1. LGC Resource 2016 Flexgen Payroll ACA Preparing Now for 2016 Calendar Year End Processing

2. Congratulations!! You’ve survived the first year of ACA reporting!

3. Purpose The purpose of this class is to help you maintain that existing information so the 2016 Calendar Year End Reporting won’t be near as stressful. We will discuss the basic steps of entering information in the software and why it is important to do so on a monthly basis. Along the way we will also include answers to some of the most frequently asked questions. Interpretation of the law in determining what should or should not be reported, is the responsibility of the employer or its designated agents, not Local Government Corporation.

4. Furthering Your Knowledge The complete and detailed “Affordable Care Act Reporting” document is on the Local Government Corporation website https://www.localgovernmentcorporation.com/drupal7/ Click on Support/Documentation (must be a registered user for the website) Scroll down to Self Service Click on Documentation, Slideshows, and Recorded Sessions Scroll down to Payroll Click on Affordable Care Act Reporting

5. Highlights Roll to New Year Monthly Employee Update Load New Hires Adjust Monthly Premium & Codes Import Control Maintenance Import Process Reports Roll to New Year Monthly Employee Update Load New Hires Adjust Monthly Premium & Codes Import Control Maintenance Import Process Reports Employer Master Maint – Screen 1 Insurance Provider Maintenance Employer Master Maint – Screen 2 Monthly Employer Update Additional Information Employer Master Maint – Screen 1 Insurance Provider Maintenance Employer Master Maint – Screen 2 Monthly Employer Update Additional Information

6. Roll to New Year From the ACA Affordable Care Act Menu, go to Period End > Roll to New Year Enter 2015 as the tax year to roll Before making changes it is a good idea to make a daily backup This option copies Employer and active Employee information (including active dependent information such as spouse and children) from current year to new calendar year

7. Monthly Employee Update Monthly Employee Update is used to copy the Coverage Offered Code, Premium Amount, Safe Harbor Code, and dependent information from one month to another Run this for each month to get caught up to the current month you are in

8. Load New Hires Use Load Employee Master Recs (records) to load in employees hired during the year Employee Status Active, On Leave w/Pay, Retired, etc.. from Payroll Master Position Status Full-Time, Part-Time, Seasonal, etc. from Payroll Master From/Thru Date Run this a month at a time to pick up each month’s new hires

9. Load New Hires - continued Enter the appropriate Coverage Offered Code even if employee is not eligible yet Coverage Offered Code 1A, 1B, etc.

10. Load New Hires - continued Monthly Emp Premium: Enter the amount of the employee’s share of the lowest-cost monthly premium for self-only minimum essential coverage (MEC) providing minimum value that is offered to the employee. Enter the amount including any cents. If the employee is offered coverage but is not required to contribute any amount towards the premium, enter “0.00” (do not leave blank). This amount might 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

11. Load New Hires - continued Run this process for each month to pick up new hires Safe Harbor Code: (2A, 2B, 2C, etc.) Month To Store Values In: (In this example it would be January Update Existing Values (Y/N): This can be either yes or no. It will not matter. It is looking only at these hire dates per month.

12. Load New Hires - continued Load Employee Master Recs inserts the employee’s master record into the ACA module but also updates the month for which you stored the value. If the employee is not eligible for coverage yet, manually modify the record for the appropriate values. Once employee is eligible, modify the record for the appropriate month and with the appropriate values. SAMPLE VALUES ONLY!!

13. New Option! Adjust Monthly Premium & Codes Adjust Monthly Premium & Codes can be used to add, change, or correct the Coverage Offered code, premium amount, and Safe Harbor code to the employee’s records SAMPLE VALUES ONLY!!

14. Import Control Maintenance Import Control Maint must be set up if using option Import Covered Individuals Employee SSN: Used to tie the dependent to the employee. Numerical with no dashes. Individual Name: Name order is not required. (Last name listed first or first name then last name.) Name order used will be how it is displayed on the Dependents file. Individual SSN: Dependents Social Security Number. Numerical with no dashes. Individual DOB: Dependent’s Date of Birth. MM/DD/YYYY Coverage Code: E = Employee, S = Spouse and D = Dependent

15. Import Process Two ways to import dependent information – Import Covered Individuals and Edison Import Covered Ind (individuals) Sample names only, yours may be different Generic Import State file Import The file to be imported should be saved as Tab Delimited (.txt) with a simple name

16. Import Process - continued You will need to know the location for which you saved your file Generic Import State file Import Use Lookup to Select by EIN and enter the Tax Year Enter the Tax Year

17. Import Process - continued It is important to print the Covered Ind Import Listing (bad data example) If the data on the report is not correct DO NOT IMPORT THE FILE. The format of the file is not right OR the Import Control Maint has the wrong column numbers (if using Import Covered Individuals)

18. Import Process - continued It is important to print the Covered Ind Import Listing (good data example) If the data on the report looks good answer Yes to import the file

19. Reports Use Employee Summary reports to verify all employees loaded and their status Status refers to the ACA Employee Master Maint screen

20. Reports - continued Use Employee Detail by SSN or Name to verify coverage code, safe harbor code, employee premium amount, dependents, and months of coverage

21. Reports - continued Use Employee Edit Report By Month or Thru Month to view any missing information Include Covered Info refers to the dependent coverage

22. Reports - continued Include Covered Info = Y (include covered individuals information in the edit)

23. Reports - continued Include Covered Info = N (only include ACA Employee Master info in the edit) No need to answer Yes if you are not self-insured and do not have dependent information keyed in

24. Employer Master Maint – Screen 1 Verify the Employer Master Maint for the current tax year Your office info Third party company info filing on your behalf Additional ALE (Applicable Large Employers) info needed for 1094c and 1095c reporting

25. Employer Master Maintenance – Screen 1 - continued Additional information – Self Insured Self-Ins Yes will print dependent information on 1095. If set to NO it will not print dependent information even if dependent information is entered.

