2016 year end manual - computerease software · finalizing your 2016 payroll 9 what's new with...

Year EndManual 2016

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Table of Contents

5Before You BeginPart ICE Payroll Service1 ....................................................................................................................... 5

General Recommendations2 ....................................................................................................................... 6

Remote BackUp Service3 ....................................................................................................................... 6

Using the Practice Company4 ....................................................................................................................... 7

9Finalizing your 2016 PayrollPart IIIssuing Bonus Checks1 ....................................................................................................................... 9

Issuing Non-Cash Fringes During a Normal Payroll2 ....................................................................................................................... 11

Issuing Fringes After Year End Payroll is Complete3 ....................................................................................................................... 13

Handling Third-Party Sick Pay4 ....................................................................................................................... 16

Ending the Payroll Year5 ....................................................................................................................... 19

21Working with W-2'sPart IIIPreparing W-2's1 ....................................................................................................................... 21

Editing W-2's2 ....................................................................................................................... 22

Printing W-2's3 ....................................................................................................................... 23

Printing the W-34 ....................................................................................................................... 24

Generating a Magnetic Media File5 ....................................................................................................................... 26

27Installation of Year End UpdatePart IVAuto Update Feature1 ....................................................................................................................... 27

Loading Federal & State Tax Tables2 ....................................................................................................................... 29

31Issuing 1099'sPart VPrepare 1099's1 ....................................................................................................................... 31

Printing the 1099 Report2 ....................................................................................................................... 32

Editing 1099's3 ....................................................................................................................... 33

Printing the 10994 ....................................................................................................................... 33

Printing the 10965 ....................................................................................................................... 34

Magnetic Media File6 ....................................................................................................................... 35

Payments by Locality7 ....................................................................................................................... 36

Deleting old 1099's8 ....................................................................................................................... 36

37Final ProcessesPart VIClosing the General Ledger Fiscal Year1 ....................................................................................................................... 37

Reorganizing Files2 ....................................................................................................................... 37

40Preparing for ACA ReportingPart VIIPreparing Your Data1 ....................................................................................................................... 40

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ComputerEase Software, Inc.

Entering Your Data2 ....................................................................................................................... 49

.......................................................................................................................................................... 49Creating Categories

.......................................................................................................................................................... 51Creating Plans

.......................................................................................................................................................... 52Entering Employee Information

ACA Reports3 ....................................................................................................................... 56

.......................................................................................................................................................... 56ACA FTE Count Report

.......................................................................................................................................................... 57ACA Variable Hour Employee Status Report

.......................................................................................................................................................... 57ACA Employee Type

.......................................................................................................................................................... 58Printing the 1094-C Form

.......................................................................................................................................................... 62Printing the 1095-C Forms

.......................................................................................................................................................... 63Exporting the 1094-C/1095-C Information

Before You Begin 5

What's New With ComputerEase

1 Before You Begin

1.1 CE Payroll Service

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1.2 General Recommendations

Because these processes are only done once a year, we recommend the following as precautionary measures:

q Read this “Year End Manual” in its entirety before beginning the year end process

q Make a full year end system back up (save a copy on the server and to disk)

q Copy Live to Practice

q After all year end processes are complete, make a final year end back-up for your archived records(save a copy on the server and two copies on two separate disks)

q If you have any questions during the Year End process, please contact our support line at 800-544-2530

1.3 Remote BackUp Service

Before You Begin 7


1.4 Using the Practice Company

If you are unsure about a process in ComputerEase it is recommended that you use your practice company totest the process first. To copy your live data to your practice data, everyone must be logged out ofComputerEase. However, keep in mind that when you "copy data," you are copying an exact replica of yourcompany’s live data. Any data that you previously entered in the practice company will be replaced, andanyone who is in the middle of testing a function or feature in the practice company at the time you performthe "copy data" function will lose that data.

Viewing Your ComputerEase Information Box

You will need to know where your ComputerEase directory is located on your server. To locate the directory,log into ComputerEase and select Help on the toolbar at the top of the main menu. Then select About. Makea note of the "Network Installed From:" directory. This is where ComputerEase is installed on your server.

Select Start on the task bar and select Run. Enter the directory where ComputerEase is located.

Type CopyData.exe at the end of "Network Installed From" directory and then select OK to execute copyingthe data from the live company to the practice company.

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Select OK. You should see a status bar start to track the progress of the procedure. Once the procedure iscomplete, the window will disappear.

Tip: Make a shortcut on the desktop to the CopyData file that is in the ComputerEase directory for easieraccess.

Finalizing your 2016 Payroll 9


2 Finalizing your 2016 Payroll

2.1 Issuing Bonus Checks

Clear the Labor Distribution for all employees that are to receive a Bonus check.

Enter the amounts for the bonuses through Enter Labor Distribution or Enter Non-Job Hours, selecting“Bonus” for the pay type. Federal Taxes will be calculated using the default in the Tax Rate for Bonus Payfield in the Federal Tax Table Maintenance master file (federal standard is 25%). If you change the fieldto 0%, ComputerEase will use the Employee's tax settings to determine the amount of Federal Tax to withhold.

Note: If you change the rate to 0%, ComputerEase will warn you when you print your payroll register that yourFederal Tax Table does not agree with the defaults and will ask you if you want to revert back to the defaults;make sure you uncheck the box to update it or it will set it back to 25%.

To manually adjust Federal Tax, State Tax, Local Tax, Deductions and/or Fringes, select Entry on the top ofthe Labor Distribution screen and Tax Override or use the $ symbol in the middle toolbar, and then choosethe field you wish to override. Select Change current to in the Operation field and enter the amount tochange the selected item to. Any changes made here will be reset to the normal employee setting once the Clear Labor Distribution utility is run.

When processing payroll, the Payroll Period you select will control which deductions or fringes will apply tothe checks you are creating. To set up a Payroll Period for Bonus Checks, select Maintenance Programs/Work on Payroll Periods. Enter a name for your Payroll Period and select OK. Select which deductions and/or fringes you want to apply to the bonus checks.

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2.2 Issuing Non-Cash Fringes During a Normal Payroll

Many companies provide their employees with certain non-cash fringe benefits that are considered taxableincome. An example of this would be a taxable fringe benefit for personal mileage for a company-providedvehicle. Often, these fringes are not allocated during the year. Non-cash fringes should be processed witha normal check run. If you have already run your last payroll for the year, and are unable to process yournon-cash fringe in a normal check run, the Month to Date Maintenance screen will be used to manually enterthe numbers for changes needed on the W-2 (see section on Issuing Fringes after Year End Payroll isComplete).

Note: For future reference, it is recommended that once you have your fringe set up, and you have completedyour final payroll for the year, that you enter a "base" amount in the Employee Maintenance to be added/deducted each pay period going forward. The taxes will be charged to the employee over the annual payrollperiod instead of only at year end. If you are unsure of the amount to be used for each payroll period, checkwith your CPA.

From the Payroll System main menu, select Maintenance Programs/Fringe Maintenance. Enter a name forthe fringe and select OK. The Fringe Maintenance screen will display.

Description - Enter a description for the fringe you are creating.

Fringe Type - Review the available choices and select the one that describes the fringe you are creating,if none of the specific options are applicable, select Normal.

Fringe Calculation

Normal Fringe - Use this selection if this fringe is an accrued fringe and is not to be paid in cash tothe employee nor is the sole purpose of setting up the fringe to charge for additional taxes.

Deduction - Use this option to increase the employees taxable wages only. You will see the amountlisted as "other pay" and also under the "Fringe/Deduction" name on the Payroll Register.

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Calculate On - Choose whether to calculate the fringe on the employee's gross pay or on the employee'sgross pay after taxes.

Credit Account - Enter the appropriate account number from your chart of accounts.

Cost Type - This field is only used if the fringe you are setting up will be job costed. It will default to costtype Fringes, which is the standard cost type for company paid benefits.

Work Location - This field is only applicable if you are setting up a fringe that will be job costed.

W-2 Box 14 Code - If you are setting this fringe up to charge your employee additional taxes for acompany paid benefit, enter a code here so that the amount "paid" and then "deducted" from theemployee shows on their W-2.

Taxable Settings - Select the appropriate boxes that apply to this fringe. If you are unsure of whichselections should be made, please check with your CPA.

Payroll Periods - Select which payroll periods you want this fringe to apply to (the Payroll Period isselected when you are printing your Payroll Register).

Expense Accounts - Select the appropriate account numbers from your chart of accounts. You will needto fill in account numbers for any department that you have set up in ComputerEase even if the employeeyou will be setting the fringe up for only works in one department.

To use this fringe one time during a normal check run, you will need to be in the Enter Labor Distribution byEmployee screen. Enter the regular payroll information to pay the employee for this payroll period. At the topof the screen under the Employee's Name, select Entry and Tax Override. You will see the following screendisplay. Select Fringe in the Override field. Then select the Fringe that was created in the process above.Select Change Current to in the Operation field. Enter the Amount that you want added and then deductedfrom this payroll run.

Note: If you are using this fringe in a normal check run, to charge your employee for taxes only, you mustmake sure that the "gross wages" for the employee are greater than the amount of tax being charged. Thesoftware will not allow you to create a negative check. If the taxes that are calculated on the fringe aregreater than the gross wages, you will have to "gross up" your employees wages to cover the taxes. If you areunsure of how to complete this process, please check with your CPA.

