Free ACA SOLUTION (IRS 1094&1095 Reporting)

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1 Fr ACA SOLUTION (IRS 1094&1095 Rporting) Th Insuranc Exchang (301)

2 ACA Srvics Transmit IRS Form C for mployrs Print & mail IRS Form 1095-C to mploys HR Assist 360 will gnrat th 1095 s for all mploys who wr ligibl for an offr of covrag in an mployr sponsord halth plan during th calndar yar, rgardlss of whthr an offr was actually mad. This includs all ACA full-tim mploys and all variabl hour mploys who hav compltd thir masurmnt priod and wr dtrmind to b FT ligibl status, as wll as rtirs and COBRA participants. W will also collct th data for Part III of th 1095-C form for slf-insurd companis. Has HR Assist 360 vr -fild with th IRS? W hav partnrd with NELCO Solutions to lctronically transmit, print AND mail 1094 & 1095 forms. NELCO currntly -fils ovr 5 million W2 s and 1099 s annually and has bn prforming ths srvics for ovr 20 yars Srvic Fs All fs waivd for clints of Th Insuranc Exchang whr Th Insuranc Exchang is rcognizd as th Brokr of Rcord on th halth insuranc. F will not b waivd for any clint of Th Insuranc Exchang that waits to submit th fil on th last day (Fbruary 1, 2016). Srvic Fdral E-fil & Print/Mail No F No F No F No F No F No F Fdral E- fil & Print/Mail $5.75 $4.95 $4.15 $3.50 $2.80 $2.40 *Pak pricing on day only occurs on th print dadlin (Fbruary 1, 2016) No Dadlin Whil many payroll firms and ACA complianc srvics providing 1095 filing ar no longr taking additional customrs, HR Assist 360 has no dadlin, howvr it is prudnt to bgin th data collction procss as soon as possibl and w rcommnd filing by January 20th. NOTE: Submissions to fil th 1095 may b compltd up until 8:00PM EST on Fbruary 1, 2016

3 HR 1095 REPORTING Start to Finish Classify Employs Add Mdical Plans Establish ACA Priods Import Hours <1095> ACA Cods Addd Complt Company Information Import carrir nrollmnt Usr Ovrrid (optional) NELCO API Data validation Rviw IRS forms Authoriz fil a. E-fil with IRS b. Maild to Employs Pay with crdit card E-fil accptanc status

4 Ky filing rquirmnts For th most part, filing th 1094 and 1095 is a data collction xrcis; howvr, th itms blow rprsnt th mor difficult componnts that must b compltd and will most likly pos challngs for companis: 1094-C: This form acts as a covr sht for all th 1095-C fild, provids th mployr an opportunity to crtify ligibility for transition rlif from assssmnt, and contains th count of 1095-C s fild and th numbr of ALE mploys mployd ach month C Lin 14: On of 9 cods is ntrd to track th offr to halth insuranc for ach mploy: (no offr, affordabl offr, mploy only offrs, tc.) C Lin 16: If applicabl, on of 9 cods is ntrd for ach month providing an xplanation why pnalty isn t applicabl (not mployd, in waiting/assssmnt priod, nrolld, qualifid for an affordability saf harbor, tc.). What is involvd in gnrating a 1094 and 1095 with HR Assist Importing & catgorizing mploys including th ACA classification of Full-Tim Eligibl, Part-Tim Inligibl, and Variabl Hour. 2. Crat th mdical plans (This data is usd to dtrmin th corrct cod for Lin 14 and Lin 16). 3. Establish th masurmnt and administrativ priods to allow th softwar to dtrmin th cods for Lin 14 and Lin Importing th hours to dtrmin which mploys ar full-tim. 5. Import actual nrollmnt from th halth insuranc carrir (This data is usd to dtrmin th cod for Lin 16 and Part III for slf-fundd plans). 6. Complt th company information: This stp includs th collction of th company information printd in th form such as th addrss, control group information and transition rlif. ACA Softwar Employr/ HR Training 1. $400 for HR TRAINING: HR Assist 360 will b conducting HR training wbinars dsignd to hlp HR managrs larn how to us HR Assist 360 s softwar. Training will includ managing variabl hour ligibility, i mporting mploys, classifying mploys, importing hours, importing currnt nrollmnt, and managing ACA masurmnt priods. Th annual subscription, which must b paid by crdit card, will unlock th wbinar rgistration for portal, community forum and knowldgbas for HR managrs. HR Assist 360 rsrvs th right to trminat your licns if th wbinar training rgistration cods ar shard with HR Managrs at diffrnt companis..

