Generate and Review Forms 1095-C and 1094-C

Generate Process

Form 1095-C (Employer-Provided Health Insurance Offer and Coverage) is sent to specific employees of applicable large employers (ALEs) by the employer, providing information about health coverage offered, eligibility, and possibly, enrollment status. Data must be entered and generated prior to distributing final Form 1095-Cs to employees.

Form 1094-C (Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns) is sent to the Internal Revenue Service (IRS) by the employer, providing a “cover sheet” for Form 1095-C. Form 1094-C includes the employer name, address, phone, Employer Identification Number (EIN), number of employees, name of contact person, and number of submitted Forms 1095-C.

  1. Generate Forms 1095-C and 1094-C

    ACA Administrators can initiate the Generate process by accessing the Generate and Review Forms section from the Generate, Finalize, and Distribute Forms page (Reporting > ACA Manager > Generate and Finalize). Use this page to generate and review all generated Forms 1095-C for a specific applicable large employer (ALE) and the corresponding Form 1094-C. After data is populated for 12 months in Part III of Form 1094-C and the administrator has generated all Forms 1095-C with no validation errors, the administrator can then review and finalize Form 1094-C in the Finalize 1094-C section.

  2. View and Correct Form 1095-C Errors

    Affordable Care Act (ACA) administrators can review Form 1094-C every time they generate forms (Reporting > ACA Manager > Generate and Finalize > Generate and Review Forms).

    If any validation errors occur, the ALE will be sent back to a Generated with Errors status. The administrator must then access that ALE and all corresponding errors in the Generate and Review Forms section of Form 1095-C.

  3. Finalize Form 1094-C

    After data is populated for 12 months in Part III of Form 1094-C and the administrator has generated all Forms 1095-C with no validation errors, the administrator can then review and finalize Form 1094-C in the Finalize 1094-C section.

  4. Distribute and Download

    If there are no validation errors and Form 1094-C is finalized successfully, the administrator accesses the Distribute and Download Forms section to enable employees to access their Forms 1095-C via Employee Self Service (ESS) or PDF files to be used for self-printing.

Generate Process with Auto-population

The PPACA Reporting settings (System Configuration > System Settings) control how the Generate process leverages the auto-population feature to populate data for Form 1095-C. To use the auto-population feature, payroll and deduction information must be stored in UKG Pro and associated business rules configured to auto-populate Form 1095-C, Part II.

In addition, deduction and coverage information for employees and their dependents must be stored to auto-populate Form 1095-C, Part III. Select the option to Include Terminated Employees when reporting is needed for Part III due to COBRA coverage offered within a self-insured plan on the PPACA Reporting Settings page.

When the Auto-population feature is enabled, the generation process proceeds as follows. The system:

  • Determines which employees require Form 1095-C based on PPACA configuration.
  • Populates UKG Pro Human Resources, Payroll, and Benefit information for Form 1095-C, Part II (Employee Offer and Coverage) or Part III (Covered Individuals).
  • Generates the employee’s Form 1095-C, Part I (Employee), Part II (Employee Offer and Coverage), and Part III (Covered Individuals).
  • Validates the employee’s Form 1095-C.
  • Generates the ALE Form 1094-C. If errors exist, review and correct data in Form 1095-C, Parts II and II.
Note

Use the PPACA Business Intelligence report templates to correct and, if needed, maintain auto-populated values on the Offer of Coverage page for selected employee records. To replace an auto-populated value with a blank on the Offer of Coverage page, enter a value of NA in the appropriate cell of the CSV file. To maintain an auto-populated value on the Offer of Coverage page, ensure the cell of the CSV file is empty, so it contains no value. After you save and import your changes again, review the Offer of Coverage page to validate your changes.

Generate Process without Auto-population

When the Auto-population feature is not enabled, the system uses data that has been manually entered or imported using a Business Intelligence report template.

When auto-population is not enabled, the generation process proceeds as follows. The system:

  • Generates the employee’s Form 1095-C, Part I (Employee), Part II (Employee Offer and Coverage), and Part III (Covered Information) based on the manually-entered data on the Offer of Coverage page or imported data using a Business Intelligence report template.
  • Validates the employee’s Form 1095-C.
  • Generates the ALE Form 1094-C. If errors exist, review and correct Form 1095-C data Parts II and III.

Generate Forms 1095-C and 1094-C

You can generate Forms 1095-C and 1094-C from the Generate and Review Forms page. The Generate and Review Forms page updates applicable large employer (ALE) information, including the last generated date, the user who initiated the Generate process, and the total count of Forms 1095-C.

The Generate and Review Forms page displays all form statuses, including:

  • Not Started
  • Pending
  • In Progress
  • Generated
  • Generated with Errors
  • Ready to Finalize
  • Finalized

Navigation:Menu > Administration > Reporting > ACA Manager > Generate and Finalize

  1. From the Generate, Finalize, and Distribute Forms page, in the Generate and Review Forms section, select Continue.

    From the Generate and Review Forms page, administrators can generate and review all generated Forms 1095-C for a specific applicable large employer (ALE) and the corresponding Form 1094-C. If any validation errors occur, the ALE will be sent back to a Generated with Errors status. The administrator must then access that ALE and all corresponding errors in the Generate and Review Forms section of Form 1095-C.

    Note

    A spinner appears on this page if there is a delay when selecting Continue. The Back button returns users to the Generate, Finalize, and Distribute Forms page.