Continue with the normal payroll process, checking the payroll register carefully to verify that the amount offringes and taxes are correct.



2.3 Issuing Fringes After Year End Payroll is Complete

If you have completed your final payroll check run for the year and need to add information to the employeeswages for tax purposes and you want the amount recorded in the W-2 Box 14, you will need to set up a fringefor the additional information and then manually make changes using the Month to Date Maintenance utility.This utility is used to add information to the W-2 and does not charge the employee for any taxes owed. Ifthere are taxes owed you will need to make arrangements with the employee to collect them.

The first step is to create the Fringe. Please see "Issuing Non-Cash Fringes During a Normal Payroll" forinstructions on setting up the Fringe.

Once you have created the Fringe, select Maintenance Programs/Month to Date Maintenance. Select theemployee and enter the month for which you want to edit the fringe and tax amounts. This will normally beDecember of the year you are currently working in.

Once you have selected OK on the above screen, you will see the screen below display.

Select the State tab at the top of the screen, then select the Fringes box on the bottom of the State tab.Enter the amount of the fringe in the Accrued field.

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Once you have entered the amount, select OK and then select the Federal tab. In the Federal Tax box, youwill add the amount of tax that has been calculated for the fringe. This amount will be supplied to you by yourCPA. In the example below, the employee had paid $200.55 in federal taxes for the month, the tax on thefringe is $175.00, so the new amount of Federal Tax will be $375.55. If the fringe is taxable for FICA andMedicare, you will need to edit those boxes also. When FICA or Medicare is changed, the Employee andEmployer boxes will require editing. If the fringe is taxable for state income tax or local income taxes, the StateTax Withheld and appropriate Local Employee (or Employer Tax, where applicable) boxes will require editing onthe State and Local tabs, respectively.

Once you have entered the changes, select OK to save. The following screen will display. Enter the date thechange became effective. If this is a one-time annual adjustment you may use the last day of the year.

Below is an example of how an employee's W-2 screen looked before making the above changes and one ofhow it looks after the changes were made.



Note: If you choose to use Month to Date Maintenance for increasing taxes and fringe amounts, thenecessary journal entries for monies paid to you by the employee for any additional tax, or for any fringeaccrual or expense will need to be made manually.

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2.4 Handling Third-Party Sick Pay

When an Employee receives a check from a Third Party sick pay provider, it is sometimes required that theEmployer record the wages paid by the provider and the taxes paid by the Employee on the Employee’s W-2statement. This would also require the Employer's quarterly 941 to be adjusted as well. From the provider’sstatements, you will be able to document and adjust the W-2, the 941, and the 940 (FUTA).

Quarterly 941 Adjustments

On the 941, you will adjust all wage and tax amounts (lines 2, 5a, 5c) to include the amounts paid to allEmployees by the 3rd Party Provider for this quarter. As the Employer, if you are also responsible for paying theEmployer’s portion of the above mentioned tax, your 941 will need to be adjusted to show the taxes paid. Line8 of the 941 should be completed with the employer taxes for total sick pay provided by the third party, for allemployees.

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Editing W-2s for Third Party Sick Pay

For the employees that have received funds from this provider, you will need to edit their W-2 to reflect thecompensation and taxes paid. After preparing the W-2’s, you will need to then select Edit W-2s. Select thecurrent year and the employee and then select OK.

On the W-2, you will adjust all wage and tax amounts to include the amount provided to the individualemployee by the sick pay provider for the year. You will also add the additional employee taxes withheld by theThird Party, as well as the Employer’s portion of the tax. You will also want to check the Third Party Sick Paybox for this employee.



2.5 Ending the Payroll Year

Before closing Payroll for the year, you should read this manual in its entirety and determine dates that youcan reasonably expect to complete each of the following tasks:

Review Master Files

· Confirm that Deduction and Fringe code Types have the appropriate selection for Box 12 on the W-2's;as of 2012, both deductions and fringes have a new type for "Employer Sponsored Health Coverage"

· Confirm that Deduction and Fringes W-2 Box 14 Code have the appropriate information filled in to allowthe value to print in box 14 on the W-2

· Check Employee Maintenance master files for accuracy of name, address, and Social Security number

· Confirm that the Company’s name, address, and phone number are correct (this information can beverified by choosing Company Name from the Main Menu/Configure/Company Name)

· Verify Tax Identification numbers by selecting Payroll System/Maintenance Programs/Tax RateMaintenance

q Check the Federal ID number in Federal Tax Rate Maintenance

q Check the State ID number in State Tax Rate Maintenance

q Check the Local Tax Rate Maintenance for the following (if necessary):

o If the local will not accept a transmittal sheet, and a W-2 is required, make sure the W-2

Required field is selected

o Verify the name of the local tax (ComputerEase truncates some of the letters on the W-2

statements and you may need to change names to accommodate this)

o The county codes and school district information is required for magnetic media

Print Reports

· Complete normal Month-End reporting (after you have completed your final payroll cycle for year endand are certain that you will have no further layoff or bonus checks)

· Run Quarterly and Yearly payroll reports

· Print and retain the following reports for your permanent records:

q Month, Quarter, Year-to-date for Tax Reporting

q State and Local Taxes Withheld

q Federal and State Unemployment

q Workers Comp Worksheet

q 941 Worksheet and Schedule B

q Deduction and Fringe Reports (if applicable)

q Union and EEOC reports (if applicable)

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q Employee Master Reports

In Preparation for the New Year

· Some items that may need to be reviewed and reset at this time of year:

q Vacation and Sick time - accrued and available (please refer to the option in the Payroll SystemParameters to Expire Accrued Sick and Vacation Hours on a particular month of the year, and usethe "Edit Accrued Hours" menu option to manage available Sick/Vacation time), as well as rulesapplicable to each employee

q Deduction and Fringe "Yearly Cap" limits that have been set in your Employee Maintenance

q ACA information - gather information on plans, premiums and employee statuses and offer codes

Working with W-2's 21


3 Working with W-2's

3.1 Preparing W-2's

Note: It is not necessary to prepare W-2's for 2016 prior to running the first payroll for 2017. The PayrollSystem module is date-sensitive; therefore you may prepare W-2's anytime after running the last payroll foryear end.

From the Payroll System main menu, select Reports/Tax Reporting/Work on W-2s.

Select Prepare W-2s and enter the year. If you leave the Employee - From and To fields blank, the systemwill prepare W-2 statements for any employees that received a paycheck for that year. Select OK andComputerEase will compile the information.

You will receive a notification letting you know how many W-2's were prepared.

Note: If you receive an error while attempting to prepare W-2's, that advises you that a tax local, deductionor fringe that was used during the year has been deleted, you will need to set it back up. If you receive thiserror, note the local, deduction or fringe code that was deleted and set up that local, deduction or fringe codeusing the necessary Maintenance Program, in the exact way you noted. Once the code has been re-established, select Prepare W-2s once more to finish preparing.

Once you have prepared the W-2 statements, you may select the menu option to Print W-2s and print the W-2 statements on plain paper. This will allow you to verify that the information that will print is correct. You mayselect to Print W-2s as many times as needed.

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3.2 Editing W-2's

Once the W-2's have been prepared and reviewed, if you need to make any manual changes, select Work onW-2s/Edit W-2s. Enter the year and select the employee. You may make any necessary adjustments on thisscreen.

Note: Once you edit a W-2, make sure you do not select Prepare W-2s for this employee again or yourchanges will be overridden by the system information and you will have to Edit the W-2 again.

If you need to add information for Box 12 or Box 14 on the W-2 statement, select the empty field below Codeor Other and enter the additional information.



3.3 Printing W-2's

Once you have verified that the information on the W-2's are correct, you are ready to print your W-2 forms.

Select Work on W-2s/Print W-2s. You will have several different printing options to choose from.

Only the required boxes/data will populated for each selection. For instance, box 14 is an Employeeinformational box and will only print on the Employee Copy.

Local Wages on W-2s – Each Local Tax Maintenance screen in ComputerEase has options that willdetermine how the Local Wages are reported on the Employee Copy of the W-2. Local wages are not reportedon the Federal Copy. The W-2 Required box, options for reciprocation rules, and taxable questions for “Work”vs “Resident” are all choices that will determine what amount is reported in “Local wages, tips, etc.” box (Box18) of the Employee copy.

Option 1 - If you have the W-2 Required option selected in all of your Local Tax Maintenance screens,you will see two locals per W-2 with the tax that was withheld for each Local and wages for each Localthat should match the “Taxable Wages” for that Local in the “Earned Anywhere” section of the Local TaxWithheld Report available in ComputerEase. Because of reciprocation rules, and the possibility of thesame wages being charged for taxes in more than one Local (Work Local and Home Local) it is notaccurate to report “Taxable Wages” from the “Earned in Local” section.

Option 2 - If you have the W-2 required option selected in only some Local Tax Maintenance screens,you will see the Locals that have the W-2 required option selected in the same manner as describedabove. All other Locals will be grouped together and will show a total of Tax Withheld for Locals notgetting an individual W-2. Because of the available options for calculating Local taxes listed above, it isnot possible for the system to report the wages for this grouping in any other manner; therefore it willreport the same wages that are in Box 1 (Wages, tips, other comp) and will be listed as “Various.”

