Terms of Service

ChannelBound, LLC d/b/a ACAPrime

PART I — GENERAL TERMS

1. Agreement

These Terms of Service (“Terms”) constitute a legally binding agreement between ChannelBound, LLC d/b/a ACAPrime (“ACAPrime,” “Service Provider,” “we,” “us,” or “our”) and any entity or individual accessing or using the services offered via ACAPrime.com (“Client,” “you,” or “your”). By accessing the site or engaging any service, Client agrees to be bound by these Terms. Access to services requires that the individual accepting these Terms be at least 18 years old and have legal authority to bind the Client entity.

2. Scope of Services

2.1 Services Are Limited to What Is Contracted

ACAPrime’s services are strictly limited to the specific compliance filings and document preparation services described in these Terms and confirmed in Client’s service enrollment or written agreement (“Contracted Services”). These Terms do not create any obligation on ACAPrime’s part to perform services beyond the Contracted Services.

ACAPrime has no obligation to identify, notify Client of, perform, or file any compliance requirement, reporting obligation, government filing, plan document, or disclosure that has not been specifically agreed upon in writing between the parties. Client’s engagement of ACAPrime for one service does not create any implied obligation for ACAPrime to perform related, similar, or ancillary services.

Examples of services that are not included unless specifically contracted:

State-level ACA reporting (separate from federal 1094-C/1095-C filing)
Employee SPD distribution logistics (separate from document preparation)
Nondiscrimination testing for Section 125 plans
Standalone Form 5500 preparation (unless enrolled as a separate Contracted Service)
COBRA administration or notices
Medicare Part D notices to employees
Summary of Benefits and Coverage (SBC) preparation
Any other federal, state, or local filing or disclosure requirement not expressly listed in the Contracted Services

If Client believes an additional service may be needed, Client should contact ACAPrime to discuss. ACAPrime will not be liable for Client’s failure to identify, purchase, or arrange for services that were not contracted.

2.2 No Monitoring Obligation

ACAPrime has no obligation to monitor changes in Client’s business, workforce, plan design, regulatory environment, or legal requirements that may affect Client’s compliance obligations. Client is solely responsible for identifying and communicating to ACAPrime any changes that may affect the scope of Contracted Services.

2.3 No Legal or Tax Advice

ACAPrime’s services constitute compliance filing and document preparation assistance only. Nothing in these Terms, in any deliverable, or in any communication from ACAPrime constitutes legal advice, tax advice, or a legal opinion. Client should consult qualified legal counsel and tax advisors regarding its compliance obligations, applicable law, and appropriate strategies.

3. Data Security and Privacy

ACAPrime utilizes Box.com as its primary secure cloud storage platform for data storage, sharing, and transfer. In handling tax information and personally identifiable information (PII), ACAPrime implements security protocols including end-to-end encryption, multi-factor authentication, regular security audits, access controls, and secure data retention and disposal practices.

Client acknowledges that ACAPrime may transmit Client data to third-party service providers, including electronic filing agents, print and mail vendors, and government portal systems, as necessary to perform Contracted Services. Use of ACAPrime’s services constitutes consent to such data transmission. Client must comply with all applicable laws, including U.S. export control laws, in connection with its use of the services.

4. Client Data Responsibilities

4.1 Accuracy and Completeness

Client is solely responsible for the accuracy, completeness, and timeliness of all data provided to ACAPrime. By submitting data, Client represents and warrants that the information is accurate, complete, and current. ACAPrime relies entirely on Client-provided data and has no independent means of verifying accuracy or completeness. ACAPrime is not responsible for identifying missing data, incorrect data, or data inconsistencies unless errors are obvious on the face of the data as received.

4.2 Client Obligations

Client agrees to:

Provide all required data in the format and timeframe specified by ACAPrime
Designate an authorized point of contact for coordination of services
Respond promptly to ACAPrime inquiries
Review all draft deliverables within five (5) business days of receipt and notify ACAPrime of any errors or discrepancies
Notify ACAPrime immediately of any changes in company structure, plan design, controlled group status, workforce, or other factors affecting the Contracted Services
Maintain all records required by applicable law, including records supporting the data provided to ACAPrime

4.3 Failure to Review

Client’s failure to review draft deliverables, or failure to identify errors in those deliverables, does not relieve Client of responsibility for the accuracy of filed or completed documents. Client’s written approval to file or finalize a deliverable constitutes Client’s acceptance of its accuracy.

