About Sage 100 Contractor and the Affordable Care Act

In 2015, there are new reporting requirements concerning health care coverage to ensure compliance with the Affordable Care Act (ACA). Under the Employer Shared Responsibility provisions, your company may be required to file two additional forms:

• Form 1094-C Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns. You file this form for your company. It lists the number of full-time employees and the total number of employees each month. It also includes additional information if your company is a member of an Aggregated ALE (Applicable Large Employer) Group.
• Form 1095-C Employer-Provided Health Insurance Offer and Coverage. You file a separate form for each full-time employee. It indicates whether your company offered minimum essential health insurance to the employee and family, and the employee share of the lowest-cost coverage. If the employee enrolled in an employer self-insured plan, it also lists the individuals covered.

Note: Reports for the 2015 year are due in early 2016.

Refer to the Internal Revenue Service website to find out:

• Whether your company qualifies as a large employer, and if you need to report employee healthcare coverage on these forms.
• The definitions of "minimum essential health coverage" and "self-insured plan."
• Detailed information about the codes defined by the ACA, and which codes to use in your company.

You may also want to contact your tax advisor for assistance with the ACA requirements.

Note: If your company's health insurance plan is not self-insured, the issuer of the plan must also send form 1095-B to your employees with their coverage information.

Preparing Sage 100 Contractor for the Affordable Care Act

Sage 100 Contractor can track information that can help you determine your filing requirements under the Affordable Care Act.

To track health care coverage using Sage 100 Contractor you must:

• Enter health coverage information for each employee. You use the ACA tab in the 5-2-1 Employees window to enter the following information separately for each employee, for each month of the year:

  • Work Status (Full Time, Part Time, Seasonal, Exempt)
  • Offer of Coverage Code (as defined under the Act)
  • Safe Harbor Code (as defined under the Act)
  • Share of Min Plan Premium (the employee's share of the lowest premium)

  For more information about filling out the ACA tab, see Entering health care coverage for an employee.

• Record ACA hours worked when you pay employees. You use the 5-2-2 Payroll Records window to record ACA hours when you pay employees. The total full-time and full-time equivalent hours worked determine whether you are required to file a federal 1095-C form for an employee.

  For more information about entering ACA hours in payroll records, see About entering ACA Hours in payroll records.

Note: The Year-End Guide provides checklists to help you prepare your Sage 100 Contractor company for the Affordable Care Act.

Reviewing and Reconciling ACA Hours Allocation

You should print the 5-4-3 ACA Hours Allocation report on a monthly basis to check for discrepancies between the ACA hours and actual hours paid that you need to reconcile. You can use this report to help you determine the number of full-time and full-time equivalent employees per month, and as a reference when filling out federal forms required under the Affordable Care Act. For more information about this report, see 5-4-3 ACA Hours Allocation report.