Sonoma County Office of Education. ACA Reporting Affordable Care Act

Transcription

1 Sonoma County Office of Education ACA Reporting 2016 Affordable Care Act Presenters: Marie White and Tracy Lehmann 12/8/2016

2 Affordable Care Act (ACA) Based on The Affordable Care Act of 2010, employers with 50 or more FTE (full-time equivalent) must offer coverage to full-time employees and dependents. IRS defines full-time employees work an average of at least 30 hours per week (130 hours) in a calendar month. Employers must provide an annual return reporting the health insurance that is offered to employees. In addition, they are subject to the Employer Shared Responsibility provisions. The IRS required forms are 1095-B and 1095-C. ACA Reference: ***IRS Extended ACA to March 2, 2017*** Insurers, self-insuring employers, other coverage providers, and applicable large employers now have until March 2, 2017 to provide Forms 1095-B or 1095-C to individuals, which is a 30-day extension from the original due date of January 31, Electronic filing is due March 31, 2017 and will be submitted by SCOE IT. Escape Release ACA Changes Available in mid-decmber 2016 ACA Review Page 1

3 ACA Checklist Setup in Escape Organization Record Review Section 10 ACA Setup ALE (Applicable Large Employer 50 FTE or More) = Yes Verify that the W2 Address and contact information are correct If changes needed in Org Record, send request to helpdesk@scoe.org Bargaining Unit Review ACA Bargaining Unit for employees not covered by a BU Review ACA Defaults Tab Review Look Back Periods Tab (Only needed for ACA BU) Benefit Groups/Providers Review MED and OPT Out groups Review Benefit Providers have Group Codes Employee Management Add ACA to Employee if NO Assignment Benefit Provider Tab - Use Coverage Dates for prepaid or retroactive dates Addons Review Addons that are flagged to Affect ACA Hours Review Lump Sum addons for the Number of ACA Hours, as needed Reports Run the Pay60 ACA Measurement Period Report Review the data for accuracy and qualification of hours for benefits Employee ACA Load the ACA information into the Employee ACA activity Check Problems, review and resolve Review the data for accuracy FINAL ACA Employee List Due February 10, 2017 Employee ACA List for only those receiving Form 1095-C Export list to Excel with total number of forms, submit to helpdesk@scoe.org 2016 ACA Review Page 2

4 Review ESCAPE ACA Setup Organization Record Review that your District is setup for ACA if you are an ALE Appicable Large Employer with 50 FTE or more. Verify that the contact information is up to date. The Org record is based on user permissions, for changes send a request to helpdesk@scoe.org. Go to System Setup - Organization Record Section 9 W2 Overrides Must have Employer and Contact information completed, this is default for ACA or go to Section 10 if there is a differenct contact for ACA Reporting. Section 10 ACA Setup ALE - Set the flag to YES if the District is considered an ALE Self Insured - Horicon District Only Prepay Benefits - Set the flag to YES if District prepays benefits the month before coverage begins 2016 ACA Review Page 3

5 Review Bargaining Units Go to HR/Payroll - Setup - Assignment - Bargaining Units ACA Default Tab Update existing bargaining units ACA Default Tab ACA Reporting has two methods: Monthly and Look-back Monthly Used with set work hours and set schedule Fill out the ACA Default tab only Look-Back Used for hours that are variable Fill out both the ACA Defaults and the ACA Look-back Period tabs From - Enter the beginning effective dates for Benefit Provider rates. This determines when this provider/level has the specified benefits cap and coverage reporting parameters. Thru Use End Date of rates changes. Leave blank until cap amount changes. MEC Provider - Minimum Essential Coverage Use the lookup to define the benefit provider for reporting the MEC Provider. Must be maintained to avoid the fee and be in compliance with the shared responsibility requirement. MEC Level - Use the lookup to define the benefit provider level for reporting the MEC. This can be the level with the lowest premium amount for self-only coverage. ACA Benefit Cap - Enter amount to be paid by employee for the lowest-cost monthly premium for selfonly. Example if no cost to the employee than this field should be Offer of Coverage Default - Use the lookup to select from options as define by the IRS. The coverage offered to the employee, spouse and dependents, if any. Code 1A Qualifying Offer Minimum Essential Coverage providing minimum value offer to full-time employee with employee contribution for self-only coverage equal to or less than 9.5% mainland single Federal Poverty line at least MEC offered, as well as MEC offered to spouse and dependents ACA Review Page 4

