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Setup Affordable Care Act (ACA) requirements

Created on  | Last modified on 

Summary

ACA setup process in Sage 100 ERP.

Resolution

NOTE:

  • Sage Customer Support doesn’t provide accounting or tax advice.

Determine if you need to file ACA forms

Applicable Large Employer definition

An Applicable Large Employer (ALE) meets ACA reporting requirements based on employee counts and hours worked.
To evaluate ALE status:
  1. Open Payroll, ACA menu, ACA Applicable Large Employer Report.
  2. Select a 12-month date range for accurate calculations.
  3. Choose report options, including seasonal employees or totals only.
  4. Print and review the report.
  5. Click Yes to update the ACA Employer file.
Note: The report estimates monthly hours because pay periods can span multiple months.
Caution: Sage doesn't guarantee report accuracy for tax compliance decisions. Consult a tax professional for guidance.

Understand ACA forms 1094 and 1095

When to use 1094-C and 1095-C

Use these forms if your organization qualifies as an ALE.
These forms report employer-sponsored health coverage offers to full-time employees.

When to use 1094-B and 1095-B

Use these forms for smaller organizations providing minimum essential coverage but not classified as ALE.

Set up ACA Employer Maintenance

  1. Open Payroll, ACA, Employer ACA Maintenance.
  2. Enter the applicable calendar year.
  3. Verify employer details auto populated from Company Maintenance.
  4. Enter contact information.
  5. Select the appropriate ACA forms, 1094-B/1095-B or 1094-C/1095-C.
  6. Select ALE Member option if applicable.
  7. Add aggregated group members if required.

Enter monthly information

  1. Click Monthly Detail.
  2. Confirm employee counts populated from the ALE report steps above.
  3. Select Min Essential Coverage where applicable.
Fields to review include:
  • Minimum Essential Coverage
  • Full-Time Employee Count
  • Total Employee Count
  • Aggregated Group indicator
  • Transition Relief Indicator

Set up ACA Employee Maintenance

  1. Open Payroll, ACA, ACA Employee Maintenance.
  2. Select an employee.
  3. Select Provided Self-Insured Coverage if applicable.
  4. Click Monthly Details.

Enter monthly coverage details

  • Select Offer of Coverage codes.
  • Enter Employee Share of Lowest Cost premium.
  • Select Safe Harbor codes.

TIP:

Use Copy to Remaining Rows for consistent monthly data.

 

Enter covered individuals

This area is available and required if the user enables the Self-Insured Coverage option.

  1. Click Covered Individuals.
  2. Enter name, Social Security number and date of birth.
  3. Select applicable coverage months.
Note: Names and Social Security numbers must match employee records exactly.

Generate ACA forms

  1. Open Payroll, Period End, Federal and State Tax Reporting.
  2. Select the appropriate form set, 1094/1095-C or 1094/1095-B.
  3. Click Accept.
Note: If forms don’t appear, update forms through Automatic Update.

Resolve ACA menu access error

Error: "You aren’t authorized to access this task"

  1. Open Library Master, Main menu, Role Maintenance.
  2. Select the applicable role.
  3. On the Tasks tab, expand Payroll sections.
  4. Enable the following options:
    • ACA Employee and ACA Employer Maintenance
    • ACA Applicable Large Employer Report
  5. Click Accept.
Note: Enable Role Security after installing product updates. 

Additional guidance

  • Contact a tax advisor, CPA, or the IRS for ACA compliance questions.
  • Refer to IRS resources for form instructions and reporting requirements.
Available resources:
  • Sage Community hub
  • IRS website, www.irs.gov
    • Affordable Care Act Tax Provisions
    • Instructions for 1094-C and 1095-C Forms
    • Employer Shared Responsibility Q&A
    • Reporting requirements for applicable large employers
Caution: Sage support can’t assist with tax decisions, third-party products, or report customizations.

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