How does Workday ensure compliance with the Affordable Care Act (ACA)?

Workday ensures compliance with the Affordable Care Act (ACA) primarily by tracking employee benefits eligibility and generating the required reports. This capability is crucial because the ACA mandates that employers, especially those with 50 or more full-time employees, must offer health insurance to full-time employees or face penalties. Workday's system actively monitors the eligibility of employees for benefits, taking into consideration various factors such as hours worked, employee classification, and waiting periods.

Generating reports is another critical function, as the ACA requires employers to provide specific information to the IRS regarding health coverage offered to employees. Workday automates this reporting process, ensuring that organizations meet legal deadlines and accurately reflect their compliance status. This proactive approach not only helps in avoiding penalties but also allows organizations to manage their health benefits more effectively and maintain compliance with evolving regulations.

The other choices, while relevant to various aspects of employee benefits management, do not directly relate to ACA compliance in the same manner. Automatic tax calculations, managing health insurance claims, and simplifying employee onboarding address different areas of human resources and payroll but do not specifically serve the compliance needs outlined by the ACA.