6 Safe Harbor Default - Use the lookup to select from options as define by the IRS. This is the default for reporting the Safe Harbor method you are using for determining if coverage is considered affordable. Coverage Waiting Period - Enter the number of months an employee of this bargaining unit must wait before benefit coverage is offered. Minimum ACA FTE - Enter the minimum FTE that will define employees with FTE equal to or greater that the number entered as full time. Example enter.75 FTE if this is the minimum for your District. Example: Teachers are defined as.75 FTE, yet the teachers are considered full time. In this case, you would enter.75 in the Minimum ACA field for the teacher's bargaining unit. Example: The number of hours worked is the sole factor for determining full time. Teachers are defined at 1.0 FTE, but work 7 hours. In this case, you would leave the field blank so that only the number of hours worked would be considered when determining full time status. Example: Same as above, but you want 1.0 FTE/ 7 hours to be considered full time. In this case, you would enter 1.0 as the minimum FTE for the bargaining unit. Determining Full-Time Employees for Purposes of Shared Responsibility for Employers Regarding Health Coverage ( 4980H) ACA Review Page 5

7 Review ACA Look-Back Periods Tab only needed for ACA BU Under the look-back/stability period safe harbor method, an employer would determine each employee s fulltime status by looking back at a defined period of not less than three but not more than 12 consecutive calendar months, as chosen by the employer (the measurement period), to determine whether during the measurement period the employee averaged at least 30 hours of service per week. Add Measurement Period for to cover each calendar year Measurement Start - Enter the date the measurement period started Measurement Months - Enter the number of months in the measurement period Admin Months, Stability Months and Measurement End automatically populate Add ACA Bargaining Unit to Employees Now that the ACA Defaults and ACA Look-Back Period are defined, it's time to add the bargaining unit to the employee. This field is used when the employee does NOT have an assignment. Reminder: If an employee terminates mid year, than the ACA BU must be added to the employee record or this will be a Problem in the Employee ACA List. Go to HR/Payroll - Employment - Employment Management Recommendation: Add the ACA BU to all employees, this does not affect the assignment BU and will ensure that the employee is covered by a BU for the entire calendar year. This is also one less step to remember when they terminate ACA Review Page 6

8 Benefit Groups Go to HR/Payroll - Setup - Benefit - Benefit Group Review: The MED and OPT Benefits groups need to be established for ACA In addition, the Benefit Groups are designed for organizations that annualize benefit costs. The group allows you to group providers (e.g., Medical, Vision, Dental) so that when an employee changes providers during open enrollment, Escape can determine how much was paid to each provider and recalculate rates for the rest of the year. MED Group - Benefit Provider Group that begins with MED for employees who have medical coverage. This groups medical providers together MED Post Tax A new MED Group is needed to add to Benefit Providers that are post tax if Districts have employees with both pretax and post tax benefit providers. OPT Group - Benefit Provider Group that begins with OPT for employees who have opted out and declined medical coverage ACA Review Page 7

9 Benefit Providers Go to HR/Payroll - Setup - Benefit - Benefit Providers Review: The MED and OPT Benefits Groups must be added to Benefit Providers. MEDPOST Benefit Group must be added to Districts if employess have both pretax & post-tax benefits. If MED or OPT Group not added to Benefits Providers and records are locked, you will need to send a request to helpdesk@scoe.org with a list of Benefit Providers and the name of the Group Code ACA Review Page 8

10 Benefit Provider Tab Go to HR/Payroll - Employment - Employment Management Add the benefit to the employee record Use the Coverage Begin Date to show the employee actual start of benefits. This would be used for prepaid benefits of if an employee needed to be retroactive for benefit start date. This is for ACA only, does not adjust payroll deductions or contributions. Dependents Tab Go HR/Payroll - Employment - Employment Management It s highly recommended that Dependents with Medical Coverage be added to the employee record, but it s only required for Self-Insured Districts (Horicon District Only) If dependents were already added to the employee records, they can now be flagged for Medical Coverage by changing the Medical field to YES ACA Review Page 9

11 Addons Flag to Affect ACA Hours Go to HR/Payroll - Setup - Payroll - Addons Addon Hours are determined to be active in the month based on the year/month of the adjustment. Hours for Addons are included in the calculations only if the Affect ACA Hours flag is set to YES. If it is set to YES, the number of hours is based on the Rate 1 Option: H {Use an hourly rate} - Uses the units for the pay adjustment D {Use a daily rate} - Uses the hours per day for the position or the hours per day for the Addon. Defaults to 8 hours per day Locked (L), position pay (P), base pay (B) or blank - Uses the entry in the Number of ACA Hours field. If Rate 1 option is Locked this does not calculate for ACA Hours. It s best to use hourly or daily, which means a salary schedule should be used as well. NOTE: If the addon has negative units, those hours will reduce the hours for ACA 2016 ACA Review Page 10