5. Filing Deadlines and Processing

ACAPrime’s standard processing time is ten (10) business days following receipt of all required data in acceptable format. Non-standard data formats may require additional processing time and fees, which ACAPrime will communicate in advance.

ACAPrime does not guarantee delivery of services by any government deadline unless Client provides all required data and approvals at least twenty (20) business days prior to such deadline, except where a shorter deadline is specified in the applicable service section below. ACAPrime reserves the right to decline services or charge expedited fees for data received outside these timeframes. Late submission of data or approvals by Client is solely Client’s responsibility, and ACAPrime bears no liability for resulting late filing penalties.

Note: Service-specific deadlines set forth in Part II govern where they differ from the general twenty (20) business day standard above. In all cases, the service-specific provision controls. Clients should review the applicable Part II section for the exact data submission deadline applicable to their enrolled services.

6. Corrections and Adjustments

ACAPrime will correct any error directly attributable to ACAPrime’s processing at no charge. Corrections required due to Client data errors, omissions, or post-filing changes will be billed at $300 per hour, with notice to Client before work begins. A variance of plus or minus ten percent (10%) in form or document count from the contracted volume is permitted without fee adjustment. Additional volume beyond this threshold will be billed at standard rates. Refunds for overpayment will be processed within sixty (60) days of request.

Client acknowledges that the $300 per hour correction rate for Client-caused errors is disclosed in these Terms. Clients enrolling through ACAPrime’s online checkout are directed to review these Terms prior to enrollment, and enrollment constitutes acceptance of this rate.

7. Payment Terms

Client agrees to pay ACAPrime the fees set forth in the applicable service enrollment, pricing schedule, or statement of work. Full payment is required upon enrollment unless otherwise specified. Refunds are issued at ACAPrime’s sole discretion if contracted services have not been rendered. ACAPrime reserves the right to suspend services for non-payment.

Bundle Pricing. Where Client enrolls in a bundled package of multiple services at a combined price, bundle pricing is non-refundable once any individual service within the bundle has been initiated. Individual service refunds within a bundle are not available after initiation of any bundled service. “Initiation” means ACAPrime has sent a data intake request or begun work on any service included in the bundle.

Broker-Referred and Discounted Enrollments. Where Client enrolls using a promotional discount code provided by a broker or channel partner, the discounted price constitutes the full contracted fee. ACAPrime’s obligations under these Terms are identical regardless of whether full list price or a discounted price was paid.

8. Representations and Warranties

Client represents and warrants that: (a) it has full legal authority to enter into these Terms and to authorize ACAPrime to act on its behalf as described herein; (b) all data and information provided to ACAPrime is accurate, complete, and lawfully obtained; (c) it will comply with all applicable federal, state, and local laws in connection with its use of ACAPrime’s services; and (d) it will not use ACAPrime’s services for any unlawful purpose.

9. Third-Party Services

ACAPrime may engage third-party vendors, including electronic filing agents, print and mail fulfillment providers, actuarial consultants, and government system intermediaries, in performing Contracted Services. Where third-party fees are separate from ACAPrime’s service fee (such as actuarial consultation), ACAPrime will disclose such fees in advance. ACAPrime is not liable for the acts, errors, or omissions of third-party vendors acting within the scope of their role, provided ACAPrime exercised reasonable care in their selection. For the avoidance of doubt, actuary consultation fees required for CMS creditable coverage determinations on complex or self-funded plan designs are third-party fees separate from ACAPrime’s service fee and will be disclosed to Client before such work is initiated. Client’s enrollment in the standard CMS Creditable Coverage service does not include actuarial consultation unless separately agreed.

10. Channel Partner and Broker Referral Program

ACAPrime may make its services available to end-employer clients through broker intermediaries, benefits consultants, or other channel partners (“Broker Partners”). Where a Client enrolls following referral or facilitation by a Broker Partner:

(a) The contracting relationship is between ACAPrime and the enrolling Client (the employer). The Broker Partner is not a party to these Terms and has no contractual rights or obligations under them.

(b) Broker Partners may distribute promotional discount codes on behalf of ACAPrime. Use of such codes by Client constitutes enrollment under these Terms at the applicable discounted price. ACAPrime is solely responsible for service delivery; Broker Partners have no authority to modify the scope of services or make representations about service outcomes on ACAPrime’s behalf.

