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JD Edwards World United States Affordable Care Act Year End Processing

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SCRIPT Tutorial Name: JD Edwards World United States Affordable Care Act Year End Processing for 2015 TOI Script Suggestions Here are a few ideas to keep in mind when creating the script for your tutorial:
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SCRIPT Tutorial Name: JD Edwards World United States Affordable Care Act Year End Processing for 2015 TOI Script Suggestions Here are a few ideas to keep in mind when creating the script for your tutorial: 1. Start your script with a few introductory sentences that describe what you will be doing and why it s important to the audience. You may also want to include your audience. 2. Use we and you as the voice for your script. 3. End your script with a summary of what you just did. 4. Have someone review your script before recording. This could be a coworker, or if you aren t familiar with the subject matter, it should be Development. Step Action on Screen Narration First slide 1 Agenda for the TOI 2 3 IRS Reporting Overview Welcome to the JD Edwards World US Affordable Care Act Health Coverage Information Returns TOI Part 1. This TOI describes how to perform year-end tasks for producing Health Coverage Information Returns, including data preparation and setup, generating and working with reporting information, and printing forms and reports. The Affordable Care Act Health Coverage Information Returns (AIR) presents a unique set of reporting requirements to employers. All Applicable Large Employer (ALE) Members are required to file Forms 1094-C and 1095-C for This TOI focuses on the latest enhancements for the Affordable Care Act to support IRS reporting requirements. I will provide an overview of the legislative requirement and JD Edwards plans for supporting it. We will then cover the preparation and setup that you will do in order to produce year-end deliverables, leading then into the year-end processes themselves building workfile data, reviewing workfile data, and producing forms. After that, we ll cover future roadmap deliverables for year-end reporting as well as review of some of the resources available for your ongoing reference as you are adopting this functionality. So, let s begin with the overview. 4 ACA Health Coverage Information Returns Employers with 50 or more full-time employees or full-time equivalent employees in the previous year, should use Forms 1094-C and 1095-C to report the information required under sections 6055 and 6056 of the Internal Revenue Code about offers of health coverage and enrollment in health coverage for their employees. Each employer has their own reporting obligation related to the health coverage that they offered (or did not offer) to each of their full-time employees. Generally, an employer is subject to employer shared responsibility provisions under section 4980H when they have 50 or more full-time employees, including full-time equivalent employees, during the prior calendar year. IRS Forms and Form Instructions All ALE Members are required to file the Forms for Final forms and form instructions were published by the IRS on September 15, You can locate the final forms and instructions on IRS.gov/forms website. 5 You can find more information about electronic filing and eservices on IRS.gov website and publications such as Publication Form 1095-C Recipients As an applicable large employer, you may provide forms to the following individuals: Employees who were full-time for any month of the year. 6 Employee s who enrolled in self-insured coverage, regardless of their full-time status And other recipient, such as COBRA participants and retirees under medical plans JD Edwards World provides functionality for adding or importing data for form recipients whose information is not maintained in the JD Edwards systems. For form recipients that were never employees, you must set up an Address Book record in order to produce a form for them. Release Plans JD Edwards World supports this enhancement for release A9.3.1 and A9.4. JD Edwards World supports the C forms, that is, the 1094-C Transmittal and the 1095-C for recipients. We are not supporting the B forms, which are for insurance providers. 7 The Health Coverage Information Returns fundamentally rely on data that originates from Human Resources and Benefits Administration as well as payroll information. For customers who do not use JDE Benefits Administration, or who use benefits to enroll a segment of their employee population, we have included functionality to determine Offer and Coverage based on Deduction/Benefit/Accrual (or DBA) history. In some cases, if certain functionality is not in use, certain features may not be available or may require additional manipulation on your part. Printing of Form 1095-C uses BI Publisher through World Electronic Document Deliver (or, EDD) and is required in order to produce forms. If you have not used Electronic Document Delivery previously, additional setup may be required. Refer to the ACA Year-End Guide for more information. Phased Delivery JD Edwards World is delivering ACA year-end reporting in two phases. 