ACA Year-End Processing FAQs & Troubleshooting Guide

PREPARING FOR ACA PROCESSING

What employers must provide ACA Forms?

Employers with 50 or more full-time employees (including full-time equivalent employees) must report on employee provided health insurance offer and coverage information for the preceding calendar year (Form 1095-C) either electronically (with consent) or by either hard copy. Employers must also complete provide a summary of this information for each employee to the IRS (Form 1094-C). More information here.

What is “ACA Processing” and what tasks are clients responsible for to “Process”?

ACA Processing involves completing tasks that guide you through generating, populating, reviewing, electronically delivering (1095-C Form only), finalizing, and printing (optional) 1095-C and 1094-C Forms.


ACA PROCESSING

The time it takes to process ACA 1095-C and 1094-C forms depend on the size of your company.

When reviewing ACA Form data, what employees should I review?

  • Employees who moved from Variable/Hourly to Non-Variable/Salary, or Non-Variable/Salary to Variable/Hourly.

  • Employees who transferred from one EIN to another.
  • Employees who became eligible or ineligible for medical insurance; excludes employees who were benefit eligible or ineligible due to being a New/Re-Hire.


ACA TROUBLESHOOTING

Below are common questions, errors, and troubleshooting steps to assist with reviewing employee 1095-C Forms.
Important: The Support Ticket titled “ACA Processing 20xx” was previously opened on your behalf. If you need further assistance troubleshooting and resolving issues, provide details of the issue and expected result in the ticket, and a member of HR Support will be in contact with you.

1. ACA Data Not Supported Prior To 01/01/2018 warning on employee’s ACA tab.

  • This is an informational warning that indicates data cannot be calculated prior to 1/1/2018.A picture containing graphical user interface

Description automatically generated

2. ACA calculation or populated value is incorrect on employee’s ACA Timeline.

  • Recalculate the employee’s ACA Timeline to determine if it corrects the value.
  • Navigate to the Employee ACA Actions report, select the employee(s), click the “Recalculate” button at the top right, then “Recalculate” in the pop-up.

3. If an employee’s Hours are incorrect, this may be due to incorrect Earnings Code Hours selected as part of the ACA Earnings Code list.

  • To review and update the ACA Earnings Code List, reference the ACA Manager Calculations > Earning Codes vs. Timesheets section in the ACA Manager Year End Pre-Processing Checklist.
  • Recalculate the employee’s ACA Timeline to determine if it corrects the value.
    • Navigate to the Employee ACA Actions report, select the employee(s), click the “Recalculate” button at the top right, then “Recalculate” in the pop-up.

4. If an employee’s ACA Status is incorrect, this may be due to the Measurement Period

  • Employee ACA Status is a calculated value based on the average hours within the previous year’s Standard Measurement Period.
    • Example: An employee’s assigned ACA Profile is configured with a 12- month Standard Measurement Period of January - December. The employee’s ACA Timeline calculates an average of 130 hours (or more) per month for 2020, then the following January (2021) would show an employee’s ACA Status of “FT” (Full-Time).
    • Important: An employee’s ACA Status is locked throughout the Stability Period.

5. Compliance Alerts are warnings, and may display if one of the following is true:

  • An employee’s ACA Status shows “FT”
    • An alert populates when employees who hold a Part-Time ACA Status calculates as Full-Time for any given month due to the number of hours worked meets/exceeding the Full-Time hours threshold. This is an informational alert/warning.
  • An Affordable  Plan and/ or Minimum  Value  Plan  compliance alert will flag if one or more Medical benefit plans is set to “No”.
    • If there is at least one medical plan offered that that is not affordable and/or does not provide minimum value, this is a valid Compliance Alert and no action needs to be taken in Wurk..
    • If all medical plans offered are affordable and provide minimum value, a setting may be missing from one of the medical plans and will need to be updated prior to recalculating employee ACA Timelines and moving forward with processing. Provide details of this issue in your “ACA Processing 20xx” Wurk Support ticket, and a member of Support will be in contact with you.

6. 1095-Cs were created for Non-Employees (i.e. Test Employees, users that need access to Wurk but are not true employees in your organization)

  • Delete the 1095-Cs that were created for non-employees
    • Access this from the ACA Year End Processing > Repopulate 1095-C Forms (Optional) / View Employee Forms 1095-C (hyperlink) OR the hamburger menu > Team > Benefits > ACA > Forms > Employer Forms 1094-C
    • Click the trash can icon to delete a form OR select multiple and delete (found under the ellipsis at the top right).
  • Update the number of 1095-Cs listed on the 1094-C. If the 1094-C (for the EIN that the 1095-Cs were deleted in) was already Populated or Populated and Finalized, you must re-Populate (or Unfinalize, then re-Populate) to update the 1095-C count listed.
    • Access this from ACA Year End Processing > Repopulate 1094-C Form (Optional) / View Employer Forms 1094-C (hyperlink) OR the hamburger menu > Team > Benefits > ACA > Forms > Employer Forms 1094-C.
  • Update Non-Employees so they are excluded from future ACA Processing/Filing.
    • Ensure the non-employee has a Not/Non-Employee ACA Profile.
      • Employee Information > ACA tab > Manage Employee’s ACA Timeline (hyperlink) OR Mass Edit Profiles to update multiple accounts at once.
    • Clear the non-employee’s ACA Timeline back to January 1 of the prior year.
      • Hamburger menu > Team > Benefits > ACA > Employee ACA Actions.
    • Recalculate the non-employee; select last year.
      • Hamburger menu > Team > Benefits > ACA > Employee ACA Actions.

7. Line 14 is not calculating correctly

  • Line 14 of IRS Form 1095-C lists a code that describes whether an employee was offered coverage by their employer, the type of coverage offered, and for which months the coverage was offered.
  • Ensure the employee has a Benefit Profile assigned that includes at least one medical benefit plan.
  • Ensure the employee’s Benefit Eligible Profile is effective dated as of the date their Medical coverage was/will be effective.

8. Line 15 is not calculating correctly

  • Line 15 of IRS Form 1095-C lists the employee's required contribution, which is the monthly cost to the employee for the lowest-cost self only minimum essential coverage providing minimum value. The amount reported on line 15 may not be the amount paid for coverage if the employee enrolled in more expensive coverage, such as Family coverage.
  • Line 15 will show an amount only if code 1B, 1C, 1D, 1E, 1J, or 1K is entered on line 14. If employees were offered coverage but there is no cost to the employee for the coverage, this line will report a “0.00” for the amount.

9. Line 16 is not calculating correctly

  • Line 16 of IRS Form 1095-C lists a code that describes, for each month in the previous year, the kind of coverage that an employee enrolled in, and how the employer meets the employer shared responsibility "Safe Harbor" provisions of Section 4980H.

10. 1095-C Part III is not populating

  • A company that offers coverage to an employee other than under its own self-insured health plan, such as through an employer-sponsored insured health plan, will not have any information populated in Part III.
  • If your company’s plans are self-funded or level-funded, Part III should populate with information on the covered individuals, and will only include the employee and dependent(s) who enroll in the self-insured health coverage.
  • If Part III is not populating, and it should be due to offering self-funded Medical plans, ensure dependents (Spouses/Children) are tied to employee benefit plans.