Note: Because you will be submitting a W-2 for the Locals that you have selected W-2 required, andsubmitting a Transmittal Sheet by Locality to the Locals that do not require a W-2, the “various” wages shouldnot be a concern to your employee or any Local. If your employee would like a breakdown of the remainingLocals in which he was charged tax, you may print a Transmittal Sheet by Employee.

Count W-2s will generate a report that will give you a total for each copy that needs to be prepared. Localcopies will be counted using the settings that are selected in the Local Tax Maintenance in the W-2required field.

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3.4 Printing the W-3

Once you have printed your W-2 forms, you will be ready to print your W-3 form.

Select Work on W-2s/Print W-3. Verify the year and select Yes or No to Include State and Local Totalsdepending on whether or not you would like state and local totals included on your W-3 form.



Confirm the information on the first tab and make any changes necessary. You can make changes on thesecond tab and your changed values on the second tab will print on the printed copy of the W-3. However, ifyou believe your totals are incorrect you should research and correct the issue within ComputerEase, as thesetotals are the totals from your W-2 forms and should be validated by the totals of your W-2 forms. When youhave confirmed all of your information, choose Print.

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3.5 Generating a Magnetic Media File

To create a Magnetic Media file for electronic filing of W-2 statements, from the Payroll System Main Menu,select Reports/Tax Reporting/Work on W-2s/Create Magnetic Media File and select the appropriateformat.

Depending on the option you choose, you will be prompted for the year and any additional information requiredfor the Magnetic Media file. When you are finished, select OK and the Magnetic Media file will be generated.

The following box will display, showing the location to which the Magnetic Media file was saved.

The file may be copied to disk and sent to the proper agency. The file will be labeled “W2REPORT” and will besaved in the directory for the company in which you are working. Make two copies of this file; one to submitand one to retain for your permanent records.

Note: Each time the magnetic media file is generated for any of the formats it overwrites the previous “W-2REPORT” file. Make sure you save the file to disk for each format before generating the file for another format.

Installation of Year End Update 27


4 Installation of Year End Update

4.1 Auto Update Feature

To keep your software current and to make sure that you have the Tax Tables for the new year, you will needto run the Auto Update Feature that is available in ComputerEase. You may run the update as soon as it isavailable.

You may have the feature enabled that notifies you automatically when updates are available. If this feature isenabled, you will see a warning like this when updates are available:

You can click on the notification to see a list of the updates available and the release notes for each update.

To install your updates, make sure all other users have logged out of the ComputerEase Program. From theComputerEase Main Menu, select Help/About.

When the information box displays, select Check for Upgrade. This will instruct the system to check theComputerEase website for the newest release for the Version you are on. If your ComputerEase is not up-to-date, the Auto Update screen shown below will display how many updates are available to download.

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Select View Changes to see a list of revisions and new features that will be installed with this update. Youmay also print this list once you have selected View Changes.

To begin the installation leave the Auto Update window open and log out of ComputerEase. Select Updateand a progress bar will display showing the files being installed. If someone is still logged into any of theComputerEase companies, you will get an error message that there is a User logged in and which company theyare logged into. To determine the User, sign into the company that the warning pointed to. From the toolbar atthe top of the Main Menu, select File and then Active Users to view the User Log.

When the update installation is complete, you will receive a message prompting you to Convert the DataFiles. You must select Yes here. This completes the Update on the server. Each workstation will be updatedto this release the next time the User attempts to log into ComputerEase.

Installation of Year End Update 29


4.2 Loading Federal & State Tax Tables

ComputerEase keeps the Federal and State Tax Tables updated for you. To access the newest Tax Tables,you must be on the most current release of the Version you are on (see the Auto Update Feature section ofthis manual for help with updating). You have two options for updating your tax tables. The first option is towait until you are printing your payroll register for the first payroll run of the year and to let ComputerEaseprompt you to update your tables with any Federal or State changes at that time. Your second option is toload the updates manually.

Manually Change Tax Tables

To load the Default Tax Tables for Federal Taxes, select Payroll Systems/Maintenance Programs/TaxRate Maintenance/Federal Tax Maintenance. Then select the year.

Select OK and the Federal Tax Information screen will display.

From the top left hand corner of this screen, select File/Load Defaults to update the tax tables for the yearselected and make any changes to the information on the Main tab (the only information you may want tochange is the Employer's ID Number or the Federal Unemployment Rate). Select OK when you are finished tomake sure the update is saved.

To load the Default Tax Tables for State Taxes, select Payroll Systems/Maintenance Programs/Tax RateMaintenance/State Tax Table Maintenance. Select the State and the year for which you want to updatethe Tax information.

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From the top left hand corner of this screen, select File/Load Defaults to update the tax tables for the yearselected and make any changes to the information on the Main tab or the SUTA tab. Select OK when you arefinished to make sure the update is saved.

Note: The SUI and associated rates for applicable states will need to be maintained manually once you havereceived your new rate from the State on the SUTA tab.

Note: Any rates shown on this page are for demonstration purposes only. Tax rates are subject to last-minutelegislative change and the rates shown here should not be assumed to be the final rates or limits for 2017.

Automatically Change Tax Tables

To let ComputerEase automatically load your tax tables for the new year, simply enter and process your firstpayroll of 2017 as normal. When you run the Print Payroll Register program and choose a "Date of Check"with a date in 2017, you will see a window warning you: "The following tax table(s) do not agree with the taxtables shipped with this release of the software." Any tables that have changes for 2017 will be listed with aneffective date for the changes. Next to each table there will be a checked box in the "Update" column. Simplyleave the "Update" check box checked and process your payroll register and ComputerEase will update your taxtables for you.

Tip: The payroll register is date-sensitive and will update the tax tables as many times as necessary dependingon the check date. This means that you can process your first payroll of 2017 during December and allowComputerEase to update the tax tables to 2017 tables for use in that payroll, then run bonus checks for 2016and allow ComputerEase to update the tax tables back to 2016 for use for those checks. The next time youprocess a 2017 payroll, ComputerEase will update the tables back to 2017 again.

Issuing 1099's 31


5 Issuing 1099's

5.1 Prepare 1099's

Verify that the Vendors for which you would like to print 1099s are set up correctly. You may do this bypreviewing the Vendor Maintenance screen by selecting Accounts Payable/Maintenance Programs/Vendor Maintenance. Verify that the Print 1099 field is selected on the Name and Address tab. If you wouldlike a different Name that what is displayed in the Name field in the Address section to print on the 1099,enter it here. Unless otherwise selected, payments made to Vendors are considered NonemployeeCompensation. If you would like the payments for a Vendor to be shown in a different box, select it here.Verify that the Vendor ID field on the Settings tab is properly completed. You may also review the VendorMaster Report to verify that the Vendor ID is correct for Vendors for which you want to print a 1099. Thisreport is located in Accounts Payable/Maintenance Programs/Vendor Master List. You may also build aQ-Tool report that will show you all the setup information for your vendors in one place.

Verify that your Checking Accounts are also set up to properly record payments on 1099s or not appropriate.You can do this by selecting Accounts Payable / Maintenance Programs / Checking AccountMaintenance. If you would like to exclude payments from one particular checking account from being reportedon 1099s, you can check the Exclude from 1099s box. Ensure that any checking accounts used for paymentsthat must be included on your 1099s do not have this box checked.

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To begin the 1099 process select Accounts Payable/Reports/Print 1099's/Prepare 1099s.

Tax Year - Enter the Year for which you would like to prepare your 1099's.

Vendor - You may select a range of vendors, or leave these fields blank to prepare 1099's for all vendors.

After you select OK the system will report back to you the number of vendors which it prepared 1099's.

5.2 Printing the 1099 Report

To see which Vendors will be issued a 1099 when you print 1099's, select Accounts Payable/Reports/Print1099s/Print 1099 Report.

Enter the year for which you are working on 1099's. You may choose to print the report by Vendor Type byselecting the appropriate option in the Vendor Type field. Leaving the Vendor field blank will report all vendors.Your report will be separated into vendors that will be issued a 1099 and vendors that will not be issued a1099. It will also report purchases (total of all invoices dated 1/1/2016-12/31/2016 or date of preparation) andpayments (total of all checks dated 1/1/2016-12/31/2016 or date of preparation).

Issuing 1099's 33


5.3 Editing 1099's

From Accounts Payable Main Menu select Reports/Print 1099s/Edit 1099's.

Year - Select the year for which you are running the 1099.

Vendor - Select the vendor for which you want to edit the 1099.

Here you can edit what will print on the 1099.

Note: This only edits the 1099 printing. The vendor information and payment information history will not bechanged through this process.

5.4 Printing the 1099

From Accounts Payable Main Menu select Reports/Print 1099s/Print 1099s.

Year - Select the year for which you are printing 1099's.

Vendor - Select a range of vendors or leave these fields blank to a 1099 for all vendors that are toreceive one.

Federal ID - Your company's Federal Tax ID should automatically default here.

Printer - Choose the printer to which to print your 1099's.

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5.5 Printing the 1096

From Accounts Payable Main Menu select Reports/Print 1099s/Print 1096.

Year - Select the year for which you are printing the 1096.

Name of person to contact - Enter the person's name that is the contact at your business.

Telephone number - Enter the telephone number for your business; this should default from yourCompany Information.

Fax number - Enter the fax number for your business; this should default from your Company Information.

