Setup Affordable Care Act (ACA) requirements

ACA topics covered:

• How do I know if I need to file 1094 and 1095 forms 
• Definition of Applicable Large Employer
• How do I prepare 1094-C and 1095-C forms 
• How do I prepare 1094-B and 1095-B forms 
• Error: "You aren’t authorized to access this task" when trying to access the ACA menu after installing a product update 

Contact a tax advisor, CPA and/or the IRS for specific tax or form-related questions.

Providing accounting advice is outside the scope of Sage Customer Support.

Example: Which Transition Relief or Safe Harbor codes to use. 

If Covered Individuals' details aren’t appearing correctly on the forms, see Setup ACA Employee Maintenance below.

Resources available:

• Sage Community hub.includes posts on various ACA topics and community member feedback.
• The IRS website, www.irs.gov, covers all governance of ACA, including:
  • Affordable Care Act (ACA) Tax Provisions
  • IRS - Affordable Care Act Legal Guidance and Other Resources
  • Instructions for 1094-C and 1095-C Forms
  • Questions and Answers on Employer Shared Responsibility Provisions Under the Affordable Care Act
  • Questions and Answers on Reporting of Offers of Health Insurance Coverage by Employers (Section 6056)
  • Information Reporting by Providers of Minimum Essential Coverage
  • Reporting requirements for applicable large employers (PDF)
  • Guide to employer reporting requirements (PDF)

   

• More knowledgebase solution links available below

1. Launch Library Master, Main menu, Role Maintenance
2. Select applicable Role from lookup
3. Select the following check boxes:
   • On the Tasks tab:
     • Expand Payroll, Maintenance/Data Entry, and select the ACA Employee & ACA Employer Maintenance check box.
     • Expand Payroll, Reports/Forms, select the ACA Applicable Large Employer Report check box.
4. Select Accept.

Applicable Large Employer definition:

Note The ACA Applicable Large Employer Report is offered as a self-help tool for your independent use. Sage doesn’t guarantee the report's accuracy or applicability to your circumstances.  Report hours of service by each calendar month, to comply with the Affordable Care Act. Hours worked are tracked by pay periods in Sage 100. Pay periods can span more than one month. A calculation is performed to get an approximate monthly total. The total is an estimate and not necessarily the actual hours worked. For specific tax or legal advice, see a professional tax service provider or an attorney, as appropriate.

• Notes:
  • Report calculations are consistent when generating the report for the maximum 12-month date range.
    • There is a requirement to prorate hours worked for pay cycles spanning multiple months
    • Verify report totals for all months when the date ranges are longer as discrepancies are possible.
  • For information on how the employee totals are calculated, refer to the article How are hours calculated on the ACA Applicable Large Employer report

Setup ACA Employer Maintenance

   Use ACA Employer Maintenance to enter information that will appear on Form 1095/1094-b OR 1095/1094-C.

1. Open Payroll, ACA, Employer ACA Maintenance
2. Enter the applicable Calendar Year
3. The Employer Name, Address, and EIN auto populated from Company Maintenance (to make changes go to Library Master, Main, Company Maintenance)
4. Enter the Contact Name and Contact phone number
5. Select the ACA forms to use. 1094-B/1095-B OR 1094-C/1095-C
6. If your company is a Designated Government Entity, fill in all applicable fields
7. Select the check box, if your company is an ALE Member Part of an Aggregated Group during any month of the calendar year.
   • Click Other Members button, enter the names and federal employer identification numbers (EINs) of other members of the same group.

8. Click Monthly Detail button to enter information for each month. You can automatically update the employee counts when you print the ALE Report
   **See Determine if you’re Applicable Large Employer Report section of this article

9. In the ALE Member Information - Monthly window, enter and review the following for each calendar month:

   • Min Essential Coverage - Select this check box if your company offered full-time employees an opportunity to enroll in an employer-sponsored health care plan that meets the ACA minimum essential coverage requirements. Clear this check box if your company doesn't offer this health care plan type.

   • Full-Time Employee Count - Enter the number of full-time employees. Generating the ACA Applicable Large Employer report automatically sets the proper count, when selecting Yes to the option: "Do you want to update the counts to the ACA Employer file."

   • Total Employee Count - Enter the number of full-time and full-time equivalent (FTE) employees. To populate, generate the ACA Applicable Large Employer report, selecting Yes to the option: "Do you want to update the counts to the ACA Employer file?"

   • Aggregated Group - If your company is a member of an aggregated group, select the check box. If it isn’t, clear the check box.

