Setting Up Data for Generating AIR Reports
This section provides an overview of data setup and discusses how to:
Add company members to ALE.
Generate ACA Hours of Service report.
Verify ACA employee eligibility.
Adding Company Members to ALE
The ALE ID To Home Company X-Ref program allows multiple Home Companies to be grouped together under the same ALE ID, which effectively creates an Aggregated ALE Group. Each individual employer in an Aggregated ALE Group is referred to as an ALE Member.
The system stores the ALE information in the ALE ID To Home Company Cross Reference file (F08116).
For more information about adding company members to ALE, see “Creating ALE ID To Home Company X-Ref" in the JD Edwards World Human Resources Guide.
Generating ACA Hours of Service Report
As a part of producing ACA Health Coverage Information Returns, employees who should receive Form 1095-C must have an Employee ACA Eligibility record or records that indicate the employee's full-time or non-full-time eligibility status, for each month of the reporting year, under ACA provisions. You may optionally use the Hours of Service report process to create Employee ACA Eligibility records, whether or not you are actually measuring hours of service, according to ACA provisions, to determine eligibility.
Run the ACA Hours of Service Report (P08416) in proof or final mode to generate the hours of service report. You use this report to determine which employees meet the ACA hours of service threshold and should be considered full-time under ACA provisions.
The Hours of Service report is used to measure an employee's hours of service for a prior period in order to determine eligibility for an offer of health coverage in a future period under ACA provisions. You can use the Hours of Service report as a preliminary step prior to benefits enrollment periods. The Hours of Service report can also generate ACA Employee Eligibility records that indicate an employee's ACA eligibility status.
ACA Employee Eligibility records are referenced by the ACA Health Coverage Information Returns process to determine an employee's full-time or non-full-time status for each month of the year. This information is required to determine which employees should receive a Form 1095-C and also to determine certain code values for Form 1095-C, Part II, Line 14 and Line 16. You can also manually enter ACA Employee Eligibility information.
For more information about generating the ACA Hours of Service report, see “ACA Hours of Service (Proof and Final) Mode (P08416)" in the JD Edwards World Human Resources Guide.
ACA Employee Eligibility and Limited Non-Assessment Period
A Limited Non-Assessment period (LNAP) refers to a period during which an ALE Member is not subject to an assessable payment under section 4980H(a) and in some cases under 4980H9(b), for a full-time employee, regardless of whether that employee is offered health coverage during that period.
The period of non-assessment and the reason for non-assessment are new values that have been included in the ACA Employee Eligibility table. LNAP information is used to determine the appropriate code value for Form 1095-C, Part II, Line16.
Verifying ACA Employee Eligibility
Access the Employee Eligibility window (P081161) to review employee eligibility information created by the Hours of Service report. The ACA Hours of Service report indicates an employee's full-time eligibility status for each month of the reporting year. This status determines whether an employee is eligible for benefits coverage and should be offered coverage.
Each reportable employee needs an ACA Employee Eligibility record or records that indicate their eligibility status for each month of the reporting year.
The ACA Employee Eligibility record provides the ability to indicate Limited Non-Assessment Period information (LNAP) for an employee. When the LNAP flag is checked, indicate the End Date of the LNAP and the Reason Code. The Effective Date of the ACA Employee Eligibility Record represents the start of the LNAP.
For more information about LNAPs, see the IRS 2024 Instructions for Forms 1094-C and 1095-C under Definitions.
For more information about reviewing employee eligibility details, see “Reviewing Employee Eligibility" in the JD Edwards World Human Resources Guide.