Affordable Care Act (ACA) Offer of Coverages Codes

The December 2020 Sage 100 Contractor year-end update added eight (8) new Affordable Care Act Offer of Coverage Codes to the 5-2-1 Employees, ACA tab. The new Offer of Coverage Codes are 1L, 1M, 1N, 1O, 1P, 1Q, 1R, and 1S. These new Offer of Coverage Codes apply to tax year 2020 and later.

The December 2020 Year-End update also added a Zip Code row to the menu 5-2-1 Employees, ACA tab window. The zip code applies to Offer of Coverage Codes 1L, 1M, 1N, 1O, 1P, and 1Q and applies to tax years 2020 and later. Hence, selecting a tax year earlier than 2020 on the ACA tab will grey out the Zip Code row. The Offer of Coverage Codes 1R and 1S do not require zip codes.

Depending on which new Offer of Coverage Code (1L through 1S) is selected, Sage 100 Contractor will auto-populate the Zip Code field on the ACA tab of the 5-2-1 Employees record in the following manner (the Zip Code may be manually changed, if required. Technically, the zip code should be the zip code of the location where the offer of coverage is based):

• If Offer of Coverage Code 1L, 1M, or 1N is selected, Sage 100 Contractor will auto-populate the Zip Code field with the zip code currently noted on the General Information tab of the employee's menu 5-2-1 Employees record.
• If Offer of Coverage Code 1O, 1P, or 1Q is selected, Sage 100 Contractor will auto-populate the Zip Code field with the zip code currently noted on the menu 7-1 Company Information (company address Zip Code) window.

Any global changes to employee ACA settings can be accomplished in the following manner:

1. Open menu 5-2-1 Employees.
2. From the menu bar, select Options, Update ALL Employees ACA Settings.

For more information regarding the Affordable Care Act Offer of Coverage Codes, please consult with your CPA, or accountant, or view the instructions on the Internal Revenue Service's website. Click here