MANAGING ACA WITH DYNAMICS GP Chris Hadden, CPP Technical Sales Manager 1

About Greenshades Payroll Experts Over the last 20 years, Greenshades has evolved from a small accounting practice to a well known and respected payroll software vendor. Greenshades employs approximately 80 people including tax specialists and certified payroll professionals. Founded in 1992 and began working with Great Plains primarily in 1996 Problem Solvers At Greenshades Software, we pride ourselves on being problem solvers for the payroll industry. Our clients have been a large determining factor in developing new products and services. We enjoy taking the headache out of processing payroll. High Ethical Standard Greenshades Software was founded as a Christian based company. What does this mean for our clients? We conduct business in an ethical fashion, treating our clients with respect, and standing behind our products with included technical support and money back guarantees. 2

Certifications Corporate Certifications Greenshades is a Microsoft Certified Gold Partner, the highest certification available to independent software vendors. We have passed the SSAE 16 audit for security compliance. Greenshades is a proud member of the American Payroll Association. As a company intent on doing business ethically, Greenshades is proud of our outstanding rating with the Better Business Bureau. We take every measure to treat our clients with integrity and excellent service. Solution Certifications Our solutions have been certified as.NET connected applications. Microsoft has tested our software to ensure that we are following security and data transmission standards. 3

What can Greenshades do for ACA The Affordable Care Act adds complexity to what was already a business critical set of processes. We enjoy the complicated issues in Payroll and Human Resources and look forward to helping our clients solve for ACA compliance through enhancements to our existing product line, offering continued excellence in our deliverables to help our clients save time and money while helping to simplify the compliance process. 4

ACA Requirements 5 All businesses with over 50 full-time equivalent (FTE) employees must provide health insurance for their full-time employees, or pay a per month "Employer Shared Responsibility Payment" on their federal tax return. Employer Shared Responsibility Rules All businesses with over 50 full-time equivalent (FTE) employees are required to file information returns with the IRS and provide statements to their full-time employees about the health insurance coverage the employer offered. Employer Reporting Rules

Does it apply to me? Are you an Applicable Large Employer? Full-time equivalent (FTE) calculation totals FT employees plus FTE employees. January 1, or more FTE employees (50-99 FTE transition relief) January 1, or more FTE employees 6

What is a Full Time Employee? Full time employees are 130 service hours per month or 30 service hours per week An employee must be credited with an hour of service for each hour the employee is paid or entitled to be paid for the performance of duties on the job Included service hours are: vacation, holiday, illness, incapacity, layoff, jury duty, military duty, or leave of absence 7

How do I determine full-time status? Measurement Period Period of time the average hours is calculated Restrictions on using different periods 3 to 12 month period Determined by Employer 3 to 12 month period that begins on or before the 1 st of the month following hire Administrative Period Amount of time allowed to respond to measurement period results Up to 90 days immediately following Measurement Period Same as Ongoing Rules, except Can not end after employee’s 1 year anniversary Stability Period Period of the time the employee’s FT status remains stable Must be the longer of 6 months or the length of the Measurement Period Same as Ongoing Rules 8

What type of health insurance coverage complies? Minimum Essential Coverage (MEC) Meets ACA coverage mandates Covers dependents No cost preventative services Minimum Value Plan Plan must cover at least 60% of total allowed costs in certain categories of benefits Determined by HHS calculator or actuarial certification Affordable Coverage Employee’s share of the premium for the lowest-cost self-only coverage of minimum value is not more than 9.56% of employee’s annual household income Safe harbor options are available in lieu of guessing employees annual household income 9 Dependents include children (biological and adopted) up to age 26. …but not grandchildren, foster children, step children, or qualifying relatives

Safe Harbor Options Form W-2: An employee’s monthly contribution for self-only coverage is affordable if it does not exceed 9.5% of their W-2 wages for that calendar year. Rate of pay: An employee’s monthly contribution for self-only coverage is affordable if it is no more than 9.5% of their monthly wages (hourly rate of pay × 130 hours, or, for salaried employees, their monthly salary figure). Federal Poverty Line (FPL): An employee’s monthly contribution for self-only coverage is affordable if it does not exceed 9.5% of the FPL for a single individual (which is $11,770 in 2015). 10

ACA Requirements 11 All businesses with over 50 full-time equivalent (FTE) employees must provide health insurance for their full-time employees, or pay a per month "Employer Shared Responsibility Payment" on their federal tax return. Employer Shared Responsibility Rules All businesses with over 50 full-time equivalent (FTE) employees are required to file information returns with the IRS and provide statements to their full-time employees about the health insurance coverage the employer offered. Employer Reporting Rules

What annual information is reported? Form 1094-C: Reporting to IRS includes: Employer Information Number of full-time employees Information about Coverage offered to employees Monthly breakdown of Coverage offering Includes lowest employee cost of self-only coverage Form 1095-C: Reporting to employees includes: Employer and Employees Information Monthly breakdown of eligibility, coverage, and lowest employee cost for self-only coverage Dependent Information (if self-insured) 12

