ACA Information Returns Volume 1

Are you Preparing for ACA Information Returns?

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Datatech begins a new series of blog posts this week designed to help our clients make the best use of their Human Resource Management Software, and allow them to quickly and easily process their 1095-C’s for 2018. For the remainder of the calendar year, a weekly blog article will be posted that will feature different aspects of the HRM software and the overall process of creating 1095-C’s and 1094-C’s, as well as filing them with the IRS.

This week we will focus on what is needed to prepare for the filing process. As with any IRS-related topic, a good place to start is with the IRS themselves. Click the link to download the 2018 Instructions. Reviewing these regularly will provide a solid basis for understanding the process and its requirements. If you have not already done so, download and review them as soon as possible.

Take the time to note any changes that may affect your company and its reporting requirements. Key factors to consider are whether or not you or your insurance carrier have made any changes to the Medical Plan(s) you offered to your employees during 2018. It is also important to identify and memorize the meaning of Line 14 and Line 16 reporting codes used on 1095-C’s. Understanding these codes will give you the best information to help you quickly determine if your 1095-C’s are correct.

Here is a list of other important preparation questions to consider:

• Did you know that Transition Relief is no longer available?
• Will you file your Return on Paper or Electronically?
• If electronically, have TWO Responsible Officials registered a personal account with the IRS e-Services website?
• If they have, has one of the Responsible Officials completed the ACA Application for TCC (Transmitter Control Code)?
• If they have, has the second Responsible Official approved the Application?
• If they have, is your TCC in Test (T) or Production (P) Status?
• If your TCC is in Test (T) Status, do you know how to submit a set of Electronic Test Files? (Datatech has provided instructions.)
• If your TCC is in Production (P) Status, have all of your IRS e-Services users logged in during the last six months to keep their accounts active, and are their accounts using Two-Factor Authentication?
• Have you organized your reporting schedule for the 6 months starting October 1, 2018 and ending March 31, 2019?
• If you have, are you planning to do a practice Compile of 1095-C information to discover incorrect/incomplete settings and data prior to January 2019?
• Have you entered all coverage rates for any medical plans that were utilized during 2018?
• Do you have a plan for keeping your HRM Software updated during the first three months of 2019?
• Do you plan to purchase preprinted forms for 1095-C’s and your 1094-C? (The HRM software allows you to print onto preprinted forms, or you can print the entire form -either portrait or landscape formats- on blank paper.)
• Will you furnish your employee copies of the 1095-C’s along with their W-2’s, or will you be mailing them separately?
• If you are mailing them with their W-2’s, will they fit into the W-2 envelope style you have selected?
• If you are mailing them separately, will you use the Portrait Mailer format for a window envelope or the Landscape IRS format with address labels?
• If you have previously sent Solicitations for corrected information to employees with errors on their IRS data, have you entered any corrected information onto employee accounts, and have you submitted a set of electronic Correction files?
• Have you performed an audit of your HRM Software settings to detect errors and/or prevent potential errors?
• Have you performed an audit of all employee Health Benefit records to ensure you report all offers of coverage and to prevent reporting incorrect coverage dates?
• Have you performed an audit of your employee Pay Type and ACA Employee Type settings?

The following posts in this series will contain a link to instructions for a portion of the ACA Information Returns process that apply to each post. You may also download the complete set of instructions HERE.

Datatech is here to help our HRM Software users make the best use of their investment. If you have any questions regarding any blog post in this series, please call or email Datatech Support.

Phone: (800) 833-8824 Email: hrsupport@datatechag.com

Other Volumes in this Series