    Generate, Finalize, and Distribute Forms Page
    Important

    It is recommended to generate your forms automatically every month to audit data and correct validation errors in a timely manner. Also, when periodic updates to the ACA Manager are applied, regenerate your forms to obtain the latest validation checks for your ACA data.

  2. At the Generate 1094-C and 1095-C Forms Every Month field:
    1. Move the toggle to ON to allow the automatic generation of forms.
      Note ACA Manager will automatically generate forms on the 15th of each month. Previous months' payrolls are more likely to have finished processing by this time. This will re-generate the forms for all previous months in the year. Automatic generation will only update the most recent year for each original ALE that is not finalized. You can still manually generate your ALEs at any time. When ALE's are auto-generated, the Last Generated > User displays System-generated.The Generate and Review Forms page with the System-generated label highlighted.
    2. Move the toggle to OFF to prevent the automatic generation of forms.
  3. Check the applicable ALE Name boxes. ALEs are initially listed in a Not Started status on the Generate and Review Forms page.
    Note

    An ALE appears on the Generate and Review Forms page based on one of the following scenarios: 1) if the Auto-populate feature is enabled for Part II or Part III or 2) if the Auto-populate feature is not enabled and at least one employee has an Offer of Coverage code entered on the Offer of Coverage page.

    Generate and Review Forms Page
  4. Select Generate.
    Note After selecting Generate, the button icon spins to indicate that form generation is in progress.
  5. Once queued, a Pending status appears.
    Generate Pending Status
  6. (Optional) Select Refresh to update the status.
  7. Once the status is refreshed, a Generated or Generated with Errors status appears with an error count for Form 1095-C.
    • Generated – status indicates that all Forms 1095-C were run successfully.
    • Generated with Errors – status indicates that errors were found and must be corrected in order to generate forms successfully. A 1095-C error link enables you to view and correct these errors.

Review Data and Correct Form 1095-C Errors

Review Form 1095-C errors by selecting the error link located in the 1095-C Error(s) column on the Generate and Review Forms page. The error link provides the number of errors identified during the validation process. All errors must be corrected and the ALE regenerated before proceeding to the next step of the process.

  1. From the Generate and Review Forms page, in the 1095-C Error(s) column, select the applicable link to view and correct errors. The Generate 1095-C Error Report page appears.
    Error link for generated 1095C forms
  2. For a complete list of Form 1095-C errors, select the Full Error Report link.

    For Form 1095-C, Part II Errors only, select the 1095-C Part II Import Template link.

    Generate 1095-C Error Report

Form 1094-C

Form 1094-C includes four parts: I – Applicable Large Employer Member, II – Applicable Large Employer Member Information, III – ALE Member Monthly Information, and IV – Other ALE Members of Aggregated ALE Group. Review and update the information to ensure accuracy prior to finalizing an ALE.

Part I – Applicable Large Employer Member

Used to review and update the Applicable Large Employer Member and Member Contact Information fields, as needed, for all ALEs.

Part II – Applicable Large Employer Member Information

Used to review and update the Applicable Large Employer Member information, including whether a certification of eligibility applies.

  • Authoritative Transmittal for ALE MemberReports the aggregate employer-level data. Ensure that one authoritative transmittal is filed for each employer.
  • Section 498H Transition ReliefCheck or uncheck the Transition Relief box.
    • Checked – certifies that you have provided at least Minimum Essential Coverage to at least 70% of your full-time employees and their dependents. Update any values in Part III, Minimum Essential Coverage Offer Indicator.
    • Unchecked – certifies that you have provided at least Minimum Essential Coverage to at least 95% of your full-time employees and their dependents. Update any values in Part III, Minimum Essential Coverage Offer Indicator. This also clears any selected values in the Section 4980H Transition Relief Indicator in Part III of Form 1094-C.

    Part III – ALE Member Monthly Information

    Used to review and update the monthly information to ensure all required fields (denoted with a red asterisk) are completed for the twelve months. Administrators are required to provide Offer of Coverage codes for the year. These codes are entered every month or one time to represent all months in the year when finalizing Form 1094-C. If administrators are tracking on a monthly basis and one of the months does not contain a valid Offer of Coverage code, the following error message appears when attempting to finalize Form 1094-C: "Invalid: Missing offer of coverage code. In order to finalize the ALE, the employee's 1095-C must provide a valid offer of coverage. Review the values in the Minimum Essential Offer Indicator column to ensure accuracy based on the selection status of Section 4980H Transition Relief."

    Part IV Other ALE Members of Aggregated ALE Group

    Read-only section that includes information only if an ALE group containing more than one ALE member is configured in the system. Columns include:

  • ALE Name – members sorted based on same group, beginning with the highest monthly average of full-time employees to the lowest. When an employer has more than 30 ALEs, only the largest 30 members of the group appear.
  • EIN – numbers validated based on IRS guidelines. When a Employer Identification Number (EIN) includes a repeated number (for example, all 8’s or all 9’s) or a sequential number (ascending or descending), it is deemed invalid and a message appears: "Invalid Employer Identification Number (EIN) for the highlighted fields below. Please contact your system administrator for assistance in updating the EIN on the ALE Member business rule if you do not have access."

Edit Form 1094-C

Edit Form 1094-C from the Generate and Review Forms page.

  1. From the Generate and Review Forms page, select the 1094-C link in the 1094-C column. The 1094-C page appears.
  2. Select Edit.
    Edit Form 1094-C
    Note

    If an invalid Employer Identification Number (EIN) is associated with an ALE or the Designated Government Entity, you must enter a valid EIN for Form 1094-C.

  3. Enter applicable edits, and then select Save.