(c) ACAPrime may use referral tracking mechanisms (including unique discount codes and URL parameters) to identify the Broker Partner associated with a Client enrollment. This tracking is for ACAPrime’s internal attribution purposes only and does not create any fee-sharing, referral fee, or commission obligation unless separately agreed in writing between ACAPrime and the Broker Partner.

(d) Client acknowledges that its Broker Partner may have independently recommended services based on the Broker Partner’s knowledge of Client’s plan design. ACAPrime’s obligations are limited to the Contracted Services as enrolled. ACAPrime has no liability for services the Broker Partner recommended but Client did not enroll in.

11. Intellectual Property and Prohibited Use

ACAPrime’s website, software, templates, methodologies, and all associated content are protected by applicable copyright, trademark, and intellectual property laws. All rights remain with ACAPrime or its licensors. Client may not reproduce, modify, distribute, or create derivative works from any ACAPrime content without written permission.

Client is prohibited from: violating applicable laws; infringing ACAPrime’s or any third party’s intellectual property rights; uploading malicious code or content; attempting to breach system security; reselling or redistributing ACAPrime’s services; or sharing account credentials.

12. Limitation of Liability

ACAPrime’s total liability to Client for any claim arising out of or related to these Terms or any Contracted Services shall not exceed the fees paid by Client to ACAPrime for the specific service giving rise to the claim. In no event shall ACAPrime be liable for any indirect, incidental, consequential, special, or punitive damages, including but not limited to lost profits, loss of data, or penalties assessed by government agencies, even if ACAPrime has been advised of the possibility of such damages.

The Services are provided on an “as is” basis. ACAPrime makes no warranty that filings will be accepted by government agencies, that penalties will be avoided, or that specific compliance outcomes will be achieved. ACAPrime’s liability is further subject to force majeure events beyond ACAPrime’s reasonable control, including government system outages, natural disasters, and regulatory changes.

13. ACAPrime Processing Error Guarantee

ACAPrime carries Errors and Omissions (E&O) insurance and provides the following limited guarantee to its Clients:

(a) Scope. If ACAPrime makes a verifiable processing error in the preparation or submission of a Contracted Service that directly causes a government-imposed penalty assessed against Client, ACAPrime will reimburse Client for the amount of that penalty, subject to the conditions and cap set forth in this Section.

(b) Conditions. This guarantee applies only where: (i) the error is directly and solely attributable to ACAPrime’s processing, and not to inaccurate, incomplete, or untimely data provided by Client or Client’s vendors; (ii) Client has reviewed and approved the applicable deliverable or provided written authorization to file; (iii) Client notifies ACAPrime of the penalty in writing within thirty (30) days of receipt of the government notice; and (iv) Client cooperates with ACAPrime’s reasonable investigation of the claim.

(c) Cap. ACAPrime’s maximum reimbursement obligation under this guarantee for any single service or filing shall not exceed the fees paid by Client to ACAPrime for that specific Contracted Service. This guarantee does not cover interest, third-party costs, attorney’s fees, or penalties attributable to Client’s underlying compliance failures unrelated to ACAPrime’s processing.

(d) Relationship to Limitation of Liability. This Section supplements Section 12 and does not expand ACAPrime’s liability beyond the fee paid for the specific service giving rise to the claim. ACAPrime has not waived and does not waive any other limitation set forth in Section 12.

(e) Historical Note. As of the date of these Terms, ACAPrime has not been required to make any reimbursement under this guarantee.

14. Indemnification

Client agrees to indemnify, defend, and hold harmless ACAPrime, its officers, employees, and agents from and against any claims, damages, penalties, fines, costs, and expenses (including reasonable attorneys’ fees) arising from or related to: (a) inaccurate, incomplete, or untimely data provided by Client; (b) Client’s failure to file, submit, or act on required compliance obligations; (c) Client’s non-compliance with applicable law; (d) Client’s use of ACAPrime’s deliverables beyond their intended purpose; or (e) Client’s failure to review and approve deliverables before filing.

