A step-by-by guide of Employer Settings for ACA
Are you using business units to file multiple ALE members? : Check this box if your company in Employee Navigator has more than one EIN. Each employer has its own reporting obligations and must file separate forms for each EIN. Employee Navigator will create a set of forms for each EIN during the form creation process. Do not check this box if your company in Employee Navigator has a single EIN and you are using business units for other purposes unrelated to ACA reporting.
Question 1: Is a member of an ALE group: Check this box if for all 12 months of the calendar year the employer was a member of an Aggregated ALE Group. Employers will need to list all members within the Aggregated ALE Group on Part IV of the 1094-C. Note: When Question 1 is checked, Question 2 will automatically be checked off. If you are a member of an ALE group, every member is considered an ALE.
Question 2: Is an ALE?: Used to determine if an employer will be filing B forms or the C forms. Large employers (ALE’s) offering either fully-insured or self-insured plans receive the C forms. Small employers with self-insured plans receive the B forms. If unsure, visit https://www.irs.gov/Affordable-Care-Act/Employers/Determining-if-an-Employer-is-an-Applicable-Large-Employer
EIN: 9-digit Employer Identification Number including the dash.
Group Name: Employer's name printed on the forms. This must be their legal employer name.
Address: Employer's complete address, (including room or suite number if applicable) printed on the forms.
City: Employer's city printed on the forms.
State: Employer's state printed on the forms.
Zip: Employer's zip code, either 5 digit or 10 digit.
Primary Contact First and Last Name: Name of the person responsible for answering any questions about the 1094.
Primary Contact Phone: Telephone number of the person to contact who is responsible for answering any questions.
Using Qualified Offer Method: To be eligible to use the Qualifying Offer Method for reporting, the employer must certify that it made a Qualifying Offer to one or more of its full-time employees for all months during the year where the employee was considered full-time, and the employer shared responsibility payment could apply. A “Qualifying Offer” is an offer that satisfies all of the following:
- an offer of minimum essential coverage that provides minimum value;
- the employee cost for employee-only coverage for each month does not exceed 9.5 percent of the mainland single federal poverty line divided by 12; and
- an offer of minimum essential coverage is also made to the employee’s spouse and dependents (if any).
What does this do? If employer reports using this method, line 15 on 1095-C, Part II will be left blank for any month in which a Qualifying Offer code 1A is used. NOTE: Employee Navigator automatically applies the 1A code if the employee offer meets the Qualifying Offer criteria. If your group is receiving 1A codes, we recommend checking this box.
Would you like to display the 1A/2C code combination if applicable on an employee's 1095 form?:
Per the IRS instructions (page 7):"The ALE Member may, but is not required, to enter an applicable code on line 16 for any month for which code 1A is entered on line 14; a Qualifying Offer is, by definition, treated as an offer that falls within an affordability safe harbor even if no code is entered on line 16." Some users have requested the option to still populate line Line 16 with the 2C (enrolled code) when Line 14 is populated with a 1A. Checking this box populates the 2C code in Line 16.
For collectively bargained (union) employees, are you required to contribute to a multiple employer welfare arrangement?
For reporting offers of coverage for 2016, an ALE Member relying on the multiemployer arrangement interim guidance should enter code 1H on line 14 for any month for which the ALE Member enters code 2E on line 16 (indicating that the ALE Member was required to contribute to a multiemployer plan on behalf of the employee for that month and therefore is eligible for multiemployer interim rule relief). This check allows us to properly populate the 2E code for an union employee.
Transition Relief, Line 22: The below boxes are certifications of eligibility, meant to ease the burden of transitioning to the new reporting requirements by simplifying reporting or reducing penalties for an ALE member.
Qualified Offer Method Transition Relief: This relief is no longer available.
4980H Transition Relief:
- 4980H Transition Relief for ALEs with Fewer Than 100 Full-Time Employees, Including Full-Time Equivalent Employees (50-99 Transition Relief)
- 2015 Transition Relief for Calculation of Assessable Payments Under Section 4980H(a) for ALEs with 100 or More Full-Time Employees, Including Full-Time Equivalent Employees (100 or More Transition Relief).
What does this do? This transition relief drives employer reporting requirements on 1094-C, Lines 23-35, columns (a) and (e).
98% Offer Method: To be eligible to use the 98% Offer Method, an employer must certify that taking into account all months during which the individuals were employees of the employer and were not in a Limited Non-Assessment Period, the employer offered
, affordable health coverage providing minimum value to at least 98% of its employees for whom it is filing a Form 1095-C employee statement, and offered minimum essential coverage to those employees’ dependents. The employer is not required to identify which of the employees for whom it is filing were full-time employees, but the employer is still required, under the general reporting rules, to file Forms 1095-C on behalf of all its full-time employees who were full-time employees for one or more months of the calendar year.
What does this do? This transition relief simplifies reporting by easing the monthly classification of full-time employees reported on 1094, Part III (b).