Affordable Care Act (ACA) Reporting Setup

The Affordable Care Act (ACA) Reporting Setup option in Payroll is used to define the ACA employer reporting specifications for your organization for each calendar year.  The specifications designated within the Affordable Care Act (ACA) Reporting Setup option include whether your organization is a large or small employer, fully- or self-insured, and if an aggregated group member.  Then based on the settings made within the Affordable Care Act (ACA) Reporting Setup option, the applicable option (Affordable Care Act (ACA) B Forms or Affordable Care Act (ACA) C Forms) and the sections on the ACA 1095s screen in the Employee File are enabled.

Also within the Affordable Care Act (ACA) Reporting Setup option, the Large Employer Calculation tab (screen) is used in determining if your organization is a large employer.  An applicable large employer is defined within the ACA guidelines as an employer that has at least 50 full-time employees, including full-time equivalent employees, on average during the prior calendar year.  To determine if an organization is considered an applicable large employer, the number of full-time employees and the number of full-time equivalent employees for each month in the prior year are added together and divided by 12.  Full-time employees are those with an average of 30 or more hours of service per week during the month or 130 or more hours of service during the month.  Full-time equivalent employees are calculated by combining the number of hours of service of all non-full-time employees for the month (up to 120 hours of service per employee) and then dividing the total by 120.  For additional details on determining applicable large employer status, go to:  http://www.irs.gov/Affordable-Care-Act/Employers/Determining-if-an-Employer-is-an-Applicable-Large-Employer.

Note:  The Large Employer Calculation tab within the Affordable Care Act (ACA) Reporting Setup option can only be utilized if the hours worked have been tracked for all employees for the applicable year (the calendar year prior to the one being reported).

Steps to Complete the Affordable Care Act (ACA) Reporting Setup Option