2017 ACA Form Processing – Large Employers

46 Pages·2017·3.39 MB·English

by  Lorena Pulido

2017 ACA Form Processing – Large Employers

Fiscal Coordination
December 2017
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Table of Contents
Understanding ACA Reporting .................................................................................. 3
Entering an ACA 1095C Record ................................................................................. 5
Verifying Employee ACA Codes………………………………………………………………..……..…7
Identifying Full Time Employees and Creating a Work File ……………..…………………..9
ACA 1094C/1095C Processing …………………………………………………………………………..11
Step 1: Enter and Verify Employer Information for 1094C/1095Cs…………………….…12
Step 1a: (Optional) Allow employees to Print 1095s electronically……………………….13
Step 2: Create/Modify/Report 1095C Work file ………………………………………………….16
Selecting Employees ………………………………………………………………………………………..17
Method 3: Select/Import Specific Employees ………………………………………………….…18
Selecting Self-Insured Options and Employees …………………………….……………………21
Selecting Total Employee Count Parameters ……………………………………………………..23
Completing the Creation or Recreation of the 1095C Work file …………………………..24
Modifying Current 1095C Work File ………………………………………………………………….25
Running Optional Reports …..……………………………………………………………………………26
Viewing the 1095C File Tracker …………………………………………………………………………27
Total Employee Counts …………………………………………………………………………………….27
Step 3: Create 1095C Print File ………………………………………………………………………….28
Viewing 1095C Print File Date/Time Stamps ……………………………………………………...30
Extracting Copies of the 1095C Print File from the Database ………………………………30
Step 3a: Print the 1095Cs ……………………………………………………………………………..31
Step 4: Create Individual 1095C PDF Files …………………………………………………………..35
Purging 1095C PDF Files …………………………………………………………………………………..36
Step 4a: Post PDFs to Employee Access ……………………………………………………………..37
Step 5: Create the Electronic 1094C/1095C Files …………………………………………………38
Viewing 1094C/1095C Electronic Submission File(s) Parameters ………………………….40
Step 5a: Enter Receipt ID and Finalize this Transmission ……………………………………..41
Finalizing an Accepted Transmission ………………………………………………………………….41
Finalizing an Accepted with Errors or Rejected Transmission ……………………………….42
Appendix A – Transmission to the IRS ………………………………………………………………..43

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Understanding ACA Reporting

Beginning in 2015 (filing in 2016 for 2015), Applicable Large Employer Members (ALE
Members) were required to compile information about offers of health coverage and
enrollment in health coverage for their full-time employees during the calendar year.
Employers who had 50 or more full-time employees (including full-time equivalent employees)
in the previous year, are required to report information about health coverage and healthcare
enrollment for their employees. A full time employee for any calendar month, is an employee
who has on average at least 30 hours of service per week, or at least 130 hours of service
during the calendar month.

ALE Members that offer employer-sponsored self-insured coverage also use
Form 1095-C to report information to the IRS. Examples of employees who would also be
reported on the 1095-C form are: those enrolled in PEBB insurance and has enrolled covered
dependents, or employees who are enrolled in Cobra plans.

Two provisions of the affordable care Act apply to applicable large Employers (ALE’s):

o The employer Shared responsibility provisions; and
o The employer information reporting provisions for offers of minimum essential
coverage.

The Employer shared responsibility: Requires that an employer must make an offer of
coverage to 95% of its full time employees (and their dependents), that offers minimum
essential coverage that is affordable and that provides minimum value. The penalty for an
ALE who does not offer minimum essential coverage to at least 95% of its full time population,
and if a full time employee receives the minimum tax credit for purchasing coverage through
the marketplace, the ALE will be fined a $2,000.00 penalty for each of its full time employee
(minus 30).

The employer information reporting provisions for offers of minimum essential
coverage: requires that an employer-sponsored plan provides minimum value if it covers at
least 60% of the total allowed cost of benefits that are expected to be incurred under that
plan. The health coverage offer cannot require the employee to make a monthly contribution
for any calendar month of more than 9.5% of that employee’s household income. The penalty
for an ALE making an offer to a full time employee which does not offer minimum essential
coverage, and the employee receives a premium credit for purchasing insurance on the
marketplace, is $250.00 per month (1/12 of $3,000.00).

Please see additional late filling/failure to file penalties on the 1095 IRS instructions.
Reference: IRS.Gov

The 1095-C process in Skyward’s School Management System creates individual
1095-C Forms for employees based on the ACA information in the Employee Profile. This guide
provides form processing information for large employers only.

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IRS Deadlines – Reference page 3 of the 2017 Instructions for Forms 1094-C and 1095-C
forms for details.

Action: Deadline
If filling Paper 1094-C/1095-C forms to the February 28, 2018
IRS:
If filling electronic 1094-C/1095-C forms to April 2, 2018
the IRS:
1095-C Forms furnished to employees: January 31, 2018

Considerations:

 It is important to enter an ACA code for all employees in your database, even if they
were not offered coverage, or if they waived medical coverage.