8 Phase 1, which is now available, includes setup, creating 1095-C reporting workfiles, working with the output, and printing forms for recipients. Phase 2, which is planned for Spring 2016, includes the remaining functionality for the 1094-C transmittal, electronic filing, and corrections processing. 9 Form 1095-C C Part I Employee and Employer Let s see the details of Form 1095-C. Form 1095-C is for recipients. It includes 3 parts: Part I includes the name, SSN, and address of the form recipient Part I also includes the ALE Member name, EIN and address information. ALE Member is synonymous with employer, which is synonymous with unique EIN. IRS instructions mention that an employee should receive one 1095-C per ALE Member. Therefore, if you have multiple JDE companies with the same Tax ID, employee information for those companies are automatically summarized. Most Part I date is retrieved from Address Book when forms are printed C Part II Employee Offer and Coverage Part II, Employee Offer and Coverage reports information about health coverage offered Line 14 reports IRS Code Series 1 values that indicate the type of coverage offered, or not offered. 11 Line 15 reports the lowest cost monthly premium for the coverage offered. This is not necessarily in what the employee enrolled C Part III Covered Individuals Line 16 reports the IRS Code Series 2 safe harbor codes. Setup for these lines is primarily done in the Offer and Coverage setup, which will be covered later, and certain codes are derived based on conditions met by the employee. Part III of the 1095-C includes information about individuals covered by self-insured plans. Line 17 is for reporting individuals covered by a self- insured plan, including the employee and any dependents The system references the Participant and the Dependent or Beneficiary to Employee Cross-Reference tables for this information. o The Dependant/Beneficiary X-Ref records must represent enrollment, that is, they must include the Plan or Plan Option and at least a Beginning Effective Date Preparing Benefits Information What Determines Offer and Coverage? Slide 16 Benefit Plan Setup Reportable Plans If you don t keep dependent information in the JD Edwards system, you will have the option to load that data into the reporting workfile. ACA Health Coverage Information Returns is primarily based on benefits and benefits enrollment information. An employee s Offer of Coverage for a month is determined based either on benefit plan enrollment or DBA history. When you enroll employees though benefits, ACA reporting considers Plans identified as health coverage plans, and benefit enrollment records with an Active beginning status and effective dates that span the reporting month/year Setup for benefits identifies which plans are Reportable health coverage plans Self-insured plans, and Waived health coverage plans The following slides explain how to update your set up for benefit plans for ACA reporting. The system must determine which benefit plans are reportable health coverage plans and therefore which benefit enrollment records must be considered for reporting. To identify a plan as reportable for health coverage information returns, use the Plan Master Plan Type field. You can use any User-defined Code (UDC) value for Plan Type, but the UDC value must have the value of M in the UDC Special Handling Description. 18 Self-Insured Plans The system must determine which plans are self-insured plans and therefore when to check the self-insured plan box on Form Waived Plans Preparing DBA Information What Determines Offer and Coverage? Slide C and to complete Part III- Covered Individuals. To indicate that a plan is a self-insured plan, select a Category Code associated to the Plan Master that you define as the indicator for a Self-Insured Plan. Also, select the value that you are using to indicate that the plan is self--ensured, and update the Category Code with that value. The system must determine if an employee was offered health insurance coverage but declined it. On your waived or declined plan, to indicate that a plan is a non-participating plan, verify the Plan Description. The system determines a waived or declined plan from the value in the Description. For example, a plan that has the first word of the plan description as waived could be used to identify the plan. If you do not use the Benefits system for benefits enrollment, or you do not enroll all employees through benefits, you can report based on DBA History. When reporting is based on DBA history, an employee s Offer of Coverage for a month is determined for DBAs that are identified as reportable health coverage In a month where no benefit enrollment is found, the system looks for DBA Transaction history (F0619) for the month. Any DBA transaction found for a reportable DBA in a month is considered an Offer of Coverage for the month Setup for DBAs identifies which DBAs are Reportable health coverage plans DBAs Self-insured plans DBAs. In addition, when reporting based on DBAs, there is additional setup that identifies which employees waived the health coverage offered. 