15. Government Notices and Correspondence

Unless explicitly agreed upon in a separate written engagement, ACAPrime has no obligation to receive, respond to, or resolve IRS notices, state agency inquiries, penalty assessments, or other government correspondence on Client’s behalf. Client is solely responsible for all such correspondence. ACAPrime’s preparation and filing of documents on Client’s behalf does not constitute ACAPrime’s assumption of any obligation to represent Client before any government agency.

16. Modifications, Termination, and Governing Law

ACAPrime reserves the right to modify these Terms, service offerings, pricing, methodologies, or processing procedures at any time. Material changes will be communicated via email or website announcement. Continued use of services following notice of a change constitutes acceptance.

Either party may terminate Contracted Services upon thirty (30) days’ written notice. ACAPrime may terminate immediately for breach, misuse of services, or nonpayment. Client remains responsible for fees for services performed prior to termination. Subscriptions may be canceled by contacting [email protected].

These Terms are governed by the laws of the State of Indiana, without regard to conflict of law principles. Any dispute arising under these Terms shall be resolved by binding arbitration in Hamilton County, Indiana. The parties waive the right to participate in any class action proceeding related to these Terms or the services.

Provisions related to data responsibilities, limitation of liability, indemnification, intellectual property, and governing law shall survive termination of these Terms.

If any provision of these Terms is found to be unenforceable, the remaining provisions shall remain in full force and effect. Links to third-party websites are provided for convenience only; ACAPrime disclaims responsibility for their content or availability.

17. Entire Agreement

These Terms, together with any applicable service enrollment confirmations, pricing schedules, or written statements of work, constitute the entire agreement between the parties with respect to the subject matter hereof and supersede all prior agreements, representations, and understandings. No amendment to these Terms is effective unless in writing and agreed to by both parties.

18. Contact Information

ChannelBound, LLC d/b/a ACAPrime | 1311 W. 96th Street, Suite 170 | Indianapolis, IN 46260 | [email protected] | (844) 438-1095

PART II — SERVICE-SPECIFIC TERMS

The sections below apply only to the specific service for which Client has enrolled. Enrollment in one service does not create any obligation under sections governing other services.

19. ACA Employer Reporting (Forms 1094-C and 1095-C)

19.1 Services and Deliverables

ACAPrime will prepare and file the following based solely on Client-provided data:

IRS Form 1094-C (Transmittal)
IRS Forms 1095-C for each applicable employee
Required state-specific ACA forms, limited to states identified in the service enrollment

If contracted separately, ACAPrime will facilitate employee distribution of Form 1095-C via electronic delivery or print and mail services.

19.2 Scope Limitations

ACAPrime’s role is strictly limited to preparing and filing forms based on Client-provided data. ACAPrime does not independently determine which employees must be included, calculate hours of service, determine affordability or minimum value, select measurement methods or safe harbors, or verify the accuracy of Client-provided data. State-specific filings are included only for states expressly identified at enrollment; additional states require separate agreement.

19.3 Data Requirements

Client must provide complete and accurate data including employee demographic information (name, address, SSN), hours of service data, offer of coverage information, premium contribution amounts, and coverage dates, in the format specified by ACAPrime and at least twenty (20) business days before applicable deadlines.

19.4 Client Responsibilities

Client is solely and ultimately responsible for compliance with all ACA employer reporting requirements under federal and applicable state law. Client must: provide written authorization before ACAPrime files any forms; review all draft forms within five (5) business days of receipt; maintain all underlying records required by law; respond to all IRS and state agency notices and correspondence; and, if employee distribution is contracted, ensure compliance with electronic delivery consent requirements.

19.5 Corrections

Corrections due to ACAPrime processing error are provided at no charge. Corrections due to Client data errors are billed at $300 per hour per Section 6.

20. PCORI Fee Preparation (Form 720)

20.1 Services and Deliverables

ACAPrime will calculate the PCORI fee applicable to the Client’s plan year and prepare a completed IRS Form 720 in PDF format for each EIN provided. ACAPrime will select and apply the appropriate covered lives calculation method based on Client-provided data and applicable federal guidance.

20.2 Client Responsibilities

ACAPrime’s standard PCORI service delivers a completed Form 720 in PDF format, ready for Client’s review and submission. ACAPrime does not electronically file or mail Form 720 to the IRS on Client’s behalf unless electronic filing is separately contracted in writing. Client is solely responsible for: reviewing the completed Form 720 for accuracy; filing or mailing Form 720 to the IRS by the applicable deadline (generally July 31); payment of all PCORI fees to the federal government; and maintaining records as required by law.

