Zortec Payroll Affordable Care Act

Affordable Care Act We have implemented options within the software to track the data necessary for producing the 1094-B/C and 1095-B/C.  The options will give you the ability to input and/or import information for 1094-B/C and 1095-B/C forms and print reports to verify the information.  Please be aware certain ACA reporting and tracking requirements are outside the scope of the LGC software (i.e. but not limited to…health insurance coverage the employer offers to employees but is declined).

Affordable Care Act The Affordable Care Act legislation and guidelines issued by the federal government is an ever-changing process.  Therefore, we encourage you to perform the appropriate due diligence for your office on an ongoing basis as changes are made and new regulations are issued. You are encouraged to consult with your support agencies or a trusted subject matter expert about decisions that are best for your particular circumstances regarding the Affordable Care Act.

Affordable Care Act Information about Affordable Care Act can be found on IRS website www.irs.gov. IRS instructions for forms 1094-C and 1095-C can be found at the following link http://www.irs.gov/pub/irs-pdf/i109495c.pdf. IRS instructions for forms 1094-B and 1095-B can be found at the following link https://www.irs.gov/pub/irs-pdf/i109495b.pdf. Use the Department of Homeland Security's E-Verify system or another website of your choosing to verify employee information at the following link www.uscis.gov/e-verify.

Payroll #6-Period End Process #64-Affordable Care Act

20-Load ACA Employer File needs to be done first. Load Employer File 20-Load ACA Employer File needs to be done first. NOTE: This step only needs to be completed once. If you used the software to report 2017 returns, you do not need to repeat this step.

Load Employer File The only thing you are prompted for is ‘Year.’ This should be the calendar year for the file you will report. The program reads FICA Contract file from Office Manager and creates employer file for each FICA Contract with a unique federal EIN.

ACA Employer File Maintenance Once ACA Employer file is created, use option 01-ACA Employer File Maint to enter/update reportable fields.

ACA Employer file, screen 1 Part I – Employer Information The “1094/1095 Form Type” defaults to C, but can be changed to B if needed for your site. Your office information. The “Country” code should be blank if the country is the United States.

ACA Employer file, screen 1 Part I – Employer Information Designated Government Entity (DGE): Third party company info filing on your behalf. Or if you have multiple EINs, one of them could be the main EIN that files on behalf of the others. In most cases this will be blank. 1094-C only

ACA Employer file, screen 1 Part I – Employer Information ‘Total number of Forms 1095 submitted with this transmittal’: Must be numeric value or blank. Will print in box 8 on the 1094-B form and in box 18 on the 1094-C form. ‘Is this the authoritative transmittal for the ALE Member’ Must be Y or N. Form 1094-C only

ACA Employer file, screen 1 Part II – Applicable Large Employer (ALE) ‘Total number of Forms 1095-C submitted by/on behalf of employer’: Must be numeric value or blank. Will print in box 20 on the 1094-C form. ‘Is ALE Member a member of an Aggregated ALE Group’: Must be Y or N. If answered Y, fill in Part IV. 1094-C only

ACA Employer file, screen 1 Part II – Applicable Large Employer (ALE) ‘Certifications of Eligibility’: X all that apply Form 1094-C only

ACA Employer file, screen 2 Part III – ALE Member Monthly Information ‘Minimum Essential Coverage Offer’: Answer ‘Y’ or ‘N’ for each month. ‘Employee Count’ for ‘Full-Time’ and ‘Total’: Enter numeric value for each month. Totals will be populated with Monthly Roll. ‘Aggregated Group Indicator’: Must be X or blank. 1094-C only

ACA Employer file, screen 3 Part IV – ALE Members of Aggregated ALE Group If you have multiple EIN’s you need to determine if they would be part of ALE Group or if you need to report them separately. If part of ALE Group, you will enter names and EIN of other ALE members of the Aggregated ALE Group on this screen. 1094-C only

ACA Coverage Provider Maint. This option is used to store the Origin of Policy Code(s) and the Plan Start Month.

ACA Coverage Provider Maint. Select Option 3, then Create. Enter a 1 or 2 digit numeric code.

ACA Coverage Provider Maint. ‘Issuer/Coverage Provider Code’: Enter a 1-2 digit numeric code.   ‘Employer EIN’: Enter the EIN for your organization.

