1. Employee Management
  2. Employees
  3. Compliance
  4. Affordable Care Act (ACA) Reporting
  5. ACA Filing

ACA Filing

When the reporting year is complete, the required health coverage forms (1094–C and 1095–C) can be electronically filed to the IRS. When you file your company’s ACA files, the data is examined by Dayforce, your payroll partner. If it passes validation, Dayforce forwards your files to the IRS.

Watch the following help video for information about filing for ACA.

To file for ACA:

  1. Go to Payroll and HR > Payroll > Affordable Care Act (Payroll Manager).

  2. Click Generate from the Ready to File section of the ACA landing page.

  3. To preview the 1094–C and 1095–C forms, click Preview. Alternatively, click the View Audit Log link to open a file that can be viewed in Microsoft Excel.

  4. Review the details and included employees in the preview or the audit log. You can view error details in the audit log. Any errors must be corrected before you can transmit your ACA file.

    Note:

    Employees who are both inactive and terminated, with termination dates in this filing year and with reportable coverages assigned, will be included for reporting.

  5. When you are ready to transmit, click File. The File section shows the filings you have sent, with a filing number and date and time.

To check for ACA filing errors and refile:

  1. Go to Payroll and HR > Payroll > Affordable Care Act (Payroll Manager).

  2. On the ACA landing page, the Ready to File section shows the status of your filings. It also shows with the filing number and date and time of your transmission. If your filing did not pass the Dayforce validation, an Errors button appears beside the filing. Click Errors to view the errors returned by Dayforce. A popup window appears showing the errors that occurred.

  3. Correct the errors as indicated in the popup window. For assistance resolving these errors, contact NetSuite Customer Support.

  4. For any employees who had errors in the filing, edit the employee record and clear the errors.

  5. When you have corrected the errors, return to the ACA landing page and click Re-Generate.

  6. Click Preview and View Audit Log to confirm that your data is ready to be sent.

  7. Click Refile.

Removing Ineligible Employees from ACA Reporting

After you have already transmitted your ACA filing to the IRS, you can remove employees from ACA reporting. For example, you would remove an employee from reporting if they become ineligible or if you added them in error. To do this, you void their 1095–C form on their employee record and then refile. If you have not filed your ACA information with the IRS and you must remove an employee from reporting before filing, you can exclude them. For more information, see Excluding an Employee from ACA Reporting.

To remove ineligible employees from ACA reporting:

  1. Go to Payroll and HR > Lists > Employees (Payroll Manager).

  2. On the Employees list, click Edit next to the employee you want to remove from reporting.

  3. Click the Affordable Care Act (ACA) subtab.

  4. Check the Void 1095–C Form box.

  5. Click Save.

  6. Refile your ACA data using the preceding To check for ACA filing errors and refile procedure.

Tracking Minimum Essential Coverage

Before making your ACA filing, you can see whether or not you are complying with ACA rules regarding minimum essential coverage. If you are not compliant, you may be subject to an employer shared responsibility payment. You can view the Minimum Essential Coverage Offer Indicator in two ways:

  • From the ACA landing page, click Preview. The Preview 1094C page appears, showing the Minimum Essential Coverage Offer Indicator for the whole filing year and for each month. If you are compliant for a given period, then Yes is checked for that period.

  • From the ACA landing page, click View Audit Log. Open the XML file that is downloaded in Microsoft Excel. Click the 1095–C Part III tab. Under Part III: ALE Member Information — Monthly. A Minimum Essential Coverage Indicator row appears for the entire year and for each month with a Yes or No in the Data column.

The ACA SuiteApp determines the minimum essential coverage offer indicator value in the following way:

  • The value is Yes (you are compliant) if you have not offered coverage to five of your employees. Five employees is greater than five percent of your total full-time employees. For example, you have 120 employees and 115 have offers. You are compliant because 95 percent of your employees have coverage and five employees is less than 5 percent of your employees.

  • The value is No (you are not compliant) when the number of employees offered coverage is not equal to five. Five employees is greater than five percent of your total employees. For example, you have 50 employees and 48 have an offer of coverage. You are not compliant because you have fewer than five employee not covered, and five employees is 10 percent of your employees.

Note:

If an employee has a coverage code of 1H and a safe harbor code of 2E, they are considered covered regardless of the calculation.

For more information, go to https://www.irs.gov/affordable-care-act/employers/types-of-employer-payments-and-how-they-are-calculated.

Related Topics

General Notices