21. Gag Clause Prohibition Compliance Attestation

21.1 Services and Deliverables

ACAPrime will prepare and submit the annual Gag Clause Prohibition Compliance Attestation required under the Consolidated Appropriations Act, 2021, through the CMS HIOS portal on Client’s behalf, and will provide Client with confirmation of submission.

21.2 Deadline

The attestation must be submitted by December 31 of each applicable year. Client must provide all required plan arrangement information to ACAPrime with sufficient time to meet this deadline.

21.3 Client Responsibilities

Client is ultimately responsible for compliance with gag clause prohibitions in its health plan contracts and agreements. Client must provide accurate and complete information regarding plan arrangements and promptly notify ACAPrime of any plan changes affecting the attestation. Client is responsible for confirming whether its fully-insured or level-funded carrier has submitted the attestation on the plan’s behalf for the applicable year. ACAPrime’s service is limited to self-funded plan arrangements where the plan sponsor is responsible for attestation. Where a carrier has already attested, Client should notify ACAPrime before enrollment to avoid duplicate filings.

22. Prescription Drug Data Collection Reporting (RxDC)

22.1 Services and Deliverables

ACAPrime will prepare and submit the following RxDC report files to CMS through the HIOS system on Client’s behalf:

P2 — Group Health Plan List (or other P reports as needed)
D1 — Premium and Life-Years Report

ACAPrime’s standard RxDC service includes preparation and submission of the P2 and D1 reports only. Whether Client’s plan requires additional D-files (D2 through D8), Narrative Response or Supplemental Documents depends on Client’s plan design, funding arrangement, and the extent to which the Client’s TPA, PBM, or carrier has submitted those files independently. Determining which D-files are required and whether third parties have already submitted them is Client’s responsibility. Preparation of D2 through D8 reports is available as an additional service upon request and will be separately quoted. ACAPrime is not liable for penalties resulting from omission of D-files that were not included in the Contracted Services.

Client will receive exact copies of all submitted reports and the HIOS Submission Receipt ID confirming successful submission.

22.2 Submission Authority

ACAPrime will submit reports under ACAPrime’s HIOS login on Client’s behalf unless Client elects to file under Client’s own HIOS credentials. If Client elects to self-file, ACAPrime’s filing obligation is discharged and Client assumes all submission responsibility.

22.3 Deadline

ACAPrime will submit reports on or before the June 1 annual deadline, provided Client supplies all required data and written submission approval at least five (5) business days prior to June 1. For data received less than five (5) business days before the deadline, ACAPrime will make reasonable efforts to submit but cannot guarantee timely filing, and bears no liability for resulting penalties.

22.4 Third-Party Data Coordination

RxDC reporting may require data from PBMs, TPAs, or other vendors. Client authorizes ACAPrime to coordinate with such vendors to obtain necessary data and agrees to facilitate that coordination. ACAPrime is not liable for delays or inaccuracies caused by third-party vendors.

22.5 Client Responsibilities

Client is ultimately responsible for the accuracy and completeness of RxDC reporting. Client must review draft reports before granting submission approval and notify ACAPrime of any errors. Client bears liability for penalties resulting from inaccurate or incomplete data provided by Client or its vendors.

23. CMS Creditable Coverage

23.1 Services and Deliverables

ACAPrime offers the following CMS Creditable Coverage service tiers based on Client’s plan design and complexity:

(a) Standard Service — Simplified Determination & Disclosure. For fully-insured plans and self-funded plans that clearly qualify under CMS’s simplified determination methodology, ACAPrime will: (i) review Client’s plan design and applicable carrier certification; (ii) apply CMS’s simplified non-actuarial determination method to determine creditable or non-creditable status; (iii) submit the completed CMS creditable coverage disclosure through the applicable CMS portal on Client’s behalf; and (iv) provide written documentation of the determination for Client’s compliance records. The standard service fee covers this tier. No actuarial consultant is engaged for this tier.

(b) Actuarial Determination Service. For self-funded or complex plan designs that cannot be evaluated under CMS’s simplified methodology, ACAPrime will coordinate engagement of a qualified actuary to perform a formal actuarial creditable determination. Actuary fees are separate from ACAPrime’s service fee and will be disclosed to Client before the actuary is engaged. Upon receipt of the actuarial determination, ACAPrime will submit the CMS disclosure and provide documentation to Client. This tier requires separate written agreement and pricing.