ACA Coverage Provider Maint. ‘Identifying Origin of Policy Code’: Enter valid IRS Origin of Policy Code. Valid options are: A B C D E F See IRS 1094-B instructions for description of codes. Will print in box 8 on 1095-B form. 1095-B only

ACA Coverage Provider Maint. ‘Plan Start Month’: This field can be left blank for 2017. May be required for 2018. **NOTE: This is the only field in the Coverage Provider Maint for 1095-C forms. Will print in Part II on 1095-C form. 1095-C only

ACA Coverage Provider Maint. ‘Issuer Name’: If you selected Identifying Origin of Policy Code “B”, you must fill out the bottom of the screen with your organization information. This will print on Part III of the employee’s 1095-B form. 1095-B only

Monthly Steps This is where we will begin the monthly steps. We recommend you run these steps the first of the month, for the previous month. If you will set aside a little time each month to work on ACA, it will make the end of the year reporting much smoother and less stressful.

Monthly Steps It is very important that you mark terminated employees with at status of T and also enter their termination date on screen 1 of the employee master screen. This information is used to determine when to include employees in the ACA file.

21-Load ACA Employee File Monthly Steps 21-Load ACA Employee File From this point forward, it is assumed you used the software to report your 2017 ACA data.

21-Load ACA Employee File ‘Year’ – Enter calendar year for file to create. ‘From/Thru Employed Date’ – Selection criteria of employees to pull into the file. This will import your new hires for the date range entered. i.e. 01/01/2018 thru 01/31/2018 ‘Payrolls’ – Payroll numbers from which to select employees to pull into the file. Leave blank for all. ‘Locations’ – Location codes from which to select employees to pull into the file. Leave blank for all.

21-Load ACA Employee File ‘Full/Part’ – Selection criteria of employees to pull into the file. May be extremely important when deciding what to put in Coverage Offer Code, Minimal Emp Premium and Safe Harbor Code fields.

21-Load ACA Employee File ‘Status’ – Selection criteria of employees to pull into the file. Enter A and T T will import employees hired/terminated in the same month. ‘Freq’ – Selection criteria of employees to pull into the file.

21-Load ACA Employee File ‘Pay Types’ – Selection criteria of employees to pull into the file. ‘Misc Codes’ – Selection criteria of employees to pull into the file. ‘Groups’ – Selection criteria of employees to pull into the file.

21-Load ACA Employee File ‘Coverage Offer Codes’ – Enter valid IRS Coverage Code for employees being pulled into the file. This field may be skipped depending on employees being selected, however ALL records must have a coverage code for every month. See IRS 1094-C and 1095-C instructions for description of codes. 1A – does not allow premium 1B 1C 1D 1E 1F – does not allow premium 1G – does not allow premium 1H – does not allow premium 1I – reserved 1J 1K

21-Load ACA Employee File ‘Minimal Emp Premium’ – Enter the lowest-cost monthly premium for self-only minimum essential coverage providing minimum value that is offered to the employee. This amount may not be the amount the employee is paying for the coverage, for example, if the employee chose to enroll in more expensive coverage such as family coverage.

21-Load ACA Employee File May be skipped, depending on employees being selected. Depending on Coverage Offer Code entered, you may be required to enter something in this field. See IRS 1095-C instructions for additional information.

21-Load ACA Employee File ‘Safe Harbor Code’ – Enter valid IRS Coverage Code for employees being pulled into the file. This field may be skipped depending on employees being selected. See IRS 1094-C and 1095-C instructions for description of codes. 2A 2B 2C 2D 2E 2F 2G 2H 2I There is no Safe Harbor Code if the employee opts out of coverage.

21-Load ACA Employee File ‘Month to store values in’ – Month you wish to update employee’s ACA information for Coverage Offer Code, Minimal Emp Premium and Safe Harbor Code. This field may be skipped depending on employees being selected.

21-Load ACA Employee File Required if anything is entered for Coverage Offer Code, Minimal Emp Premium or Safe Harbor Code. This field should correspond with the employed date range you enter on the top of the screen. 01/01/2018 thru 01/31/2018 = Month 01

21-Load ACA Employee File ‘Overwrite Existing Records’ – Allows you to update or overwrite existing employee ACA information for the month selected.

21-Load ACA Employee File NOTE: These fields only required for 1095-C forms. These fields can be left blank for 1095-B forms: Coverage Offer Code Minimal Emp Premium Safe Harbor Code Month to store values in

ACA Employee File Maintenance Once ACA Employee file is created, use option 02-ACA Employee File Maint to enter/update reportable fields.

ACA Employee File Maintenance If you do not to use option 21 Load Employees on a monthly basis, you can manually add the employees to the ACA module. This is especially helpful when you need to add COBRA individuals, retirees, etc. that should receive a 1095 B/C form. These individuals do not need an employee master record.

ACA Employee File Maintenance With recent changes to the ACA programs, Payroll Master and ACA Master are 100% separate. This means any changes made on the payroll side, have no affect on the ACA side and vice versa. Each employee is assigned a unique ACA#. This number cannot be changed. Will remain with employee. The last ACA# used can be seen in Office Manager, System Parameters.