Email address - Enter the email address to use for questions about the 1096.

Preaddressed Form - Choose Yes if you are using a pre-addressed 1096 form or No if you are not.

Federal ID - Your company's Federal Tax ID should automatically default here.

Final Return - Select this box if this is the final year for which you will be filing 1099s.

Issuing 1099's 35


5.6 Magnetic Media File

From the Main Menu, select Accounts Payable/Reports/Print 1099's/Magnetic Media File/CreateMagnetic Media File.

Step 1 Tab -

1099 Year - This should default to the current tax year; enter the year you are reporting.

Create a Test File - Select this option only if you want to create a test file.

Step 2 Tab -

Federal ID - This should pre-fill with your Tax ID number assigned in your Company setup.

TCC - Enter your Transmitter Control Code.

Payer Name Control - Enter the Payer Name Control assigned to you.

Contact Name - Enter the person's name that is the contact at your business.

Contact E-Mail - Enter the contact person's e-mail address.

This is Final Filing - Select this box if this is the final year for which you will be filing 1099s.

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Step 3 Tab - This is for viewing only, and will only have information in it if this is a revised file.

5.7 Payments by Locality

From Accounts Payable main menu select Reports/Print 1099s/Payments by Locality Report. This reportuses the Payroll Locality that is assigned in your jobs to generate the information.

Check Date - Enter the date or date range for the payments that were issued.

Local - Select the Local Tax Code or a range of Tax Codes.

Vendor Type - Select one of the following: Supplier, Subcontractor, Other or All.

Vendor - Select a Vendor or a range of Vendors.

5.8 Deleting old 1099's

If you delete 1099 information for a year, you will have to re-prepare it in order to re-print your 1099 report orany 1099's from that year. If you have previously purged any Accounts Payable paid invoice data, you will notbe able to re-prepare information for that year. From Accounts Payable Main Menu select Reports/Print1099s/Delete old 1099s.

Delete 1099 Information Prior to - Enter the last year for which you want to keep information. Thesystem will delete any prior years' information.

Final Processes 37


6 Final Processes

6.1 Closing the General Ledger Fiscal Year

If your fiscal year ends on December 31st, you will want to close your year around this time period.

Once you have completed all postings and journal entries for year end, you will need to close the last period.Using the information in the General Ledger System Parameters, the software will make the necessaryadjustments to close your year accordingly. As the last period is closed, the balance for the following accounttypes will be reset to “zero” to begin the new fiscal year: Sales, Cost of Sales, Operating Expense and OtherIncome (Profit and Loss accounts). The balances for Assets, Liability, and Equity accounts (Balance Sheetaccounts) will carry forward. ComputerEase will automatically make the journal entry to transfer the balance inthe Current Retained Earnings account to the Prior Retained Earnings account.

You may begin posting in the new fiscal year before closing the last year end period, or you may close the yearend period by selecting Close Current Period from the General Ledger main menu and making your adjustingjournal entries for the year at a later date.

6.2 Reorganizing Files

Optional Reorganizing of FilesThese are a few optional tasks you may want to consider performing at the end of the year. These are notrequired functions. If you are unsure as to what the results will be on your company’s data, you may performthese functions in the Practice Company first.

Accounts Payable

Clear Invoice Register (deletes vouchers from the invoice register report) - Select Accounts Payable/Clear Voucher Register. You may want to print a copy before clearing.

Clear Check Register (deletes checks from the check register report) - Select Accounts Payable/Maintenance Programs/Clear Check Register. You may want to print a copy before clearing.

Delete Paid Vouchers (deletes vouchers that have been paid prior to a specified date) - You must firstclear the Voucher Register and the Check Register, and the check that was used to pay the voucher mustbe marked as “reconciled” in the Bank Reconciliation Program in the General Ledger. Select AccountsPayable/Maintenance Programs/Delete Paid Vouchers. If you want to keep a permanent record ofpayments on vouchers, you should select Accounts Payable/Reports/Paid Voucher Report and printthe vouchers you are going to delete.

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Accounts Receivable

Delete Paid Invoices (deletes all paid invoices in the customer’s file) - Select Accounts Receivable/Maintenance Programs/Reorganize Files/Delete paid invoices. You will need to print a Customer ReceivableInquiry if you want to have a permanent record of invoices that have been paid.

Reorganize Sales Register (deletes all invoices for a given date range from the Sales Register Report) -Select Accounts Receivable/Maintenance Programs/Reorganize Files/Reorganize Sales Register. If you wantto have a permanent record of your Sales Register, make sure you have a printed copy of your SalesRegister before running this utility.

Reorganize Cash Summary Register (deletes cash receipts from the cash summary register report for agiven date range) - Select Accounts Receivable/Maintenance Programs/Reorganize Files/Reorganize CashSummary Register. If you want to have a permanent record of your Cash Receipts, make sure you have aprinted copy of your Cash Summary Register before running this utility.

Reorganize Retention File (removes paid retention invoices from the system) - Select AccountsReceivable/Maintenance Programs/Reorganize Files/Select Reorganize Retention File. If you want to have apermanent record of your Billed Retention, make sure you have a printed a copy of your Retention DueReport before running this utility.

Reorganize Freeform Invoice File (deletes invoice detail of freeform invoices invoices that have beenbilled and paid) - Select Accounts Receivable/Maintenance Programs/Reorganize Files/Reorganize FreeformInvoice File. You will not be able to reprint any freeform invoices that are deleted, so you may want toprint copies of any invoices before running this utility.

Inventory Control

Reorganize Inventory Transaction File (clears inventory transaction history that occurred before agiven date) - Select Inventory Control/Maintenance Programs/Reorganize Inventory Transaction File. Thiswill delete all transactions and history as of a specified date. Make sure all necessary reports have beengenerated before performing this step.

Reorganize Purchase Order Balance Report (clears the purchase order balance report for the specifieddate) - Select Inventory Control/Maintenance Programs/Reorganize Purchase Order Balance Report.

Reorganize Purchase Order File (deletes purchase orders for the specified date) - Select InventoryControl/ Maintenance Programs/Reorganize Purchase Order File.

Final Processes 39


Payroll System

Delete Old Data - This screen is used to delete payroll data and can be used to reorganize several files atonce.

Select the items that you want to delete data for by choosing the "Keep For" option that applies. Once youhave made your selections, and select OK a screen will display that allows you to verify that you are choosingthe correct selections for the information you want to delete.

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7 Preparing for ACA Reporting

7.1 Preparing Your Data

Do I need to file a 1094-C and 1095-C and how should I file?

If you are an ALE (50 or more full-time employees) you are required to file a 1094-C and 1095-C. You are alsorequired to provide your employees with a copy of their 1095-C. ALE's with 50-250 full-time employees have anoption to file their 1094-C and 1095-C(s) with the IRS either by mail or electronically. ALE's with 250 full-timeemployees or more are required to file electronically.

For information on filing deadlines, please visit https://www.irs.gov/affordable-care-act/employers/mark-your-calendar-now-2016-reporting-deadlines-for-employers-and-health-coverage-providers.

If you are a self-insured employer, please visit https://www.irs.gov/affordable-care-act/individuals-and-families/self-insured-employers-must-file-health-coverage-information-returns for more information regardingyour filing requirements.

Getting Prepared

With the introduction of the new ACA filing requirements, you may want to start compiling all of the informationyou will need for entering into ComputerEase; making the transition as seamless as possible.

First, you will need to define your insurance plan or plans. For all offered plan(s), you will need to know thestart dates, the minimum coverage offered, and the premiums for all levels of coverage - for each category ofcoverage.

Secondly, you will want to define the following: your standard measurement period (when it begins and ends),and your standard stability period (when it begins and ends).

Thirdly, you will need to categorize each employee as full-time, part-time, or variable hourly and the date thatstatus took effect.

In addition to the information you should already have on file for your employees (name, SSN, address, andphone number), you will need to know which plan(s) they were offered for each month (this information may bethe same for all months). This information is reported on form 1095-C on line 14 and is categorized by “OfferCode”. We have organized a flow chart to aid you in determining the offer codes.

Lastly, you will need to know the employee share of the lowest cost monthly premium for self-only minimumvalue coverage. As well as if any Section 4980H safe harbor codes can be applied in any month during theyear, for each employee. We have created a flow chart (see page 36) to assist you in determining if any ofthese codes apply.

If you have any questions about any of this information, please see the information attached beginning onpage 4, retrieved from https://www.irs.gov/instructions/i109495c/ar01.html.

Future Developments

For the latest information about developments related to Form 1094-C, Transmittal of Employer-Provided HealthInsurance Offer and Coverage Information Returns, and Form 1095-C, Employer-Provided Health InsuranceOffer and Coverage, and instructions, such as legislation enacted after they were published, go to https://www.irs.gov/form1094c and https://www.irs.gov/form1095c.

https://www.irs.gov/affordable-care-act/employers/mark-your-calendar-now-2016-reporting-deadlines-for-employers-and-health-coverage-providers

https://www.irs.gov/affordable-care-act/employers/mark-your-calendar-now-2016-reporting-deadlines-for-employers-and-health-coverage-providers

https://www.irs.gov/affordable-care-act/individuals-and-families/self-insured-employers-must-file-health-coverage-information-returns

https://www.irs.gov/affordable-care-act/individuals-and-families/self-insured-employers-must-file-health-coverage-information-returns

https://www.irs.gov/instructions/i109495c/ar01.html

https://www.irs.gov/form1094c



Preparing for ACA Reporting 41


What's New

Form revisions. On Form 1094-C, line 22, box B is designated “Reserved.” The Qualifying Offer MethodTransition Relief is not applicable for 2016. In Part III, column (b), “Section 4980H” was inserted before “Full-Time Employee Count for ALE Member” to remind filers that the section 4980H definition of “full-time employee”applies for purposes of this column, not any other definition that an ALE Member may use for other purposes.On Form 1095-C, the language “Do not attach to your tax return. Keep for your records.” was inserted underthe title of the form to inform the recipient that Form 1095-C should not be submitted with the return. On line15 the heading was revised to read “Employee Required Contribution (see instructions).” Other minor clarifyingchanges were made to both forms.

