This article includes detailed information on various reports you may want to run specific to ACA.
Reports are available to view ACA specific data under Team > Benefits > ACA
Employee ACA Actions Report
This report displays all employees and their assigned ACA Profile (like the Employee List Report), allowing you to recalculate, clear, and import their historic data. A link to view each employee’s ACA history is available, as well as links to the two other reports in the system.
NOTE: The Average Hours in Current Measurement Period column will show data only for the current month. For information to populate this field, an ACA profile must be in use and the ACA rule Average Hours in Measurement Period needs to be included in the profile.
- Recalculate – After selecting one or more employees, a recalculation of their ACA data may be performed. Users will receive a pop-up allowing for an optional year selection going back for a period of up to 5 years. The Recalculate button will perform the standard calculation of previous, current, and next year, or it can be used in conjunction with the year selected in the Recalculation From drop-down.
- Import Historic Data (in the Ellipses) – Can import historic hours manually from an external system. To use this feature, you need to obtain the ACA Employee Data template from Company Settings > Imports > Overview. After the template is completed, the data can only be imported from this option (Employee ACA report) within the ACA module.
- W-2 Safe Harbor (in the Ellipses) - This option compares the lowest monthly cost for the benefits of a certain level offered to an individual to the annual affordability percentage (set by the IRS each year) of that individual’s W-2 Box 1 wages for the same calendar year. This will initiate a process to re-populate line 16 of the employee’s timeline.
The system calculates code 2F for the W-2 Safe Harbor as of the 2018 reporting. This is a code that employers can use to report to the IRS on Form 1095-C that the employee share of the lowest monthly cost for health benefits did not exceed the annual affordability percentage of the employee's Box 1 Wages from that same year's Form W-2.
The system counts the number of months coverage was offered by counting the number of months where code 1H is showing in Line 14 and subtracting this number from 12. For example, if 1H appears in 6 months of the selected employee's ACA Timeline for that year, this count will be 6 (12 – 6 = 6).
The system also counts the number of months the individual was not employed by counting the number of months where code 2A is shown in Line 16 of the ACA Timeline and subtracting this number from 12. For example, if 2A appears in 3 months of the selected employee's ACA Timeline for that year, the count will be 9 (12 – 3 = 9).
The number of months coverage was offered is used as the numerator (top) portion of a fraction and the number of months the person was employed is used as the denominator (bottom) of a fraction. For example, using the same numbers in the previous examples, the fraction is 6 / 9.
The process takes the fraction created as described above and multiplies it by the employee’s Box 1 Wages. For example, the system takes the same 6 / 9 fraction in the previous examples times the employee's Box 1 Wages for the selected year.
The following applies:
- The Form(s) W-2 must be finalized before this process can be run.
- The employee’s lowest monthly cost is calculated the same.
- The determination as to whether code 2F applies is the same.
After selecting employees from the list in the Employee ACA report and clicking the W-2 Safe Harbor button, a dialogue box appears. For the W-2 Safe Harbor calculation, users can choose Calculate Based on Deduction Amount or Calculate Based on Deduction Percentage.
|Calculate Based on Deduction Amount popup:|
|Calculate Based on Deduction Percentage popup:|
For medical deductions that are a percentage calculation rather than a flat amount, the system compares the calculated monthly amount to the monthly amount set for the benefit plan and uses the lesser of the two in Line 15 of the ACA Timeline. Manual adjustments to ACA Timelines may no longer be needed when it is time for year-end reporting.
Once the calculation based on the deduction percentage and W-2 wages is done, the amount calculated is compared again to the lowest monthly cost in the benefit plan. If the percentage of W-2 wages is lower than the monthly cost in the benefit plan, the Line 15 amount populates with the calculated amount for the percentage of the W-2 wages. In addition, Line 16 updates to code 2F to show that the W-2 Safe Harbor is being used.
If the percentage of W-2 wages is higher than the monthly cost in the benefit plan, the Line 15 amount populates with the monthly cost in the benefit plan. Line 16 does not update to code 2F as the W-2 Safe Harbor is not being used and remains the same code that was displayed before the calculation was completed.
W-2 Safe Harbor calculations cannot be calculated for any years prior to 2018 using this process. Enter the annual affordability percentage, as defined by the government for the selected year, in the Annual
Affordability % text box if the Calculate Based on Deduction Amount is chosen.
The W-2 Safe Harbor compares the lowest monthly cost for employee-only coverage to the Box 1 wages of the employee to determine if it can be used for ACA reporting. The system allows companies to not only use the W-2 Safe Harbor Code 2F in Line 16 but the lowest cost in Line 15 is also adjusted to reflect the average cost for the employee over the year.
The employee's lowest cost is updated in line 15 per the logic that (Box 1 *(12-1H/12-2A) * Annual Affordability Percentage)/(12-1H count). The user is responsible for determining which employees this pertains to and running the process for the applicable employees.
For any of the selected employees, the entries on Line 16, Series 2, will be updated to 2F to indicate that affordable coverage was offered, if all the conditions defined below are true. When these conditions are met, the codes are updated to 2F for each month of the selected calendar year in which the employee was offered affordable coverage.
