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The Settings section determines how calculations will be performed within the ACA module.
ALE START DATE can be used for employers that are newly determined to be an ALE (Applicable Large Employer). If this date is set, the ACA module will not reference measurement periods prior to the ALE START DATE. For example, the ACA module will not use measurement periods prior to 1/1/17 for an employer who becomes an ALE as of 1/1/17.
EMPLOYEE COUNT DAY allows the employer to choose consistent methods to measure employee statuses, either by measuring their status at the beginning, the 12th day or the end of the month.
AUTO-ELIGIBILITY > Enable automatic eligibility calculations will provide an alert on the ACA > Dashboard when Part-Time, Variable-Hour, and Seasonal employees in a Look-Back Measurement period or Full-Time employees in a Monthly Measurement period are determined to be eligible and not in an Enrollment Status of Finished.
If the EDUCATIONAL ORGANIZATION option is selected, the EaseCentral ACA module will use 26 weeks as the time limit for determining whether the break-in-service rule applies. Specifically, employees will be treated as a continuing employee (not a rehire) if the employee had no hours of service for 26 weeks or more. The only exception to this rule is the rule-of-parity which states that if an employee did not work for at least four consecutive weeks and that period is longer than the length of time the employee worked just before the break, the employee can be treated as a rehire.
Note: For non-educational organizations, employees returning from a break-in-service of 13 weeks may be treated as a newly hired employee.
To qualify for simple reporting codes for union employees, the employer must certify that it contributes to union plans and that the plan has been certified by the union as Affordable and providing Minimum Value. If the EMPLOYER CONTRIBUTES TO UNION PLANS checkbox is selected, an additional checkbox will appear for PLANS CERTIFIED AS AFFORDABLE/MINIMUM VALUE. Union employees should be designated in the portal with a Job Class of Union.
TRANSITION RELIEF no longer applies starting in 2017.
The AGGREGATED GROUP checkbox indicates that the employee is a member of an Aggregated Group, also known as Shared Ownership. If this checkbox is selected, additional fields for adding ALE Members will appear. Add all Company Names and EINs of the Aggregated Group members if so.
Note: If any members of the Aggregated Group have Shared Employees, the member that hires the employee for the greatest number of hours must file the 1095 for that employee. To ensure proper reporting, please make sure that the responsible member configures the employee in the main EaseCentral application.
Employers may provide the IRS with a single 1094 in conjunction with all 1095s provided to the IRS, or may attach a 1094 to each 1095. If separate 1094s are submitted with the 1095s, the employer must identify one 1094 as the employer’s “authoritative transmittal”.
Each employer (each EIN) who is a member of an aggregated ALE group is responsible for submitting a separate 1094 authoritative transmittal and reporting for the employees of that particular employer.
If the company has the Aggregated Group option selected, the Locations added to the Company > Profile > Organization page will include an EIN field. Each company's Employer Identification Number (EIN) field should be completed if more than one company in the Aggregated Group is set up in the same EaseCentral company portal since each company needs to file separate 1094 and 1095 IRS forms.
The EIN option in the company's Location only needs to be completed for companies that are Aggregated Group members that don't split out their companies into separate EaseCentral portals, especially when plans are shared across companies. The EIN field will identify a certain location as being associated with a certain company. Then, if the ACA > Settings > Aggregated Group checkbox is checked, EaseCentral will look to the employee's Location EIN to populate the 1094/1095-C instead of the Company Profile EIN.
Every Location should have a Location Name and EIN specified and every employee needs to be assigned to a location. Any employees not assigned to a location will have a form with blank Company Name and EIN information.
If the ACA Settings > Employer is an Aggregated Group member checkbox is checked AND the Company's Locations contain entries in the EIN box, separate 1094 and 1095 forms will be generated for each Location as opposed to one for the whole company. The Company Names and EINs on the 1094 Parts I and IV as well as the 1095 Part I will be changed to use the Location Names and EINs. 1094 Part IV will use the Location Names and EINs of all the Company's Locations and NOT the Aggregated Group Member IDs as specified on the ACA Settings page.
If this is enabled, then the outputted zip file will contain separate forms with the Location Name prepended to the name, i.e., Location 1 - 1094c 2017.pdf. Generally, if a company is using this, they'll want to name their Locations according to their Aggregated Group Member names.
Finally, the 1094-C counts will also be updated to only refer to the employees at that location. So, if 25 employees are on Location 1 and 25 are on Location 2, then without aggregated groups enabled, the 1094 would print 50 total employees while if aggregated groups is enabled, then there would be 2 1094s, each with 25 employees.
Medical plans are defaulted as Minimum Value plans in the Company > Plans page. If any of the plans offered by the employer are not considered Minimum Value, this status can either be deselected in the Company > Plans page or in the ACA > Settings page.
Note: The Penalty A applies if an employer fails to offer Minimum Essential Coverage to its full-time employees and their dependents and at least one full-time employee enrolls through a public Exchange and qualifies for a tax subsidy. The Penalty B applies if the employer does offer Minimum Essential Coverage, but that coverage is either not Affordable or does not provide Minimum Value and at least one full-time employee receives the premium tax credit for purchasing coverage through the Health Insurance Marketplace.
An employer-sponsored plan provides Minimum Value if it covers at least 60 percent of the total allowed cost of benefits that are expected to be incurred under the plan. This determination should be done outside of the ACA module.
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