What does ACA stand for and how does it affect ministries in the US?
ACA stands for the Affordable Care Act which was signed into law in 2010. The ACA law makes it a shared responsibility of individuals, employers, and the government to ensure that as many people as possible have health insurance.
The law does not require all U.S. employers to offer health insurance to their employees. It only requires an employer defined by federal regulations as an Applicable Large Employer (ALE) to offer health insurance to its employees. An ALE must make insurance available to their employees or pay a penalty. They must also report the employee-provided health insurance to the federal government.
Click on the image below to view a walk-through of the ACA Reporting:
So what exactly should I do to get ready for ACA reporting?
The first and most important thing to do is to determine if you are required to report the health care of employees to the federal government. This can be determined by two criteria:
1. If you are an employer that has over 50 Full-Time Equivalent (FTE) employees, you are considered an Applicable Large Employer and are required to report health care information to the federal government.
Use the following link to calculate your Full-Time Equivalent employees:
https://www.Healthcare.gov/Shop-Calculators-FTE/
2. If you are an employer that is self-insured, you are required to report health care information to the federal government. (Effective for calendar year 2015. This rule was optional for 2014.) For more detailed information on how the Affordable Care Act affects employers, click the following link:
https://www.irs.gov/Affordable-Care-Act/Employers
If I am required to report my health care information to the federal government, what can I do to get started?
We highly recommend that you download the IRS forms and instructions and familiarize yourself with the data that is required. If you are an Applicable Large Employer (ALE), then you are required to file form 1094-C and 1095-C. Below are links for these forms and their instructions.
https://www.irs.gov/uac/About-Form-1094-C
https://www.irs.gov/uac/About-Form-1095-C
If you are not an Applicable Large Employer (ALE) but you are self-insured, then you are required to file form 1094-B and 1095-B. Below are links for these forms and their instructions.
https://www.irs.gov/uac/About-Form-1094-B
https://www.irs.gov/uac/About-Form-1095-B
What can I do to prepare my data before printing or e-filing the ACA reports?
To prepare your data for ACA Reporting, we recommend that you verify the following fields on each employee record before running the ACA Reporting option:
First Name
Middle Name
Last Name
Address (Address Line 1, City, State, and Postal Code)
Hire Date
Work Status
Employment Status
Social Security Number
If you are a v.5 or Arena customer and are a self-insured employer, then the family members entered in v.5 or Arena automatically show as covered individuals on the ACA reports. Information on covered individuals is only required if the employer is self-insured. If you are self-insured, we recommend that you verify the following fields for each family member before running the ACA Reports:
First Name
Middle Name
Last Name
Date of Birth
Social Security Number
How do I access the ACA reporting option in the Financials or v.5?
The ACA reporting option is accessed using the Payroll Reports menu. It guides employers through the process of creating the reports needed for federal filing. These reports include the 1094-C and 1095-C forms if you are an ALE, or the 1094-B and 1095-B forms if you are self-insured. These forms can either be printed or e-filed.
Compiled 1/3/2017 8:04 AM