ACA Overview and System Setup

1. Tom McDonald Presentation for: July 5, 2016 2017 ACA

2. Disclaimer • Performance HCM provides this information on the Affordable Care Act (ACA) for general guidance only. This does not constitute the provision of legal advice, tax advice, accounting services or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal or other advisers.

3. Agenda • Overview of the Affordable Care Act (ACA)-Setup • Election Form is required. (1st deadline was 9-30-2017) • Group or self insured plans defined • Benefit Plan (Lowest cost benefit) • Define Measurement/Stability Periods • Employee ACA Tab • Certifications of Eligibility • Reports

4. Election • Election forms can be found on our website https://performancehcm.com under ACA Central. • Elections are Due. • A Questionnaire will need to be completed to ensure the 2017 information is accurate. • Election forms received after the September 30th date additional fees will be applied.

5. Self Insured or Fully Insured • In the health insurance marketplace there are primarily two types of funding an employer group can choose: self-insured and fully-insured. The essential difference between the plans is who assumes the risk for the claims generated by the employees. In a fully-insured plan the risk falls on the insurance company. • A self-insured group health plan (or a 'self-funded' plan as it is also called) is one in which the employer assumes the financial risk for providing health care benefits to its employees. (Form 1094B if under 50 employees) • A fully-insured health plan is the more traditional way to structure an employer-sponsored health plan. With a fully-insured health plan: The company pays a premium to the insurance carrier. The premium rates are fixed for a year, based on the number of employees enrolled in the plan each month. (Form 1095C for employer with 50 or more employees or self-insured company with 50 of more employees).

6. Benefits • This information will be used to define the lowest cost plan offered. The amounts will be broken down by payroll frequency and all plans in effect for the year will need to be identified.

7. Measurement Period • Measurement period is typically runs for 12 months with the last 2 months being your open enrollment period. • Stability period typically begins the same time as your plan period. • Both periods must run for the same number of months.

8. Samples

9. ACA System Setup • When completing the ACA coding for an employee, it is important that your system is set to allow effective dating. • To validate this go to the main menu on the left of your screen Admin>Workstation Settings. The “Show Dynamic Fields” will allow effective dating for the fields needed in the ACA reporting. • Once this is field is turned on, any field that has effective dating will now show in a different color in the employee tabs.

10. Effective Dating Data • Evolution requires effective dating for ACA data to ensure information follows through to the correct month and year. Just right click on the field and select effective period… • … click on “Create” will add a new line that can be effective dated. This allows history to be stored on the employee. • Warning: • Fields that are effective date sensitive will automatically set the date to the date you made the change which may not be the correct effective date.

11. Employee Setup-ACA Tab • Located under the employee>employee menu selection and the ACA tab. • There are 3 sections in the employee setup. ACA, Reporting and ACA History. • This area is used to complete part II of the ACA 1095C and 1095B forms.

12. Employee Setup – ACA Section • Affordable Care Act Reference Guide should be used when completing these fields. • ACA Status – defines the employee status as it relates to the measurement, stability periods and it used to populate the 1094 employee monthly counts. This should be updated when an employees if terminated or hired to ensure proper counts on the 1094 company Transmittal. • ** Effective dating will effect the outcome. • ACA Benefit and Lowest Cost benefit- what is the lowest EE only coverage offered to the employee. ** Line 15 of the 1095C. • ** NOT WHAT the employee enrolled in. • ACA Plan origin- defines the plan origin-Typically B Employer-Sponsored Plan but may be different. • Benefits Eligible – was the employee eligible (offered) and when (effective date of coverage-not hire date)? • Safe Harbor is the relief plan you have chosen for your company.

13. Lowest Cost Benefits • The Lowest Cost benefit tab is prepopulated with your plan information as obtained through the completed ACA Questionnaire and is setup under your company’s global settings. To effective date and or update the Lowest Cost Benefit, right click create a new line with the new effective date, then in the bottom of the screen select the lowest cost employee only coverage plan for the employee. • ***If you are not seeing this dropdown please contact your CSR and they can assist you in getting this setup.

14. Employee Setup – Reporting Section • Form on File – identifies if a form is to be create or has been created in the past. • ACA Format – enable Performance HCM to create the employee forms and should be set to “BOTH” for all employees that forms should be created. • ACA Type –The form type is selected here. 1095C (fully insured or Self-insured over 50 employee) or 1095B (self-insured under 50 employees). • Employees terminated in the current year will still receive a form in the year they have wages. • New hires must have the reporting information entered to generate a form.

