With nearly four months remaining until year-end, have you prepared all of your Affordable Care Act (ACA) information in Microsoft Dynamics GP 2015?
The Affordable Care Act requires businesses to report new information to the IRS. In 2015, the following businesses must submit the 1095-C form:
- All employers with over 100 full-time employees
- Every employer with 50 to 99 full-time or full-time equivalent employees whose organization did not meet the criteria for transition relief
- Every employer who is self-insured, regardless of the number of employees
By 2016, the list will include all employers with over 50 full-time employees.
Microsoft Dynamics GP 2015 has added additional features to track ACA information with the new Health Insurance windows.
Recommended to Track ACA information:
- Install the 2014 Year-End Update
- Install the March 2015 Hotfix
- Install Human Resources
- Install Human Resources and Payroll Suite to utilize Deductions in Arrears (DIA)
- Deductions in Arrears allows you to track uncollected deductions to ensure they are recovered in a future pay run
- Add all Employee Dependents
- Ensure Benefits and Deductions exist both in Human Resources and Payroll
Human Resources/Payroll Setup Options
- Navigate to the User Setup window (Microsoft Dynamics GP > Tools > Setup > System > User)
- Check “Payroll View for Human Resources” for those users setting up benefit/deduction codes:
Note: If the “Payroll View for Human Resources” field is selected, a message will prompt the user to setup corresponding benefit/deduction codes in Payroll to complete the integration between HR and Payroll when a user creates a benefit or deduction in HR. If the field is not selected, users will be required to use the Reconcile Human Resources window to update the benefit/deduction definitions properly.
- Navigate to the Benefits Preference window (Microsoft Dynamics GP > Tools > Setup > Human Resources > Benefits and Deductions > Benefit Preferences)
- Uncheck the “Automatically Update Payroll Benefits & Deductions” option
Note: If this box is checked, it will update the payroll benefit and deduction records without displaying integration messages. With this box unchecked, it allows the user the ability to watch the flow from Human Resources to Payroll. This will reduce the chances of failed Human Resources to Payroll integrations.
Setup for Affordable Care Act Information
- Navigate to the Health Insurance Setup window (Microsoft Dynamics GP > Tools > Setup > Human Resources > Benefits and Deductions > Health Insurance)
- Two new fields have been added for Affordable Care Act Information, see image below:
There are a list of codes that are included with Line 14 within Dynamics GP, see image below:
There are list of codes that are included with Line 16 within Dynamics GP, see image below:
- Add the Line 14 and Line 16 codes to All the Health Care Insurance codes setup in Dynamics GP.
- When you click Save for each update the following message will appear: “These changes must be saved in the Deduction Setup window to take effect across Human Resources with Integration to Payroll. When the Deduction window opens, choose Save to save changes.” The Deduction Setup window will open
- Click OK on the prompt message. Make any necessary changes to the Deduction Setup window and click Save again. Note: Adding the Start Date and End Date to these windows can help track any changes and is required6. The Benefit Setup window will open next, make any necessary changes and click Save again
- The Health Insurance Setup window will appear. Click Save a final time
Setup Employee Dependents
- Navigate to the Employee Dependents window (Cards > Human Resources > Employee > Dependents/Beneficiaries)
- Double click on a dependent for an employee to show more information. The Health Ins. Coverage field has been added for the Affordable Care Act. It should be default to ‘Covered’ for dependents.
Note: Dependents that are not covered will need to be changed to ‘not covered’ in the window below:
- Click Save to save changes to each dependent
Setup Health Insurance Enrollment
1. Navigate to the Health Insurance Enrollment window (Cards > Human Resources > Employee – Benefits > Health Insurance). Note: If you have not entered any Health Insurance enrollment information from the beginning of the year, you will need to change your system date to 1/1/2015 and enter all active covered employees starting at the beginning of the year. If any changes need to be made you will need to change the system date to reflect the date of those changes.
2. Use the magnifying glass next to Employee ID to select an employee. Add the newly created or updated Health Insurance Benefit to the employee. If the employee was already enrolled to the Health Insurance benefit, the newly added Line 14 and Line 16 codes will be seen within the enrollment window as well. See the image below:
3. Pay attention to the Benefit History Effective Date box. This can be used for tracking any changes made to this Benefit for each individual employee. It can also be used on a SmartList.
4. Once an employee is selected and the Benefit is chosen, click the magnifying glass next to Effective Date
5. The Benefit History Lookup window will open with information of when the Benefit was changed last, see image below:
6. Click on the first line and then click Select. This will update the Health Insurance Enrollment window for that employee. Next, click Save under the Effective Date, see image below:
7. Saving the Effective Dates will allow the user to scroll through any past changes made
A stock Dynamics GP SmartList is provided to review the newly added Benefit information. It can be found under Human Resources folder > Employee Benefit folder, see image below:
The Employee Pay History report can also be very useful (Reports > Payroll > History > Employee Pay History).
It can be exported and reviewed in Excel with Hours/Units worked, including all Benefit and Deduction codes, see image below:
Edit W-2 Options
The Edit 1095-C Covered Individuals and Edit 1095-C windows were added to accommodate ACA in the March 2015 hotfix. Note: The Dependents and 1095-C buttons are greyed out in the Edit W-2 window until you install the March 2015 update. You will need to install the March Hotfix in order for these buttons to be available, see image below: