1. Affordable Care Act Webinar Presented by: Sandy Kylliainen, CPA, MBA
November 15, 2016

2. Meet Your Presenter Sandy A. Kylliainen, CPA MBA – Project Manager
BA – Economics/Business – Randolph Macon College
MBA Concentration Accounting – Loyola College
Over 25 years experience with Dynamics-GP and Great Plains
Third Year with Intellitec Solutions
Previous Own Consulting and Training Business

3. Who is Intellitec Solutions?
Our Philosophy
Recognize our Client’s Needs
100% commitment to supporting the software
Dedication to our Core Values
Client for Life approach

4. What is the Affordable Care Act?

5. Affordable Care Act
The Affordable Care Act was passed by Congress and then signed into law by the President on March 23, On June 28, 2012 the Supreme Court rendered a final decision to uphold the health care law.
Link to Read the law:

6. Affordable Care Act Features

7. Coverage …
Ends Pre-Existing Condition Exclusions for Children: Health plans can no longer limit or deny benefits to children under 19 due to a pre-existing condition.
Keeps Young Adults Covered: If you are under 26, you may be eligible to be covered under your parent’s health plan.
Ends Arbitrary Withdrawals of Insurance Coverage: Insurers can no longer cancel your coverage just because you made an honest mistake.
Guarantees Your Right to Appeal: You now have the right to ask that your plan reconsider its denial of payment.

8. Costs …
Ends Lifetime Limits on Coverage: Lifetime limits on most benefits are banned for all new health insurance plans.
Reviews Premium Increases: Insurance companies must now publicly justify any unreasonable rate hikes.
Helps You Get the Most from Your Premium Dollars: Your premium dollars must be spent primarily on health care – not administrative costs.

9. Care …
Covers Preventive Care at No Cost to You: You may be eligible for recommended preventive health services. No copayment.
Protects Your Choice of Doctors: Choose the primary care doctor you want from your plan’s network.
Removes Insurance Company Barriers to Emergency Services: You can seek emergency care at a hospital outside of your health plan’s network.

10. Employer Shared Responsibility Requirements
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.
Questions
Does it apply to me?
What happens if I do not comply?
What type of health insurance coverage complies?
Who are considered full-time employees?
How do I determine full-time status?
PLEASE CONTACT YOUR TAX ADVISOR OR CPA TO ANSWER THESE QUESTIONS.

11. What should you be tracking?
Employee meeting ACA qualifying offer on a month-to-month basis
That 95% of full time employees are being offered (MEC)coverage and that the percentage meets compliance
Which employees are not being offered adequate coverage
What employees are supposed to be offered benefits due to full time status
How many employees are considered full time under ACA

12. How DID you complete your aca forms last year?

13. Employer Reporting Requirements

14. Employer Reporting Requirements
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.
Questions
What information is reported?
Are there electronic options?
How often and when do I need to furnish the reports?
Are there simplified reporting options?

15. ACA Forms Information taken from IRS website link below:

16. ACA Forms
Form 1095-A, Health Insurance Marketplace Statement.  The Health Insurance Marketplace (Marketplace) sends this form to individuals who enrolled in coverage there, with information about the coverage, who was covered, and when.  
Form 1095-B, Health Coverage.  Health insurance providers (for example, health insurance companies) send this form to individuals they cover, with information about who was covered and when. 

17. ACA Forms
Form 1095-C, Employer-Provided Health Insurance Offer and Coverage.  Certain employers send this form to certain employees, with information about what coverage the employer offered. Employers that offer health coverage referred to as “self-insured coverage” send this form to individuals they cover, with information about who was covered and when.
 NOTE: The 1095-C is the only form that will print from Dynamics-GP

18. What 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 (when applicable)

19. Form C

20. Are there electronic options?
Electronic files must be submitted if over 250 records, per entity
One record (1095-C) per employee that was eligible at any point during the year
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

21. Supported Versions for ACA Reporting
Microsoft Dynamics GP2013R2 with year-end updates
Microsoft Dynamics GP2015R2 with year-end updates
Microsoft Dynamics GP2016R2 with year-end updates
Note : Updates are all-inclusive

22. What’s new?

23. What’s new – No waivers
No good faith waiver that was available last year

24. 2016 ACA Items you should know…..
Full Time Equivalents 50 or more
95% MEC offer rate
Most transition relief gone
Affordability Requirements
Penalties
Biggest code change – ‘conditional’ offer

25. What’s new – MEC Mandatory Coverage
MEC – Minimum Essential Coverage
Previously 70% needed
Jumped to 95% on January 1
Includes all full time employees and dependents

26. What’s new – Increased Penalties
Increased penalties Failure to file or furnish a correct 1094-C or 1095-C increased to
$260 per return or payee statement, up to annual maximum per ALE member of $3,193,000
$530 per return or payee statements, if there is intentional failure to file the returns and to furnish the required statements.

27. 2016 Changes
Substitute forms are still acceptable but there are changes on the form.
Ability to add add a dependent on the fly in the Edit W2 window under the Dependents button, this was a large request from our customers last year.
New codes added for 2016 year Line 14 1J and 1K 1J – used to report MEC providing MV offered to employee, but only conditionally offered to spouse and dependents  .

28. 2016 Changes
1K – used to report MEC providing MV offered to employee and dependents, but only conditionally offered to spouse What is ‘conditional’ offer of coverage?
Offer that is subject to one or more reasonable, objective conditions, including but not limited to an offer of coverage to spouse only if the spouse is not eligible for coverage under Medicare, or a group health plan sponsored by their employer. Details on these conditions should be tracked and stored, in case employee requests details to help determine their eligibility for a premium tax credit.

29. 2016 Changes
1K – used to report MEC providing MV offered to employee and dependents, but only conditionally offered to spouse What is ‘conditional’ offer of coverage?
Offer that is subject to one or more reasonable, objective conditions, including but not limited to an offer of coverage to spouse only if the spouse is not eligible for coverage under Medicare, or a group health plan sponsored by their employer. Details on these conditions should be tracked and stored, in case employee requests details to help determine their eligibility for a premium tax credit.

30. 2016 Changes - continued
Greenshades and Integrity-Data will allow you to track ACA in Microsoft Dynamics GP, and just do the electronic filing for you at a lower cost option.
Greenshades - 
Integrity Data - 

31. 2016 Summary Notes Substitute forms are still acceptable.
Microsoft Dynamics GP will NOT support the electronic filing for the 2016 year for ACA.
Plan start month is not required again this year so Microsoft is not populating this field.
The all 12 month checkbox is not required for employee. (It will be populated for the dependent)
Must furnish to employees by January 31, 2017

32. Notes for setting up Dynamics-GP
Must setup the HR module to generate 1095-C forms.
Need to setup the information for each of the employees in HR Benefits/Deductions.
Additional information is needed for Lines 14, 15 and 16

33. Steps to Create 1095-C forms
Confirm on proper version of Dynamics-GP
Load HR dictionary if not loaded
Register HR module
Change User Setup for HR view for Payroll
Set up proper security for HR users
Reconcile Human Resources
Set up Medical Code information for each employee making sure the proper dates are used

34. Steps to Create 1095-C forms
Create Year-End Wage File
Edit 1095-C information
Print 1095-C forms
NOTE: This checklist should be used as a guideline. There can be some additional steps depended upon each system setup.

35. Demo of Software to Print 1095-C forms

36. Additional Links:
Questions and Answers about Health Care Information Forms for Individuals (Forms 1095-A, 1095-B, and 1095-C)
What’s Trending

37. Additional Links: IRS Instructions for 1094C and 1095C

38. ISVs that work with Dynamics-GP
Greenshades
Integrity Data

39. January To Do List Issue the following: Employee W2 statements
1095-C statements (if Applicable Large Employer)
1095-B statements (if Self-insured and not an ALE)
1099s

40. January To Do List - continued
File W2 statements to Social Security Administration
File W3
File 1099 (if reporting payments in box 7) to the Internal Revenue Service along with your 1096
Submit state agency copies

41. Upcoming Webinars eBanking – November 29 Year-End – December 6
Reporting – December 13
PSTL Tools – December 20
All are on Tuesday EST from 11 am to Noon except the Year-end which will be a two hour presentation

42. How to contact Intellitec for support?

43. Thanks for attending!
Please contact me if you have future questions:

44. Affordable Care Act Webinar Thank You!
Disclaimer: This webinar has been provided to you to inform you about the Affordable Care Act. Intellitec is not providing you any legal or accounting advise regarding ACA. It is the responsibility of your organization to determine the codes and filing needs of your organization. I