Note: Actuary consultation fees, if applicable, are third-party fees not included in ACAPrime’s standard service fee. See Section 9.

23.2 Deadline

The CMS creditable coverage disclosure is due within sixty (60) days of the start of each plan year. For calendar-year plans, this is on or around March 1. Non-calendar-year plan deadlines vary based on plan year start date. Client must provide all required information at least ten (10) business days before the applicable deadline.

23.3 Client Responsibilities

Client is ultimately responsible for timely CMS creditable coverage disclosure compliance. Client must provide accurate plan year, Rx coverage, and Medicare-eligible population information, and promptly notify ACAPrime of any plan design changes that may affect the creditable determination.

24. Wrap Plan Document and Summary Plan Description (SPD)

24.1 Services and Deliverables

ACAPrime will prepare the following ERISA-required documents based on information provided by Client:

Wrap Plan Document — A master ERISA plan document consolidating Client’s welfare benefit plans (health, dental, vision, FSA, and other applicable benefits) under a single plan structure
Summary Plan Description (SPD) — An ERISA-compliant SPD describing employees’ benefits, rights, and obligations under the plan

Both documents will be delivered in PDF format. If Client has contracted for only one of these documents, the deliverable will be limited accordingly.

24.2 Scope Limitations

ACAPrime’s service covers initial document preparation based on information provided at the time of engagement. Future amendments required due to plan changes, regulatory updates, or Client-requested modifications are not included and will be quoted separately. ACAPrime does not provide ERISA legal advice. Client should consult legal counsel regarding ERISA compliance obligations, including required plan amendments and distribution requirements.

24.3 Client Responsibilities

Client is solely responsible for: reviewing completed documents for accuracy before adoption; formally adopting the Wrap Plan Document; distributing the SPD to all eligible employees within timeframes required by ERISA; maintaining plan records as required by law; and notifying ACAPrime of plan changes requiring document amendments. Carrier-issued certificates of coverage do not satisfy ERISA’s SPD requirement; compliance with ERISA’s distribution and content standards is Client’s responsibility.

25. Section 125 / Premium Only Plan (POP) Document

25.1 Services and Deliverables

ACAPrime will prepare an IRS-compliant Section 125 Premium Only Plan (POP) document for Client’s cafeteria plan, enabling pre-tax payroll deductions for employee benefit premiums. The POP document includes provisions for HSA salary reduction contributions as a standard inclusion, at no additional fee. The completed plan document will be delivered in PDF format.

25.2 Scope Limitations

ACAPrime’s service covers initial POP document preparation based on information provided at the time of engagement. Future amendments are not included and will be quoted separately. This service does not include Section 125 nondiscrimination testing, FSA administration documents, or dependent care assistance plan documents unless separately agreed in writing.

25.3 Client Responsibilities

Client is solely responsible for: reviewing the completed POP document for accuracy; formally adopting the plan document prior to the first payroll period in which pre-tax deductions are taken; ensuring the plan is operated in accordance with IRS requirements; conducting required nondiscrimination testing; and notifying ACAPrime of plan changes requiring amendments. Client should consult legal or tax counsel regarding Section 125 compliance obligations.

26. ACA Back Filing (Prior Tax Years)

26.1 Services and Deliverables

Upon separate enrollment, ACAPrime will prepare and submit Forms 1094-C and 1095-C for prior tax years (2015 through the year preceding the current tax year) based solely on Client-provided historical data. ACAPrime will deliver draft forms for Client review and, upon written authorization, submit corrected or late filings to the IRS.

26.2 Scope Limitations

ACAPrime’s service is limited to form preparation and submission based on Client-provided data. ACAPrime does not represent that late filing will eliminate, reduce, or abate any previously assessed penalty, interest, or government liability. ACAPrime does not represent Client before the IRS in connection with back-filing engagements. Client should consult qualified tax counsel regarding the legal and financial implications of late ACA filings.

