Sonoma County Office of Education

ACA Reporting 2017

Presenters: Marie White and Tracy Lehmann 12/12/2017

2017 ACA Reporting Page 1

Affordable Care Act (ACA)

Based on The Affordable Care Act of 2010, employers with 50 or more FTE (full-time equivalent) must offer coverage to full-time employees and dependents. IRS defines full-time employees work an average of at least 30 hours per week (130 hours) in a calendar month. Employers must provide an annual return reporting the health insurance that is offered to employees. In addition, they are subject to the Employer Shared Responsibility provisions.

NEED ADDITIONAL INFORMATION?

Use the following links to obtain Online Documentation: 1094 & 1095-C Instructions: https://www.irs.gov/pub/irs-pdf/i109495c.pdf 1094-C: https://www.irs.gov/pub/irs-pdf/f1094c.pdf 1095-C: https://www.irs.gov/pub/irs-pdf/f1095c.pdf 1094 & 1095-B Instructions: https://www.irs.gov/pub/irs-pdf/i109495b.pdf 1094-B: https://www.irs.gov/pub/irs-pdf/f1094b.pdf 1095-B: https://www.irs.gov/pub/irs-pdf/f1095b.pdf

IRS Whats New? What's New Section 4980H transition relief. Several forms of transition relief were available to some employers under section 4980H for 2016. No section 4980H transition relief is available for 2017. Therefore, these instructions have been revised to remove discussion of section 4980H transition relief, and Form 1094-C has also been revised. Specifically, Form 1094-C, line 22, box C is designated “Reserved”; Part III, column (e) is designated “Reserved”; and the entry rows in Part III, column (e) are shaded.

Furnishing Forms to Employees You will meet the requirement to furnish Form 1095-C to an employee if the form is properly addressed and mailed on or before the due date. If the due date falls on a weekend or legal holiday, then the due date is the following business day. A business day is any day that is not a Saturday, Sunday, or legal holiday. An ALE Member must furnish a Form 1095-C to each of its full-time employees by January 31 of the year following the year to which the Form 1095-C relates.

ACA Forms 1095C and 1095B must be postmarked to employees no later than January 31, 2018

2017 ACA Reporting Page 2

ACA Checklist – Setup in Escape

Organization Record

Review Section 10 – ACA Setup

□ ALE (Applicable Large Employer 50 FTE or More) = Yes

□ Verify that the W2 Address and contact information are correct

□ If changes needed in Org Record, send request to helpdesk@scoe.org

Bargaining Unit

□ Review ACA Bargaining Unit for employees not covered by a BU

□ Review ACA Defaults Tab

□ Review Look Back Periods Tab (Only needed for ACA BU)

Benefit Groups/Providers

□ Review MED and OPT Out groups

□ Review Benefit Providers have Group Codes

Employee Management

□ Add ACA to Employee if NO Assignment

□ Benefit Provider Tab - Use Coverage Dates for prepaid or retroactive dates

Addons

□ Review Addons that are flagged to Affect ACA Hours

□ Review “Lump” Sum addons for the Number of ACA Hours, as needed

Reports

□ Run the Pay60 ACA Measurement Period Report

□ Review the data for accuracy and qualification of hours for benefits

Employee ACA

□ Load the ACA information into the Employee ACA activity

□ Check Problems, review and resolve

□ Review the data for accuracy

FINAL ACA Employee List Due January 10, 2018

□ Employee ACA List for only those receiving Form 1095-C

Export list to Excel with total number of forms, submit to helpdesk@scoe.org

2017 ACA Reporting Page 3

Review ESCAPE ACA Setup

Organization Record

Review that your District is setup for ACA if you are an ALE Appicable Large Employer with 50 FTE or more. Verify that the contact information is up to date. The Org record is based on user permissions, for changes send a request to helpdesk@scoe.org .

Go to System Setup - Organization Record Section 9 – W2 Overrides

Must have Employer and Contact information completed, this is default for ACA or go to Section 10 if there is a differenct contact for ACA Reporting.

