Common questions around ACA compliance and how our module assists with keeping you compliant
Q: How will my companies ACA data be presented to me? And how often will this happen?
A: Each month, you will receive automated ACA reports from the system to help you track, and maintain compliance as it relates to the Affordable Care Act requirements.
Q: Do I need to do anything to the ACA module after initial implementation or can I set it a leave it?
A: There are circumstances in which you will need to customize entries in respect to your company's particular circumstances. If inaccurate forms were to be submitted to the IRS or employees, the company could be subject to IRS penalties for incorrect returns and information statements. Our ACA module consolidates, reports, and alerts based on the data that is input from you the client. We encourage that all data is continuously reviewed for data integrity control.
Q: If I find discrepancies in my ACA data, can I fix the data? How do I go about fixing this?
A: If you find discrepancies the first step is to bring your findings to the ONEMINT Support team (email@example.com). Once the team has been able to discuss the particular concerns, we can diagnose where the origination of the data integrity begins. Often times data integrity issues step from incorrect employee profile setups or original data import
Q: Because the system doesn't calculate the W-2 wages as an affordability code, how would you recommend 2-F be applied?
A: We suggest adjusting Line 16 and apply the Safe Harbor Code to those employees you feel you offered affordable coverage to. The W-2 safe harbor is based on current year Box 1 wages. You can run the ACA Data Detailed report for the applicable year, export the information, adjust the coding as needed then import the information back into ONEMINT.
The formula for W-2 wages works like this: Formula = W-2 wages * (calendar months offered coverage / months of employment) Then, wage to use is multiplied by affordability percentage and divided by the number of months coverage was offered. Example Jack is hired by XYZ Inc. on May 05, 2017, and is offered coverage on August 1, 2017. His W-2 wages according to Box 1 of his W-2 are $28,000. In this scenario, an adjustment is made to the W-2 wages used in the affordability calculation Since Jack was not employed the entire year and was not offered coverage the entire year, a formula is used to determine affordability. To find the fraction you take the number of months offered coverage (if offered in the middle of the month the month counts) / number of months employed (Partial months count) Formula = Box 1 W-2 wages * (calendar months offered coverage / months of employment) = $28,000 * (5/8) = $17,500. The W-2 wages used in the affordability calculation are adjusted to $17,500. Take $17,500 * 9.69% (2017 rate) = $1,695.75 / # of months offered coverage (5) ($16,957.5)/5 = $339.15 If the lowest cost plan offered to the employee was under $339.15 per month then the plan is affordable based on the W-2 safe harbor. If it was not then you did not offer an affordable plan to this employee and cannot claim the safe harbor on the 1095-C form for any month of the year.
Q: If receiving (1095-C form) electronically and the Mask SSN is marked in the system, will the SSN still be masked?
A: Yes, it shows to the employee as a Masked or Truncated SSN - the system does still show the last 4 numbers.
Disclaimer: Please note that, ultimately, it is the clients responsibility to insure the accuracy all 1094-C and 1095-C data. We highly advise that you carefully review these reports each month for data integrity issues.