explore engage elevate A Crash Course on ACA Compliance Presenter: Chris Hadden, CPP Technical Sales Manager Greenshades Software 1

exploreengage elevate 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 Manage and file millions of tax forms each year 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. 2

exploreengage elevate 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

exploreengage elevate ACA Requirements 4 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

exploreengage elevate Who are considered full-time employees? Any employee who was employed on average at least 30 hours of service per week For hourly employees, each hour for which the employee is paid, or entitled to payment is counted For non-hourly employees, you can use actual hours or equivalency of 8 hours/day or 40 hours/wk Unpaid leave for FMLA, USERRA, summer teacher breaks, or for jury duty is included Employee’s hourly or salaried status doesn’t necessary determine full-time status. All have to be considered: Ongoing Employees New Employees Variable Hour Employees Part Time Employees Seasonal Employees 5 Average Weekly Hours > 30

exploreengage elevate 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 6 Definition Ongoing Employee New Hire

exploreengage elevate How do I determine full-time status? 7 Measurement PeriodAdministrative PeriodFull Time Stability PeriodNon-Full Time Stability Period 10/20/ /19/201410/20/ /31/20141/1/ /31/ /20/ /19/201510/20/ /31/20151/1/ /31/ /20/ /19/201610/20/ /31/20161/1/ /31/2017 MeasurementAdministrativeStability

exploreengage elevate 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 8 Dependents include children (biological and adopted) up to age 26. …but not grandchildren, foster children, step children, or qualifying relatives

exploreengage elevate 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). 9

exploreengage elevate 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) 10

exploreengage elevate Form 1095-C 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) 11

exploreengage elevate 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 12

exploreengage elevate When are reports due? 13 February 1 st February 29 th March 31st

explore engage elevate ACA Solutions What’s available to assist GP users with ACA compliance? 14

exploreengage elevate What can GP offer? GP is great! GP blog: 5aca 5aca GP video: 15

exploreengage elevate Assign Line 14, 15 and 16 for 1095-C 16

exploreengage elevate Assign Line 14, 15 and 16 for 1095-C 17

exploreengage elevate Changes and dates are tracked in SQL 18

exploreengage elevate 1095-C Form Edits 19

exploreengage elevate 1095-C Printing 20

exploreengage elevate When may GP not be enough? 1095-B forms1094/1094-C electronic filingFull time status monitoringProactive alertsTerry Heley: 21

exploreengage elevate When may GP not be enough? Notes: Microsoft Dynamics GP will NOT be supporting the 1094-B and 1095-B forms for small business employers of less than 50 employees.Microsoft Dynamics GP will NOT support the electronic filing; here are some ISV solutions you can review Here are some ISV’s that have worked in the ACA area and my offer these services, no particular order. Aim-Technologies Software/Integrity Data - can also search for solutions at

exploreengage elevate What can Greenshades do for ACA 23 ACA Track employee eligibility and FT status determination Offer of coverage suggestions and tracking New Hire, Leave Rules, and Breaks in Service 1095C Online distribution Self-service printing Print and mail service e-file 1094/1095C e-filed directly to IRS No AIR registration required Immediate confirmations

exploreengage elevate Affordable Care Act Compliance 24 ACA Dynamics Payroll Inspector ACA tracks eligibility and offer of coverage Benefits Enrollment Module tracks eligibility and offer of coverage 1095C Data is uploaded from GP HR, Payroll Inspector, or Benefits Enrollment 1095Cs are distributed from Year End Forms module e-file Data is uploaded from GP HR, Payroll Inspector, or Benefits Enrollment 1094/1095C e-filed directly to IRS via Tax Fling Center 1099s license

exploreengage elevate Affordable Care Act Compliance 25 ACA Dynamics Payroll Inspector ACA tracks eligiblity and offer of coverage Benefits Enrollment Module tracks eligibility and offer of coverage 1095C Data is uploaded from GP HR, Payroll Inspector, or Benefits Enrollment 1095Cs are distributed from Year End Forms module e-file Data is uploaded from GP HR, Payroll Inspector, or Benefits Enrollment 1094/1095C e-filed directly to IRS via Tax Fling Center 1099s license

exploreengage elevate Affordable Care Act Compliance 26 ACA Dynamics Payroll Inspector ACA tracks eligiblity and offer of coverage Benefits Enrollment Module tracks eligibility and offer of coverage 1095C Data is uploaded from GP HR, Payroll Inspector, or Benefits Enrollment 1095Cs are distributed from Year End Forms module e-file Data is uploaded from GP HR, Payroll Inspector, or Benefits Enrollment 1094/1095C e-filed directly to IRS via Tax Fling Center 1099s license

exploreengage elevate Affordable Care Act Compliance 27 ACA Dynamics Payroll Inspector ACA tracks eligibility and offer of coverage Benefits Enrollment Module tracks eligibility and offer of coverage 1095C Data is uploaded from GP HR, Payroll Inspector, or Benefits Enrollment 1095Cs are distributed from Year End Forms module e-file Data is uploaded from GP HR, Payroll Inspector, or Benefits Enrollment 1094/1095C e-filed directly to IRS via Tax Fling Center 1099s license

exploreengage elevate 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 28

exploreengage elevate 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 29

exploreengage elevate Dynamics Payroll Inspector Employee Eligibility Tracker 30 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

exploreengage elevate Dynamics Payroll Inspector Health Benefits Coverage Verification Simple one time mapping setup Map to existing GP codes Payroll or Human Resources Lowest employee share tied to Employee Only plan in GP 31

exploreengage elevate 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 32

exploreengage elevate 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 33

exploreengage elevate 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 34

exploreengage elevate 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 35

exploreengage elevate 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 36

exploreengage elevate Affordable Care Act Compliance 37 ACA Dynamics Payroll Inspector ACA tracks eligiblity and offer of coverage Benefits Enrollment Module tracks eligibility and offer of coverage 1095C Data is uploaded from GP HR, Payroll Inspector, or Benefits Enrollment 1095Cs are distributed from Year End Forms module e-file Data is uploaded from GP HR, Payroll Inspector, or Benefits Enrollment 1094/1095C e-filed directly to IRS via Tax Fling Center 1099s license

exploreengage elevate Affordable Care Act Compliance 38 ACA Dynamics Payroll Inspector ACA tracks eligiblity and offer of coverage Benefits Enrollment Module tracks eligibility and offer of coverage 1095C Data is uploaded from GP HR, Payroll Inspector, or Benefits Enrollment 1095Cs are distributed from Year End Forms module e-file Data is uploaded from GP HR, Payroll Inspector, or Benefits Enrollment 1094/1095C e-filed directly to IRS via Tax Fling Center 1099s license

exploreengage elevate 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 39

exploreengage elevate Questions? Thank you! Thank you for your time! Chris Hadden 40