Section 10 – ACA Setup

ALE - Set the flag to YES if the District is considered an ALE

Self Insured - Horicon District Only

Prepay Benefits - Set the flag to YES if District prepays benefits the month before coverage begins

Print Masked SSN – Set the flag to YES, if District would like them to print with a masked SSN Set the flag to NO, if District would like the full SSN to print on the form

The above snapshot is only an example. Information may be different based upon the District.

2017 ACA Reporting Page 4

Review Bargaining Units

Go to HR/Payroll - Setup - Assignment - Bargaining Units

ACA Default Tab Update existing bargaining units ACA Default Tab

ACA Reporting has two methods: Monthly and Look-back

Monthly – Used with set work hours and set schedule Fill out the ACA Default tab only

Look-Back – Used for hours that are variable Fill out both the ACA Defaults and the ACA Look-back Period tabs

From - Enter the beginning effective dates for Benefit Provider rates. This determines when this

provider/level has the specified benefits cap and coverage reporting parameters.

Thru – Use End Date of rates changes. Leave blank until cap amount changes.

MEC Provider - Minimum Essential Coverage Use the lookup to define the benefit provider for reporting the MEC Provider. Must be maintained to avoid the fee and be in compliance with the shared responsibility requirement.

MEC Level - Use the lookup to define the benefit provider level for reporting the MEC. This can be the level with the lowest premium amount for self-only coverage.

ACA Benefit Cap - Enter amount to be paid by employee for the lowest-cost monthly premium for self-only. Example if no cost to the employee than this field should be 0.00.

Offer of Coverage Default - Use the lookup to select from options as define by the IRS. The coverage offered to the employee, spouse and dependents, if any.

Code 1A – Qualifying Offer – Minimum Essential Coverage providing minimum value offer to full-time employee with employee contribution for self-only coverage equal to or less than 9.5% mainland single Federal Poverty line at least MEC offered, as well as MEC offered to spouse and dependents.

2017 ACA Reporting Page 5

Safe Harbor Default - Use the lookup to select from options as define by the IRS. This is the default for reporting the Safe Harbor method you are using for determining if coverage is considered affordable.

Coverage Waiting Period - Enter the number of months an employee of this bargaining unit must wait before benefit coverage is offered.

Minimum ACA FTE - Enter the minimum FTE that will define employees with FTE equal to or greater that the number entered as full time. Example enter .75 FTE if this is the minimum for your District.

Example: Teachers are defined as .75 FTE, yet the teachers are considered full time. In this case, you would enter .75 in the Minimum ACA field for the teacher's bargaining unit.

Example: The number of hours worked is the sole factor for determining full time. Teachers are defined at 1.0 FTE, but work 7 hours. In this case, you would leave the field blank so that only the number of hours worked would be considered when determining full time status.

Example: Same as above, but you want 1.0 FTE/ 7 hours to be considered full time. In this case, you would enter 1.0 as the minimum FTE for the bargaining unit.

Determining Full-Time Employees for Purposes of Shared Responsibility for Employers Regarding Health Coverage (§ 4980H) http://www.irs.gov/pub/irs-drop/n-12-58.pdf

2017 ACA Reporting Page 6

Review ACA Look-Back Periods Tab only needed for ACA BU Under the look-back/stability period safe harbor method, an employer would determine each employee’s full-time status by looking back at a defined period of not less than three but not more than 12 consecutive calendar months, as chosen by the employer (the measurement period), to determine whether during the measurement period the employee averaged at least 30 hours of service per week.

Add Measurement Period for to cover each calendar year Measurement Start - Enter the date the measurement period started Measurement Months - Enter the number of months in the measurement period Admin Months, Stability Months and Measurement End automatically populate

The ACA Look-Back Period Tab is important because it measures Part Time Employees hours of service.

