AI ACA Reporting Agent

How Cassidy automates this using AI

Step 1: Trigger on reporting cycle or data sync

The Workflow activates on a scheduled reporting trigger or when new payroll, benefits, or HRIS data syncs ensuring ACA processing begins with the latest employee hours, offers, and enrollment information across all client ALEs.

Step 2: Ingest and normalize source data

Cassidy pulls data from connected payroll, HRIS, benefits administration, and COBRA systems, then normalizes records to a unified ACA schema resolving employee identities across EINs and PEO transitions to prevent duplicate 1095-Cs.

Step 3: Determine FT status and measurement periods

The Workflow applies look-back or monthly measurement method logic to calculate full-time status for each employee, flagging variable hour and seasonal workers while computing Limited Non-Assessment Periods for new hires.

Step 4: Calculate Line 15 and affordability safe harbors

Cassidy computes the employee required contribution for the lowest-cost self-only MV plan each month, determines applicable affordability safe harbors, and identifies Qualifying Offer eligibility based on plan and contribution data in the Knowledge Base.

Step 5: Generate Line 14/16 codes

The agent encodes each employee-month with the correct Line 14 offer code (1A–1U) and Line 16 safe harbor/relief code (2A–2T), respecting IRS ordering rules and handling mid-month hires, terminations, COBRA, and self-insured Part III population.

Step 6: Validate against AIR schemas and business rules

Cassidy runs forms through IRS AIR schema validation and business rule checks, performs TIN/name matching, reconciles 1094-C counts and certifications, and flags errors for Human-in-the-Loop review before transmission.

Step 7: Package and bulk e-file to AIR

The Workflow assembles Manifest and Form Data files, designates the Authoritative Transmittal, splits large batches as needed, and transmits to the IRS AIR system monitoring acknowledgments and routing any rejections or "Accepted with Errors" responses for correction.