Payroll: ACA Reporting

Introduction

ACA Fines for Late Filing are Severe -- Do Not Procrastinate!

Keystone supports 2020 State (CA, DC, NJ, RI) and Federal E-Filing of 1094-C/1095-C ACA forms using our 3rd party provider.

Starting 2020

• Each full-time employee for any calendar month MUST have a Plan Start Month specified on the ACA tab in Employee Maintenance. (Previously this field was optional, it is now required.)
• When using the new Offer Codes (1L, 1M, 1N, 1O, 1P, 1Q) you MUST specify the following on the ACA tab in Employee Maintenance:
  • Employee Age
  • Emp Zip Code

Keystone updates for 2021 ACA filing are not yet released - Stay Tuned!

Keystone has the ability to print 1095-C forms and e-file 1094-C/1095-C information for both regular and self-insured employers. This page will provide assistance with entering the required ACA information into Keystone. It is your responsibility to gather this information and to assure that it is accurate. You should consult your accountant before filing ACA information.

NOTE: This is part of the complete Payroll: Year End Process.

Your 1095 Filing Options

Paper 1095 Most employers with fewer than 50 employees will not need to file form 1095. Any Employer with fewer than 250 employees can print both employee copies and government copies from Keystone. Distribute 1095s to employees. Mail government copies to appropriate agencies. No additional service fees Must purchase, print and distribute forms to employees Must file paper forms with government agencies

Web Services E-File With this premium service, use Keystone to prepare and upload data to our online service. For a small per-employee fee have all 1095s printed and mailed to employees and E-Filed to government agencies. This option does not require registration with government agencies. This is the only option for ACA 1095 E-File. No need to purchase, print and mail 1094 and 1095 forms No registration with government required Certified vendor reduces legal risks Option for employee to re-print via email link Option for employer to re-print forms online A per-form fee is charged for this service - see chart below

Use this chart to determine if you need to file 1095s. (See: https://www.healthcare.gov/shop-calculators-fte/)

Paper Only 1095s

NOTE: Whether or not you are required to E-File you should consider using the new Web Services option to also print your forms. The cost of this process compared to the cost of purchasing and printing forms can be very attractive.

1095-C

Use the "Print 1095-C Forms" option on the Payroll-Year End menu to print 1095-C forms. Keystone is configured to print 1095-C forms on pre-printed inkjet/laser single-sheet forms.

note: Use pre-printed forms. Downloaded PDF forms do not print with the correct spacing and alignment.

1094-C

Keystone does not print 1094-C forms. You should prepare this form manually.

E-File via Web Services

Note: Keystone uses a Web Based E-Processing service that includes an option to handle all printing and mailing services. This new process eliminates the challenging process of registering with the IRS and offers several other advantages. There is a per employee cost for this new process.

Prepare for E-File

• In Keystone please verify that employee social security numbers and names are accurate. Your entire batch of 1095-C forms will be completely rejected if social security numbers and names cannot be validated by the IRS!
• Verify email addresses are accurate. While not required employees receive notification of forms via email and can optionally download a copy in addition to the mailed form.
• Update employee email addresses in Payroll: Employee File Maintenance. This gives employees direct access to forms online.

Preparing the Upload File

Run ACA 1094-C/1095-C Export from the Web Portal Export/Filing Menu

Uploading the XML File

Select Upload to Web Portal from the Web Portal Export/Filing Menu

Links

Link to 1095-C form (for reference ONLY): https://www.irs.gov/pub/irs-pdf/f1095c.pdf

Use this link to determine whether you must file 1095-C forms electronically https://www.irs.gov/Affordable-Care-Act/Employers/Information-Reporting-by-Applicable-Large-Employers

About Web Services

Keystone supports electronic filing of year-end forms built right into our software. No more stuffing envelopes, no more printing! Electronically file W-2, 1095, 1094 (Affordable Care Act) forms, and more to the IRS/SSA or state in minutes!

How it Works

After finalizing year end payroll data

• Select ACA 1094-C/1095-C Export from the Web Portal Export/Filing menu. These options automatically upload data to the 3rd Party Web Portal.
• From there you can setup an account (if needed)
• Finish processing following the online options.
• E-File services let you preview and adjust data before filing.

When filing 1095s (and optionally W2s) you can choose either or both of 2 options:

• E-File Only - You will still need to print forms and distribute to your employees.
• Print and Mail Services

With the Print and Mail services your 1095s are printed and mailed directly to employees. In addition an email is sent to each employee with an option to preview forms online.

• Verify that E-Filing has been accepted by the IRS. NOTE: 1095 filing is much more prone to rejection than W-2 filings. The most common issue is TIN (SSN) mismatches due to small errors with name spellings.

Remember it is your responsibility to verify taxes are accurately and completely filed and forms are received by employees!