26. Employer Master Maintenance – Screen 1 - continued ALE Member Information The Roll To New Year option will default in last year’s Number Of 1095-C Forms Submitted This Transmittal and Number Of 1095-C Filed For This ALE Member. These numbers will be overwritten during Period End, Monthly Employer Update process.

27. Employer Master Maintenance – Screen 1 - continued ALE Member Information - continued Please contact a subject matter expert such as a city or county attorney. In many cases, the attorney can refer to a subject matter expert directly or obtain access to a list of professionals that have appropriate certification for providing this service.

28. Insurance Provider Maintenance Insurance Provider Maint is required if you are self-insured Self Insured = YES Enter the insurance provider information (except EIN – which is employer EIN). This information is required for self-insured but only prints on the 1095-B Form

29. Insurance Provider Maintenance - continued Self Insured = NO IF fully insured, set up insurance provider code to have the plan start month on 1095-C Form Insurance Provider Maint is required to print Plan Start Month on 1095-C

30. Employer Master Maintenance – Screen 2 This screen can be updated manually or through the Monthly Employer Update process (next slide) Minimum Coverage Offered = Y/N Full-Time Employee Count = Number of full-time employees received coverage for the month (include full-time equivalent FTE) Total Employee Count = Number of all employees worked within that month Aggr Group = X if applies to your office Transition Relief Ind = X if it applies to your office

31. Monthly Employer Update Monthly Employer Update is a bulk way to update Employer Master Maint (Screen 2) totals and can be run per EIN

32. Monthly Employer Update - continued Your Flexgen Login date needs to be tax year for which you are generating employee counts Employee Counts Full Time pulls from employee’s check history. The program captures the status of the employee on the payroll master at the time the check was written. If an employee is a full time status and changed to part time or vice versa in the same month, it will record that employee as full time in this screen. Full time takes precedence over part time if in the same month.

33. Monthly Employer Update - continued The numbers calculated may not be the exact number that should be reported. For example, Employee(s) that are flagged part-time on the Payroll Master but are “Full Time Equivalent Employees (FTE)” should be counted under the “Employee Counts Full Time”. The program will not include them within the counts displayed in Employee Counts Full Time but the field can be manually modified. Ultimately, it is your responsibility to ensure the Employee Counts Full Time is correct. If you think the count is wrong or it was wrong because of someone's position status on the payroll master not being correct at the time the check was written, you can manually maintenance that total under Employer Master Maint (screen 2) or on this screen, Monthly Employer Update.

34. Additional Information Employee Master Maint - Active and In-Active Status During the Monthly Employee Update (slide 7) if an employee has a Status of In-Active, the employee and dependent information will NOT carry over to the next month. Likewise, during the Roll To New Year, (slide 6) if an employee is In-Active at the end of December it will not roll to the new year. During the Monthly Employee Update (slide 7) if an employee has a Status of In-Active, the employee and dependent information will NOT carry over to the next month. Likewise, during the Roll To New Year, (slide 6) if an employee is In-Active at the end of December it will not roll to the new year.

35. Additional Information - continued Covered Individuals Maint – Active YES or NO During the Monthly Employee Update (slide 7) if a dependent is Active NO the X will NOT carry over to the next month. Likewise during the Roll To New Year (slide 6) if a dependent is Active NO they will not roll to the new year. If All 12 Months has an X it will roll to the new year as such. Likewise if December has an X it will roll to January. During the Monthly Employee Update (slide 7) if a dependent is Active NO the X will NOT carry over to the next month. Likewise during the Roll To New Year (slide 6) if a dependent is Active NO they will not roll to the new year. If All 12 Months has an X it will roll to the new year as such. Likewise if December has an X it will roll to January.

36. Additional Information - continued Run a Payroll Emp Count report on a monthly basis to keep accurate track of employee counts. Reports>Payroll>Emps/Itm M-Z This is real-time information. The report would need to be run after each payroll or at the end of the month. For example, if in December 2016 you run the report for January 2016 you can NOT expect to get accurate counts. If you run the report in December 2016 for December 2016 then you will get accurate counts.

37. Additional Information - continued Terminated Employees report to show who terminated and retired during the year Employment End Date from Payroll Master Pulls from Employee Status in Payroll Master (Retired or Terminated)

38. Additional Information - continued In ACA Employee Master, change status to IN-ACTIVE for those terminated Changes to the Payroll Master do not reflect on ACA Employee Master. Example: Employee was active in 2015, was terminated in 2016, ACA employee master would show the employee as Active and would need to be changed to In-Active status.

39. Questions?

40. This concludes our session on Flexgen Payroll ACA Preparing Now for 2016 CYE Processing Visit our website for full documentation and useful information for other applications www.localgovernmentcorporation.com THANK YOU !!! www.localgovernmentcorporation.com