15. Employee Setup – ACA History • ACA Coverage Offer – shows the ACA Coverage Offer as of todays date. • ACA Relief Code – shows the ACA Relief coding ( 2 codes) as of todays date. • DOB – Pulled from EE entry tab • Hire Date – Pulled from EE entry tab • Termination date – Pulled from EE entry tab The ACA Coverage Offer and ACA Relief tabs can be effective dated but we suggest that you use the ACA History grid for ease of coding. To do this just click on the ACA History tab and code by month.

16. ACA History Button • ACA History button– Allows you to complete the ACA 1 and 2 coding via a grid rather than effective dating the information under the ACA Coverage Offer and Relief coding. (Reference the ACA reference Code Guide on our website) • Be sure you have selected the correct year prior to selecting the ACA History button.

17. Copying Data • Evolution will allow you to copy fields across multiple employees by right clicking on the field that has already been updated on one employee. Select “Copy to” and then select the employees you wish to be coded the sameby holding the control key and selecting the employees or using the “Copy all”. • Warning: • “Copy all” is not suggested as this will copy the information to all employees in your company, not just the ones you have selected. • Also be sure the “Begin Effective date” is the date that you need. • The ACA Coverage Offer and Relief codes can NOT be copied from the grid.

18. Self-Insured employee and dependent data To enter dependents and employee information for Part III of the 1095B or 1095C you need to go to the HR module >Employee>benefits. • Click on the details tab and add the benefit plans for the current year to the employee by selecting add from the top tool bar, under “Benefit Reference” and select the medical plan the employee has enrolled in. • Under “Benefit Type” select choose employee only, family, etc based on your plan setup. • Validate the effective dates. (There may be more than 1 plan needed per year). • “Dependents and Beneficiary Tab” enter the dependents. • “Assign Dependents” to each plan they were enrolled in.

19. Certifications of Eligibility • The Certification of Eligibility defines the transitional relief your company plans on claiming. Multiples can be chosen. Additional information can be found on the IRS Website by searching ACA. • **This information MUST be relayed to Performance HCM no later than 12-31-2017. **

20. Report 1095-C

21. Report 1095-B (Self Insured under 50)

22. 1094-C Transmittal Page 1

23. 1094-C Transmittal Page 2

24. 1094-C Transmittal Page 3

25. Reports • Once your election has been received, 4 reports • will be setup under your company. • ACA FTE (Full Time Equivalent) • Used to determine if you have a total of 50 (ACA Full time equivalent). • ACA Eligibility • Used to review employees once a measurement/ stability period has been defined • ACA EDIT • Used to review multiple employees information as listed on the ACA Tab (will only show most current information) • ACA 1095 Preview- Final review of all employee detail prior to 12-31-2017.

26. ACA FTE Report • This report is to assist you in determining if your company is a has 50 or more full time equivalent employees and if you are required to file.

27. ACA Eligibility Analysis Report • This report is to assist you in determining which employees are eligible to be offered affordable healthcare. • You will need to enter the report parameters prior to running the report.

28. ACA Edit Report • This report is to assist in determining if employee data is entered properly without having to go to each employee screen. This will only show data as of today and no history.

29. ACA Preview Report • This report is to assist you in previewing each employee form prior to the final printing. • **Only self insured clients should see dependent information. • This report has report parameters. Be sure to select the correct year and form type you are expecting. This report should be your best friend and will need to be validated prior to the processing of the ACA. All information in Evolution as of 12-31-2017 will be considered FINAL.

30. Final Checklist

31. Reference Guides • Below are additional tools that can be found on the Performance HCM website https://performancehcm.com under ACA Central • ACA Code Reference Guide • Evolution Updating Employee ACA Data • Evolution Sample Forms 1095 and 1094 • IRS.gov (ACA) • ACA Tax Reporting Election Form

32. ACA Summary • Next Steps: • Return ACA Election Form to aca@performancehcm.com. • Provide updates to all Benefits Plans effective in 2017 • Finalize Measurement and Stability periods • Enter Employee Data in the ACA Employee Tab prior to 12-31-2017. • Use Reports to Review your data • Performance HCM will process your 1094-C and 1095-C reporting with the IRS only if elections forms have been received. • Send questions to aca@performancepayroll.com or contact your CSR.

33. Important dates • Completed Enrollment Form – Due 9-30-2017, if received after this date cost will vary. • Updates to benefit plans – No later than 11-1-2017 • Updates to all employees –No later than 12-15-2017 • Remember your FINAL validation should happen no later than 12-15-2017 to ensure all filings can be printed and filed timely. • ACA will be closed for edits after 12-31-2017.

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