ACA Employee File Maintenance Search/select options Year Name Emp ACA# SSN Payroll/Emp#

ACA Employee File Maintenance Search/select options Year Name Emp ACA# SSN Payroll/Emp#

ACA Employee File Maintenance To manually create ACA records, select 2 ACA Employee File Maint, Create mode. Enter the year, followed by the employee’s lastname, firstname.

ACA Employee File Maintenance On the following screen enter a valid - EIN Emp# SSN DOB After the SSN is entered, the system will auto assign the Emp ACA#.

ACA Employee File Maintenance On the bottom of the screen enter the employee name parts in the appropriate fields. Title and Suffix are optional.

ACA Employee File Maintenance Enter the employee address in the appropriate fields.

ACA Employee File Maintenance Each employee’s ACA file consists of 2 screens. Use screen 1 to enter/update Status, Issuer (provider code), Coverage Offer Code, Lowest Cost Monthly Premium, Safe Harbor Code for each month.

ACA Employee File Maintenance Available status options: • A – Active • I – Inactive • N – Non-Employee – for COBRA, retirees or other non-employee records • O – Omit – for records that should not be reported to the IRS • T – Terminated On the bottom of the screen enter the employee name parts in the appropriate fields.

ACA Employee File Maintenance If you need to update the employee’s name, address, SS#, date of birth or Emp #, use F6 Update Name/Address Information.

ACA Employee File Maintenance If Employer provided self-insured coverage, type ‘X’ in the box and enter the information for each covered individual on the next screen.

ACA Employee File Maintenance If Employer provided fully-insured coverage, leave this field blank. You do not need to enter covered individuals on the next screen.

ACA Employee File Maintenance Employee information will appear with ‘St’atus = A (active) ‘Type’ = E (employee)

Select F5 to add dependent to employee information. ACA Employee File Maintenance Select F5 to add dependent to employee information. NOTE: If you have a file from your insurance carrier, it can be used to import your covered individuals.

ACA Employee File Maintenance Enter dependent name (lastname, firstname middle initial) ‘J’, ‘F’, ‘M’, etc. are month fields. Type an ‘X’ in month in which dependent has insurance coverage. (Monthly roll process will copy from one month to next.)

ACA Employee File Maintenance Enter dependent’s SSN Enter dependent’s date of birth Enter ‘St’atus of ‘A’ctive, ‘I’nactive ‘N’on-Employee or ‘T’erminated Enter ‘Type’ of ‘E’mployee, ‘S’pouse or ‘D’ependent

ACA Employee File Maintenance The previous slides explained how to manually create/update employee information. Now we will look at the Monthly and Annual Roll processes.

ACA Roll Options

Roll ACA Files - Monthly Copies detail information from one month to the next. Employee and covered individual status must be Active or Non-Employee to roll. Reminder: The ACA status is separate from Payroll Master status.

Roll ACA Files - Monthly For example, the Monthly Roll will roll or copy January’s codes/premium down to February.

Roll ACA Files - Monthly ‘Year’ – Enter year you are working on. ‘EIN’ – enter individual EIN or blank for all. ‘Month’ – Enter ‘From’ / ‘To’ months.

Roll ACA Files - Monthly When you enter the “TO” month, the system will read check history for this month and populate the Employee Count, by EIN. NOTE: These are approximate numbers and may not be exact due to the options listed on the screen.

Roll ACA Files - Monthly These values will be updated to the ACA Employer File Maintenance, screen 2.

Roll ACA Files - Monthly ‘Roll Covered Individual data?’: Answer Y if you want to roll the X on screen 2 of ACA Employee Maintenance to the next month. ‘Overwrite Existing ‘To’ Information?’ Allows you to update or overwrite existing employee ACA information for the month selected.

Roll ACA Files - Monthly ‘Roll non-Employees?’: Answer Y if you want to roll “N” status employees (i.e. COBRA individuals, etc.). Answer N if you do not want to roll them.

Roll ACA Files - Monthly ‘Change minimum premium?’: If you need to change the minimum premium answer Y. ‘New Premium’: Enter new premium amount; may be zero. If you answer N to ‘Change minimum premium’, the existing amount will roll to the next month.

Roll ACA Files - Annual 07-Roll ACA Files (Annual) Copies detail information from one year to the next. This option will copy the ACA Employer and Employee information to the next year.

Roll ACA Files - Annual ‘Year’ – Enter ‘From’ and ‘To’ year. ‘EIN’ – enter individual EIN or blank for all.

