ACA records

Whenever an employee is hired, changes status from part-time to full-time or full-time to part-time, or is terminated, you should create an ACA designation record. This helps ensure that ActivityHD handles changes in coverage offers and safe harbor codes accurately when 1095-Cs are generated.

1. In the Navigation pane, highlight the Payroll/Human Resources > Employees > Records > ACA folder.
2. Click . The New ACA Record window opens.

   

3. Select the employee code of the Employee for whom you are setting up the ACA designation record.
4. Enter a Description of the ACA record.

5. From the Designation drop-down list, select the employee's designated employment status for the purpose of ACA analysis. Your options are:

   • Full Time. The employee will average 30 or more hours per week (weekly basis) or 130 or more hours per month (monthly basis).
   • Part Time. The employee will average fewer than 30 hours per week (weekly basis) or fewer than 130 hours per month (monthly basis).
   • Seasonal. The employee will work on a seasonal basis.
6. In the Effective Date field, enter the date that the designated employment status takes effect. For a new hire the effective date is the first day of employment; for a change in status, it's the first day the new status takes effect; for a termination, it's the last day of employment.
7. From the Type drop-down list, select "Designation".
8. Select the Category the ACA record belongs to.
9. Save the new ACA designation record.

Employee designation records are used to determine whether a result record needs to be created for an employee for a selected measurement period. The designation record used in this determination is the most recent designation record with an effective date less than the measurement period's stability period begin date.

To create result records:

1. In the Navigation pane, highlight the Payroll/Human Resources > Employees folder.
2. Start the Create ACA Records wizard.
   • To create ACA records for all or a filtered subset of employees:
     1. Right-click and select ACA Processing > Select and Create ACA Records from the shortcut menu.

     2. On the Selection tab, define any filters to apply to the data.

        

   • To create ACA records for specifically selected employees:
     1. In the HD view, select the employees to create ACA records for. You can use Ctrl and/or Shift selection to select multiple employees.
     2. Click .
   • To create an ACA record for a particular employee from the Employee window:
     1. In the HD view, locate and double-click the employee you want to create an ACA record for. The Employee window opens with the employee record loaded.
     2. Click .

   

3. Select the Options tab.
4. Select the ACA Calendar Period to base the ACA records on. Values from the calendar are loaded into the fields in this window.
5. To create notification notes for the ACA records you create, mark the Create Notify Notes checkbox.
6. In the Date field, enter the date for the notification notes. The default date is the administration period begin date.
7. In the Recall Date field, enter the date to follow up on the notification notes. The default date is ten days after the note date.

8. Click Next >>. ActivityHD prompts you to confirm that you want to validate the employees for ACA record creation.

   

9. Click Yes. ActivityHD reports its results.

   

10. Click Next >>. ActivityHD prompts you whether to create the ACA records.

    

11. Click Yes. ActivityHD processes the records and notifies you when the process completes.

    

12. Click Next >>. ActivityHD shows the records you created.

    

    At this point, you can double-click the ACA records in the right pane to drill down to the ACA Record window where you can examine the ACA record, delete an ACA record from the list, or print the ACA Records Listing.

13. When you finish viewing or working with the ACA records, click Finish.

1. In the Navigation pane, highlight the Payroll/Human Resources > Employees > Records > ACA folder.
2. Click . The New ACA Record window opens.

   

3. Select the employee code of the Employee for whom you are setting up the ACA result record.
4. Enter a Description of the ACA record.

5. From the Designation drop-down list, select the employee's designated employment status for the purpose of ACA analysis. Your options are:

   • Full Time. The employee will average 30 or more hours per week (weekly basis) or 130 or more hours per month (monthly basis).
   • Part Time. The employee will average fewer than 30 hours per week (weekly basis) or fewer than 130 hours per month (monthly basis).
   • Seasonal. The employee will work on a seasonal basis.
6. In the Effective Date field, enter the date that the designated employment status takes effect. For a new hire the effective date is the first day of employment; for a change in status, it's the first day the new status takes effect; for a termination, it's the last day of employment.
7. From the Type drop-down list, select "Result".
8. Select the Category the ACA record belongs to.
9. In the Measurement Period section from the Type drop-down list, select the type of measurement period. Valid values are:
   • <blank>. The analysis has never been run for this employee.
   • Initial. This is the first time the employee's eligibility for health care has been assessed.
   • Standard. This is an analysis other than the initial analysis of the employee's eligibility for health care coverage.
10. From the Basis drop-down list, select the type of period the analysis is based on. Valid values are:
    • Weekly. The employee's average weekly hours are compared to a 30-hour work week.
    • Monthly. The employee's average monthly hours are compared to a 130-hour work month.
11. Enter the Begin and End dates of the analysis period.
12. The values of the fields in the Employee Offer and Coverage section typically come from the category detail line(s) in effect for the ACA record's effective date and stability period when the Proof/Print 1095-Cs and Create 1095-C Transmission processes are run. Unless you need to override the values from the category detail line(s), continue on to step 13. Otherwise, expand these instructions to learn how to override the default values:

