iSolved ACA Training

Contact Us Helena Manzella ext. 216 Please use the Chat feature on the GoToMeeting toolbar to ask any questions during the presentation.

ACA Background Applicable Large Employer (ALE) 50 FTE employees in 2014 Penalties Penalties for not offering coverage Penalties for offering “unaffordable” coverage Full-Time Employees Extremely important to categorize or classify your employees correctly in your payroll system.

ACA Background Cont’d Look-Back Measurement Method Variable Hour Employees Measurement Period (3 to 12 months long) Administrative Period (0 to 90 days long) Stability Period (Based on length of Measurement Period)

ACA Background and Reporting 1094-C Transmittal Form 1095-C Employee Statement FormPurposeWho filesWho receivesDeadlineNotes 1094-BCover sheet that accompanies the 1095-B Forms Health insurance issuers or carriers Small, self-insured employers IRS February 29, 2016 (leap year) March 31, 2016 for electronic filers Must be filed with Form 1095-B 1095-BStatement indicating which months the individual and any dependents were covered by Minimum Essential Coverage Health insurance issuers or carriers Small, self-insured employers IRS Employee/ Health plan participant February 29, 2016 (leap year) March 31, 2016 for electronic filers Send to last known address May provide electronically with recipient’s affirmative consent 1094-CCover sheet that accompanies the 1095-C Forms Summary information for each employer including certifications of eligibility, aggregate group member information and any transition relief that may apply Applicable Large Employers (ALE)-those with 50 or more full-time employees (including full-time equivalent employees) IRS February 29, 2016 (leap year) March 31, 2016 for electronic filers Must be filed with Form 1095-C. Reports summary information for each employer Used in determining whether an employer owes a payment under the employer shared responsibility 1095-CStatement reporting on offers of health coverage and enrollment in health coverage for employees For self-funded employers, reports which months the individual and any dependents were covered by Minimum Essential Coverage ALE (Employers with 50 or more full-time employees (including full-time equivalent employees) IRS Each full-time employee IRS February 29, 2016 (leap year) March 31, 2016 for electronic filers Employee February 1, 2016 (due to January 31, 2016 falling on Sunday) Send to last known address May provide electronically with recipient’s affirmative consent Used to determine eligibility of employees for the premium tax credit

Form 1094-C

Form 1095-C

ACA Reporting Dates Reporting Effective January 1, 2015 Employee Statement due January 31, 2016 – Approved Forms in iSolved are due by Monday January 18 th at 4:00pm All reporting to IRS due February 29th (if manually filing) All reporting to IRS due March 31st (if E-filing)

iSolved ACA ACA Executive Dashboard ACA Setup & employee maintenance Review and Approve Forms 1094-C and 1095-C iSolved ACA Reports

iSolved ACA Executive Dashboard Found under Client Management > ACA Executive Dashboard ACA Eligibility ACA Eligibility Breakdown ACA Measurement Period Status ACA Enrollment

iSolved ACA at Employee Level ACA Measurement Periods Employee Management > Employee Benefits > ACA Measurement Period Employment Category Employee Management > Employment Hours met for ACA Full-Time status – tracked and adjusted with payroll Recording Unpaid Hours

Unpaid ACA “Hours of Service” Counting Hours of Service Salaried employees: Enter normal pay period hours (Employee Management > Employee Pay > Salary ) Unpaid hours also count towards ACA hours (e.g. unpaid illness, FMLA, etc. List in notes below.) Recording Unpaid Hours Payroll Processing > Payroll Entry > Time Entry Grid or Individual Time Entry ACA HOURS UPD

Review and Approve the Forms Review Form setup: Client Management > ACA Setup Options > … ACA Reporting Groups (if you are an aggregated large employer) ACA Report Options Report Options tab: Please review. This is your responsibility. Employer Overrides tab = where you can override information on 1094-C Form ACA Measurement Policies Policies tab = New Hires Ongoing Measurement Periods tab = Ongoing employees Eligibility tab = who the policy applies to (No eligibility rules = applies to all employees) ACA Report Overrides If you want to override what is populated on the 1094-C or 1095-C it is the client’s responsibility to determine what changes are made.

Review and Approve the Forms Any changes or corrections to this form will need to be determined by the employer. It is your responsibility to determine and declare the 1094 and 1095 forms correct and ready to be printed/filed. If the client has not educated themselves they will not be able to do this. Use this link to decipher the codes: FAY%20HANDOUT.pdf

Review and Approve the Forms To review: Reporting > Year End Reports on Demand > “ACA Form 1094-C and 1095-C” To approve: Client Management > ACA Setup Options > ACA Forms Approval

Review and Approve the Forms Some notes/tips: Code 1A on line 14 = do not need to enter information on Line 15 or Line 16 Line 15 is populated only if code 1B, 1C, 1D, or 1E is on Line 14 Found incorrect codes? Must override them manually. Part III is NOT populated for fully-insured clients. Clients who have self-insured plans MUST have all dependent data in this section. FAY%20HANDOUT.pdf This document is very helpful when deciphering codes! FAY%20HANDOUT.pdf

Overriding the Forms Employee Management > Employee Benefits > ACA Report Overrides Select the employee, add the Reporting Year (2015), click Add New, and make selections in the fields as needed. Be sure to save and re-run reports to make sure information is updated. If you have a lot of changes, these overrides can be imported. Proxus can help with this. If you collect premiums IN ADVANCE or different amounts throughout the year, you may need to override Line 15 information.