Offer of Coverage Codes 1A. Qualifying Offer: Minimum essential coverage providing minimum value offered to full-time employee with employee contribution for self- only coverage equal to or less than 9.5% mainland single federal poverty line and at least minimum essential coverage offered to spouse and dependent(s) 1B. Minimum essential coverage providing minimum value offered to employee only 1C. Minimum essential coverage providing minimum value offered to employee and at least minimum essential coverage offered to dependent(s) (not spouse) 1D. Minimum essential coverage providing minimum value offered to employee and at least minimum essential coverage offered to spouse (not dependent(s)) 1E. Minimum essential coverage providing minimum value offered to employee and at least minimum essential coverage offered to dependent(s) and spouse 1F. Minimum essential coverage NOT providing minimum value offered to employee, or employee and spouse or dependent(s), or employee, spouse and dependents 1G. Offer of coverage to employee who was not a full-time employee for any month of the calendar year and who enrolled in self-insured coverage for one or more months of the calendar year. Enter code 1G in the “All 12 Months” box and do not complete the monthly boxes 1H. No offer of coverage (employee not offered any health coverage or employee offered coverage that is not minimum essential coverage). 1I. Qualified Offer Transition Relief 2015: Employee (and spouse or dependents) received no offer of coverage, received an offer that is not a qualified offer, or received a qualified offer for less than 12 months 13

Electronic Filings Electronic files must be submitted if over 250 records, per entity 1095-Cs can be distributed electronically under the same consent rules as the W-2 W-2 consent and 1095-C consent can be combined if the consent explicitly mentions both 14

When are reports due? February 1 st Postmark deadline for employee 1095-C February 29 th 1094-C 1095-C Paper filing deadline March 31 st Electronic filing deadline 15

GREENSHADES SOLUTIONS How you can expect Greenshades to handle your ACA needs 16

Compliance Affordable Care Act Compliance Coverage Enrollment Analysis Reporting Eligibility 17 Greenshades is prepared to help you navigate the ins and outs of the Affordable Care Act Compliance with ACA is paramount in all we do

Affordable Care Act Compliance 18 ACA Compliance Tracking Dynamics Payroll Inspector ACA Greenshades Online Benefits Enrollment ACA Compliance Reporting Greenshades Tax Filing Center Greenshades Year End Forms

ACA Compliance Tracking 19 ACA Compliance Tracking Dynamics Payroll Inspector ACA Greenshades Online Benefits Enrollment

Dynamics Payroll Inspector ACA ACA compliance tracking Alerts the user in instances of non-compliance under ACA guidelines Calculates full-time status for standard and initial measurement periods Tracks offered, waived, and enrolled coverage and generates the appropriate IRS code for form 1095-C Aggregated ALE group support Stores dependent information for form 1095-C Integrates directly with Dynamics GP HR and Payroll 20

Dynamics Payroll Inspector Employee Eligibility Tracker Configurable settings to manage any type of business GP Paycodes exclusions Calculates full-time status for standard and initial measurement periods Manages gaps in employment 21

Dynamics Payroll Inspector Employee Eligibility Tracker 22 Receive a full breakdown of whose eligibility is changing and why Update GP with the new full-time status Alerts you when you need to provide coverage or when you can remove coverage

Dynamics Payroll Inspector Health Benefits Coverage Verification Constantly checking for any potential lapse in coverage Provides immediate alert and remediation of issues before they become penalty worthy Review details behind each employee’s situation and have the ability to make informed decisions 23

Dynamics Payroll Inspector Health Benefits Coverage Verification Update GP HR with decisions and updates made through DPI, including dependents Easily adjust coverage start dates separately of payroll dates Keep GP in sync with the rapid ACA changes Tracks all information necessary for reporting Add or edit dependents information 24

Greenshades Online Benefits Module ACA compliance tracking Includes all features of the Dynamics Payroll Inspector Provides an employee interface for the completion of enrollment events Allows for employee notification of new benefit offerings due to a change in ACA full-time status Updates Dynamics GP when elections are made 25

Greenshades Online Benefits Module Fully manage all benefits and meet ACA compliance Coordinate enrollment events Display current elections Host plan and other documents Track employee eligibility Employees can manage personal and dependent information 26

Greenshades Online Benefits Module ACA dashboard Automatic alerts for ACA full-time status Automatic alerts for missing coverage, affordability, minimum value, etc Reports on employee full-time status Reports on relevant stability periods 27

ACA Compliance Reporting 28 ACA Compliance Reporting Greenshades Tax Filing Center Greenshades Year End Forms

Greenshades Affordable Care Act Reporting Options 29 Greenshades Tax Filing Center Creates and files the electronic version of form 1094-C Allows for individual 1095-C editing Import option for information from non-GP sources Integrates directly with Dynamics GP HR and Payroll Year-End Forms Portal Includes all features of the Greenshades Tax Filing Center Provides a portal for electronic distribution of form 1095-C Options for printing and mailing form 1095-C

Greenshades Affordable Care Act Reporting Options Electronically file to the IRS Host 1095-Cs for employees Edit Individual 1095-Cs Print and Mail 1095-Cs Download and Print 1095-Cs 30

Greenshades Software Let us handle that! Thank you for your time! Contact us at x 2 Chris Hadden 31