Changes to codes. Code 1I for Form 1095-C, line 14, and code 2I for Form 1095-C, line 16, are no longerapplicable and have been reserved. New codes 1J and 1K have been added for Form 1095-C, line 14. For moreinformation, see the instructions for Form 1095-C, line 14 and line 16.

Transition relief. Several forms of transition relief were available to employers for 2015 under sections4980H and 6056, but only limited transition relief continues to apply in 2016. References to transitionrelief that applied only in calendar year 2015 have been removed. Descriptions of the remaining formsof transition relief have been amended to clarify for which months in 2016 the transition relief applies.For a description of the relief and when it applies, see Section 4980H Transition Relief for 2015 Plan

Years.

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44


Information regarding Form 1095-C, retrieved from https://www.irs.gov/instructions/i109495c/ar01.html

Part II—Employee Offer and Coverage

Plan Start Month. This box is optional for the 2016 Form 1095-C and the ALE Member may leave it blank; it isanticipated that this box will be mandatory for the 2017 Form 1095-C. To complete the box, enter the two-digit number (01 through 12) indicating the calendar month during which the plan year begins of the health planin which the employee is offered coverage (or would be offered coverage if the employee were eligible toparticipate in the plan). If more than one plan year could apply (for instance, if the ALE Member changes theplan year during the year), enter the earliest applicable month. If there is no health plan under which coverageis offered to the employee, enter “00.”

Line 14. For each calendar month, enter the applicable code from Code Series 1. If the same code applies forall 12 calendar months, you may enter the applicable code in the “All 12 Months” box and not complete theindividual calendar month boxes, or you may enter the code in each of the boxes for the 12 calendar months. Ifan employee was not offered coverage for a month, enter code 1H. Do not leave line 14 blank for any month(including months when the individual was not an employee of the ALE Member). An ALE Member offers healthcoverage for a month only if it offers health coverage that would provide coverage for every day of thatcalendar month. Thus, if coverage terminates before the last day of the month (because, for instance, theemployee terminates employment with the ALE Member, or otherwise loses eligibility for coverage under theplan), the employee does not actually have an offer of coverage for that month (and code 1H should thereforebe entered on line 14). See line 16, code 2B, later, for how the ALE Member may complete line 16 in the eventthat coverage terminates before the last day of the month.

A code must be entered for each calendar month January through December, even if the employee was not afull-time employee for one or more of the calendar months. Enter the code identifying the type of healthcoverage actually offered by the ALE Member (or on behalf of the ALE Member) to the employee, if any. Do notenter a code for any other type of health coverage the ALE Member is treated as having offered (but theemployee was not actually offered coverage). For example, do not enter a code for health coverage the ALEMember is treated as having offered (but did not actually offer) under the dependent coverage transition relief,even if the employee is included in the count of full-time employees offered minimum essential coverage forpurposes of Form 1094-C, Part III, column (a). See 4980H Transition Relief for 2015 Plan Years for a discussionof the application of the dependent coverage transition relief in 2016. If the employee was not actually offeredcoverage, enter code 1H (no offer of coverage) on line 14.

For reporting offers of coverage for 2016, an ALE Member relying on the multiemployer arrangement interimguidance 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 employeefor that month and therefore is eligible for multiemployer interim rule relief). For a description of themultiemployer arrangement interim guidance, see Offer of health coverage in the Definitions section. Forreporting for 2016, code 1H may be entered without regard to whether the employee was eligible to enroll orenrolled in coverage under the multiemployer plan. For reporting for 2017 and future years, ALE Members relyingon the multiemployer arrangement interim guidance may be required to report offers of coverage made througha multiemployer plan in a different manner.




Indicator Codes for Employee Offer and Coverage (Form 1095-C, Line 14)

Code Series 1— Offer of Coverage. The Code Series 1 indicator codes specify the type of coverage, if any,offered to an employee, the employee’s spouse, and the employee’s dependents. The term “dependent” hasthe specific meaning set forth in the Definitions section of these instructions. In addition, for this purpose anoffer of coverage is treated as made to an employee’s dependents only if the offer of coverage is made to anunlimited number of dependents regardless of the actual number of dependents, if any, an employee has duringany particular calendar month.

If the type of coverage, if any, offered to an employee was the same for all 12 months in the calendar year,enter the Code Series 1 indicator code corresponding to the type of coverage offered either in the “All 12Months” box or in each of the 12 boxes for the calendar months.

Conditional offer of spousal coverage.

New codes 1J and 1K address conditional offers of spousal coverage (also referred to as coverage offeredconditionally). A conditional offer is an offer of coverage that is subject to one or more reasonable, objectiveconditions (for example, an offer to cover an employee’s spouse only if the spouse is not eligible for coverageunder Medicare or a group health plan sponsored by another employer). Using new codes 1J and 1K, an ALEMember may report a conditional offer to a spouse as an offer of coverage, regardless of whether the spousemeets the reasonable, objective condition. A conditional offer generally would impact a spouse’s eligibility forthe premium tax credit under section 36B only if all conditions to the offer are satisfied (that is, the spousewas actually offered the coverage and eligible for it). To help employees (and spouses) who have received aconditional offer determine their eligibility for the premium tax credit, the ALE Member should be prepared toprovide, upon request, a list of any and all conditions applicable to the spousal offer of coverage. As is noted inthe definition of dependent in the Definitions section, a spouse is not a dependent for purposes of section4980H.

An ALE Member may not report a conditional offer of coverage to an employee’s dependents as an offer to thedependents, unless the ALE Member knows that the dependents met the condition to be eligible for the ALEMember’s coverage. Further, an offer of coverage is treated as made to an employee’s dependents only if theoffer of coverage is made to an unlimited number of dependents regardless of the actual number ofdependents, if any, an employee has during any particular calendar month.

· 1A. Qualifying Offer: Minimum essential coverage providing minimum value offered to full-time employeewith Employee Required Contribution equal to or less than 9.5% (as adjusted) of mainland single federalpoverty line and at least minimum essential coverage offered to spouse and dependent(s).

Tip: This code may be used to report for specific months for which a Qualifying Offer was made, even ifthe employee did not receive a Qualifying Offer for all 12 months of the calendar year. However, an ALEMember may not use the Alternative Furnishing Method for an employee who did not receive aQualifying Offer for all 12 calendar months.

· 1B. Minimum essential coverage providing minimum value offered to employee only.

· 1C. Minimum essential coverage providing minimum value offered to employee and at least minimumessential coverage offered to dependent(s) (not spouse).

· 1D. Minimum essential coverage providing minimum value offered to employee and at least minimumessential coverage offered to spouse (not dependent(s)). Do not use code 1D if the coverage for thespouse was offered conditionally. Instead use code 1J.

· 1E. Minimum essential coverage providing minimum value offered to employee and at least minimumessential coverage offered to dependent(s) and spouse. Do not use code 1E if the coverage for the

46


spouse was offered conditionally. Instead use code 1K.

· 1F. Minimum essential coverage NOT providing minimum value offered to employee; employee andspouse or dependent(s); or employee, spouse and dependents.

· 1G. Offer of coverage for at least one month of the calendar year to an individual who was not anemployee for any month of the calendar year or to an employee who was not a full-time employee forany month of the calendar year (which may include one or more months in which the individual was notan employee) and who enrolled in self-insured coverage for one or more months of the calendar year.

Note.Code 1G applies for the entire year or not at all. Therefore, if code 1G applies, an ALE Member mustenter code 1G on line 14 in the “All 12 Months” column or in each separate monthly box (for all 12months).

· 1H. No offer of coverage (employee not offered any health coverage or employee offered coverage thatis not minimum essential coverage, which may include one or more months in which the individual wasnot an employee).

· 1I. Reserved.

· 1J. Minimum essential coverage providing minimum value offered to employee and at least minimumessential coverage conditionally offered to spouse; minimum essential coverage not offered todependent(s). (See Conditional offer of spousal coverage, above, for an additional description ofconditional offers.)

· 1K. Minimum essential coverage providing minimum value offered to employee; at least minimumessential coverage offered to dependents; and at least minimum essential coverage conditionally offeredto spouse. (See Conditional offer of spousal coverage, above, for an additional description ofconditional offers.)