26.3 Client Responsibilities

Client is solely responsible for: providing accurate historical payroll, coverage, and employee data for each applicable tax year; paying any penalties or interest assessed by the IRS in connection with late filing; reviewing and approving draft forms before submission; and maintaining records as required by law. ACAPrime bears no liability for penalties arising from inaccurate historical data provided by Client or from the IRS’s determination that penalties are not abated following late filing.

27. ACA Quality Audit and Corrections

27.1 Services and Deliverables

Upon enrollment, ACAPrime will review Client’s prior-year IRS Forms 1094-C and 1095-C as provided by Client and identify apparent errors in ACA coding, offer codes (Line 14), safe harbor codes (Line 16), covered employee counts, ALE member information, or affordability calculations. ACAPrime will deliver a written findings report identifying apparent errors observed in the data as submitted.

If Client separately enrolls in the Corrections service, ACAPrime will prepare and submit corrected Forms 1094-C and 1095-C to the IRS upon Client’s written authorization.

27.2 Scope Limitations

The audit service is a review for apparent errors based on Client-provided data and ACAPrime’s professional knowledge of ACA coding standards. ACAPrime does not warrant that all errors will be identified, that errors identified will result in penalty abatement, or that compliance with IRS requirements will be achieved following corrections. The audit service is not a legal opinion and does not constitute representation before the IRS.

27.3 Client Responsibilities

Client must provide complete prior-year filing data in ACAPrime’s required format. Client is responsible for reviewing the findings report and authorizing any corrections before submission. ACAPrime bears no liability for penalties attributable to errors in Client-provided data or for errors not identified in the audit.

28. IRS Penalty Review and Letter 226-J Response

28.1 Services and Deliverables

Upon enrollment following receipt of an IRS Letter 226-J proposing an Employer Shared Responsibility Payment (ESRP), ACAPrime will: (a) review the proposed penalty and Client’s prior-year ACA filing data; (b) identify apparent discrepancies, data errors, or coding issues supporting a response; and (c) prepare a written response document for Client’s submission to the IRS. All deliverables will be provided in draft for Client review before submission.

28.2 Scope Limitations

ACAPrime’s service is limited to preparation of written response documents. ACAPrime is not acting as Client’s legal counsel or tax representative and does not represent Client before the IRS. ACAPrime makes no guarantee that the prepared response will result in penalty reduction, elimination, or abatement. Client is solely responsible for submitting the response to the IRS by the applicable deadline. IRS Letter 226-J responses are generally due within thirty (30) days of the letter date; Client must engage ACAPrime with sufficient time for preparation and review before that deadline.

Client acknowledges that ACAPrime’s engagement for the 226-J response service does not extend, toll, or otherwise affect the IRS’s response deadline. Client’s failure to respond to the IRS by the deadline is solely Client’s responsibility.

28.3 Client Responsibilities

Client must provide complete prior-year ACA filing data, the IRS Letter 226-J, and any related IRS correspondence. Client is responsible for reviewing the draft response, requesting any revisions, and submitting the finalized response to the IRS before the applicable deadline. ACAPrime is not responsible for outcomes resulting from Client’s failure to timely submit the response or from inaccurate data provided by Client.

29. ACA Eligibility / Look-Back Measurement Review

29.1 Services and Deliverables

Upon enrollment, ACAPrime will review Client’s current ACA measurement method configuration (Monthly Measurement Method or Look-Back Measurement Method) as described by Client, identify apparent gaps or inconsistencies relative to IRS requirements, and deliver a written findings report with recommended corrective actions.

29.2 Scope Limitations

This service is a configuration review based on information provided by Client and does not constitute a legal determination of Client’s ALE status, full-time employee count, or compliance with the ACA employer mandate. ACAPrime does not independently verify Client’s payroll data, hour tracking records, or measurement period elections. This review is advisory only; Client is solely responsible for implementing any recommended changes and for the accuracy of ACA eligibility determinations made by Client’s payroll or HR systems. This service does not include ongoing Look-Back Measurement tracking or administration unless separately contracted.

29.3 Client Responsibilities

Client must provide accurate information about its measurement method configuration, employee classifications, plan year dates, and administrative period elections. Client is responsible for implementing recommended corrective actions and for ensuring its ACA eligibility determinations comply with applicable IRS requirements.

30. Acknowledgment and Acceptance

By enrolling in ACAPrime’s services or accessing ACAPrime.com, Client acknowledges that it has read, understood, and agrees to be bound by these Terms of Service in their entirety.