- Code 2C does not exist on Line 16 for any months in the selected year (i.e., the employee was not enrolled in the coverage offered during the reporting year).
- Code 2E does not exist on Line 16 for any months in the selected year (i.e., the employer is not using the Multi-Employer interim rule relief during the reporting year.)
- The employee was offered coverage in the selected year. On Line 14, Code Series 1, at least one entry must be populated with a code other than code 1H (no coverage offered for the month).
- The employee’s cost for the lowest monthly self-only coverage is less than or equal to the annual affordability percentage of the employee’s average monthly pay for the year, as defined below.
- The system calculates the average monthly pay based on Box 1Wages for the employee divided by the number of months for which the employee was paid.
- The lowest monthly cost is the lowest monthly cost of all self-coverage plans offered to the employee.
- The annual affordability percentage used in this calculation is defined by what is entered in the pop-up shown above.
If a company decides that only one Safe Harbor applies for the code to be used in Line 16, the system can be configured to automatically use that code (and not determine if any other Safe Harbors apply). In this case, users do not need to manually update every employee's ACA Timeline for accurate reporting (one by one or via import).A drop-down list in the 1095-C Line 16 Codes (Series 2) rule within the ACA Profile labeled Set Safe Harbor Code to: allows users to define the appropriate code to be used in Line 16.
Under this drop-down, the following text displays: Note that selecting a code here will cause the ACA Timeline calculation to override the Line 16 code for any months where the safe harbor applies. Any months coded as 2A, 2B, 2C, 2D, or 2E will not be overridden.
If no code is selected here, the Line 16 coding process runs as normal. If one of the codes is selected, the selected code displays in any months where the Safe Harbor applies.
- Recalculate Combined ACA Timeline – This button will only display for Multi EIN companies. This option provides the ability to Recalculate the Combined Status data for multiple employees within Multi EIN companies.
- Clear - After selecting one or more employees, clearing of their ACA Timeline may be performed. This clear can be done to the entire ACA Timeline or as of a specific date. A warning message will display which will provide information about possible data loss and the recalculation process when a Break In Service is enabled in the profile.
Please note that Clear All will clear the entire ACA Timeline, including any manual updates. If the timeline should only be cleared from a certain month forward, users should enter that month in Clear From and press the Clear button.
Additional columns may be added to the report by clicking the Select Columns link and adding columns from the Available Columns list to the Selected Columns list, and then clicking the Select Columns button. To save a report that has been edited, click the Settings drop-down and select Save Settings, give the report a name, and save.
ACA Data Detailed
The ACA Data Detailed report is available under Team > Benefits > ACA (Affordable Care Act) > ACA Data Detailed. This report displays each employee and their detailed ACA history for the selected date range. Data is displayed as one row per employee with each ACA item displayed in the columns.
NOTE: The Average Hours in Current Measurement Period and the Last Calculated On columns are available for this report. The Last Calculated On column has the capability to show many months within the measurement period. For Average Hours in Current Measurement Period information to populate, an ACA profile must be in use and the ACA rule Average Hours in Measurement Period needs to be included in the profile.
The Employee Status column reflects the employee’s status as of the date parameters defined on the report. The Employee Monthly Status column is based on the Month displayed and the dates within the ACA Employees Status History widget under My Employees > Employee Information.
- Edit Icon – Allows for editing of ACA Data. Information will appear in the ACA Timeline view.
- Employee Information – Link to the selected employee’s Employee Information account.
- Quick Links - Employee Information, Account Audit Trail, All Timesheets, Current Timesheet, Open Time Off Requests, Create Open Absence, Edit Schedule, Schedule Preferences, View Organization Chart, View ACA History.
- Select Columns – Allows you to add and remove report columns to provide a customized view of employee data. Adding columns is done by moving columns from the Available Columns list to the Selected Columns list, and then clicking the Select Columns button. To save a report that has been edited, click the Settings drop-down and select Save Settings, give the report a name, and save.
NOTE: The ACA Data Detailed Report can be used at any point during the year to see a snapshot of the codes that will be populated in Part II of the Forms 1095-C. Adjust your Calendar Range and Group by employee to see a month by month preview of what will be populated in Line 14, Line 15, and Line 16.
ACA Data Summary
The ACA Data Summary report is available under Team > Benefits > ACA (Affordable Care Act) > ACA Data Summary. This report displays total amounts for the selected date range within each affected ACA field. To view the employees included within the totals, click the hyperlinked numbers to display a report.
Below, is an example of the report that displays when clicking the numbers under the ACA Status PT column.
Additional columns may be added to the report by clicking the Select Columns link and adding columns from the Available Columns list to the Selected Columns list, and then clicking the Select Columns button. To save a report that has been edited, click the Settings drop-down and select Save Settings, give the report a name, and Save.
Users with access to the ACA Data Summary report can export the results of the Employee listing. When a user clicks on any one of the hyperlinks for the data values listed below, a list of employees included in the count displays, including an option to Export. The following columns include a hyperlink:
- ACA Status FT
- ACA Status PT
- Affordable Plan Offered
- Minimum Value Plan Offered
- Compliance Alert
- Approaching ACA FT
- Possible Downgrade
- Employees Tested Next Month
- In Administrative Period