 If an employee waived coverage, you need to keep signed documentation by the
employee on a yearly basis. It is recommended that the waiver form includes the time
frame the employee is choosing to waive medical coverage for.

 Contact a PEBB representative to request access to the 2017 list of PEBB Retirees and
dependents.

 Print/Save a copy of the 2017 Instructions for Forms 1094-C and 1095-C to use as a
reference. Go to: www.irs.gov and Search: 1095-C Instructions.

 Please go to PDenroller.org to view/register for upcoming ACA Labs.
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Entering an ACA 1095-C Record
The 1094C/1095C Forms are reported on a calendar year basis. Each reportable
employee must have, (at a minimum) a January record. Information entered in the
ACA 1095-C Info area is used to generate the 1094-C/1095-C Forms. When adding a record,
you must enter the month and year the employee enrolled in a uniform medical plan, if
applicable, mark the “enrolled in coverage” checkbox, and enter any applicable information
for the employee’s dependent/s in the Covered Individuals section.

After you enter a 1095C Record for an employee, it remains the same for each subsequent
month and year, until you add a new record. Subsequent record changes are only needed
when there is a qualifying event, such as when an employee leaves the district, or changes to
enrollment based on the employee’s covered individuals. Changes in status are indicated in
the month and year the change is effective. Each change requires that you add a new set of
ACA codes to identify the type of health coverage the employee had or did not have, for that
month.

To add a 1095C ACA Record:

Menu Path: Web\HR\Employee\Employee Profile\ACA Information\1095-C Info

 Click the Add button.
 Enter the Year
 Enter the Month
 Select the Offer of Coverage Code
 Enter the Lowest Cost Premium (if applicable)
 Enter the Safe Harbor Code (Optional)
 If applicable, select the “report Employee as Covered Individual” checkbox.

Important: You should Select the “Report Employee as Covered Individual checkbox” if you
had any employees enrolled on a self-insured coverage plan such as PEBB, or any employees
enrolled in COBRA. If your district only offers PEBB insurance, every employee (regardless of
full time status) should receive a form. Employees on self-insured plans should all have a
codes entered into the 1095-C maintenance tab, and they should all have the “report
employee as covered individual” checkbox marked.

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 If applicable, click the Add button under the Covered Individuals maintenance screen.
 Enter Covered Individual’s Name, Last Name and either SSN or Date of Birth.
 Click the Save button.

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Verifying Employee ACA codes

To verify that all employees in your database have an ACA code, use the ACA 1095 Tracker
utility view.

Menu Path: Web\HR\Employee\Employee Setup\Utilities\ACA 1095 Tracker

 Click Add
 Enter Template Name
 Select Form Type: 1095-C
 Select the radio button to Report Employee’s 1095-C values for the range: Year: 2017
Month: 1 to 12
 Employees with no 1095-C records should be: Included
 Profile fields to include in Report: Select Employee type and Name Key
 Employee Selections:
o Check Method 1: Selection Parameters - Default Parameters
o Check Method 3: Selection Parameters - ZZ ACA Employee Type
 Click the Save and Run button

 Send the 1095-C Statuses by Month view to excel using CSV format.
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 Click the Open button at the bottom of the screen.

 Click file and save the csv file for easy access for 1095 form processing later.
 Highlight the entire worksheet and click the Sort and Filter button.
 Select custom sort by: January offer. Anyone missing an ACA code in January will be
filtered to the top.
 Run custom sorts on the additional months to review missing ACA Codes.

Note: An employee should receive a form, if they were full time for any month in the
calendar year.

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Identifying Full Time Employees and Creating a Work File

As a starting point, you can use the ACA Hours Tracker Parameters utility to identify
employees who worked full time, based on their average ACA hours, or by reviewing the
utility screen in the detail view. There is now a *Employees Receiving 1095 Form Report filter
which identifies any employee who worked more than 30 hours week or 130 hours per month,
based on the parameters entered into the template. Review the list of employees in this filter
and also review the Skyward default filter to ensure that no one is missed. When you have
identified the list of employees who should receive a 1095 form, send the list to excel, using
CSV format, and ensure that the Name Key is listed as the first column. Anyone listed in the
import file, will be included in the work file and they will have a 1095C form generated, as
long as there is at least 1 ACA record in their Employee Profile.

Important: After you create an excel spreadsheet which contains all the name keys of the
employees who should receive a file, save that spreadsheet into your Fin_Sec Folder. You will
need to access it within RDS so that you can use it as an import file in Step 2 of the 1095C
process.

Menu Path: Web\HR\Employee\Employee Setup\Utilities\ACA Hours Tracker

 Add a template Description
 Uncheck the “Use ACA Employee Categories” checkbox.
 Select the report type as Monthly
 Enter 12 months on current report. (This will update the report range from
01/01/2017 – 12/31/2017).
 Select the checkboxes for: Employee Type, Hire Date, Start Date, Active, and Term
Date.
 Click Save and Run.

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