    1. To override the offer code, mark the checkbox adjacent to the Offer Code field and select the appropriate offer code from the drop-down list. Valid codes are:

       • <blank>. If you select this option, the blank will be replaced with 1H when 1095-Cs are generated.
       • 1A. The employee received a qualifying offer.
       • 1B. Minimum essential coverage providing minimum value was offered to the employee only.
       • 1C. Minimum essential coverage providing minimum value was offered to the employee and at least minimum essential coverage was offered to the employee's dependent(s), excluding spouse.
       • 1D. Minimum essential coverage providing minimum value was offered to the employee and at least minimum essential coverage was offered to the employee's spouse.
       • 1E. Minimum essential coverage providing minimum value was offered to the employee and at least minimum essential coverage was offered to the employee's dependent(s) and spouse.
       • 1F. Minimum essential coverage not providing minimum value was offered to the employee, to the employee and spouse or dependent(s), or to the employee, spouse, and dependent(s).
       • 1G. Coverage was offered to a non-full-time employee who enrolled in self-insured coverage.
       • 1H. Coverage was not offered, or coverage that did not provide minimum essential coverage was offered. This code includes individuals who are employed for one or more months.
       • 1I. Reserved (not used for 2016 reporting).
       • 1J. Minimum essential coverage providing minimum value was offered to the employee and at least minimum essential coverage was CONDITIONALLY offered to the employee's spouse.
       • 1K. Minimum essential coverage providing minimum value was offered to the employee and at least minimum essential coverage was offered to the employee's dependent(s) and CONDITIONALLY offered to the employee's spouse.

       The following offer codes were added in tax year 2020 and thereafter.

       • 1L. Individual coverage HRA Health Reimbursement Arrangement offered to employee only with affordability determined by using the ZIP code of the employee's primary residence.
       • 1M. Individual coverage HRA Health Reimbursement Arrangement offered to employee and dependent(s) (not spouse) with affordability determined by using the ZIP code of the employee's primary residence.
       • 1N. Individual coverage HRA Health Reimbursement Arrangement offered to employee, spouse, and dependent(s) with affordability determined by using the ZIP code of the employee's primary residence.
       • 1O. Individual coverage HRA Health Reimbursement Arrangement offered to employee only with affordability determined by using the ZIP code of the employee's primary employment site.
       • 1P. Individual coverage HRA Health Reimbursement Arrangement offered to employee and dependent(s) (not spouse) with affordability determined by using the ZIP code of the employee's primary employment site.
       • 1Q. Individual coverage HRA Health Reimbursement Arrangement offered to employee, spouse, and dependent(s) with affordability determined by using the ZIP code of the employee's primary employment site.
       • 1R. Individual coverage HRA Health Reimbursement Arrangement that is NOT affordable offered to employee; employee and spouse, or dependent(s); or employee, spouse, and dependent(s).
       • 1S. Individual coverage HRA Health Reimbursement Arrangement offered to an individual who was not a full-time employee.
       • 1T. Individual coverage HRA Health Reimbursement Arrangement offered to employee and spouse (no dependents) with affordability determined using employee's private residence ZIP code.
       • 1U. Individual coverage HRA Health Reimbursement Arrangement offered to employee and spouse (no dependents) using employee's primary employment site ZIP code affordability safe harbor.
       • 1V - 1Z. Reserved for future use.
    2. To override the amount of the employee required contribution, mark the checkbox adjacent to the Employee Cost field and enter the correct amount.
    3. To override the safe harbor code, mark the checkbox adjacent to the Safe Harbor Code field and select the appropriate safe harbor code from the drop-down list. Valid codes are:
       • <blank>. No safe harbor code applies.
       • 2A. Employee was not employed on any day during the month.
       • 2B. Employee was not a full-time employee.
       • 2C. Employee enrolled in coverage offered.
       • 2D. Employee was in a limited non-assessment period.
       • 2E. The multiemployer interim relief rule was applied.
       • 2F. Employer is claiming the Form W-2 safe harbor.
       • 2G. Employer is claiming the federal poverty line safe harbor.
       • 2H. Employer is claiming the rate of pay safe harbor.
       • 2I. Reserved for future use.
    4. To override the plan start month, mark the checkbox next to the Plan Start Month field and enter the month number in the field.
13. Save the new ACA results record.

For ACA record-keeping, it is important to track communication with employees regarding their healthcare offers. In particular, you should track offer and expiration of coverage notifications, change of eligibility status notifications, and employee responses to notifications.

The format and the medium for your notifications are up to your organization. However, AccountingWare strongly urges you to refer to ACA documentation for guidelines about the content of notifications and acceptable methods of distributing them. ActivityHD provides notification notes to track when notifications are made and responded to.

Track notifications monthly when you run the Create ACA Records process.

If you need to exclude an ACA record from the Create ACA Records process or any of the 1095-C processes, you can flag the record as voided.

1. Open the ACA record you want to flag as voided in Edit mode.
2. Mark the Voided checkbox.
3. Save your changes.