Line 15. Complete line 15 only if code 1B, 1C, 1D, 1E, 1J, or 1K is entered on line 14 either in the “All 12Months” box or in any of the monthly boxes. Enter the amount of the Employee Required Contribution, which is,generally, the employee share of the monthly cost for the lowest-cost self-only minimum essential coverageproviding minimum value that is offered to the employee. For additional details on how to determine theEmployee Required Contribution, see the Definitions section, later. Enter the amount including any cents. If theemployee is offered coverage but the Employee Required Contribution is zero, enter “0.00” (do not leaveblank). If the Employee Required Contribution was the same amount for all 12 calendar months, you may enterthat monthly amount in the “All 12 Months” box and not complete the monthly boxes. If the Employee RequiredContribution was not the same for all 12 months (for instance, if an ALE Member has a non-calendar year planand the employee share of the premium changes with the new plan year that starts in 2016), enter the amountin each calendar month for which the employee was offered minimum value coverage. See the definition of Employee Required Contribution in the Definitions section, for more information, including on how to determinethe monthly required contribution from annual data.

For line 15, the amount entered might not be the amount the employee is paying for the coverage, forexample, if the employee chose to enroll in more expensive coverage such as family coverage or if theemployee is eligible for certain other healthcare arrangements.

Line 16. For each calendar month, enter the applicable code, if any, from Code Series 2. Enter only one codefrom Code Series 2 per calendar month. The instructions below address which code to use for a month if morethan one code from Series 2 could apply. If the same code applies for all 12 calendar months, you may enterthe code in the “All 12 Months” box and not complete the monthly boxes. If none of the codes apply for a



calendar month, leave the line blank for that month.

Code Series 2—Section 4980H Safe Harbor Codes and Other Relief for ALE Members. An ALE Memberenters the applicable Code Series 2 indicator code, if any, on line 16 to report for one or more months of thecalendar year that one of the following situations applied to the employee.

· The employee was not employed or was not a full-time employee;

· The employee enrolled in the minimum essential coverage offered;

· The employee was in a Limited Non-Assessment Period with respect to section 4980H(b);

· The ALE Member met one of the section 4980H affordability safe harbors with respect to this employee;or

· The ALE Member was eligible for multiemployer interim rule relief for this employee.

If no indicator code applies, leave line 16 blank. In some circumstances more than one indicator code couldapply to the same employee in the same month. For example, an employee could be enrolled in health coveragefor a particular month during which he or she is not a full-time employee. However, only one code may be usedfor a particular calendar month. For any month in which an employee enrolled in minimum essential coverage, ingeneral, indicator code 2C reporting enrollment is used instead of any other indicator code that could alsoapply (but see the exceptions to this rule below, regarding the multiemployer interim rule relief and enrollmentin COBRA continuation coverage or other post-employment coverage). For an employee who did not enroll inhealth coverage, there are some specific ordering rules for which code to use. See the descriptions of thecodes.

· 2A. Employee not employed during the month. Enter code 2A if the employee was not employed on anyday of the calendar month. Do not use code 2A for a month if the individual was an employee of theALE Member on any day of the calendar month. Do not use code 2A for the month during which anemployee terminates employment with the ALE Member.

· 2B. Employee not a full-time employee. Enter code 2B if the employee is not a full-time employee forthe month and did not enroll in minimum essential coverage, if offered for the month. Enter code 2B alsoif the employee is a full-time employee for the month and whose offer of coverage (or coverage if theemployee was enrolled) ended before the last day of the month solely because the employee terminatedemployment during the month (so that the offer of coverage or coverage would have continued if theemployee had not terminated employment during the month).

· 2C. Employee enrolled in health coverage offered. Enter code 2C for any month in which the employeeenrolled for each day of the month in health coverage offered by the ALE Member, regardless ofwhether any other code in Code Series 2 might also apply (for example, the code for a section 4980Haffordability safe harbor) except as provided below. Do not enter code 2C in line 16 for any month inwhich the multiemployer interim rule relief applies (enter code 2E). Do not enter code 2C in line 16 ifcode 1G is entered in line 14. Do not enter code 2C in line 16 for any month in which a terminatedemployee is enrolled in COBRA continuation coverage or other post-employment coverage (enter code2A). Do not enter code 2C in line 16 for any month in which the employee enrolled in coverage that wasnot minimum essential coverage.

· 2D. Employee in a section 4980H(b) Limited Non-Assessment Period. Enter code 2D for any monthduring which an employee is in a section 4980H(b) Limited Non-Assessment Period. If an employee is inan initial measurement period, enter code 2D (employee in a section 4980H(b) Limited Non-AssessmentPeriod) for the month, and not code 2B (employee not a full-time employee). For an employee in asection 4980H(b) Limited Non-Assessment Period for whom the ALE Member is also eligible for the

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multiemployer interim rule relief for the month, enter code 2E (multiemployer interim rule relief) and notcode 2D (employee in a section 4980H(b) Limited Non-Assessment Period).

· 2E. Multiemployer interim rule relief. Enter code 2E for any month for which the multiemployerarrangement interim guidance applies for that employee, regardless of whether any other code in CodeSeries 2 (including code 2C) might also apply. This relief is described under Offer of Health Coverage inthe Definitions section of these instructions.

Note. Although ALE Members may use the section 4980H affordability safe harbors to determineaffordability for purposes of the multiemployer arrangement interim guidance, an ALE Member eligible forthe relief provided in the multiemployer arrangement interim guidance for a month for an employeeshould enter code 2E (multiemployer interim rule relief), and not codes 2F, 2G, or 2H (codes for section4980H affordability safe harbors).

· 2F. Section 4980H affordability Form W-2 safe harbor. Enter code 2F if the ALE Member used thesection 4980H Form W-2 safe harbor to determine affordability for purposes of section 4980H(b) for thisemployee for the year. If an ALE Member uses this safe harbor for an employee, it must be used for allmonths of the calendar year for which the employee is offered health coverage.

· 2G. Section 4980H affordability federal poverty line safe harbor. Enter code 2G if the ALE Member usedthe section 4980H federal poverty line safe harbor to determine affordability for purposes of section4980H(b) for this employee for any month(s).

· 2H. Section 4980H affordability rate of pay safe harbor. Enter code 2H if the ALE Member used thesection 4980H rate of pay safe harbor to determine affordability for purposes of section 4980H(b) forthis employee for any month(s).

Note.

An affordability safe harbor code should not be entered on line 16 for any month that the ALE memberdid not offer minimum essential coverage to at least 95% of its full-time employees and theirdependents (that is, any month for which the ALE member checked the “No” box on Form 1094-C, PartIII, column (a)). For more information, see the instructions for Form 1094-C, Part III, column (a).

· 2I. Reserved.



7.2 Entering Your Data

7.2.1 Creating Categories

You will need to create at least one ACA Category in ComputerEase; the ACA Category is used to track thestandard measurement period information. If you only have one standard measurement period, which will betypical for most companies, then you will only need one ACA category.

From the Payroll System main menu, select Maintenance Programs/ACA Maintenance/Edit ACACategories.

Category Code - Enter a category code up to 12 alphanumeric characters to define your ACA categoryand select OK.

Description - Enter a description of your ACA category and double-click on the row with "(new)" in the"Measure Start Date" field to create a new measurement period associated with this ACA category.

Standard Measurement Period Start Date - Enter the start date of your standard measurement period.

Note: This is the date that you want to start tracking ongoing variable hours employees hours. An ongoingemployee is an employee that has been employed for at lease one complete standard measurement period.

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Standard Measurement Period Length - Enter the length of your standard measurement period inmonths.

Note: Period used to determine if variable hour or part time employees are full time. This is typically 3-12months.

Standard Measurement Period End Date - This field will automatically fill with the calculated end date ofyour standard measurement period.

Standard Administrative Period Length - Enter the length of your standard administrative period inmonths. This is the period of time between the time that your standard measurement period ends and yourstability period begins

Note: The purpose of the Standard Administrative Period is to allow employers time to total and averagethe hours of service of each employee during the Standard Measurement Period, notify eligible employees,explain coverage available under the plan, answer questions, collect materials from employees, and enrollemployees who elect coverage before day one of the Standard Stability Period. The StandardAdministrative Period may not exceed 90 days, which may in practice be the first of the month followingtwo months. It may not cause a gap in coverage, and it may not reduce or lengthen the StandardMeasurement or Standard Stability Periods.

Stability Period Start Date - This field will automatically fill with the calculated start date of your stabilityperiod based on data entered above.

Note: Employees who worked on average at least 30 hours per week or at least 130 hours per month duringthe Measurement Period (i.e., were full time) should be offered health coverage for the entire StandardStability Period regardless of the hours they actually work during the Standard Stability Period (unless theycease to be employed by the employer).

For employees who were full-time during the Standard Measurement Period, the Standard Stability Periodmust be at least six consecutive calendar months, and cannot be shorter than the Measurement Period.

For example, if the Standard Measurement Period is 12 months, the Standard Stability Period must be atleast 12 months. If the Standard Measurement Period is only six months, the Standard Stability Periodmust be at least six months. Even if the Standard Measurement Period was only three months, theStandard Stability Period must be at least six months.

For employees who were part-time during the Measurement Period, the Stability Period cannot be longerthan the Measurement Period. The six-month and 12-month examples above would be the same for bothpart-time and full-time employees, but if the Standard Measurement Period was only three months, theStandard Stability Period for part-time employees could not be more than three months.

Stability Period End Date - This field will automatically fill with the calculated end date of your stabilityperiod based on data entered above.

Initial Measurement Period Length - Enter the length of your initial measurement period in months.

Note: For newly hired employees who are not reasonably expected to be full-time on the date of hire, theinitial measurement period applies until they become ongoing employees. The initial measurement periodbegins on the date of hire or the first day of the next month.

Initial Administrative Period Length - Enter the length of your initial administrative period in months.

Note: The period length cannot exceed 90 days. The total combined time of the Initial Administrative Periodand the Initial Measurement Period cannot exceed 13 months plus a portion of another month.



Each time your measurement period is renewed you will edit your category and double-click on the "(new)" rowto add new information. The information will pre-fill, based on information entered previously (the assumption isthat your standard measurement period, stability period and administrative period will remain unchanged andyour new start dates will be based on the end of the old). You would only need to make changes if you decideon administrative changes.

7.2.2 Creating Plans

You will need to create at least one ACA Plan in ComputerEase; the ACA Plan is used to track the start date ofyour plan and the employee share of the lowest cost monthly premium for self-only minimum value coverage.You will need to create one plan for each combination of these two that you have. So if you have twoseparate plans that you offer to different employee groups even if they begin on the same date, you wouldneed to create two plans in ComputerEase.

From the Payroll System main menu, select Maintenance Programs/ACA Maintenance/Edit ACA Plans.

Plan Code - Enter a plan code up to 12 alphanumeric characters to define your ACA plan and select OK.

Description - Enter a description of your ACA plan and double-click on the row with "(new)" in the "StartDate" field to define your plan.

Enter the start date of the plan in the Beginning on field and the Employee Share of Lowest Cost MonthlyPremium for Self-Only Minimum Value Coverage. Each time the plan is renewed you will edit the plan anddouble-click on the "(new)" row to add a renewal to the plan with a new start date and new employee share ofpremium.

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7.2.3 Entering Employee Information

If you are an ALE, you will need to enter some additional information for each employee in order to report thisinformation from ComputerEase.

From the Payroll System main menu, select Maintenance Programs/ACA Maintenance/Edit Employee ACAInformation.

Employee - Choose an employee for whom you want to edit ACA information and select OK.

Status and History Tab

New Employment Status - Select this button to add a new status at any time; if any employee changesstatus from full-time to part-time or vice-versa, you would select this option to add a new status.

New Plan - Select this option to add a new ACA Plan (with a new effective date).

New Category - Select this option to add a new ACA Category for this employee (with a new effectivedate).

Edit Current Selection - Select this option to edit the selection above that is currently selected(highlighted) above. After the update introducing the ACA changes, all employees were set to a status of"No ACA" with an effective date of 1/1/2015. To change this and set their status as of 1/1/2015, eitherdouble-click on that entry or select this button.

Category - Choose the category that applies to this employee; this will define the stability period andmeasurement period for your variable hour employees.



Plan - Choose the plan that applies to this employee.

Employment Type - Choose the employment type that applies to this employee. If you are not an ALE,then "No ACA" would apply for all; otherwise, choose Full-Time, Part-Time or Variable Hour.

Effective Date - Choose the Effective Date that the information entered above became effective. Anytime there is a change to the information above you must enter new information here.

Look-Back Start - Only if an employee is classified as variable hour should this information display; it iscalculated based on the information entered above. This is the start date of the look-back period forthis employee. It should be one month after the effective date.

Look-Back End - Only if an employee is classified as variable hour should this information display; it iscalculated based on the information entered above. This is the end date of the look-back period for thisemployee. It should be the end date of the standard measurement period of the employee's class/category.

Look-Back Status - Choose what you believe this employee's status to be at this time; the choicesare Full Time, Part Time or Unknown. At the end of the Look-Back Period you will be able to use the ACAVariable Hour Employee Status Report to help determine the employee's calculated status.

Delete Current Selection - Select this option to remove the status currently selected (highlighted) above.

Offer of Coverage Tab

Year - This should default to the current year; you can change this to the year for which you want toenter data.

OoC Code - Choose the applicable Offer of Coverage code for each month; the code you choose for eachmonth will automatically populate each month following. This will populate Form 1095-C, line 14 for thisemployee.

Safe Harbor Code - Choose the applicable section 4980H Safe Harbor code for each month; the code youchoose for each month will automatically populate each month following. This will populate Form 1095-C,line 16 for this employee. If you need assistance refer to the flowchart.

Tip: You can use your mouse to navigate and the drop-down to select the code in each month or you can usethe tab and/or arrow keys on your keyboard to move between the code fields per month and select theapplicable codes by selecting the letter corresponding to each code; for example, to select Offer of Coveragecode 1B for January and February and 1C for all other months, you would tab to January and select the B on

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your keyboard, then tab or arrow to March and select C on your keyboard. In order to revert a selection to thecode in the field above, select the "Delete" key on your keyboard.



If you need assistance determining the appropriate codes, please refer to the flowcharts here: Preparing YourData . You can also refer to the IRS website for additional information: https://www.irs.gov/instructions/i109495c/ar01.html.

Covered Individuals Tab

All providers of health coverage, including employers that provide self-insured coverage still need to reportcoverage information and information about each covered individual to the IRS . If you provide self-insuredcoverage, check the "Employer provided self-insured coverage" check box and enter the covered individuals.

Note: Self-insured employers who are not ALE's, those with fewer than 50 full-time or full-time equivalentemployees, should file Form 1095-B. Self-insured ALE's should report health coverage information on Form1095-C.

First - Enter first name of the covered individual.

Middle - Enter the middle name of the covered individual if applicable.

Last - Enter the last name of the covered individual.

Suffix - Enter the suffix of the covered individual if applicable.

*S.S.N. - Enter the social security number of the covered individual.

*Birth Date - Enter the birth date of the covered individual.

*Both S.S.N and Birth Date can be entered but you are only required to enter one or the other.

Check-off the months that each covered individual was covered under the self-insured coverage.

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7.3 ACA Reports

7.3.1 ACA FTE Count Report

The ACA FTE Count Report is designed to help you determine the number of Full Time and Full Time EquivalentEmployees your employ during a given time period. Each calendar year this report can help you determine yourALE status. It can also help you determine each employee's full-time or part-time status. Unlike other payrollreports which are based on pay date, this report is based on work date. If you do not enter the date worked(for example, for salaried employees), this will be estimated based on payroll ending date.

From the Payroll System main menu, select Reports/Tax Reporting/ACA Reports/ACA FTE Count.

Ending Month - Enter the month through which you want to run the report.

Months - Enter the number of months for which you want to report your hours.

Detail or Summary - Choose detail if you want to see each employee listed with the number of hoursworked per month. Choose summary if you just want to see a count of total full time and full timeequivalent employees.

For the purposes of counting full time employees, the ACA defines any employee who works at least 130 hoursper month as full time. However, when calculating full time equivalent employees, only the first 120 hours anemployee works are used when calculated FTEs. For all employees working less than 130 hours in a month, allhours less than 120 per employee are totaled and divided by 120 to determine the number of full timeequivalent employees that those employees represent when determining whether your business is an ALE.



7.3.2 ACA Variable Hour Employee Status Report

This report is designed to help you determine the status of any variable hour employees at the end of themeasurement period.

From the Payroll System main menu, select Reports/Tax Reporting/ACA Reports/ACA Variable HourEmployee Status.

As Of - Enter the date through which you want to report weekly average hours and calculated status foreach variable hour employee.

7.3.3 ACA Employee Type

This report is used to determine how each employee is currently classified for ACA reporting purposes.

From the Payroll System main menu, select Reports/Tax Reporting/ACA Reports/ACA Employee Type.

As Of - Enter the date through which you want to report the ACA status for each employee; note thatemployee status can change.

Employees - Choose an employee or employees or leave blank to report all employees.

Status - Choose Active, Inactive or All.

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7.3.4 Printing the 1094-C Form

The 1094-C Form is the cover sheet for the 1095-C forms that you are furnishing to the IRS.

From the Payroll System main menu, select Reports/Tax Reporting/ACA Reports/Print 1094-C Form.

Year - Enter the year for which you want to print the 1094-C; this will default to the current year.



Part I and II

Contact Name - Enter the name of the contact for the form 1095-C.

Number of Forms 1095-C submitted with this form - This will default to the number of forms calculatedbased on ALE information entered. You can change it if you intend to submit a different number of 1095-Cforms to the IRS.

Is this the authoritative transmittal - Each company must send one authoritative transmittal; if you arefiling multiple 1094-C forms, you should choose Yes only when the form you are printing is the authoritativetransmittal.

Total Number of Forms 1095-C filed - This will default to the total number of forms calculated based onALE information entered. You can change it if you have filed a different number of 1095-C forms.

Member of Aggregated ALE Group - Choose Yes if you are a member of an aggregated group; that is, ifthis company is one of multiple companies that are combined and treated as one company for the purposesof determining ALE status per the IRS code.

Certifications of Eligibility - Check the appropriate boxes as they apply: Qualifying Offer Method,Qualifying Offer Method Transition Relief, Section 4980H Transition Relief, and/or 98% Offer Method. Usedto completed line 22 of Part II of the 1094-C.

Note: Qualifying Offer Method Transition Relief and Section 4980H Transition Relief are no longer available in2016.

