You can be on Entrepreneur’s cover!

Zenefits Rolls Out Free Software to Help Businesses Comply With Health-Care Requirements With employers facing new Affordable Care Act reporting requirements in 2016, one human-resources tech company is automating the process.

By Catherine Clifford

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Zenefits

Human-resources tech company Zenefits is launching a new, free product aimed to help business owners comply with upcoming Affordable Care Act regulatory and paperwork requirements.

Starting in 2016, employers will have to file every year with the Internal Revenue Service, reporting on the health insurance coverage provided to their employees. If businesses don't report to the IRS, they will be hit with fees both for failing to file the required paperwork and for failing to provide coverage for employees where it is required.

The first deadline business owners will face in the coming year is Jan. 31, when they are responsible for having sent out a report notified their employees of their coverage options. The deadline for filing with the IRS is for Feb. 29 for paper filings and March 31 for electronic filings.

Related: 3 Benefits of the Affordable Care Act Every Business Leader Needs to Know About

The new Zenefits tool, which will launch this fall, automatically generates and submit forms to the IRS. It also helps business owners determine which staffers they are required to provide health insurance for, as reporting and compliance responsibilities differ depending on a company's headcount. If a part-time employee is working enough hours that he is approaching the threshold for being considered full time, the new tool will alert the business owner.

Zenefits offers the software to businesses for free because, as with the rest of its human resources software technologies, the company collects commission when it sells services like health insurance to the businesses that use its platform.

The San Francisco-based technology company has been growing by leaps and bounds, its headcount surging from 15 early last year to 1,000 now. In May, Zenefits announced a $500 million funding round at a $4.5 billion valuation.

Related: ZenPayroll Moves Into Benefits, Changes Name to Gusto
Catherine Clifford

Senior Entrepreneurship Writer at CNBC

Catherine Clifford is senior entrepreneurship writer at CNBC. She was formerly a senior writer at Entrepreneur.com, the small business reporter at CNNMoney and an assistant in the New York bureau for CNN. Clifford attended Columbia University where she earned a bachelor's degree. She lives in Brooklyn, N.Y. You can follow her on Twitter at @CatClifford.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Side Hustle

He Took His Side Hustle Full-Time After Being Laid Off From Meta in 2023 — Now He Earns About $200,000 a Year: 'Sweet, Sweet Irony'

When Scott Goodfriend moved from Los Angeles to New York City, he became "obsessed" with the city's culinary offerings — and saw a business opportunity.

Travel

Save on Business Travel with Matt's Flight's Premium, Only $80 for Life

This premium plan features customized flight deal alerts and one-on-one planning with Matt himself.

Science & Technology

Here's One Reason Urban Transportation Won't Look the Same in a Decade

Micro-EVs may very well be the future of city driving. Here's why, and how investors can get ahead of it.

Health & Wellness

Do You Want to Live to Be 100? This Researcher Has the Answer to Why Longevity is Not a Quick Fix or Trendy Diet

Ozempic, cold plunges, sobriety and the latest health fads are not what science reveals will help you live a longer and healthier life.

Data & Recovery

Better Communicate Data with Your Team for $20 with Microsoft Visio

Visio features a wide range of diagramming tools that can support projects across all industries.