Designate Earnings for Inclusion in ACA Calculation

Designate Earnings for Inclusion in ACA Calculation

Under the Affordable Care Act, applicable large employers - those with 50 or more full-time employees including full-time equivalent employees - are required to file information returns with the IRS and also provide statements to full-time employees about health coverage the employers offered or to show the employer didn't offer coverage.

The UKG Pro™ solution enables you to calculate health care eligibility for your employees using payroll history and earnings. To take full advantage of this functionality, earnings must be configured for inclusion in the eligibility calculations.

Ensure earnings code(s) are configured for applicable hours of service, each hour an employee is paid, or entitled to payment (vacation, holiday, illness, jury duty, etc.). For complete description and additional information on which types of earnings should be included, refer to the Identification of Full-Time Employees section on the IRS website.

Note Earnings with Flat Amount or Pay Period calculation rules have no hours of service record to determine full-time eligibility. This affects your ability to use the auto-population feature in your UKG Pro solution. You can still generate Form 1095-C, but you will have to import your data. 

Configure Earnings for ACA Eligibility Calculation

To configure earnings for inclusion in the ACA eligibility calculation:

Navigation:Menu > System Configuration > Business Rules > Earnings > select earnings code

  1. Navigate to the Earnings Detail page. 
  2. From the Detail page in the Include Earnings In section, check the Health Care Eligibility Hours box.
    Earnings Setup > Detail Page with the Include Earning In Health Care Eligibility Hours Option Highlighted
  3. Select Next.
  4. Select Save.

Configure Third-Party Earnings for ACA Eligibility Calculation  

After you imported employee payroll data from an external payroll system using the API, you can use the ACA-Eligible Third-Party Earnings business rule to specify which third-party earnings to include in health care eligibility hours and ACA calculations.

Navigation:Menu > System Configuration > Business Rules > ACA-Eligible Third-Party Earnings

  1. Navigate to the ACA-Eligible Third-Party Earnings business rule
  2. Select the applicable earnings codes. Include only earning code(s) that use hours in the calculation.
  3. Select Include.
    ACA-Eligibility Third-Party Earnings Business Rule Page

Cognos Analytics PPACA Eligible Earnings Codes Report

The PPACA Eligible Earnings Codes report is a list of U.S. -based Earnings Codes, including codes that are currently flagged for PPACA eligibility reporting.

The Include Earning In Health Care Eligibility Hours report column indicates whether or not the Earnings Code has been configured for PPACA reporting. Additional Earnings Code details, such as Calculation Rules and Tax Categories, are included in the report and may be helpful when determining which Earnings should be flagged for PPACA eligibility reporting.
Important If an earnings calculation rule does not have hours associated with it, such as Flat Amount or Pay Period, the UKG Pro solution will not have a record of the hours in order to determine full-time eligibility. This affects your ability to use the auto-population feature in the UKG Pro solution. You can still generate Form 1095-C, but you will have to import your data.

Navigation:Menu > Administration > Business Intelligence > Team Content > UltiPro Sample Reports > ACA Services Delivered Reports

Select PPACA Eligible Earnings Codes to download report.

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