2018 ACA Information Returns
Series 1 Volume 3
How-To Test Compile 1095-C Information
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Our first two posts in this blog series dealt with organizing your schedule and reviewing your HRM software settings in preparation of the 2018 ACA Information Returns. This post will cover performing a test compile of your 1095-C information to help you detect which employee files may need corrections made, prior to January 2019.
Click HERE to view the attached instructions for this section of the process. You may also download the complete set of instructions HERE.
This compile can be performed any time during the year in which you are creating Payroll and Health Benefit records.
CAUTION: Never compile 1095-C information for a tax year that has already been reported to the IRS, as this will delete all of the 1095-C forms you had previously sent for that year.
The majority of errors we see on employee files are due to incorrect or missing Payroll entries, Health Benefit Offer records, Health Benefit Decline records, and Health Benefit Coverage records.
For example, if offers of coverage were made to eligible employees but some employees never returned their offer of coverage applications, have you selected the Appl. Not Returned checkbox in their Health Benefit Offer records? If you have, then using the Compile 1095-C Information window can allow the HRM software to automatically populate decline codes on Line 16 of their 1095-C forms. If you have not, you will have blank codes on Line 16, which may indicate to the IRS that you are subject to penalties.
If you have not already done so, we encourage you to perform a test compile ASAP, in order for you to begin correcting any information that may be incorrect or missing in your employee files. This will help you process your 1095-C forms as quickly as possible during January 2019. The next post in this blog series will cover how to review and edit your 1095-C transactions after you have compiled them.
Datatech is here to help our HRM Software users make the best use of their investment. If you have questions regarding any blog post in this series, please call or email Datatech Support.
Phone: (800) 833-8824 Email: hrsupport@datatechag.com