From the Payroll screen, select the Maintenance menu and then Affordable Care Act (ACA) Reporting Setup.
To determine if your organization is a large employer, complete the following:
Click the Large Employer Calculation tab.
Note: The Large Employer Calculation tab can only be utilized if the hours worked have been tracked for all employees for the applicable year.
In the Calendar Year field, enter the 4-digit year of the calendar year for which to view the average number of FTEs (including both full-time employees and full-time equivalent employees). Use the yyyy format or click the down-arrow button to select the desired year. Only years 2014 and greater, in which payroll calculation batches were posted, can be entered into the field. Typically, the prior calendar year (the one prior to the calendar year for which the ACA reports will be generated) is entered in this field because the prior year's average is used when determining the large employer status of the current year (see note below).
Note: 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.
The following information for the specified year will appear on the screen:
Average FTE Count: Displays the average number of full-time equivalents (including both full-time employees and full-time equivalent employees) for the year. The Average FTE Count is calculated by taking the sum of the Total FTE Count for each month in the year and dividing by 12.
Tip: If the Average FTE Count is 50 or higher, then the organization is considered to be an applicable large employer for the next calendar year.
Full Time Employees: For each month, displays the total number of employees with 130 hours of service or higher in the month (from posted and unposted payroll calculation batches). To view the employees included in the count for a month, along with their total hours for the month, click in the desired month and press the Ctrl+F keys.
Part Time Hours: For each month, displays the total number of hours of service (from posted and unposted payroll calculation batches) in the month, up to 120 hours per employee, for all non-full-time employees. To view the employees with hours included in a month, along with their total hours for the month, click in the desired month and press the Ctrl+F keys.
Part Time Equivalents: For each month, displays the total number of full-time equivalent employees in the month. The Part Time Equivalents is calculated by taking the Part Time Hours for the month and dividing by 120.
Total FTE Count: For each month, displays the total number of full-time and full-time equivalent employees in the month. The Total FTE Count is calculated by adding the Full Time Employees and Part Time Equivalents for the month.
If desired, print the Large Employer Calculation Report - Summary to view the information displayed on the Large Employer Calculation screen, or print the Large Employer Calculation Report - Detail to view the employees and their total hours included in each of the months.
To define the ACA employer reporting specifications for your organization for a calendar year, complete the following:
Click the General tab.
To define the specifications for a new year, enter the 4-digit year of the calendar year for which the ACA reports will be generated in the Calendar Year field. Use the yyyy format. To make changes to the specifications for an existing calendar year (or delete the specifications for an existing calendar year), enter the 4-digit calendar year to edit (or delete) in the Calendar Year field, or click the down-arrow button or the Find button to select the desired year.
Note: If the forms have already been submitted for the specified calendar year, all the fields are disabled on this screen and cannot be changed; if needed, contact Customer Support for assistance.
If your organization is considered to be an applicable large employer (or treated as a large employer) as defined within the ACA guidelines, select the Large Employer (or Small Employer Treated as Large Employer) field. A checkmark will appear in the box if the field is selected.
In the Plan Type field, enter the appropriate type for the health coverage plan offered at your organization (Not Self-insured (Fully Funded or Partially Self-funded) or Self-insured (Fully Self-funded)). If the health coverage offered by the organization is fully-funded or partially self-funded, enter Not Self-insured (Fully Funded or Partially Self-funded). If the health coverage offered by the organization is fully self-funded, enter Self-insured (Fully Self-funded).
Note: Not Self-insured (Fully Funded or Partially Self-funded) is only applicable if the Large Employer (or Small Employer Treated as Large) field is selected.
Tip: If the health coverage offered by your organization changed to fully-funded (or partially self-funded) from fully self-funded, or changed to fully self-funded from fully-funded (or partially self-funded) during the calendar year, enter Self-insured (Fully Self-funded) and complete the additional fields for self-insured coverage for only the applicable months on the ACA 1095s screen in the Employee File.
If the Large Employer (or Small Employer Treated as Large Employer) field is selected, the Aggregated Group Member field is enabled. If your organization is part of a group of companies with a common owner, select the Aggregated Group Member field. For example, if a school district operates their nutrition fund with a separate federal ID, then this field would be selected. A checkmark will appear in the box if the field is selected. For additional details on an aggregated group member, refer to the IRS instructions at: https://www.irs.gov/pub/irs-pdf/i109495c.pdf.
Note: If the Aggregated Group Member field is selected, the Yes box will be checked for Line 21 of Part II on the 1094-C form, and Part III column (d) and Part IV on the 1094-C form must be completed.
Click the Save button.
Based on the settings for the various calendar years 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. In order to see the applicable option enabled under the Government Reporting menu on the Payroll screen, the Payroll screen must be refreshed by closing the screen and then re-opening it, or clicking the Refresh Screen icon in the lower right-hand corner of the Payroll screen.
Tip: Repeat Step 3 every year in order to define the specifications for each calendar year.