Presented by: Carol Livingston The Resource Group December 2016 ACA and Year End Setup for ACA Presented by: Carol Livingston The Resource Group

What is the Affordable Care Act(ACA)? Patient Protection and Affordable Care Act (PPACA), commonly called the Affordable Care Act (ACA) or aka ‘Obamacare’, is a United States federal statute signed into law by President Obama on March 23, 2010. The Affordable Care Act represents the most significant regulatory overhaul of the U.S. healthcare system since the passage of Medicare and Medicaid in 1965 The Employer Mandate originally set to begin in 2014, was delayed until 2015 / 2016. ObamaCare’s “employer mandate” is a requirement that all businesses with 50 or more full-time equivalent employees (FTE) provide health insurance to at least 95% of their full-time employees and dependents up to age 26, or pay a fee by 2016.  Small businesses with 50-99 FTE will started insuring full-time workers by 2016. The mandate does not apply to employers with 49 or less FTE. Per ADP, 52% of companies with 50-999 employees and 45% of companies with 1000 plus employees said they were not sure if they were doing all that is necessary for reporting compliance. 44% of companies with 50-999 employees and 37% of companies with 1,000 plus employees said they were not prepared for the reporting deadline. Coverage offered to employees must be considered affordable (can’t cost more than 9.56% of employee household income) and must provide minimum value (must have an average cost sharing of 60%). If coverage isn’t affordable employees can use the Marketplace and the employer can be fined. Source: http://obamacarefacts.com/obamacare-employer-mandate/

What is 1095-C and 1094-C? 1095-C Employer Provided Health Insurance Offer and Coverage information forms You must determine your ALE status each calendar year based on the average size of your workforce during the prior year. If you had at least 50 full-time employees including full-time equivalent employees (30+ hrs), on average during 2014, you are most likely an ALE for 2015. The Form 1095-C includes information about the health insurance coverage offered by the employer. Form 1095-C, Part II, includes information about the coverage, if any, the employer offered to employees and their spouse and dependent(s). If individuals purchased health insurance coverage through the Health Insurance Marketplace and wish to claim the premium tax credit, this information will assist in determining whether individual is eligible. Forms 1094-C and 1095-C will be used by employers with 50 or more full-time employees or full-time equivalents to determine whether they are liable for penalties under the employer shared responsibility requirements of the ACA

ACA enforcement: The AIR SYSTEM

IRS Form 1095-C

2016 Reporting Deadline The IRS has extended the deadline to get those 1095-Cs to employees! The 1095- C filing deadline has been extended from January 31 to March 2nd. The 1094-C e-filing deadline remains unchanged (March 31).

1095-C Key things ACA –effective 2015/2016 1095-C – Required for Applicable Large Employers (ALEs) 50 FTE’s ( 30-hour full- time hours) eFile – electronic filing 250+ 1095-C’s through ACA Information Reporting (AIR) Program Penalty of up to $500 per returned required

ACA Key things Monitoring of ACA compliance (offer of coverage and safe harbor (affordable coverage)) is not the same thing as 1095-C reporting Whom to cover. How to calculate “full-time.” How to get offers out fast. What to offer. How to test if an offer is “affordable.” How to keep records. What records to keep. Penalty of up to $2084/year per employee or $3126/year if employee has used an exchange. ACA penalties cannot be deducted as business expenses.

GP out-of-the-box (OOB) What you get out-of-the-box with GP is all that’s needed when your organization: is singly owned has a stable workforce with many salaried employees and hourly employees with predictable schedules already offers health coverage has fewer than 250 full-time (ACA-defined) employees.

What to do if not OOB? If your organization doesn’t fit this description, you still can use GP to do ACA reporting as required by the IRS, but you will need an add-on. Following are the three circumstances not covered by standard ACA functionality in GP: E-filing for Form 1094-C Unified reporting on 1094-C when processing payroll across multiple GP Payroll databases ACA penalty risk management

How to prepare for 1095-C FORMS on MS Dynamics GP Current versions HR and payroll supported are GP2013 or GP2015 Schedule or plan to install Payroll Year End update released Mid-November. Determine how will print 1095-C forms. If use GP, implement HR module for HR Benefits

1095-C GP Preparation Determine if need ISV for add-on to GP Install/Implement GP Human Resource module Implement HR and HR Benefits Module Add ACA Codes and Lowest Cost Premium (Employee Share for self only) Determine if ‘self insured’ for Dependents Gathering dependents data – need to import or input Determine if need input or help with upload data Determine if more 250 forms – need eFile through ISV Split out Medical vs. Dental / Vision Benefit Codes (Box 12, W-2 form) Security – add ACA Codes and ACA setup to Task ID

1095-C New GP fields

1095-C GP Reporting

ISV’s ACA compliance monitoring and reporting Integrity Data - http://www.integrity-data.com/ Greenshades - https://www.greenshades.com/ Aim-Technologies -http://www.aim-technologies.com/acadash.html

Links https://www.irs.gov/Affordable-Care-Act/Employers/Questions-and-Answers- about-Information-Reporting-by-Employers-on-Form-1094-C-and-Form-1095-C https://www.irs.gov/pub/irs-pdf/f1095c.pdf

QUESTIONS?