23 DBA Setup The following slides explain how to setup DBAs for ACA reporting. 24 Reportable DBAs The system must determine which DBAs are reportable health coverage DBAs and therefore which deductions or benefit should be considered for reporting. To identify a DBA as reportable for health coverage information returns, use a Category Code associated to the DBA in DBA SetUp/Category Code Setup that you define as the indicator for a reportable DBA. Also, select the value that you are using to indicate that the DBA is reportable and update the Category Code with that value. If your health coverage offer includes both an employee-paid deduction and an employer-paid benefit, set up one or the other as reportable. It is not necessary to set up both. Self Insured DBAs The system must determine which DBAs are self-insured plans and therefore when to check the self-insured plan box on Form 1095-C and to complete Part III- Covered Individuals Identifying Employees Who Have Waived Coverage To indicate that a DBA is for self-insured coverage, select a Category Code associated to the DBA that you define as the indicator for a Self-Insured DBA. Also, select the value that you are using to indicate that the DBA is self-ensured, and update the Category Code with that value. When you are not using benefits enrollment, and you want to indicate that an employee has waived health coverage offered through a DBA, you must setup the employee with an eligibility code on the Employee Master form and a value that indicates that the health coverage is waived. You can choose any eligibility code from code 1 to 10. Also, to indicate the dates of the waived period, select two user-defined dates, one to indicate the start of the waive and one to indicate the end of the waive. If the waive plan eligibility code is set to the value Yes, and the dates are blank, then the system will assume that the waive covers the entire reporting year. 27 Preparing Employee Information 28 Preliminary Processes Now let s review the processes for preparing additional information needed for reporting employee information. Preliminary processes create some of the data required for generating Form 1095-C workfiles. The preliminary processes include: ACA Employee Eligibility 29 ACA Employee Eligibility Periods of Employment Hours Worked by Month The ACA Employee Eligibility record indicates an employee s status as full-time eligible or not-full-time eligible under ACA provisions. ACA eligibility and the associated Hours of Service report was initially delivered in January This functionality allows you to establish an employee s eligibility status, as well as to measure hours to determine a status for certain employees that need to be measured. Eligibility status was also built in to benefits enrollment eligibility criteria and can be used to determine employee eligibility for benefits enrollment. This functionality was covered in more detail in prior webcasts, and for today s purposes, we are focusing on how the eligibility status is used for health coverage reporting. This status is used in the reporting process to determine whether an employee was full-time eligible for any month of the year and therefore should receive Form 1095-C. It is also used to determine certain Line 14 and Line 16 code values. The eligibility form has also been enhanced in this release to provide the ability to capture information about Limited Non Assessment Periods. The IRS provides several definitions of LNAPs, which are basically periods where the employer will not be assessed a penalty for not providing health coverage. An employee s limited Non-Assessment Period determines whether Line 16 should be populated with Code 2D for any month. You can refer to IRS instructions for more information about Limited Non Assessment Periods. So, let s take a look at the form. ACA Employee Eligibility (P081161) This is an example of a record created by the Hours of Service report. The employee s hours of service were measured under a Lookback measurement method, as defined by ACA regulations, and determine to average 30 or more hours per week or 130 or more hours per month. The employee s record was therefore created with Eligibility status Yes. The Hours of Service report is required when an employee s eligibility status cannot be determined at the time of hire, or, especially in the first year, you want to use the report to automatically add records for groups of employees with the correct status. As you hire new employees, if you know their status at the time of hire, you can add an ACA Eligibility record for them through Employee Eligiblity (P081161). 