This article was revised December 10, 2015 to reflect new product update (PU) release information. It was originally published May 22, 2015, and initially revised on September 23, 2015.
Sage has added enhancements to the Sage 100 Payroll module to help users fulfill Affordable Care Act (ACA) reporting requirements. Here is a quick overview of the law, with links to government website pages where you can find detailed legal information:
As of January 1, 2015, the ACA requires Applicable Large Employers (ALE)* to report monthly employee health care coverage information to the Internal Revenue Service (IRS), in order to determine the Employer Shared Responsibility Provisions.
*An ALE is a company with 50 or more full-time employees or a combination of full-time and full-time equivalent (FTE) employees totaling 50 or more (2 PT employees = 1FTE).
Here are some questions you may have about how Sage 100 Payroll module can help you meet ACA reporting requirements:
First of all, how do I know if I am an Applicable Large Employer (ALE)?
New Sage Crystal Report: Applicable Large Employer (ALE) Report
Do you have a combination of full-time and part-time employees, and are unsure if they add up to 50 FT/FTE? This Crystal Report will help you determine if you are an ALE.
How do I track employee and dependent health care details?
NEW in 2015: ACA Employer Maintenance Screen
The IRS requires employers to report detailed information about the Offer of Insurance—and do so monthly. Sage has designed the new “ACA Employee Maintenance” screen with a Monthly Detail button that leads to an “Offer of Coverage Monthly Detail” screen. To make it easy to enter the required information for every employee each month, they have included a “Copy to Remaining Rows” function. This will keep input time to a minimum, and reduce duplicate entries.
NEW in 2015: Employee Maintenance Screen—Covered Individuals
Once an employee accepts insurance covered offered by your company, visit the Employee Maintenance screen, and select “Covered Individuals” to go to this sub-screen. Here, next to the personal information, there are simple checkboxes to indicate months of coverage. A nice time saving feature is the single checkbox for “Covered All Months” if applicable. Also, covered dependents are easily added on the same screen.
Again, we have looked for ways to ease entry of this information and have provided a single checkbox that will allow you to easily select to check all the boxes for each calendar month covered. De-selection of any box will automatically uncheck the checkbox for all covered months.
How do I produce new IRS forms for my company and employees?
Find these new tax forms within the Federal eFile and Reporting menus:
- ACA 1094c
- ACA 1095c
How do I file IRS forms?
In the Payroll module, visit the Federal e-Filing and Reporting menu.
Follow the E-File option. This is required for companies with 250+ employees, but recommended for all.
How do I easily mail forms with ACA info to employees?
You are required to distribute affordable insurance coverage offers to employees. Here are two ways to send this information:
- In-house: Print the forms and mail them.
- Outsource: Hire Sage/Aatrix and they will print and mail the forms for you. This is similar to the way W2s are sent today.
Note, from Sage City:
The IRS released final versions of the forms required for ACA reporting beginning February 2015. To access final forms and instructions, visit the ACA Center in Sage City.
Sage plans to release this enhancement in product updates (PU) for Sage 100 ERP versions 4.50 and higher only.
- 2015 PU1 Released April 7, 2015 (To download and install, search KB 60763.)*
- 2014 PU5 Released March 30, 2015 (To download and install, search KB 60428.)*
- 2013 PU9 Released November 19, 2015**
- 4.50 PU8 Released November 19, 2015**
*2015 PU3 and 2014 PU7 were released on November 19, 2016. These versions include the ACA Employer Maintenance screen, which contains new fields that provide the ability to process and efile 1094/1095B and 1094/1095C forms.
**In September 2015, Sage announced that they will release the final product update for Sage 100 2013 (5.0) and Sage 100 4.5 November 19, 2015. This will enable users to record Payroll data required by the Affordable Care Act (ACA). See our blog, Sage Supported Versions for more information. 11/19/2015: In the Payroll module, new tasks include the ability to process and efile 1094C and 1095C forms.
See also, our article, Sage 100 Product Updates Available, published November 23, 2015.
Information used in this article was gathered from the Sage website, and a PowerPoint created by Deborah Nelson, Product Manager, Sage 100.