance.
ACA Requirements for Employers in the Construction Industry

The global construction industry is on track to hit $8 trillion in the coming years. This bodes well for companies and contractors in a variety of industries. 

If you're an employer of construction workers, you need to make sure you're handling your Human Resources (HR) needs accurately and completely. The Affordable Care Act (ACA) is  important to  track but often put on the backburner. Part of the ACA puts an onus on employers to make coverage available to their employees. So, how does this legislation affect the way you run your business?

Here's what you should know about ACA requirements for employers in the construction industry. 

Learn the Current Employer ACA Regulations

 Staying current with your company's ACA requirements  allows you to avoid  penalties. So, what  do you need to  remain in compliance with ACA regulations?

  • Your company must offer minimum essential healthcare coverage to 95% of full-time employees and their dependents 
  • Provide coverage that meets the minimum value (MV) requirement of covering at least 60% of the total cost of medical services.
  • The offer of coverage must meet the IRS’ affordability threshold.

As you work to keep your company in compliance, make sure to also consider the following:

1.Stick to ACA Deadlines

Each year, you need to make sure that your construction company is sticking to ACA deadlines. For 2023, employers are required to issue Internal Revenue Service (IRS) Form 1095-C to employees by March 2. 

IRS Form 1095-C provides information from employers to show that they offered the required coverage to employees. Additionally, your company needs to report this information to the IRS by March 31. 

Stick to these deadlines to avoid penalties.

2. Consider Your Company Size

It's  your responsibility to know if  your company is required to comply with ACA requirements. 

ACA regulations state , you need to offer healthcare coverage if your company staffs 50 or more full-time employees. This also includes full-time equivalent (FTE) employees. FTE refers to a combination of part-time workers whose hours add up to a full-time workload. 

Combine the number of hours worked by all non-full-time employees for the month, but not including hours over 120 for an individual, and divide the total by 120. This would be added to your count of full-time employees to calculate your FTE count for the month.

3. Consider the Nature of Your Construction Company

The type of business you run will dictate a lot about how you stay in ACA compliance. Consider whether you have a combination of full-time employees and independent 1099 contractors. 

The type of construction business that you run will also affect the Generally Accepted Accounting Principles (GAAP) that apply, based on your industry standards. Consider whether your construction projects are short-term or long-term. For ACA to apply, your employees must work full-time for at least 2 months out of the year. 

Most construction projects have a production cycle of a year or more, though some short-term projects take less time. 

Construction companies today also staff an average of 65 full-time employees. Consider the state or government agency that you're beholden to since each organization has its own formatting standards. 

There are a variety of construction and construction-related fields that routinely use government contracts for projects, including:

  • Plumbing and Heating Ventilation and Air Conditioning (HVAC) services
  • Painting and paper hanging professionals
  • Contractors that provide excavation and demolition services
  • High and street construction
  • Glass and glazing services

Knowing your industry will help you correctly submit your ACA filing, and incorporating fringe benefits offered into your certified payroll reports. 

Leverage Technology to Keep You Compliant

So, how can you manage your company's ACA requirements? The best thing you can do is leverage tools and technology that consistently track and document these matters. 

Your construction company may have a skilled Human Resources department, but having an employee who strictly monitors ACA form issuance, collection, tracking, and any communication with the IRS, is costly and many times, unrealistic. 

These matters can get complicated quickly, and may HR departments become overwhelmed with the manual processes of maintaining ACA compliance. Invest in some business compliance software that can seamlessly track any important changes. An ACA compliance platform has triggers and alerts set up based on employees' hours, new hires, and other factors that will affect your ACA reporting. ACA Reporter also lets you file electronically  and send forms to your employees. 

ACA Requirements for Employers in the Construction Industry

The points above are helpful whenever you're looking into ACA requirements for employers. It's a factor that affects construction companies all over the country, which is why you need to manage these details to the best of your ability, and when you can’t take on all of the tactical challenges that come with doing it all yourself. 

Points North has been around since 1994. We are skilled at helping clients with their construction payroll compliance needs including ACA reporting. We've helped clients in all 50 states, and work with companies of all sizes - learn more by visiting

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