30 Once an employee has an eligibility record for the first reporting year, that record is effective until there is another record with a later effective date. You do not need to create new records for each year unless the employee s prior status changes. For Health Coverage Information reporting, the system will reference records that have an effective date that falls within the current reporting year, and will reference the Eligibility status field. This information is essential for determining which employee s should receive a form due to full-time status as well as for determining certain Line 14 and 16 values. The changes in this latest software update that affect this form include a change to the UDC 08/SE special handling values to either 1(which means eligible) and 2 (which means ineligible). After installing the update and completing postinstall instructions, you should verify that these values are set correctly. In addition, three fields have been added for capturing Limited Non Assessment Periods. If an employee has a LNAP, you can flag the record as such, and include the LNAP reason code and the LNAP end date. Periods of Employment Build As a Benefits Administrator, you use the Periods of Employment build to review which months an employee was employed or not employed during the reporting year. 31 The Periods of Employment report is referenced to determine if an employee was employed or not employed in a month. This information is required to correctly report Form 1095-C Part II Employee Offer and Coverage codes. The Periods of Employment Build (P08518) batch version processes this information from the HR History file (F08042) and updates it in the Periods of Employment file (F08118). P08518 finds occurrences of Date Started and Date Terminated for an employee and sequences them according to effective date in order to construct a history of an employee's employment periods. Periods of Employment Report and Inquiry You can use the Periods of Employment Inquiry (P08118) to review the periods of employment information. This program retrieves the information from the Periods of Employment file (F08118). You can use the Periods of Employment inquiry program to add, delete, and update data in the Periods of Employment file. 32 If you are not using the HR History file, you can use the Periods of Employment Batch Import program (P08118Z) to import existing periods of employment data from a spreadsheet or a commadelimited file into the Periods of Employment file (F08118). 33 Hours Worked by Month Build Run the report with data selection open enough to ensure a full history of employment is created for each employee. This is especially important for employees who have a single continuous employment with your organization such that the only occurrence of a Date Started for them occurs many years in the past. However, also note that if an employee is not included in this file, the Offer and Coverage Workfile build will reference current employee master dates for this information. The Hours Worked by Month Build accumulates employee hours from the Timecard History table for the reporting year, totaling hours by Home Company and by month. When submitting the batch report, you can choose to total hours for the year and each month based on the timecard s work date, pay period end date, or check date. This information is used by the ACA Information Returns process to determine, for each month in the reporting year, which employer, based on the hours worked for each Home Company, should report the employee s information. If an employee works for more than one employer in a month, the employer with the most hours in the month is the reporting employer. NOTE: An employee must have at least one record in this table to indicate the Home Company employer. If you do not use JDE Payroll or Time and Labor and therefore do not have timecard history in the system, you can add records or import records into this table. If an employee s Home Company was constant throughout the year, you can create a record dated in January 2015 with the appropriate Home Company, and this record will be used for the remaining months in the year. Hours Worked by Month Report and Inquiry The Hours Worked by Month Build (P08524) calculates the number of hours that the employee worked in a month, by using the timecard history information that is stored in the Employee Transaction History file (F0618). When you run the build, the system updates the Hours Worked by Month file (F08124). 34 To review, add, update and delete the hours-worked-by-month information, you use the Hours Worked by Month Inquiry (P08124), which retrieves the information from the Hours Worked by Month file (F08124). The F08124 file stores the hours worked by calendar month and by company Year-End Setup and Processing Employee Offer and Coverage Setup Slide 39 If you do not have Employee Transaction History (F0618) data from which to build the Hours Worked by Month file, you can use the Hours Worked by Month batch import program (P08124Z) for importing grid data to import an employee s hours-worked history from a spreadsheet or a comma-delimited file. Now that we have reviewed some of the initial setup, let s review some addition set up for year-end reporting and year-end processing. Employee offer and coverage setup establishes re
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