This chapter contains these topics:
Section 4980H of the Internal Revenue Code is for the Employer Shared Responsibility aspects of the Affordable Care Act. Section 4980H applies only to applicable large employers (ALEs). As defined in section 4980H(c)(2) an ALE employs an average of at least 50 full-time employees on business days during the preceding calendar year. As defined by the Internal Revenue Service (IRS), an ALE can be made up of one or more JD Edwards Home Companies. An ALE which is an Aggregated ALE Group may be made up of multiple ALE Members, which is made up of one or more JD Edwards Home Companies that share the same Federal Tax ID.
Section 4980H specifies that an ALE is liable for an assessable payment if any full-time employee is certified to receive an applicable premium tax credit or cost-sharing reduction.
Under section 4980H, an ALE who for a calendar month fails to offer to its full-time employees the opportunity to enroll in minimum essential coverage (MEC) under an eligible employer-sponsored plan may be subject to an assessable payment if a full-time employee enrolls for that month in a qualified health plan for which the employee receives a premium tax credit.
Note:
The Hours of Service Reporting feature provides functionality for counting actual hours of service from historical timecards in the system over a specified period (that lies within a single measurement period start and end date) and calculating the average hours of service for that period of time. The Affordable Care Act Hours of Service rules provide additional guidance for specific employment scenarios or types of employees. The JD Edwards Hours of Service feature does not necessarily address all these various scenarios, and employers may need to do additional evaluation or incorporate alternative methods for determining hours of service for certain employees, such as employees who are new variable hours or seasonal employees, employees in certain industries or sectors such as education or transportation, or employees who have been rehired or had breaks in employment during the year.From Human Resources (G08), select Affordable Care Act
From Affordable Care Act (G08ACA), select ALE ID to Home Company X-Ref
The ALE ID To Home Company X-Ref application allows multiple Home Companies to be grouped together under the same ALE ID, which effectively creates an Applicable Large Employer. The ALE ID to Home Company Cross Reference tables are used in the ACA Hours of Service Process to determine the ACA eligibility status of every employee in each Home Company included under the ALE ID.
You use the ALE ID to Home Company X-Ref application to create cross-reference tables and store them in the ALE ID To Home Company Cross Reference file (F08116). You cannot create multiple records for the same Home Company at the same time, regardless of ALE ID.
An ALE can consist of multiple related entities (such as corporations) due to the application of the aggregation rules. Each employer, as identified by a unique Employer Identification Number (EIN), is an ALE Member. Each Home Company associated to an ALE ID is also associated to a specific ALE Member.. Each Home Company associated to an ALE ID also has an ALE Member ID. The ALE Member ID is for informational purposes.
When the Hours of Service report is run, the ALE ID (and the companies associated to the ALE ID) is used to select timecards based on the Home Company on the timecard.
Set up user-defined code table 08/LE to establish ALE IDs that identify the Applicable Large Employers for ACA purposes. Employee eligibility for ACA benefits is established by ALE in the Hours of Service process.
Set up UDC table 08/MI to establish ALE Member IDs that are used for ACA reporting purposes.
To set up ALE to Home Company cross reference tables
On ALE ID To Home Company X-Ref, complete the following fields:
| Field | Description |
|---|---|
| ALE ID | Enter a value from UDC table 08/LE to identify a business entity that employs 50 or more full-time employees, including FTE employees during a year. |
| Home Company | Enter a code from the Company Constants table (F0010) that identifies a specific organization, fund, or other reporting entity. The company code must identify a reporting entity that has a complete balance sheet. At this level, you can have intercompany transactions. |
| ALE Member ID | Enter a value from UDC table 08/MI to identify a company with an ALE Member ID. This value is currently informational only, but may be used for ACA IRS Reporting under Sections 6055 and 6056. |
| Effective From | Enter the date that indicates the beginning date from which the ALE Member company is a member of the ALE ID. All records with a date greater or equal to the Effective From date are returned. |
| Effective To | Enter the date until which the ALE Member company is or was a member of the ALE ID. |