12 ACA Measurement Period Report This report helps to determine eligibility for benefits and used as an audtit for Employee ACA Activity. When checking for benefit coverage Pay60 report and the ACA load activity, the system will first check the Benefits Provider Tab for Coverage Begin Date and Coverage End Date if they exist, if they do not, then it will use the Begin and End dates. Go to HR/Payroll - Reports- Payroll Pay 60 ACA Measurment Period Report Start Date - Leave blank to default to today s date Months 12 Default Minumim Hours Default Click GO Review Report to verify employees are expected to be on report Example PAY60 Report: Use this Report to audit Employee ACA Activity. Full-time Employees should receive a 1095-C Form. IRS Considers Full-time 30 hours per week or 130 hours per month. Look for hours that may qualify for employees without an assignment 2016 ACA Review Page 11

13 Employee ACA Reporting Go to HR/Payroll - Processes - Tax Reporting - Employee ACA Quick Start: ACA or Enter To get to Employee ACA Review Tools in top right corner to view Escape ACA Reporting User Guide Create Search Favorite for Employee ACA 2016 Defining Your Search Criteria Calendar Year - Enter the calendar year. Defaults to the open ACA Calendar year. Employee ID Leave blank for entire list or Enter the employee ID, can choose multiple employees by enter common in between Reload Now - Set to YES to reload all employees that have been on a pay cycle in the calendar year based on the pay cycle date. The reload process DOES NOT overwrite any of your overrides. Open reporting months will update based on changes in Org Record, Benefit Providers, Bargaining Unit, Employee Record, finally it loads the addon and assignment hours from open and processed payrolls. Loads: Pay Detail Organization Setup Bargaining Unit Benefit Provider Employee Record All open months will be reloaded Closed months will not be reloaded Overrides from the tabs of Employee ACA record will not be reloaded Click Go to generate the list of employees to review 2016 ACA Review Page 12

14 Review list of employees Use the Pay60 to verify that all Full-time employees are receiving Form 1095-C Use the Quick Link to go to Employee Management to review and make changes. Return to search to reload to review changes, this could take a few minutes to see changes. Can Export to Excel to review Month/Hours Worked columns; if employee worked 130 in any months of the calendar year, then they should receive a 1095-C Form. Doesn t mean they qualify for coverage or offered benefits. Review the Problem column for possible issues Click on the header in the Problem column to sort Yes to the top of list for easier way to work the list Double click to open the employee record to review Employee Tab - This is Read Only, if you need to make changes to this information, you can go to Employee Management or you can use the quick link to make the changes, then you will need to reload to review that it updated on the Employee ACA List. Covered Individuals Tab For Self-Insured Only. This is Read Only, if you need to make changes to this information, you can go to Dependents and Benefit Providers in the employee record or you can use the quick link to make the changes, then you will need to reload. Offer of Coverage Tab Uses Bargaining Unit ACA Default Tab Setup. You can override the full-time flag, the offer of coverage, the employee share, and the safe harbor method. Review Problems Hover over the message or move the columns width to see full error Example: Error Message Unable to determine Barganing Unit. Typically this error can be resolved by adding the ACA Bargaining unit on the employee record in Employment Management in the Employee Tab Section 9 Benefits ACA Review Page 13

15 Hours by Months Tab - You can override the monthly hours amount. Any edits made on this tab will not be overwritten by the Reload. You cannot enter negative numbers. Click on Preview Button to review Form 1095-C - Employer-Provided Health Insurance Offer and Coverage This form must be provided and filed for any employee of an ALE who is a full-time employee for one or more months of the calendar. ALE Members must report the information for all twelve months of the calendar year for each employee. Can override Hours if needed Form 1094-C - Transmittal Employer-Provided Health Insurance Offer and Coverage for Returns This form is electronically filed by SCOE IT 2016 ACA Review Page 14

16 Final Submission of Employee ACA Reporting Due February 10, 2017 by 4:30 pm submit to **Use Search** Favorite you created for Employee ACA 2016 Go to HR/Payroll - Processes - Tax Reporting - Employee ACA Run final list of Employee ACA Calendar Year: 2016 Reload Now? : Yes Click Go to generate list From the list, double click on the Form column to get all 1095-C to top of list Click Export to export to Excel Example: Excel Format Excel List Delete rows with NO 1095-C Forms Add Column A for form count Save in a file that you will remember Send FINAL Excel Employee ACA List to helpdesk@scoe.org By Friday, February 10, 2017 by 4:30 pm 2016 ACA Review Page 15