Visit https://www.irs.gov/affordable-care-act/employers/questions-and-answers-on-reporting-of-offers-of-health-insurance-coverage-by-employers-section-6056 for more information on methods of reporting.

https://www.irs.gov/affordable-care-act/employers/questions-and-answers-on-reporting-of-offers-of-health-insurance-coverage-by-employers-section-6056


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Part III

Minimal Essential Coverage Offer - Choose Yes or No; did you offer minimal essential coverage either for"All 12 Months" or the appropriate response for each month if different by month.

Full-Time Employee Count - This field will populate with the full-time employee count based oninformation entered into ComputerEase. If your data differs (for example, if you did your payroll for part ofthe year outside of ComputerEase), you can change it per month here.

Total Employee Count - This field will populate with the total employee count (full and part-time) basedon information entered into ComputerEase. If your data differs (for example, if you did your payroll for partof the year outside of ComputerEase), you can change it per month here.

Aggregated Group Indicator - If you indicated on the first tab that you are a member of an aggregatedALE group, you can check the box indicating that you were a member of that group either for "All 12Months" or per month if different by month.

Section 4980H Transition Relief Indicator - If you selected on the first tab that you are eligible forSection 4980H Transition Relief, enter the appropriate code either for "All 12 Months" or per month ifdifferent by month; applicable codes are A if eligible for the 50 to 99 Relief or B if eligible for the 100 orMore Relief.

Note: 4980H Transition Relief is no longer available in 2016.

Part IV



If you selected that you are a member of an aggregated ALE group on the Parts I & II tab, you need to fillout this section. List the other members of the aggregated group in descending order, starting with themember with the highest average monthly number of full-time employees. If there are more than 30members of the aggregated ALE group, only enter the 30 with the highest monthly average number of full-time employees.

Name - Enter the name of the aggregated group member.

EIN - Enter the EIN for the aggregated group member.

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7.3.5 Printing the 1095-C Forms

ComputerEase prints the completed 1095-C forms using information entered into the ACA Maintenanceprograms (with the exception of Part III).

From the Payroll System main menu, select Reports/Tax Reporting/ACA Reports/Print 1095-C Forms.

Year - Enter the year for which you want to print the 1095-C forms; this will default to the current year.

Include Instructions - Choose Yes to print the instructions for each form or No to print only the form.

Show S.S.N. - Choose Yes to show the full S.S.N. on each 1095-C. Choose No to hide the first 5-digits ofthe S.S.N..

Employees - Choose an employee or employees or leave blank to print forms for all employees.

If any employees with a status other than "No ACA" during the year indicated are missing any necessaryinformation, a page will print indicating any errors (such as missing Offer of Coverage codes). You shouldcorrect any errors prior to printing your forms. Keep in mind when reviewing forms that line 15 will only have avalue for line 14 values of 1B, 1C, 1D or 1E.



7.3.6 Exporting the 1094-C/1095-C Information

An employer filing 250 or more Forms 1095-C is required to file forms 1094-C and 1095-C electronically. Anemployer filing fewer than 250 Forms 1095-C may choose to file electronically or on paper.

Electronic filers must use the ACA Information Return System (AIR). According to IRS Publication 5164 andPublication 5165, an employer should:

1. Determine theresponsibleindividuals andcontacts who willhandle theelectronic filing.

2. Register with e-services.

3. Complete anApplication forTransmitterControl Code(TCC) if theemployer acts asan issuer, asoftwaredeveloper and/ora transmitter.

4. Conduct ACAAssurance TestingSystem (AATS)testing.

Note: If you electronically submitted your ACA information the previous tax year, you do not need to gothrough steps 1-4 above again.

From the Payroll System main menu, select Reports/Tax Reporting/ACA Reports/Export 1094-C/1095-CInformation.

Year - Enter the year for which you want to export the 1094-C/1095-C information; this will default tothe current year.

https://www.irs.gov/for-tax-pros/software-developers/information-returns/affordable-care-act-information-return-air-program

https://www.irs.gov/tax-professionals/e-services-online-tools-for-tax-professionals

https://www.irs.gov/tax-professionals/e-services-online-tools-for-tax-professionals

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Make Test File - If you have conducted ACA Assurance System (AATS) testing in a previous tax year, you donot need to make a test file again and you can skip forward to the Prepare step. If this is your first tax yearelectronically filing your ACA information, click on Make Test File.

TCC - Enter the transmitter control code (TCC) you were assigned by the IRS.

Click OK and two files (a 1094-C manifest file and a 1094-C request file) will be sent to the clipboard.Save these two files and upload them to the ACA Information Return System (AIR).

Note: It will typically take 48 hours or more for the IRS to approve your test file submission and moveyour transmitter control code (TCC) and move it from test status to production status. Do not attemptto upload to the production portion of the ACA Information Return System (AIR) until this occurs.

Prepare - Click here to prepare your data for export.

Part I and II

Contact Name - Enter the name of the contact for the form 1095-C.

Number of Forms 1095-C submitted with this form - This will default to the number of formscalculated based on ALE information entered. You can change it if you intend to submit a differentnumber of 1095-C forms to the IRS.





Is this the authoritative transmittal - Each company must send one authoritative transmittal; if youare filing multiple 1094-C forms, you should choose Yes only when the form you are printing is theauthoritative transmittal.

Total Number of Forms 1095-C filed - This will default to the total number of forms calculated basedon ALE information entered. You can change it if you have filed a different number of 1095-C forms.

Member of Aggregated ALE Group - Choose Yes if you are a member of an aggregated group; that is,if this company is one of multiple companies that are combined and treated as one company for thepurposes of determining ALE status per the IRS code.

Certifications of Eligibility - Check the appropriate boxes as they apply: Qualifying Offer Method,Qualifying Offer Method Transition Relief, Section 4980H Transition Relief, and/or 98% Offer Method. Usedto completed line 22 of Part II of the 1094-C.

Note: Qualifying Offer Method Transition Relief and Section 4980H Transition Relief are no longer availablein 2016.

Visit https://www.irs.gov/affordable-care-act/employers/questions-and-answers-on-reporting-of-offers-of-health-insurance-coverage-by-employers-section-6056 for more information on methods of reporting.

Part III

Minimal Essential Coverage Offer - Choose Yes or No; did you offer minimal essential coverage eitherfor "All 12 Months" or the appropriate response for each month if different by month.

Full-Time Employee Count - This field will populate with the full-time employee count based oninformation entered into ComputerEase. If your data differs (for example, if you did your payroll for part ofthe year outside of ComputerEase), you can change it per month here.

Total Employee Count - This field will populate with the total employee count (full and part-time) basedon information entered into ComputerEase. If your data differs (for example, if you did your payroll forpart of the year outside of ComputerEase), you can change it per month here.

Aggregated Group Indicator - If you indicated on the first tab that you are a member of an aggregatedALE group, you can check the box indicating that you were a member of that group either for "All 12Months" or per month if different by month.



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Section 4980H Transition Relief Indicator - If you selected on the first tab that you are eligible forSection 4980H Transition Relief, enter the appropriate code either for "All 12 Months" or per month ifdifferent by month; applicable codes are A if eligible for the 50 to 99 Relief or B if eligible for the 100 orMore Relief.

Note: 4980H Transition Relief is no longer available in 2016.

Part IV

If you selected that you are a member of an aggregated ALE group on the Parts I & II tab, you need tofill out this section. List the other members of the aggregated group in descending order, starting withthe member with the highest average monthly number of full-time employees. If there are more than 30members of the aggregated ALE group, only enter the 30 with the highest monthly average number offull-time employees.

Name - Enter the name of the aggregated group member.

EIN - Enter the EIN for the aggregated group member.

Click OK, once you've completed the applicable fields in Parts I through IV.



Reprepare - Click here to reprepare the data.

Delete - Click here to delete the prepared data.

Export - Click here to export the data so it can be submitted. Two files will be generated to theclipboard (a 1094-C manifest file and a 1094-C request file). Save these two files and upload them tothe ACA Information Return System (AIR).

Enter the Transmitter Control Code you were assigned by the IRS.

Two files will be generated to the clipboard (a 1094-C manifest file and a 1094-C request file). Savethese two files and upload them to the ACA Information Return System (AIR).

Enter Receipt - After submitting the files to the ACA Information Return System (AIR), click EnterReceipt to enter the Receipt ID.

Update Status - After submitting your manifest and request files, you will need to check the AIRwebsite to find out the status (it may take a few hours or more for the IRS to provide a statusupdate). Once you have a status update click on Update Status.



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By default, the submit status will be in processing. The IRS will provide one of three submit statuses;Accepted, Accepted with errors or Rejected.

Accepted (no errors) - If your submission was accepted with no errors you have completedthe process and will see following screen when you click OK. Although you have completed theprocess, you will still have an opportunity to correct the 1094-C and 1095-C(s) if you need to.

Accepted with errors - If your submission was accepted with errors, you will see this screenwhen you click OK.

View Errors - You can download the error file from the AIR website and enter it's locationon this screen to view the errors.



Correct 1094 - Allows you to make changes to the 1094-C and export a corrected file.

Correct 1095(s) - Allows you to make changes to the 1095-C and export a corrected file.

Note: Once the corrected files are uploaded you will need to enter a receipt id and thenupdate the status.

Rejected - If you receive a rejected status, you will see this screen after selecting rejected.You will need to re-prepare your data and export again.

Note: Once the replacement files are uploaded, you will need to enter a receipt id and thenupdate the status.

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