Roll ACA Files - Annual ‘Change minimum premium?’: If you need to change the minimum premium answer Y. ‘New Premium’: Enter new premium amount; may be zero. If you answer N to ‘Change minimum premium’, the December amount will roll to January.

Roll ACA Files - Annual ‘New Coverage Code:’ If you need to change the coverage code on all records, enter it here. Leave blank to roll the December code. ‘New Safe Harbor Code’: If you need to change the safe harbor code on all records, enter it here. Leave blank to roll the December code.

Roll ACA Files - Annual Overwrite Existing Records? Allows you to update or overwrite existing employee ACA information for the year selected.

Roll ACA Files - Annual ‘Roll Covered Individual data?’: Answer Y to roll the December covered individual data to January. If you are a larger site, you may prefer to receive a file from your insurance company to import each year instead of rolling. ‘Roll non-Employees?’: Answer Y to roll the records with status of “N”. Answer N will change their status to “O”mit.

Roll ACA Files - Annual Things to know about the Annual Roll: December data rolls to January. ‘All 12 months’ data rolls to January. Terminated and Inactive statuses do not roll. The status is changed to Omit. This applies to both employees and covered individuals.

ACA Report Options

#50-ACA Employer Report Prints a report of employer file information #50-ACA Employer Report Prints a report of employer file information. This is information that will be printed on 1094-B/C form at calendar yearend.

#51-ACA Employee Report Prints a report of employee file information #51-ACA Employee Report Prints a report of employee file information. This is information that will be printed on 1095-B/C form at calendar yearend. Print in Detail mode to see the data from screens 1 and 2.

#51-ACA Employee Report Use this report to review the data entered on each ACA employee record. Make sure the codes, premium, dependents, etc. are correct.

#52-ACA Exception Report Prints a report of possible errors that need to be corrected. Can select employee status or leave blank for all. Print for each Month.

#52-ACA Exception Report Prints a report of possibly incorrect employee information. Errors include: Employee is not active – screen 1 ACA Master Invalid or missing coverage code – screen 1 ACA Master Indicator checkbox not marked correctly – screen 1 has X for self-insured but screen 2 is blank Month covered field is blank – screen 2 monthly field does not have an “X” This error is acceptable if the employee and/or dependent(s) did not have coverage for the reporting month. Dependent has reached age 26 – screen 2 dependent has reached maximum allowable age This error is acceptable if the child is disabled.

#56-Measurement Period Report Reads check history for date range entered and gives an average of hours worked for weeks in measurement period. This report period range includes two bi-weekly pay periods; therefore, 4 Weeks in Measurement Period is used.

Sample report:

Measurement Period Report Things to know about the Measurement Period Report: Only prints hourly employees. If salaried employees are needed, the Base Pay paytype (in Office Manager) must be set to ‘accept hours’. Hours would have to be entered during Input of Times on salaried employees. This is not retroactive. Starts with the first payroll after the paytype is updated.

ACA Utilities

#20 Rebuild ACA Employee Alt Keys ACA Utilities #20 Rebuild ACA Employee Alt Keys

Import Covered Individuals

Import Covered Individuals #01 Generic Import This is used to import a file of covered individuals that you can request from your insurance carrier. This will populate screen 2 of the ACA Employee Master record.

Import Covered Individuals #01 Generic Import Sample file

Import Covered Individuals #02 Edison Insurance Import (for insurance through the State of TN) This is used to import a file of covered individuals that you can download from the State of TN website. This will populate screen 2 of the ACA Employee Master record.

Print Forms/Electronic Filing

Print Forms/Electronic Filing After all data is entered you are ready to print the forms. First you must build the Extracts (options 6 – 11) Note: A change was made to print the forms in either alpha or SSN order. If you wish to use this, please contact support.

Print Forms/Electronic Filing Then you build the print files needed. B forms for less than 50 employees (options 1 and 3) C forms for more than 50 employees (options 2 and 4)

Print Forms/Electronic Filing “B” Forms The print file are located in your spooler: PP1094LS – for the B employer form PP1095LS – for the B employee forms PPCIRPLS – for the overflow page of covered individuals PPTOT-LS – for total number of forms printed

Print Forms/Electronic Filing “C” Forms The print file are located in your spooler: PP94C1LS – for page 1 of the C employer form PP94C2LS – for page 2 of the C employer form PP94C3LS – for page 3 of the C employer form PP1095LS – for the C employee forms PPCIRPLS – for the overflow page of covered individuals PPTOT-LS – for total number of forms printed

Print Forms/Electronic Filing LGC will use the extract files to generate the electronic file and transmit to the IRS.

This completes our presentation on Zortec Payroll Affordable Care Act section of Resource 2018. If you have questions about any of these processes contact LGC Software Support Help Desk at 800.439.4504.