How to set up Affordable Care Act (ACA) in Sage 100

With the release of Sage 100 2015, Sage now offers support for ACA Reporting in the Sage 100 Payroll Module. The new functionality is available with the following Sage 100 versions:

  • Sage 100 2015 – Product Update 1
  • Sage 100 2014 – Product Update 5 (Released March, 2015)
  • Sage 100 2013 – Product Update 9 (Released November 2015)
  • Sage 100 4.50 – Product Update 8 (Released November 2015)

In addition, Sage released additional Product Updates in November for Sage 100 versions 2014 and 2015 with additional ACA enhancements. To be fully compliant, please install Sage 100 2014 Product Update 7 and Sage 100 2015 Product Update 3.

After upgrading or installing the applicable Product Update, you must first enable Role Security to allow access to the new tools:

  • Open Library Master > Main > Role Maintenance
  • Select the applicable Role that will access the ACA tools
  • Select the following check boxes to enable rights to the tools:
    1. Tasks Tab – Payroll > Maintenance/Data Entry > select ACA Employee Maintenance
    2. Tasks Tab – Payroll > Maintenance/Data Entry > select ACA Employer Maintenance
    3. Tasks Tab – Payroll > Reports/Forms > select ACA Applicable Large Employer Report
  • Click Accept.

Late in 2014 all Sage Payroll customers were notified that the ACA tools would be added during the 2015 year. Sage advised all Payroll customers at that time to make sure that the Retain Perpetual History option was selected in the Payroll Options. If you do not have the Retain Perpetual History option selected, you will not have accurate information to populate the ACA tools, and it will be necessary to manually enter your employer information.

The next step is to determine whether you are required to track and report information regarding employee health care coverage. Effective in 2015, employers with 50+ full-time employees (or a combination of full-time and full-time equivalent (FTE) employees) are subject to the Employer Shared Responsibility provisions under the Affordable Care Act. Employers are required to track information around employee coverage by month and the number of full-time employees for IRS reporting purposes. Employers with 50+ full-time employees will be required to report.

Employers now need to:

  • Track employee and dependent health care details
  • Determine full-time and FTE employee counts by month
  • Produce new IRS forms for their company and employees
  • File IRS forms
  • Mail forms with ACA information to employees

To help you determine whether you are subject to the Employer Shared Responsibility Provisions, Sage had provided the Applicable Large Employer Report (ALE Report). (Note: The ACA Applicable Large Employer Report is offered as a self-help tool for your independent use. Sage cannot and does not guarantee the report’s accuracy or applicability to your circumstances. To comply with the Affordable Care Act, hours of service must be reported by calendar month. Because hours worked are tracked by pay periods in Sage 100 and pay periods may span more than one month, a calculation is performed to get an approximate monthly total. The total is an estimate and may not reflect the actual hours worked. For specific tax or legal advice, see a professional tax service provider or an attorney, as appropriate.)

To run the Applicable Large Employer Report:

  • Open Payroll > ACA > ACA Applicable Large Employer Report
    Earnings to Exclude
  • Click Earnings to Exclude to specify which (if any) earnings codes you want to exclude from the report
  • In the Period End Date Range Starting and Ending fields, enter the date range for the report.
    1. The maximum date range is 12 months
    2. Because of the need to prorate the hours worked for pay cycles that span multiple months, the report calculations will be more consistent when you generate the report for the maximum 12-month date range.
  • Select the Print Seasonal Employees check box to include information for seasonal employees in the report.
    Seasonal Employees

    1. Seasonal employee information is printed in a separate section on the report, and their information is not included in the report totals.
  • Select the Print Totals Only check box to print only totals. Leave this box clear to print employee detail.
  • Print and review the report. Change selections and reprint if needed.
    ALE REPORT
  • Close the task window.
  • The following message will appear: Do you want to update the Full-Time and Total Employee Counts to the ACA Employer file?
    UPDATE TO ACA FILE
    Click Yes.
    After clicking Yes, the employee counts will be updated to the ACA Employer file which appears in the ALE Member Information – Monthly window accessed from ACA Employer Maintenance.

Next, you must set up ACA Employer Maintenance. This is the information that will appear on Form 1094-C:

  • Open Payroll > ACA > Employer ACA Maintenance
  • Enter the applicable Calendar Year
  • The Employer Name, Address, and EIN auto-populate from Company Maintenance
  • Enter the Contact Name and Contact Phone Number
    EMPLOYER MAINT 1
  • If your company is a Designated Government Entity, fill in all applicable fields
  • Select the check box if your company is an ALE Member Part of an Aggregated Group during any month of the calendar year.
    ALE MEMBER AGGREGATE GROUP

