Configure PPACA Reporting Settings

Configure PPACA Reporting Settings for UKG Pro Benefits

Configure reporting settings for your organization for the Patient Protection and Affordable Care Act (PPACA) on the PPACA Reporting Settings page.

Applicable large employers (ALEs) are comprised of a single entity or group of related entities that employed an average of at least 50 full-time employees on business days during the preceding calendar year.

It is strongly recommended that you consult with your tax advisor for assistance in determining your status as an ALE member and for optimum reporting by Component Company or by tax group. Before you add entries to the ALE Members business rule, complete this page by selecting the configuration options, as follows:

Define an applicable large employer (ALE) based on data from your organisation’s component company or tax group
- Associate one or more component companies to each ALE member, if using component companies, or
- Select on tax group for each ALE member
Include the coverage stop date in the calculations for the offer of coverage, if needed
Select to use auto-population codes

Note

ACA administrators can reset previously saved PPACA reporting settings, with the exception of the Auto-Population for Part III and the Include Terminated Employees settings. Reset is available for any of the remaining settings when data has not been finalized for one or more Applicable Large Employer(ALE) members. When settings are reset, the following message appears: “Any changes to the PPACA Reporting Settings page will affect all Original ALE(s) that have NOT yet been finalized. Finalized and Corrected ALEs will not be updated with the changed PPACA Reporting Settings.”

Menu > System Configuration > System Settings > PPACA Reporting Settings

Select Edit.
From the Defining Applicable Large Employers (ALEs) section, select either Component Companies or Tax Groups.
Important If you have added entries to the ALE Members business rule with the PPACA Reporting Settings configured for Component Companies and need to change to Tax Groups (or vice versa), you must first delete all entries in the ALE Members business rule. In addition, ALE Members cannot be deleted or modified once data has been either imported or manually entered on the Offer of Coverage page for one or more employees.
From the Printing 1095-C Forms section, select the Furnish Paper Copy of Form 1095-C to Terminated Employees box to include terminated employees who may have opted in for electronic-only copies of their Form 1095-C, but now need to receive a paper copy. This generally applies to employees who may no longer have access to Employee Self-Service in the UKG Prosolution.
Select the Mask SSN for Individuals on Printed Forms 1095-Cs box to hide social security numbers only on the printed form, except for the last four digits. The masking of the SSN is applied to Part I - Employee Information and to Part III - employee or dependents listed with an SSN. When an employee views his/her electronic Form 1095-C on the portal, the SSN is still visible on the electronic PDF version of the form.
From the Auto-Populating 1095-C Forms section, select Use Auto-Populated Code options, when applicable:
- Auto-populate Part II - Offer and Coverage You must store payroll and deduction information in UKG Pro and configure the associated business rules to auto-populate Form 1095-C. Part II reports offers of coverage information for all employees receiving a Form 1095-C regardless of whether employees chose to enroll or not.
- Auto-populate Part III - Covered Individuals You must store deduction and coverage information for employees and their dependents in the UKG Pro solution to auto-populate Part III of the Form 1095-C. Part III is for ALE members with a self-insured health plan; specifically for employees and dependents enrolled in coverage. After this check box is selected and the data is generated via the Generate and Finalize Forms page, the action cannot be reversed.
- Include Terminated Employees - Select this option to include terminated employees who never had an active record in the reporting year, but need to be included in Part III due to receiving COBRA coverage in a self-insured plan. After this option is selected and the data is generated via the Generate and Finalize Forms page, the action cannot be reversed.
Select the Include Coverage Stop Date in the Calculation of the Coverage Period box to indicate to include the stop date in the calculation for the covered individuals and their coverage months. To determine this, you must decide whether the coverage stop date in the PPACA reportable medical plan represents the last day of coverage or the first day the employee no longer receives coverage. This applies to the calculation of Part II Line 16 safe harbors and self-insured employers reported on Form 1095-C, Part III. To leverage the auto-population feature, you must have PPACA reportable medical plans configured in the UKG Pro solution using the Deduction/Benefit Plan business rule.
Select a Default Affordability Safe Harbor Method from the drop-down list. Auto-population will only leverage the selected safe harbor method to determine affordability. When a full-time employee waives coverage and their offer of coverage was not affordable by the default selected, line 16 will be blank. If you do not choose a default affordability safe harbor method, auto-population will prioritize Federal Poverty Line (2G), W-2 Wages (2F), and Rate of Pay (2H), in that order.
From the Calculating Hours and Eligibility section, select the Exclude payroll opening balances from ACA hours calculations box. This applies to any ACA reporting years or measurement periods that are still in progress. This setting is always recommended if you are also using the ACA-Eligible Third-Party Earnings business rule. Changes made here will be available for use in ACA Manager the following day.
In the Treat a terminated employee as a new hire after field, select one of the following options:
- 13 weeks from their termination date (for non-educational organizations)
- 26 weeks from their termination date (for educational organizations)
- I will manually remove and add employees to health care measurement groups
Select Save. The PPACA Reporting Settings page appears with the selected configurations.

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