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, Dayforce, your payroll partner, reviews the data. If it passes validation, Dayforce then sends 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 also see error details in the audit log. You’ll need to fix any errors 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're ready to transmit, click File. The File section shows the filings you've sent, along with a filing number and the 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 your filing status, filing number, and date and time of your transmission. If your filing doesn't pass Dayforce validation, an Errors button appears next to it. Click Errors to see the issues Dayforce found. 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 make sure your data is ready to send.

  7. Click Refile.

Removing Ineligible Employees from ACA Reporting

After sending your ACA filing to the IRS, you can still remove employees from ACA reporting. For example, you’d remove an employee if they become ineligible or if you add them by mistake. To do this, you must void the 1095–C form on their employee record and then refile. If you haven't filed your ACA information with the IRS and need to remove an employee 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. In 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 steps in To check for ACA filing errors and refile section.

Tracking Minimum Essential Coverage

Before you make your ACA filing, you can check if you’re following ACA rules for minimum essential coverage. If you're 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're compliant for a given period, then Yes is checked for that time.

  • From the ACA landing page, click View Audit Log. Open the downloaded XML file in Microsoft Excel, then click the 1095–C Part III tab. Under Part III: ALE Member Information — Monthly, you'll see a Minimum Essential Coverage Indicator row 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're compliant) if you have not offered coverage to five employees, and five is less than five percent of your total full-time employees. For example, if you have 120 employees and 115 have offers, you’re compliant because 95 percent have coverage and five employees is less than five percent.

  • The value is No (you're not compliant) if the number of employees without coverage is five or more, and five is more than five percent of your total employees. For example, if you have 50 employees and 48 have coverage, you’re not compliant because five employees is 10 percent of your total.

Note:

If an employee has a coverage code of 1H and a safe harbor code of 2E, they're considered covered no matter what the calculation shows.

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