   • Transition Relief Indicator - If your company is eligible for section 4980H transition relief, enter the code indicating the type of eligible relief.

Setup ACA for Employees

1. You can access from one of the following menu tasks:
   • Open Payroll, ACA, ACA Employee Maintenance, select Employee No from lookup
   • Open Payroll, Main, Employee Maintenance, select Employee No and click ACA button from the drop menu under More.
2. The 1095-C Electronic Consent Signed can be viewed only, if you access Main, Employee Maintenance, On the Taxes tab, scroll the end of the Federal tax line and select the 1095 consent box.
   • NOTE: The 1095 Consent form needs to be completed and signed by the Employee. Form available in Period End, Federal and State Tax Reporting, Federal, Electronic 1095 Consent.
3. If applicable, select Provided Self Insured Coverage
   • Select this check box if the employee was enrolled in an Employer-sponsored self-insured health coverage offered by your company during any part of the calendar year.
     Note: Selecting this check box will enable the Covered Individuals button, where you will enter additional information for each covered individual
   • Clear this check box if the employee was not enrolled in an Employer-sponsored self-insured health coverage offered by your company during any part of the year
4. Click Monthly Details button, for each calendar month, do the following:
   • • TIP: If the employees information is the same for each month, enter information in the first row, and then click the Copy to Remaining Rows button
   • Offer of Coverage - select the applicable code for the type of coverage offered to employees from look up
      Indicator codes for employee offer and coverage - (this code populates into Form 1095-C Part II line 14)
   • Employee Share of Lowest Cost – enter the employee's share of the lowest-cost monthly premium for self-only minimum essential coverage providing minimum value that is offered to the employee. Enter the amount including any cents. If the employee is not required to contribute toward the premium, enter 0.00 (this amount populates into Form 1095-C Part II line 15)
     • TIP: Press F2 to open the calculator
   • Applicable Section 4980H Safe Harbor – select the applicable Safe Harbor code from look up (this code populates into Form 1095-C Part II line 16)
5. Click Accept
6. Click Covered Individuals button (this is only available if Provided Self Insured Coverage checkbox is selected)
   • Use the Covered Individuals window to enter information for additional employee dependents who were enrolled in employer-sponsored self-insured health coverage offered by your company during any part of the calendar year. (this information populates into Form 1095-C, Part III).
     • Enter the Full Name, Social Security #, Date of Birth and select applicable calendar months that each individual was covered (Including the employee)
       • Notes:
         • When entering the Employee name, ensure that their name is typed exactly how it is entered in the name field at the top of this window (which pulls from Employee Maintenance). As well as their Social Security # must match.
         • If the individual does not have a Social Security number, enter his or her date of birth in the Date of Birth field. According to the IRS, if a date of birth is used, you must be able to prove that you made 3 reasonable attempts to obtain the social security number.
     • Covered All Months - select this check box if the individual was covered for at least one day in every month of the year. Clear this check box if the individual was not covered for at least one day in every month
     • Months - If the individual was not covered for at least one day in every month of the year, select the check box for each applicable month in which he or she was covered.
       Clear the check box for any month for which the individual was not covered at least one day in that month.
7. Click Accept

Create an Employer Contribution deduction for Employer-Sponsored Health Coverage

• The Affordable Care Act (ACA) requires employers to report the cost of coverage under an employer-sponsored group health plan. Reporting the cost of health care coverage on the Form W-2 does not mean that the coverage is taxable. The value of the employer's executable contribution to health coverage continues to be executable from an employee's income, and it is not taxable.
  Please refer to the article How do I report Employer-Sponsored Health Care coverage on the W2 form in Sage 100

How to generate Forms 1095/1094 forms

   Note: A 1095 form will be generated for all employees who have information entered in the ACA Employee Maintenance > Monthly Detail and/or Covered Individuals screens

1. Open Payroll, Period End, Federal eFiling & Reporting
2. Select XXXX 1095/1094-C or XXXX 1095/1094-B
   • The 1094/1095 "B" forms are available in Sage 100 versions 2014 and higher. (XXXX=Tax Year).
   • NOTE: If the 1095 forms are not listed in forms ID listing, select any form (i.e. 941 form) and click Accept. When prompted click Automatic Update, proceed through installation screens. When the form you selected opens, please close it and go back into Federal eFiling & Reporting and the 1095 forms should now be listed.
3. Select Accept.

    

For more details please refer to the article:

How do I generate the required ACA forms in Sage 100

For information on which forms to use when printing the 1095/1094, refer to the article:

What forms do I use to print W2s, 1095s and 1099s

Additional Information: