aca compliance management - reports · note: employees with an aca status of seasonal (< 120...

ACA Compliance Management – Reports

2 Symphony Employer Services, Inc.

ACA Compliance Management- Reports

ACA Compliance ManagementSeveral reports are available to assist with ACA reporting. Understanding these reports will help to ensure thatUsers are able to manually update and verify the ACA status for each employee in the company.

The reports will also help to determine if the company is considered an Applicable Large Employer who must offerbenefits to employees.

This guide is designed to provide clarification on the reports, as well as to give an example of a process that aclient can use to make determinations and adjustments to the ACA Status of an employee, as well as todetermine if the employee is eligible for Benefits.

Step 1: Applicable Large EmployerUse the ACA FTE Report (2711) to determine if the company meets the Applicable Large Employer FTE count. Thisreport will display the FTEE counts. If the employer counts as an Applicable Large Employer, move on to Step 2. Ifthey do not, no additional steps are needed. This company is exempt from the ACA penalties.

ACA FTE Report (S2711)

An employer determines if it is an applicable large employer for a current year by counting how many full-timeemployees and full-time equivalents it employed during the prior calendar year. The ACA FTE Report (S2711) is acompany-level report, designed to calculate the number of full-time equivalent employees, for compliance withthe Affordable Care Act.

Full-Time Equivalent status is calculated based on the following criteria:. Employee position status. Pay frequency. Hours keyed in payroll for the selected period

Employees not included in the Full-Time Equivalent calculation are listed below.. Employees with a position status of Seasonal (< 120 days). Full-time employees, or

. Full-time temp employees


Symphony Employer Services, Inc. 3

Note: The monthly hours used to calculate eligibility for employees who are not full-time is limited to120. The report still shows the employees’ total hours worked in the Total Hours column, but thecalculation to determine the FTEE Count only uses up to l20 of those hours.

The table below describes the report parameters found on the report Misc tab.

Parameter Reference InformationReport Mode Detail: The monthly results include employee detail on the report.

Summary: The monthly results do not include employee detail.

Detail Sort EE Code: Report sorts information by EE Code.EE Last Name: Report is sorted by employee last name.

E/D Group Select an E/D Group to limit the report results to that specific group.

Calculate Hours This option is selected only when calculating single payrolls. This is used to calculate thetotal hours* for the month using the eligible hours in the payroll for each employee.*See information below regarding the Total Hours calculations when using the CalculateHours parameter.

Daily Used in conjunction with the Calculate Hours parameter. Daily is used if the employee doesnot have any hours in the EB E/D Code listed in the check line, or any standard hoursidentified on the Employee – Employee – EE Entry tab.

Use Monthly Averagecheckbox

Selected: The grand totals reflect an average of the FTE and FTEE’s based on the number ofmonths for which the report was generated.Not Selected: The totals reflect the greatest number of FTE and FTEEs, based on the monthsfor which the report was generated.

Round FTE to two decimalscheck box

In the case of fractions, round the totals to two digits to the right of the decimal

Include Only Ml ACA Hourswith Line Item Date forSetup (E) and Import (I)Payroll Types checkbox

Checked: Ignores any regular hours in Set up or import payrolls and only looks at Ml ACAHours.Unchecked: Looks at regular hours included in Setup and Import payrolls and ignores anyMl ACA Hours, unless the ACA Hours are a part of an E/D group that is being pulled into thecalculations

Total Hours Calculation

The Total Hours column on the ACA FTE Report (S2711) is the per employee sum of the hours taken from eachpayroll during the period range.

When the Calculate Hours option is selected, the Total Hours column displays the total hours for a month periodbased on the hours for the employee in the payroll, and their pay frequency.

Note: The Calculate Hours parameter should only be selected when generating the report from only onepayroll. Selecting this option for multiple payrolls results in overstated total hours calculations.



The table below displays what would show in the Total Hours column for an employee if the Calculate Hoursparameter was selected and the employee worked 40 hours per week during the payroll.

Pay Frequency Payroll Hours Calculation Method Total Hours ColumnWeekly 40 Multiply by 4 160 Hours

Bi-Weekly 80 Multiply by 2 160

Semi-Monthly 86.67 Multiply by 2 173.34

Monthly 160 Do not multiply 160

Quarterly 520 Divide by 3 173.33

Daily 8 Multiply by 5 days, then by 4weeks

160

Full-Time Equivalent Calculation

Employees with an ACA Status (on the Employee - Employee - EE Entry screen) of Part-Time, Part-Time Temp, Half-Time, Seasonal, Student, 1099, and Other are included in the FTEE calculation. The hours are totaled by month anddivided by 120 to determine the number of FTEs. The grand total of FTE and FTEE’s for the company, based on themonths for which the report is generated, is displayed in yellow underneath the employee list.

Note: Employees with an ACA Status of Seasonal (< 120 days), Full Time employees, and Full Time Tempemployees are not included in the FTE calculation.

Large Employer Determination

To determine if the employer is an Applicable Large Employer (ALE), add the totals for the Full Time EmployeeCount and the Full Time Equivalent Employee Count. If the total FTEE Count is greater than 50, Continue to Step 2:Inactive Employees



Step 2: Inactive EmployeesUse the Inactive Employees report to look back 13 weeks (26 weeks for Education organizations) in Payroll checksto see if any employees are currently inactive. Employees who have been inactive for longer than the 13 or 26week look back period can have their ACA Status changed to be New Hire if they are still employed by thecompany. These employees may not be eligible for Benefits if they are not in their Stability Period.

Inactive Employee Report (S2731)

The Inactive Employee Report (S2731) is a company-level report that identifies employees that have not beenincluded in payrolls during a designated look back period. The Employees that may show on the report will haveCurrent Status Codes of:. Active: A. Seasonal: S. Suspended: P. Leave of Absence: V. Military Leave: Y

. FMLA: Z

To use this report:1. Go to Reports – Run Reports.2. Select and open the company for which to run the report.3. Select the Inactive Employee Report (S2731).4. Click the Report Parameters tab.5. Update the parameters, as needed, on all applicable tabs.6. Click Run Report.7. Review and update the Position, ACA, and/or the Current Status codes for any employees that show on

the report.



Inactive Employee Report (52731) Report Parameters

Tab Field FunctionPayrolls Payroll Selection Select the payrolls to review.

Misc. Tab Grouping and Sorting Select grouping and sorting options.

Misc. Tab Number of Weeks Enter the number of weeks to include in the look back period.This defaults to 13.

Misc. Tab .CSV output Report generates in a .csv format.

Misc. Tab Page Break after each group Displays each group on separate pages.

Misc. Tab Show Terminated Employees Allows report to look at terminated employees.

Misc. Tab Mask Sensitive Information Excludes sensitive information from displaying on the report.

Employee Filter Employee Filter Select specific employees (if applicable).

DBDT Filter DBDT Filter Select D/B/D/T level (if applicable).

Step 3: Rule of Parity ReportUse the ACA Rule of Parity report to determine if there was a break in service that would qualify an employee tobe set to an ACA Status of New Hire. This report will give the user the ACA Rehire Status of Rehire or Continuing.For any employee given the ACA Rehire status of Rehire, the ACA Status may need to be updated to New Hire.These employees may not be eligible for Benefits based on the ACA Regulations.

ACA Rule of Parity Report (S2834)

The ACA Rule of Parity Report (S2834) is a company-level report that accounts for the Return-to-Service Rulesallowances under the Affordable Care Act:

The ACA Rule of Parity is solely for the purpose of determining the full-time employee status foremployers using the look-back measurement method.

Return to Service Rules

If a returning employee has had no hours of service for at least 13 consecutive weeks, the employer may treat thisperson as a new employee. If the period of absence is shorter than 13 consecutive weeks, the employer may applyan optional “rule of parity” and treat the employee as a new employee, provided that the absence is:. Longer than four weeks but shorter than 13 weeks

AND

. Longer than the period of employment.

Note: For educational organizations, the number of weeks is increased from 13 to 26 in all calculations.



Example

Jane is employed by Myrtle s Quilts for three weeks, terminates employment, and is rehired 10 weeks later.Myrtle s Quilts may treat Jane as a new employee for determining full-time status. Upon returning, Jane wouldbe subject to the company s measurement period for eligibility coverage.

Rule of Parity Look Back Period

The ACA Rule of Parity Report (S2834) looks back 39 weeks from run time, or from the check date of the mostcurrent selected payroll, to determine if the employee was included in a payroll. If a check for the employee isfound, that check date will be used:. To determine how many weeks the employee was unpaid from the current hire date to the check date,

AND

. How many consecutive weeks the employee was paid from the check date through the start of the39-week look back period.

Note: For educational organizations the Look Back Period is increased from 39 weeks to 52 weeks.

To use this report:1. Go to Reports – Run Reports.2. Select and open the company for which to run the report.3. Select the ACA Rule Of Parity Report (S2834).4. Click the Report Parameters tab.5. Select the parameters on the Misc, Employee Filter, and DBDT tabs.6. Click Run Report.7. Review and update the Position, ACA, and/or the Current Status codes for any employees that show on

the report with an ACA Rehire Status of “Rehire”.



ACA Rule of Parity Report (52834) Report Parameters

Tab Parameter FunctionPayroll Check Date Period/Select

PayrollsSelect the payroll to use as the last day of the Look BackPeriod. Do not select a payroll to use the current date asthe last day of the Look Back Period.

Misc Page Break by ACA RehireStatus

Groups employees by rehire status on separate pages.

Misc Educational Organization Select this option if the company is an EducationalOrganization.

Misc Include Only Ml ACA Hourswith Line Item Date for Setup(E) and Import (I) Payroll Typescheckbox

Checked: Ignores any regular hours in Set up or importpayrolls and only looks at Ml ACA Hours.Unchecked: Looks at regular hours included in Setup andImport payrolls and ignores any Ml ACA Hours, unless theACA Hours are a part of an E/D group that is being pulledinto the calculations

Misc CSV Output .csv format is available.

Employee Filter Employee Filter Select specific employees for which to generate thereport.

DBDT Filter DBDT Filter Select specific D/B/D/Ts for which to generate the report.



ACA Rule of Parity Report (52834) Columns

Once generated, the report includes several columns of information. These columns are used to determine theACA Rehire Status for each employee.

Column DescriptionLook Back Period The period of time the report is looking back to calculate the ACA Rehire Status.

Last/First Name Employee names.

Current Hire Date The date on the Employee – Employee – EE Entry tab in the Current Hire Datefield.

Original Hire Date The date on the Employee – Employee – EE Entry tab in the Original Hire Datefield.

Current Term Date The date on the Employee – Employee – EE Entry tab in the Current Term Datefield.

Current Status Code The status code on the Employee – Employee – EE Entry tab in the CurrentStatus Code field.

Last Check Date The date of the last check the employee received during the look back period.

Weeks Unpaid The number of weeks during the look back period that the employee did notreceive any paid hours in their paycheck.

Weeks Paid The number of weeks during the look back period that the employee did receivepaid hours in their paycheck.

ACA Rehire Status The current ACA Rehire status based on the calculation.



Step 4: ACA Eligibility AnalysisUse the ACA Eligibility Analysis report to review the benefit eligibility of the employees in the company based onthe ACA Regulations. This report displays employees as of a specific hire date and shows the ACA Status and theaverage hours worked per month/week during the Measurement Period. This will help to determine whether anemployee meets the criteria to offer benefits.

ACA Eligibility Analysis Report (S2713)

The ACA Eligibility Analysis Report (S2713) is a company-level report designed to help companies analyze theeligibility of individual employees for employer-paid health insurance. Use this report by reviewing the AverageHours worked for employees as they move through their Initial and ongoing measurement Periods. At the end oftheir measurement period, employees that are averaging Full Time hours, 30 hours per week or 130 hours permonth, should have their ACA Status updated to Full Time. Employees who do not reach this threshold should beupdated to their appropriate ACA status as well.

To use this report:1. Go to Reports – Run Reports.2. Select and open the company for which to run the report.3. Select the ACA Eligibility Analysis Report (S2713).4. Click the Report Parameters tab.5. Update the parameters on all applicable tabs.6. Run the report and review the Hours for the employees.7. Use the table on page 9 to update the ACA Status for the employees who are completing their Initial or

Current ongoing ACA Measurement Period.



The table below describes the recommended status updates to employees based on their current ACA Status andthe Average Hours they worked during the Measurement Period.

Status during InitialMeasurement Period

Average hours duringInitial MeasurementPeriod

New Status for Stability Period

>=130/Month OR >=30/Week Full-TimeNew Hire

<130/Month OR <30/Week Part-Time

>=130/Month OR >=30/Week Part-TimePart-Time


>=130/Month OR >=30/Week No ChangePart-Time Ongoing

<130/Month OR <30/Week No Change

>=130/Month OR >=30/Week Full-Time OngoingFull Time

<130/Month OR <30/Week Full-Time

>=130/Month OR >=30/Week No ChangeFull Time Ongoing

<130/Month OR <30/Week No Change(If a break in service occurs, re-status asNew Hire)

>=130/Month OR >=30/Week Full-TimeVariable


>=130/Month OR >=30/Week Full-TimeSeasonal


N/A N/ASeasonal <120 days

N/A N/A

N/A N/ADoes Not Apply

N/A N/A



ACA Eligibility Analysis Report (52713) Report Parameters

Tab Parameter FunctionMonth Range Override

CompanyMeasurementand StabilityPeriods

Selecting this field allows the user to enter a new measurement andstability period when running this report. When not selected, thereport will use the measurement and stability period found on theCompany – General –Company Info – ACA Tab by default.

Month Range MeasurementPeriod

The measurement period that an employer chooses to apply toongoing employees to determine their full-time status is referred to asthe standard measurement period.*This report uses the periods found on the Company – General –Company Info – ACA Tab by default.

Month Range Stability Period The amount of time for which the employer owes benefits to theemployee once s/he is determined to be full-time.*This report uses the periods found on the Company – General –Company Info – ACA Tab by default.

Month Range Date of Hire Hire date range of the employees that will be included in the report.

Misc. Tab Grouping andSorting

Grouping and sorting options for the report.

Misc. Tab Show Employees Select Hourly, Salary, or Both to display on the report. Salariedemployees that are not full-time must have hours entered into thepayroll using a memo E/D Code.

Misc. Tab Period of AverageHours

The period on which to base average hours.Month: Average hours are calculated by dividing the total hours for themeasurement period by the number of months in the measurementperiod.Week: Average hours are calculated by dividing the total hours for themeasurement period by the number of weeks in the measurementperiod. *This option allows users to define E/D Code Groups to identifyearnings that belong to the week, in the case of bi-weekly payrolls.

Misc. Tab AdditionalWorked Earnings

Select additional worked earnings to include, if applicable.

Misc. Tab Base Average onProcessedPayrolls

When selected, the Average Hours Per Month/Week column of thereport reflects the average hours based on the number ofmonths/weeks in which payrolls included hours for that employeeduring the Measurement period. When not selected, the AverageHours per Month/Week column reflects the average hours theemployee worked across all months/weeks in the measurementperiod, regardless of whether the employee worked payrolls duringeach month or week.



ACA Eligibility Analysis Report (52713) Report Parameters continued…

Tab Parameter FunctionMisc. Tab Include Totals The report includes a total employee and total hours count.

Misc Tab Show TerminatedEmployees

Display employees who have been terminated.

Misc Tab Additional OutputOptions checkbox

Select to create output in ASCII or Excel format

Misc Tab Include Only MlACA Hours withLine Item Date forSetup (E) andImport (I) PayrollTypes checkbox

Checked: Ignores any regular hours in Set up or import payrolls andonly looks at Ml ACA Hours.Unchecked: Looks at regular hours included in Setup and Importpayrolls and ignores any Ml ACA Hours, unless the ACA Hours are apart of an E/D group that is being pulled into the calculations

DBDT Filter DBDT Filter Select D/B/D/T level, if applicable.

Job Filter Job Filter Select Job(s), if applicable.

Home StateFilter

Home State Filter Select the home state for which to run the report. More than one maybe selected if multiple home states exist.

Union Filter Union Filter Select union(s), if applicable.



ACA Eligibility Analysis Report (52713) Columns

Column DescriptionEmployee Name Displays the employee s name and social security number.

Custom Number Displays the employee number.

Date of Hire Displays the date in the Employee –Employee – EE Entry – Current Hire Date field

Age Displays the employee s age as of the date the report is generated.If an employee’s age is either less than 25 years old or over 64 it is displayed in bold. Thisidentifies employees who may not need their own insurance (i.e. employees over age 64must enroll in Medicare, and employees who are age 26 and under can stay on theirparent’s plan). If the employee’s age is 25 or 64 it is underlined. This indicates an employeethat will soon experience a change to healthcare-related requirements on their nextbirthday (i.e. Bob is 25; his healthcare requirements will change on his next birthday).

Hire Status Displays the hire status based on the Measurement Period.Ongoing: Employees whose hire date is prior to the Measurement Period.New Hire: Employees whose hire date is within the Measurement Period.

ACA Status Displays the ACA Status from the Employee –Employee – EE Entry – ACA Status field.

Division/Branch/Department/Team/Job

Displays the D/B/D/T information for the employee.

Union Displays the union information for the employee.

Salary Employee Salary employees display Yes.Hourly employees display No.

Home State Displays the home state for the employee.

Hours Displays the number of hours paid to the employee in payrolls that occur during theMeasurement Period.

Average Hoursper Month/Week

Month: Displays the number of hours from the Hours column divided by the number ofmonths in the Measurement Period.*Week: Displays the number of hours from the Hours column divided by the number ofweeks in the Measurement Period.**If the option Base Average on Processed Payrolls is selected, the number of hours isdivided by the number of Weeks/Months in the measurement period that the employeewas included in payroll hours.



Step 5: ACA Status AuditUse the ACA Status Audit Report to find and review employees for whom the ACA Status has been changed. Bychecking this report, users will be able to update the Position Status for each employee and ensure that they areoffering Benefits for each employee. Benefits should be offered to employees who became Full Time based on theReports run in the prior steps.

