July 16, 2015 Hosted by: 1

2 * This presentation is for informational purposes only. Any statements provided in the presentation or by the speaker cannot be relied upon as tax or legal advice. The information is current as of June 2015.

3 * What forms are required to be filed under ACA * Are you an Applicable Large Employer * Discuss the Employer Mandate * Identify Full Time Employees * Employer Mandate Reporting * PayPro HCS can assist with your ACA reporting needs

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5 An applicable large employer is an employer with at least 50 full-time or full-time equivalent employees. Companies under common ownership or control are combined to determine whether they meet the threshold of 50 full-time equivalent employees. Full-Time Employee generally means an Employee that averages 30 or more hours of service per week. Full-Time-Equivalent (FTE) means an Employee other than a Full-Time Employee. FTEs are counted only for the purpose of determining whether the employer is a Large Employer subject to Play or Pay.

6 The same definitions for controlled groups apply to the ACA reporting requirements as they do for other types of reporting under the Internal Revenue Service (IRS) regulations. The IRS defines a controlled group of businesses as a group of related businesses that have common ownership. If a controlled group exists as defined by the applicable Internal Revenue Code (Code) sections, the employees of those businesses are considered together for certain qualified plan requirements.

7 What are the consequences if we do not comply?

8 Employers must offer Minimum Essential Coverage (MEC) that is Affordable and meets Minimum Value standards to full time employees and their dependent children up to age 26.

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10 * Minimum Value – The plan must pay on average at least 60% of allowable costs for all covered services on an aggregate basis. * Affordable - The employee’s required deduction for single only coverage for the least expensive plan the employer offers that meets the 60% Minimum Value threshold cannot exceed 9.5% of employee’s wages. * There are three affordability safe harbors * Certified on Form 1095-C

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19 Information to be reported: Employer’s name, address, EIN Each FT employee’s name, address, SSN For each month: if EE was enrolled, if ER offered EE minimum value affordable coverage, or the reason coverage was not offered (in waiting period, in measurement period) Number of FT employee’s for each month Cost of coverage

20 * Form 1094-C * Transmittal Form * Identifies employer as part of a Controlled Group (ALE Member) * Answers the question of whether the employer met the Penalty A threshold * Documents employer eligibility for certain transition relief * Forms 1095-C * Employee Statement * Answers the question of whether the employer met the Penalty B threshold

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26 Indicator Codes to report offer made each month: * 1A: Qualifying Offer, for all 12 months, ER offered MV coverage that was affordable according to the federal poverty line safe harbor ($93.18 per month). MEC offered to spouse & dependents * 1B: MV offered to EE only. No coverage offered to spouse & dependents * 1C: MV offered to EE. MEC offered to dependents. No coverage offered to spouse. * 1D: MV offered to EE. MEC offered to spouse. No coverage offered to dependents. * 1E: MV offered to EE. MEC offered to spouse & dependents. * 1F: MEC not providing MV offered * 1G: Offer to EE who was not FT and enrolled in self-insured plan for one or more months * 1H: No offer of coverage * 1I: Qualifying Offer Transition Relief

27 * Report lowest contribution for self-only Minimum Value coverage, regardless of what tier of coverage enrolled * Only have to report on Line 15 if Minimum Value is offered * If codes 1B, 1C, 1D, 1E are used on line 14

28 * 4980H Safe Harbor / Other Relief Codes * 2A – Employee not employed during the month. * 2B – Employee was employed, but not FT. * 2C – Employee enrolled in coverage offered. * 2D – Limited non-assessment period (measurement period, waiting period) * 2E – Multiemployer interim relief. Use this code for any employee where a fee is paid by the employer pursuant to a CBA. * 2F –Form W-2 affordability safe harbor * 2G –Federal Poverty Line affordability safe harbor * 2H –Rate of Pay affordability safe harbor * 2I – Non-calendar year transition relief applies to employee for the month * If none apply, leave line 16 blank for that month

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30 Part III is completed for Self-Insured Plans only

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32 Line 14 1H, No coverage offered 1E, MV offered to EE, at least MEC to spouse/dependents Line 16 2A, Employee not employed during month 2D, Limited non-assessment period 2C, Employee enrolled in coverage

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34 * We can provide multiple reports to assist with ongoing management and compliance of ACA. Review and aid with importing employee coverage information into Payroll/HCM system * Help clients achieve compliance by filing 1094-C and 1095-C forms on your behalf * Produce 1095-C forms for employer distribution to employees * Offer a benefits module that will automate this process in 2016

35 * ACA Large Employer Compliance Test (Helps determine the number of full time employees per month-by date range) * ACA Full Time Look-back Report (Helps Determine ACA Full Time Employees/Average Hours) * ACA Affordable Coverage Determination Report (Helps Determine that Minimum Essential Coverage is affordable for full time employees –based on Safe Harbor Method) * ACA Plan Renewal-Affordability Project Tool * ACA Eligibility Analysis Report

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Form 1094-C: Form 1095-C:

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40 Tanesha Bibbs, MBA HCM Specialist Direct Line: I Toll Free: I I Gary Richardson, MAFM, CPP Payroll Manager Direct Line: I Toll Free: I I

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