Configure Legal Reporting Units for Affordable Care Act Reporting

Your legal reporting units (LRUs) require the following configuration.

• Identify your reporting establishments

• Configure your tax reporting units

Identify your reporting establishments

For Human Resources or None implementations, you perform your ACA reporting at the tax reporting unit (TRU) level, and you must have your employees associated with a reporting establishment.

To identify a LRU as a reporting establishment:

1. From My Client Groups, click Workforce Structures.

2. In Organizations, click Manage Legal Reporting Unit HCM Information.

3. In Manage Legal Reporting Unit HCM Information, enter the LRU name and click Search.

4. Select the name in the search results, and click Manage Legal Reporting Unit Classification.

5. Select Reporting Establishment.

6. Click Next, and then review and submit.

Configure your tax reporting units

To configure a TRU for ACA reporting:

1. Make sure your TRUs and registrations are set up.

   Each TRU with a United States Federal Tax registration is considered a separate authoritative transmitter.

   For further info, see Overview of Legal Reporting Unit Configuration for the US in the Help Center.

2. Verify your United States Federal Tax registrations.

   1. From My Client Groups, click Workforce Structures.

   2. In Organizations, click Manage Legal Reporting Unit Registrations.

   3. Verify the following for the United States Federal Tax registration.

      Field name	What reports use it
      EIN or TIN	1094-C and 1095-C
      Registered Address	1094-C and 1095-C
      Registered Name	1094-C and 1095-C

3. Configure each TRU.

   1. From My Client Groups, click Workforce Structures.

   2. In Organizations, click Manage Legal Reporting Unit HCM.

   3. Click Tax Reporting Unit and then Federal.

   4. Enter the following in ACA Reporting Information.

      Field name	What uses it	How it's used
      ACA Contact First Name	1094-C	The 1094-C Employer Report flow requires this value on all TRUs.
      ACA Contact Middle Name	1094-C	The 1094-C Employer Report flow requires this value on all TRUs.
      ACA Contact Last Name	1094-C	The 1094-C Employer Report flow requires this value on all TRUs.
      ACA Contact Suffix	1094-C	The 1094-C Employer Report flow requires this value on all TRUs.
      ACA Contact Phone	1094-C and 1095-C	The 1094-C Employer Report flow requires this value on all TRUs. Enter the full number as digits, including country code.
      Qualifying Offer Method	1094-C	The 1094-C Employer Report flow requires this value on all TRUs.
      Qualifying Offer Method Transition Relief	1094-C	No longer used as of the 2016 reporting period.
      98 Percent Offer Method	1094-C	The 1094-C Employer Report flow requires this value on all TRUs.
      Safe Harbor	1094-C	Overrides line 16 for all employees associated with this TRU.
      Minimum Coverage Offered All 12 Months	1094-C	The 1094-C Employer Report flow requires this value on all TRUs.
      Employee Count Date to Use	1094-C	The 1094-C Employer Report flow supports only the last day of the month.
      Calculation Date	1094-C and 1095-C	Defines the milestone day of the month for employee coverage.
      Calculation Day	1094-C and 1095-C	This field is available only if you selected Given day for Calculation Date. If the current month has fewer days than the value you selected, the report treats this as Last day of the month.
      Grant full coverage for partial month	1094-C and 1095-C	When selected, the report considers employees hired or terminated midmonth covered for the full month.

   5. Enter the following in ACA Aggregated Group Information.

      For a definition of ALE member (ALEM), see the IRS instructions.

      Field name	What uses it	How it's used
      Aggregated ALE Group Member	1094-C	Used if you're an aggregated applicable large employer (ALE) group employer.
      Aggregated ALE Group Name	1094-C	Used to group employers for reporting.

      For example, TRU A is the parent of TRU B and TRU C. Combined, A, B, and C have 55 full-time employees. The three collective TRUs represent one ALE. The Form 1094-C refers to the same concept as the aggregated ALE group.

      1. For TRU A, you set Aggregated ALE Group Member to Yes. Its TRU name now appears in Aggregated ALE Group Name.

      2. For TRUs B and C, you set Aggregated ALE Group Member to No.

      3. Select TRU A's name for Aggregated ALE Group Name.

      4. Leave these fields blank for any TRU reporting separately.

4. Save your changes.