Zortec Payroll. Affordable Care Act 3/30/ Resource - Z Payroll Affordable Care Act

Transcription

1 Zortec Payroll Affordable 1 Affordable 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). 2 Affordable The Affordable 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. 3 1

2 Affordable Information about Affordable can be found on IRS website IRS instructions for forms 1094 C and 1095 C can be found at the following link pdf/i109495c.pdf. IRS instructions for forms 1094 B and 1095 B can be found at the following link pdf/i109495b.pdf. 4 Payroll #6 Period End Process #64 Affordable 5 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 2015 returns, you do not need to repeat this step. 6 2

3 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. 7 ACA Employer File Maintenance Once ACA Employer file is created, use option 01 ACA Employer File Maint to enter/update reportable fields. 8 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 9 3

4 Designated Government Entity (DGE): Third party company info filing on your behalf. In most cases this will be blank C only ACA Employer file, screen 1 Part I Employer Information 10 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 of the 1094 C form. Is this the authoritative transmittal for the ALE Member Must be Y or N. Form 1094 C only 11 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. ACA Employer file, screen 1 Part II Applicable Large Employer (ALE) Is ALE Member a member of an Aggregated ALE Group : Must be Y or N. If answered Y, fill in Part IV C only 12 4

5 ACA Employer file, screen 1 Part II Applicable Large Employer (ALE) Certifications of Eligibility : X all that apply Form 1094 C only 13 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. Aggregated Group Indicator : Must be X or blank C only 14 ACA Employer file, screen 2 Part III ALE Member Monthly Information Section 4980H Trans Relief Ind. : Transitions Relief Indicator valid options are A and B If the employer is eligible for Section 4980H Transition Relief and is eligible for the 50 to 99 Relief, enter code A. If the employer is eligible for Section 4980H Transition Relief and is eligible for the 100 or More Relief, enter code B C only An employer will not be eligible for both types of relief. 15 5

6 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 C only 16 ACA Coverage Provider Maint. This option is used to store the Origin of Policy Code(s) and the Plan Start Month. 17 ACA Coverage Provider Maint. Select Option 3, the Create. Enter a 1 or 2 digit numeric code. 18 6

7 ACA Coverage Provider Maint. Issuer/Coverage Provider Code : Enter a 1-2 digit numeric code. Employer EIN : Enter the EIN for your organization. 19 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 B only Will print in box 8 on 1095 B form. 20 ACA Coverage Provider Maint. SHOP Marketplace Identifier : Leave field blank for B only 21 7

8 ACA Coverage Provider Maint. Plan Start Month : Leave this field can be left blank for May be required for **NOTE: This is the only field in the Coverage Provider Maint for 1095 C forms. Will print in Part II on 1095 C form C only 22 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 the Issuer name. This will print on Part III of the employee s 1095 B form B only 23 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. 24 8

9 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 Load ACA Employee File Monthly Steps From this point forward, it is assumed you used the software to report your 2015 ACA data Load ACA Employee File Year Enter calendar year for file to create. From/Thru Date Selection criteria of employees to pull into the file. This will import your new hires for the date range entered. i.e. 01/01/2016 thru 01/31/2016 Payrolls Payroll numbers from which to select employees to pull into the file. Locations Location codes from which to select employees to pull into the file. 27 9

10 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 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 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

11 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. 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 does not allow premium 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. 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 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 33 11

12 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. 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. 01/01/2016 thru 01/31/2016 = Month 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 Load ACA Employee File Overwrite Existing Records Allows you to update or overwrite existing employee ACA information for the month selected

13 ACA Employee File Maintenance Once ACA Employee file is created, use option 02 ACA Employee File Maint to enter/update reportable fields. 37 ACA Employee File Maintenance If you not to use option 21 Load Employees on a monthly basis, you can manually add these employees to the ACA module. This is especially helpful when you need to add COBRA individuals, retirees, etc. that should receive a 1095 form. These individuals must have an employee master record. 38 ACA Employee File Maintenance What if you do not want your COBRA or retirees to show in your current payroll? Create a separate payroll Create a new location code 39 13

14 ACA Employee File Maintenance What information do you need to create an employee master record for your COBRA or retiree individuals? You will need to enter the minimum data required on screens 1, 2, and 4 of employee master. You do not need pay types or rates of pay. You DO need to create a group on screen 4 with a FICA contract. 40 ACA Employee File Maintenance To manually create ACA records, select 2 ACA Employee File Maint, Create mode. Enter the payroll # followed by the employee s SSN or employee number. Enter the Year to be reported. 41 ACA Employee File Maintenance Each employee s ACA file consists of 2 screens. Use screen 1 to enter/update Status, Issuer, Coverage Offer Code, Lowest Cost Monthly Premium, Safe Harbor Code for each month

15 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. 43 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. 44 ACA Employee File Maintenance Employee information will appear with St atus = A (active) Type = E (employee) 45 15

16 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. 46 ACA Employee File Maintenance Enter dependent name J, F, M, etc. are month fields. Type an X in month being processed in which dependent has insurance coverage. (Monthly roll process will allow ability to copy from one month to next.) Enter dependent s SSN Enter dependent s date of birth Enter St atus of A ctive, I nactive or T erminated Enter Type of S pouse or D ependent 47 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

17 ACA Roll Options 49 Roll ACA Files Monthly 06 Roll ACA Files (Monthly) Copies detail information from one month to the next. Employee and covered individual status must be Active to roll. Reminder: The ACA status is separate from Payroll Master status. 50 Roll ACA Files Monthly For example, the Monthly Roll will roll or copy January s codes/premium down to February

18 Roll ACA Files Monthly Year Enter year you are working on. EIN enter individual EIN or blank for all. Month Enter From / To months. 52 Roll ACA Files Monthly When you enter the TO month, they 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. 53 Roll ACA Files Monthly These values will be updated to the ACA Employer File Maintenance, screen

19 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. 55 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. 56 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

20 Roll ACA Files Annual Year Enter From and To year. EIN enter individual EIN or blank for all. 58 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 existing amount will roll to January. 59 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

21 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. This applies to both employees and covered individuals. 61 ACA Report Options 62 #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

22 #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. 64 #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. 65 #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 Dependent has reached age 26 screen 2 dependent has reached maximum allowable age 66 22

23 #56 Measurement Period Report Reads check history for date entered and gives an average of hours worked for weeks in measurement period. This report period range includes two biweekly pay periods; therefore, 4 Weeks in Measurement Period is used. 67 Sample report: 68 Measurement Period Report Things to know about the Measurement Period Report: Only prints hourly employees. If salaried employees are needed, the Base Pay paytype 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

24 ACA Utilities 70 ACA Utilities #01 Purge Covered Individuals Deletes screen 2 information for year/ein entered 71 ACA Utilities #02 Purge Employer/Employee Records Deletes employer and all employee information for year/ein entered

25 ACA Utilities #20 Rebuild ACA Employee Alt Keys 73 Import Covered Individuals 74 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

26 Import Covered Individuals #01 Generic Import Sample file 76 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. 77 Import Covered Individuals #02 Edison Insurance Import (for insurance through the State of TN) Benefits tab Tags box Select PPACA Tax Report You must have access to this portion of the website. Contact Edison if you need access

27 Print Forms/Electronic Filing 79 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) 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) 80 Print Forms/Electronic Filing 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 81 27

28 Print Forms/Electronic Filing 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 82 Print Forms/Electronic Filing LGC will use the extract files to generate the electronic file and transmit to the IRS. 83 This completes our presentation on Zortec Payroll Affordable section of Resource If you have questions about any of these processes contact LGC Software Support Help Desk at