Add ACA Bargaining Unit to Employees Now that the ACA Defaults and ACA Look-Back Period are defined, it's time to add the bargaining unit to the employee. This field is used when the employee does NOT have an assignment. Reminder: If an employee terminates mid year, than the ACA BU must be added to the employee record or this will be a “Problem” in the Employee ACA List.

Go to HR/Payroll - Employment - Employment Management Section 1-Personal: Address Information will print on the ACA Forms Section 9-Benefits: ACA Bargaining Unit

Recommendation: Mass Add the ACA BU to all employees, this does not affect the assignment BU and will ensure that the employee is covered by a BU for the entire calendar year. This is also one less step to remember when they terminate.

2017 ACA Reporting Page 7

Benefit Groups Go to HR/Payroll - Setup - Benefit - Benefit Group Review: The MED and OPT Benefits groups need to be established for ACA In addition, the Benefit Groups are designed for organizations that annualize benefit costs. The group allows you to group providers (e.g., Medical, Vision, Dental) so that when an employee changes providers during open enrollment, Escape can determine how much was paid to each provider and recalculate rates for the rest of the year.

MED Group - Benefit Provider Group that begins with MED for employees who have medical

coverage. This groups medical providers together

MED Post Tax – A new MED Group is needed to add to Benefit Providers that are post tax if Districts have employees with both pretax and post tax benefit providers.

OPT Group - Benefit Provider Group that begins with OPT for employees who have opted out and declined medical coverage.

2017 ACA Reporting Page 8

Benefit Providers Go to HR/Payroll - Setup - Benefit - Benefit Providers Review: The MED and OPT Benefits Groups must be added to Benefit Providers. MEDPOST Benefit Group must be added to Districts if employess have both pretax & post-tax benefits.

If MED or OPT Group not added to Benefits Providers and records are locked, you will need to send a request to helpdesk@scoe.org with a list of Benefit Providers and the name of the Group Code.

2017 ACA Reporting Page 9

Benefit Provider Tab

Go to HR/Payroll - Employment - Employment Management

Add the benefit to the employee record

Use the Coverage Begin Date to show the employee actual start of benefits. This would be used for prepaid benefits of if an employee needed to be retroactive for benefit start date. This is for ACA only, does not adjust payroll deductions or contributions.

The above snapshot is only an example. Information may be different based upon the District.

Dependents Tab

Go HR/Payroll - Employment - Employment Management It’s highly recommended that Dependents with Medical Coverage be added to the employee record, but it’s only required for Self-Insured Districts (Horicon District Only) If dependents were already added to the employee records, they can now be flagged for Medical Coverage by

changing the Medical field to YES.

2017 ACA Reporting Page 10

Addons – Flag to Affect ACA Hours

Go to HR/Payroll - Setup - Payroll - Addons Addon Hours are determined to be active in the month based on the year/month of the adjustment.

Hours for Addons are included in the calculations ONLY if :

Section 5 – Other Addon Information

Affect ACA Hours - Set the flag to YES, if this addon affects ACA Hours Number of ACA Hours – Must Enter in Hours if the Rate 1 Option is Setup to use

Locked (L), position pay (P), base pay (B) or Blank

If it is set to YES, the number of hours calculated for ACA reporting is based upon the Rate 1 Option.

Section 4 – Calculation Rate 1 Option - Set the flag to YES to allow the system to calculate the ACA Hours using the

following:

H {Use an hourly rate} - Uses the units for the pay adjustment

D {Use a daily rate} - Uses the hours per day for the position or the hours

per day for the Addon. Defaults to 8 hours per day.

Locked (L), position pay (P), base pay (B) or blank - Uses the entry in the

Number of ACA Hours field.

