From Raw Data to Filed Returns. Here Is Every Step.
ACA compliance is not complicated when the system is built correctly. Here is exactly what happens when you work with PenaltyShield.
We Review Your Situation
Before anything moves, we want to understand your workforce structure: employee count, ALE group members, measurement methodology, health plan type (fully insured vs. self-insured), payroll system, and filing history.
This is not a form. It is a conversation. Our team has handled ACA compliance for employers of every size and structure, and we can quickly identify where your risk sits and what your filing will require.
You Send Us Your Data. We Handle the Rest.
Export your payroll or HRIS data in whatever format your system produces. ADP. UKG. Workday. Paychex. A custom extract from your HR system. A spreadsheet your team maintains. We have processed all of it.
BEAM ingests your file, maps your fields to our ACA data schema, and produces a data quality report that identifies any blocking issues before compliance logic runs. You receive a clear summary of what we found, what we need, and whether your data is ready to proceed.
If there are issues, we tell you exactly what they are, which employees are affected, and how to resolve them. Nothing proceeds until the data is clean.
PRISM Runs Your Compliance Logic
Once data passes quality review, PRISM processes every employee record through the full ACA compliance ruleset. Eligibility is determined by your measurement methodology. Offer codes are assigned based on what was offered and to whom. Affordability is calculated using your chosen safe harbor.
PRISM generates your complete 1094-C authoritative transmittal and all 1095-C employee forms. Every code on every line is calculated from your data, not entered by hand. The output is reviewed by our specialists before it moves forward.
LENS Reviews Your Risk Before Anything Is Filed
This is the step most ACA vendors skip. Before we submit anything to the IRS, LENS runs the AIRWAVE analysis.
AIR checks every form for coding conflicts, invalid indicator code combinations, and schema violations that would cause IRS rejection. WAVE calculates your 4980H(a) and 4980H(b) penalty exposure, month by month, employee by employee, and identifies the specific records that carry risk.
You receive the AIRWAVE report before filing. If action is needed, you know in time to take it. If your filing is clean, you have documentation that says so.
We File With the IRS on Your Behalf
Electronic submission via the IRS AIR system. Your 1094-C and all 1095-C returns are transmitted under the current TY schema. We monitor for acknowledgment and handle any IRS-side errors.
For employers in states with additional ACA filing requirements, we handle those submissions as well. You do not need to track state-by-state requirements or maintain separate filing relationships.
1095-C Distribution to Your Employees
Every ALE must furnish 1095-C forms to employees. We produce print-ready, IRS-formatted 1095-C forms for your workforce. Distribution is coordinated with you, whether by mail, electronic delivery, or a combination, in compliance with furnishing deadline requirements.
IRS Notices and Penalty Defense
If a Letter 226J or other IRS notice arrives, we are on it. You have the AIRWAVE report. You have complete documentation of every coding decision. You have a team that understands exactly how to respond.
We are not a software company that hands you a PDF and wishes you luck. We are operators who stand behind our work.