    1. Note: An Aggregated ALE Group refers to a group of ALE Members treated as a single employer under section 414(b), 414(c), 414(m), or 414(o). An ALE Member is a member of an Aggregated ALE Group for a month if it is treated as a single employer with the other members of the group on any day of the calendar month. If an ALE is made up of only one person or entity, that one ALE Member is not a part of an Aggregated ALE Group. Government entities and churches or conventions or associations of churches may apply a reasonable, good faith interpretation of the aggregation rules under section 414 in determining their status as an ALE or member of an Aggregated ALE Group.
    2. Click the Other Members button to enter the names and Federal EINs of other members of the same group.
  • Click the Monthly Detail button to enter information for each month. You can automatically update the employee counts when you print the ALE Report.
    ALE MEMBER INFO MONTHLY

    1. If Retain Perpetual History was not selected in Payroll Options, you will need to manually enter employee counts in the window.
  • In the ALE Member Information – Monthly window, enter and review the following for each calendar month:
    1. Min Essential Coverage – Select this check box if your company offered full-time employees an opportunity to enroll in an employer-sponsored health care plan that meets the ACA minimum essential coverage requirements. Clear the box if your company did not.
    2. Full-Time Employee Count – Enter the number of full-time employees. This field can be automatically filled in by generating the ACA Applicable Large Employer Report and then clicking Yes to update the counts to the ACA Employer file.
    3. Total Employee Count – Enter the number of full-time and full-time equivalent (FTE) employees. This field can be automatically filled in by generating the ACA Applicable Large Employer Report and then clicking Yes to update the counts to the ACA Employer file.
    4. Aggregated Group – Select this check box if your company is a member of an aggregated group.
    5. Transition Relief Indicator – If your company is eligible for section 4980H transition relief, enter the code indicating the type of relief for which it is eligible. For information regarding Transition Relief Indicators, try one of the following:
      1. http://www.thetaxadviser.com/issues/2014/apr/taxtrends-april2014-story-01.html
      2. https://news.leavitt.com/health-care-reform/employers-qualify-one-year-delay-pay-play-penalties/
      3. http://www.journalofaccountancy.com/issues/2014/jul/assessable-payment-20139334.html
      4. http://acareportingservice.com/4980h-transitional-relief/

The next step, and most time-consuming task, will be to set up ACA for Employees. You can access this task either from Employee Maintenance (click ACA button on Main tab) or from the Payroll > ACA folder menu (ACA Employee Maintenance).

EMPLOYEE MAINT - ACA BUTTON

Once you have access ACA Employee Maintenance:

ACA EMPLOYEE MAINT 1

  • The 1095-C Electronic Consent Signed box is view only. If you need to select this box, go to Employee Maintenance > Wages > Filing Status.
  • If applicable, select Provided Self Insured Coverage.
    • Select this check box if the employee was enrolled in an Employer-sponsored self-insured health coverage plan offered by your company during any part of the calendar year.
    • Selecting this check box will enable the Covered Individuals button, where you can enter additional information for each covered individual.
    • Clear the check box if the employee was not enrolled in an Employer-sponsored self-insured health coverage plan offered by your company for any part of the year.
  • Click the Monthly Details button, for each calendar month, to enter the following:
    ACA EMPLOYEE MAINT 2

    • Offer of Coverage – Select the applicable code for the type of coverage offered to employees from the lookup
      ACA EMPLOYEE MAINT 3

      • Indicator codes for employee offer and coverage – this code populates into Form 1095-C Part II Line 14.
    • Employee Share of Lowest Cost – enter the employee’s share of the lowest-cost monthly premium for self-only minimum essential coverage providing minimum value that is offered to the employee.
      • Enter the amount including any cents (60.00, 60.75)
      • If the employee is not required to contribute toward the premium, enter 0.00
      • This amount populates Form 1095-C Part II Line 15
    • Applicable Section 4980H Safe Harbor – select the applicable Safe Harbor code from the lookup
      ACA EMPLOYEE MAINT 4

      • This code populates Form 1095-C Part II Line 16
    • Click Accept
    • Click the Covered Individuals button (only available if Provided Self Insured Coverage check box is selected)
      ACA EMPLOYEE MAINT 5

      • Use the Covered Individuals window to enter information for employees and their dependents who were enrolled in employer-sponsored self-insured health coverage offered by your company during any part of the calendar year. This information populated Form 1095-C Part III.
      • Enter the Full Name, Social Security No., Date of Birth and select applicable calendar months that each individual was covered (including the employee)
      • Covered All Months – select this check box if the individual was covered for at least one day in every month of the year. Clear this box if the individual was not covered for at least one day in every
      • Months – If the individual was not covered for at least one day in every month of the year, select the check box for each applicable month in which he or she was covered.
    • Click Accept

Sage has provided a spreadsheet tool to allow you to enter the information required for employees and import it into the applicable tables using the Visual Integrator. Your Sage Business Partner can provide you with this tool, or you can download it from the Sage Customer Portal or Sage City ACA Center.

ACA SAGE CITY WORKSHEET

ACA WORKSHEET

Sage will be providing tools to generate the required Forms 1094-C and 1095-C with the Aatrix year-end update to be released on December 20, 2015. A 1095-C form will be generated for all employees who have information entered in the ACA Employee Maintenance > Monthly Detail and/or Covered Individuals screens. The forms will be printed to plain paper – no pre-printed forms will be required.

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