5 Th advantags of th HR Assist 360 ACA solution: 1. Cost ffctiv filing solution for 1095: HR Assist 360 is fr. 2. Data collction: W will hlp companis collct th ncssary information for th IRS 1094/1095 Rporting. What sts us apart from othr ACA solutions is that w ar not making you complt monthly ligibility calculations yourslf. Instad, w hav turnd ACA complianc into simpl data inputs so that w can do th calculations for you! 3. Control: You can fill out th forms on your schdul. 4. Stramlin th ligibility dtrmination for part-tim mploys: Manag mploy ligibility by tracking th hours workd of th non-full tim mploys to dtrmin th appropriat masurmnt dats and ligibility associatd with nw hir and standard stability priods. Dos a company hav to us HR Assist 360 s bnfit administration solution? No. HR Assist 360 can still b usd to fil th 1094 and Clints not using HR Assist 360 s bnfit administration systm will nd to import mploy and dpndnt nrollmnts, including historical nrollmnts. Building nrollmnt history will b th most difficult stp for companis who ar not using a bnfit administration systm. For xampl, an mploy that was ligibl but not nrolld in halth insuranc that has a lif vnt will nd to b trackd to th dat of th lif vnt so th propr cod can b ntrd on Lin 16 for ach month. IMP anuar x Who ar idal candidats for HR Assist 360? Companis with 12 month stability priod using th look-back masurmnt mthod to dtrmin if variabl hour mploys ar ACA ligibl ar idal candidats for our solution. Th masurmnt and stability priod will b th sam for all groups of mploys and should coincid with th annual opn nrollmnt priod for all mploys on th halth plan. Companis that ar on th cusp of bing an Applicabl Larg Employr (ALE) ar idal for HR Assist 360 as wll bcaus our ALE Calculator allows mployrs to dtrmin thir ALE status. Support for 6 month stability priod is schduld for th fall, and is plannd to b supportd for th 2015 rquird filing..c

6 HR Summary Who has to fil? Th Affordabl Car Act rquirs crtain mployrs (thos with 50+ mploys) to offr affordabl covrag to thir mploys. But which mploys nd to b offrd covrag? HR Assist 360 is hr to hlp you dfin your mploys, track thir hours, and stay in accordanc with th rgulations put in plac by th Affordabl Car Act. Who is th tool dsignd for? Th systm was dsignd so brokrs and HR can collctivly assmbl th ncssary data to complt th 1094s and 1095s. A significant portion of th data collction rquirs companis to catgoriz mploys, and w bliv companis thmslvs ar bst suitd to prform this srvic. Similarly, brokrs can hlp obtain nrollmnt data from carrirs which will b ncssary to dtrmin th corrct cod on Lin 16. Dos th softwar support Variabl Hour tracking? Ys. Th variabl hour tracking fatur nabls companis to st-up initial Masurmnt Priods, Stability Priods and Administrativ Priods for nw and xisting mploys. Th softwar stramlins ligibility tracking for part-tim mploys. Th softwar prmits mployrs to track hours on a monthly basis (130 hours). Usrs ar abl to import hours for mploys and th systm automatically tracks hours workd during th Masurmnt Priod for nw hirs and ongoing mploys. Employrs hav th ability to us th variabl hour tracking vn if thy ar not using our platform to nroll in bnfits. What ar th fins for not filing? Aftr Dcmbr 31st, 2015, Applicabl Larg Employrs that fail to fil an information rturn and do not provid th appropriat form to all full-tim mploys could b subjct to a pnalty up to $250 pr form, with a maximum annual pnalty of $3 million.

7 Th Nuts & Bolts of ACA Eligibility Th Basics All full-tim mploys who ar xpctd to rgularly work gratr than 30 hours pr wk must b offrd affordabl covrag. Affordabl mans th cost of th insuranc is lss than 9.5% of thir W-2 incom. Companis will nd to track th hours of mploys that ar xpctd to rgularly work lss than 30 hours a wk to dtrmin if thy should b offrd covrag. Th fdral govrnmnt has prscribd maximum waiting priods for mploys and various masurmnt rquirmnts, but in summary, mploys who avrag gratr than 130 hours a month ovr a prscribd Masurmnt Priod must b offrd affordabl halth covrag. How do th Masurmnt Priods work? Th Masurmnt Priod is th priod of tim hours ar trackd to dtrmin if an mploy has workd on avrag mor than 130 hours pr month. Th minimum Masurmnt Priod is 3 months and th maximum is 12 months. Whn stting up Masurmnt Priods, it is important to not that companis st up two diffrnt groupings. Th first group is nw-hirs for thir initial Masurmnt Priod which outlins th nw hir priods and dtrmins how long thy ar a variabl hour mploy and how long th Administrativ Priod is bfor thy ar offrd nw-hir covrag. Onc an mploy has bn mployd for a full Masurmnt Priod, a nw hir will graduat into thir standard Masurmnt and Stability Priods and all th mploys will b masurd togthr. It is rcommndd to us th month of your halth insuranc rnwal as th start of your Stability Priod. Th Eligibility Priod and Masurmnt Priods only apply to variabl hour mploys. Administrativ Priods Onc th Masurmnt Priod has finishd, th IRS givs mployrs som tim to rviw th hours an mploy workd to dtrmin if thy should b offrd covrag. This priod is call th Administrativ Priods. Th lngth of th Administrativ Priod cannot b longr than 90 days and th days may b allocatd bfor or aftr th Masurmnt Priod. Affordability Calculator Th Affordability Calculator uss th Rat of Pay Saf Harbor to dtrmin if th cost of covrag for an mploy is affordabl. W do this by slcting an mployr's low costs plan and dtrmining if any mploy's cost is gratr than 9.5% of thir salary. ALE Calculator Th ALE Calculator hlps to dtrmin how many full tim mploys wr mployd in a givn month. W mak this dtrmination using th following calculation: Full Tim Employs + Full Tim Equivalnts - Statutory Exclusions = Total Full Tim mploys Full Tim Equivalnt mploys ar dtrmind by th total hours workd by non-full tim mploys (maning Variabl Hour and Part-tim mploys) dividd by 120.

} 1095&1094 SOLUTION }

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