Non-Employee Overrides Client Management > ACA Setup Options > ACA Non-Employee Overrides To include non-employees who are on your benefit plans (e.g. CEO & family)

Review and Approve the Forms To approve: Client Management > ACA Setup Options > ACA Forms Approval Forms must be approved no later than Monday January 18 th

iSolved ACA Reports ACA Large Employer Compliance Test ACA Full Time Look-Back Report ACA Affordable Coverage Determination Report ACA Plan Renewal-Affordability Projection Tool ACA Monthly Measurement Status Report ACA Look-Back Change in Status Report

iSolved’s ACA Large Employer Compliance Test “Am I considered an Applicable Large Employer?” Factors to consider: Definition of full-time employee Definition of FTE (full-time equivalent) Employer aggregation rules Seasonal Workers Application to new employers 2015 Transition Rule for determining workforce size

iSolved’s ACA Large Employer Compliance Test Report Criteria

iSolved’s ACA Large Employer Compliance Test Report Results

iSolved’s ACA Large Employer Compliance Test Report Results

iSolved’s ACA Large Employer Compliance Test Report Results

iSolved’s ACA Full Time Look-Back Report “Which employees should be offered coverage?” Under the ACA an employer must offer health coverage to its full- time employees and their dependents. If an EE worked 30 hrs or more in the date range of the report, they will be noted as Full Time The report flags employees whose ACA Status is changing or needs to be updated based on their hours New hires are on the bottom portion of the report They have not completed a Measurement Period yet ACA Status cannot be finally determined until a MP is completed

iSolved’s ACA Full Time Look-Back Report Report Criteria

iSolved’s ACA Full Time Look-Back Report Report Results – New Hires

iSolved’s ACA Affordable Coverage Determination Report “Is the coverage affordable? Employer-provided coverage is considered affordable and not subject to penalties if it meets one of 3 IRS safe harbors iSolved Report Option Federal Poverty Line (FPL)Federal Poverty Line Form W-2 WagesCurrent Year Projected W-2 Wage Rate of PayRate of Pay Annualized May use one or more safe harbors if applied on a uniform and consistent basis for all employees in a category.

Factors to Consider Federal Poverty Line Safe Harbor Employee’s contribution for lowest self-only coverage does not exceed 9.5% of the federal poverty level For 2014 FPL = $11,670 or $92.39 For 2015 FPL = $11,770 or $93.18 May use guidelines in effect six months prior to the beginning of the plan year iSolved uses 2015 level in reports.

Factors to Consider Form W-2 Wages Employee’s contribution for lowest self-only coverage does not exceed 9.5% of employee’s wages as reported in Box 1 of the W-2 Can only use year-end final numbers for safe harbor iSolved reporting projects wages Adjusted for partial year employees including terminations and new hires

Factors to Consider Rate of Pay Employee’s contribution for lowest self-only coverage does not exceed 9.5% of the following: Hourly employee: an amount equal to 130 hours multiplied by the employee’s hourly rate of pay as of the first day of coverage or lowest hourly rate of pay during each calendar month Salaried employee: an amount equal to their monthly rate of pay but cannot be used if monthly salary is reduced, including by reason of reduction in work hours. Is not dependent on actual hours worked Cannot be used for tipped or commission-only employees Tracked in iSolved Employee Pay/Salary/Normal Hours & Annual Salary

iSolved’s ACA Affordable Coverage Determination Report Report Criteria

iSolved’s ACA Affordable Coverage Determination Report Report Results – Federal Poverty Level

iSolved’s ACA Affordable Coverage Determination Report Report Results – Form W-2 Wages

iSolved’s ACA Affordable Coverage Determination Report Report Results – Rate of Pay

iSolved’s ACA Plan Renewal-Affordability Projection Tool “Can I analyze future rate adjustments?” Employers need to be proactive in order to avoid the penalties associated with the ACA iSolved’s ACA Plan Renewal Affordability Projection Tool provides insight to achieve compliance for affordability

iSolved’s ACA Plan Renewal-Affordability Projection Tool Report Criteria

iSolved’s ACA Plan Renewal-Affordability Projection Tool Report Results – Rate of Pay

iSolved ACA Look-Back Change in Status Report This report provides measurement period status for employees assigned to a look-back measurement policy. Most clients are setup in this way. The report will only return results when an employee has completed an initial or standard measurement period. It is divided into two sections-one for Initial Measurement Period results and one for Ongoing Measurement Period results.

iSolved ACA Look-Back Change in Status Report Report Criteria

iSolved ACA Look-Back Change in Status Report Report Results

iSolved ACA Monthly Measurement Status Report This report measures hours of service for employees assigned to a monthly measurement policy. This report is ONLY for clients who have a monthly measurement setup. Most clients are NOT set up with Monthly Measurement setup. ACA Monthly Measurement Status Report Results:

Forms must be approved by January 18 th Please note additional fees will apply but are not limited to: 1) IRS file rejection due to inaccurate data 2) correction processing 3) re-issuance of employee statements 4) re-file to IRS. Clients are responsible for the correction of all errors returned by IRS or communicated by employees.

Thank you and Happy Holidays!