ACA Status Audit Report (S3085)

The ACA Status Audit Report (S3085) is a company level report that is designed to show the latest change withinthe audit period selected.

To use this report:1. Go to Reports – Run Reports2. Select and open the company for which to run the report3. Select the ACA Status Audit Report (S3085)4. Click the Report Parameters tab5. Update the parameters on all applicable tabs6. Run the report and review the New Status of the Employees7. Update the Position Status of any applicable Employees

This report displays the employees new ACA Status as well as their previous status. The Date field denotes whenthe change was made to the Employees ACA Status.

When the following is displayed in the Previous Status Column, *! , further investigation may be required on thepart of the user. This symbol means that there may be multiple changes for a single date for this employee. Toensure that the ACA Status is accurate, and that the company is offering insurance to all of the appropriateemployees, it is best to investigate the employee using the Field Audit on the Employee Record.



Step 6: Offer BenefitsWith the Employees changed to Full Time in their Position Status, they may now be eligible for Health Benefits thatare offered to Full Time Employees.

HR ModuleIf the Company is using the HR Module, benefits must be offered outside of Evolution. Employee elections arerecorded in the HR Module with the Employee’s benefit and dependent information.

Adding HR Data to EmployeesTable entries that are created in the HR Module can be used with employee records. The HR Administrator canassign benefits, track attendance, performance ratings and emergency contacts, among other data. To add detailsfor an employee:

1. Go to HR Module – Employee.2. Select Benefits.3. Select the employee and click the plus sign in the toolbar to add a new record.



4. Select the appropriate details

Note: Once the Benefits and Dependents are completed, click the EE Scheduled E/D Button to setup orreview the Scheduled E/D for the Benefit.

5. Click the Dependents & Beneficiaries tab6. Click Create to add a new record

a. Add dependents and beneficiaries, as appropriate



Assign Dependents

Dependents can be assigned to a specific benefit from the Assign Dependents tab. For Self-insured employers, the1095 B&C will use this information to display the number of dependents, and their names on the form when it iscreated with the rest of the year-end tax forms.

To Assign Dependents:1. Go to HR Module – Employee – Benefits – Assign Dependents tab.2. Click the benefit in the Benefit Summary section.3. Click the dependent in the Available Dependents section.4. Click the Add button to assign the dependent to this benefit.

Note: The Benefit must be setup to allow Dependents. Benefits are setup in Company – Benefits - Benefits

Scheduled E/Ds onlyIf the Company is not using the HR Module, Benefits must be offered outside of Evolution. Dependent informationwill not be entered into Evolution. The user will need to enter the Scheduled E/D manually into the Employee sScheduled E/Ds.

To enter a Scheduled E/D:1. Go to Employee – Scheduled E/Ds2. Select the employee and then click the plus sign to create a new record.3. Select the benefit E/D code from the dropdown list4. Select the Company Benefit and Rate information.



If Benefits are not setup in Company – Benefits, enter the benefit amount manually instead of selectingthe Company Benefit and Rate.

5. Update the Effective Start Date and Effective End Dates as needed.6. Post and Commit changes.

Step 7: ACA AffordabilityUse the ACA Affordability Report (S3082) report to check the affordability of benefits that are set up for thecompany. This report can be run at any time and should be run on a regular basis to monitor affordability forall employees.

ACA Affordability Report (S3082)

The ACA Affordability Report (S3082) was created to determine whether the health care plan a company offers itsemployees is affordable, according to the 9.5% Rule for Affordable Health Care. The report compares employees’monthly wages/yearly income against the cost of the lowest cost employee-only medical benefit rate.



Report Parameters

The table below describes the report parameters found on the Report Parameters Misc tab when generating thereport.

Parameter Reference InformationDetail Sort specify how the results should be sorted; by employee code, employee last name,

or ACA status

Benefit select the benefit to be determined as affordable

Calculation Method select the calculation method to use when running the reportEarned Income (W-2) - based on the employee’s income earned for the selectedperiodHourly Rate - based on the employee’s monthly rate (the hourly rate multiplied by130)

Date Range select the date range within which the company benefit is available

Benefit Rate the EE only rate is the default - select the rate for the benefit tier selected (forexample EE + Family)

Use Primary Pay RateCheckbox

default is to use the primary rate for calculations - unselect if another rate is to beused instead

Show Affordability Issuescheckbox

unselected is the default - select to have a column that identifies which employees’benefits exceed the 9.5%, thus being identified as not affordable.

Additional OutputOptions checkbox

Select to export results to CSV format.

aca compliance management - reports · note: employees with an aca status of seasonal (< 120...

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