NOTE: If the addon has negative units, those hours will reduce the hours for ACA

2017 ACA Reporting Page 11

ACA Measurement Period Report – PAY60 This report helps to determine eligibility for benefits and used as an audtit for Employee ACA Activity. When checking for benefit coverage Pay60 report and the ACA load activity, the system will first check the Benefits Provider Tab for Coverage Begin Date and Coverage End Date if they exist, if they do not, then it will use the Begin and End dates. The purpose of the report is to determine eligibility for benefits and to use as an audit for employee ACA activity. Payroll and Personnel Staff should use this report to determine full-time benefits for part-time employees.

Go to HR/Payroll - Reports- Payroll – Pay 60 ACA Measurment Period Report

Start Date – Enter a start date for the beginning of the measurement period. (If left blank it will default to the first day of the current month.)

Months – Enter the number of months for the measurement period (Defaults to 12 Months)

Minumim Hours – Enter a minumu number of hours to select employees having this average numbers of hours per month or greater for the initial measurement period. (Defaults to 130.00)

Click GO

Review Report to verify employees are expected to be on report In this example: The measurement period began 1/1/17 with a 12 Month Measurement period and a Minimum Hours of 130 for Employees NOT Enrolled and NOT Opted Out.

IMPORTANT REMINDER: The search criteria entered will deterimine the information on the report.

2017 ACA Reporting Page 12

Loading and Reviewing Employee ACA Data

Go to HR/Payroll - Processes - Tax Reporting - Employee ACA

Defining Your Initial Search Criteria

Calendar Year - Enter the calendar year. Reload Now - Set to YES to reload all employees that have been on a pay cycle in the calendar year

based on the pay cycle date. The reload process DOES NOT overwrite any of your overrides. Open reporting months will update based on changes in Org Record, Benefit Providers, Bargaining Unit, Employee Record, finally it loads the addon and assignment hours from open and processed payrolls.

Employee ID – Leave blank for entire list or Enter Employee ID(s) When you Load Data the List will contain the following information:

Pay Detail

Organization Setup

Bargaining Unit

Benefit Provider

Employee Record

All open months will be reloaded

Closed months will NOT be reloaded

Overrides from the tabs of Employee ACA record will NOT be reloaded

2017 ACA Reporting Page 13

Employee Tab This is Read Only, if you need to make changes to this information, you can go to Employee

Management. If you make changes, remember to always RELOAD.

Covered Individuals Tab – Only if Self-Insured = YES Names Listed = Employee and Dependents Review the Problem Column This is Read Only, if you need to make changes to this information, you can go to Dependents and

Benefit Providers in the employee record, or you can use the quick link on the Employee Tab to make the changes.

If you make changes, remember to always RELOAD.

Offer of Coverage Tab – Uses Bargaining Unit – ACA Default Tab Setup Review the Problem Column Override Columns - Column information can be Edited for the Full Time, Offer, Emp Share, and

the Safe Harbor columns by entering the correct data in the Override columns.

Hours by Month Tab

Hours Override Column -Column information can be Edited. Must contain -0- or positive numbers.

2017 ACA Reporting Page 14

An ALE Member must furnish a Form 1095-C to each of its full-time employees by January 31 of the

year following the year to which the Form 1095-C relates.

Form 10945-C - Employer-Provided Health Insurance Offer and Coverage for Returns

Form 1094-C - Transmittal Employer-Provided Health Insurance Offer and Coverage for Returns

This form is electronically filed by SCOE IT.

2017 ACA Reporting Page 15

Final Submission of Employee ACA Reporting Due Wednesday, January 10, 2018 by 4:30 pm submit to helpdesk@scoe.org Go to HR/Payroll - Processes - Tax Reporting - Employee ACA

Run final list of Employee ACA

Calendar Year: 2017

Reload Now? : Yes

Forms? : Y (Only Employees with Forms)

Click Go to generate list

From the list, double click on the Form column to get all 1095-C to top of list

Click Export to export to Excel

Example: Excel Format

Excel List

Add Column A for the total count of forms to print

Save file and remember where you saved it Send FINAL Excel Employee ACA List to helpdesk@scoe.org

By Wednesday, January 10, 2018 by 4:30 pm