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1095 Software: How can I align data to print perfectly?

October 25th, 2017 No comments

Go to File/Print or File/Preview.  A print options box will display that looks like the following:

aca_print_options

When you print, client data is printed on top of an image of the 1095 form.  If the data prints too high, then increase the value of the top offset to move client data down.  If the top offset is 0.00 then increase it to 0.15 or 0.30 pixels and then hit the Save button to the left.  If the data prints too low, then decrease the value of the top offset to move client data up.  If the top offset is set at 0.30 and its printing to low, then decrease the value to 0.15 or 0.00 and hit the Save button.

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1095 Software: Can you print and mail on our behalf?

October 25th, 2017 No comments

Yes.

We can print and mail any size order with complete security.  We duplex print the 1095 form on one side and the mailing address and instructions on the other side of single sheet of paper.  We have machines that tri-fold, stuff and seal pre-postage paid envelopes.

Here are the steps you would want to take to have us print and mail on your behalf:

  1. Contact sales at (480) 460-9311.  Sales can process your order and provide an account number.  We have very competitive pricing.
  2. Rename your excel file the account number and upload using this sharefile link:https://nationalsoftware.sharefile.com/r/r4605c86ea294f758
  3. We will import, convert to PDF and return to you a passcode protected PDF using the last 4 digits of the 1st employer EIN in the excel file.  The employee SSNs will be masked and only display the last 4 digits of the employee SSN. You review and email back letting us know whether to print and mail or if you have changes.  Once the PDF is approved, we begin printing and will mail.You can also download and install the software and use the software to convert to PDF with the employee SSNs masked.  Then upload that PDF to us and we can print and mail.

Call anytime.  Our sales office can answer any question you have about the printing and mailing process.  Once approved by you, we can typically print and mail within 0-2 days.  We work quickly.

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1095 Software: What’s New for Tax Year 2017?

October 16th, 2017 No comments

IRS Forms 1095-C and 1095-B must be postmarked by January 31, 2018. The IRS gave companies a break with extended deadlines and leniency for good faith effort in prior years. But the tide has turned and the IRS has given no indication of extended deadlines or leniency for good faith efforts. If the IRS publishes any notices which extend the due dates for certain information reporting requirements for 2018, we will update this page immediately.

On November 1, 2017, Tax Year 2016 Forms will be considered a prior year return in AATS (Testing). When production opens in January, Tax Year 2016 Forms will be considered a prior year return in Production.  You can electronically file prior year originals and/or corrections and corrections are encouraged if you received ‘Accepted With Errors’.  However, putting together a prior year return is challenging.

To generate Tax Year 2016 or 2015 returns in AATS and Production use:

• Manifest file from Tax Year 2017 schema package
• Form Data File from Tax Year 2016 or 2015 schema package
• PaymentYr value “2016” or “2015”
• PriorYearDataInd value “1”
• Software Id for 2016 or 2015 (example, 2015 software Id’s start with 15XXXXXXXX)

We can help prepare and transmit current or prior year 1095 returns.  Just call sales at (480) 460-9311 with any questions.

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ACA: How to code section 16 for employees who did not enroll in coverage

February 21st, 2017 No comments

The key to coding section 16 is understanding that it is directly related to the codes that reside in section 14 (Offer of coverage).

If you use the code 1A in section 14 as your offer of coverage, you are reporting to the IRS that you are offering coverage that is affordable because it is under the federal poverty line.

  • If the employee enrolls in coverage, the code is 1C.
  • If the employee declines coverage, your safe harbor code in 16 is 2G. This explains to the IRS why your coverage is affordable and you are basing that affordability on the federal poverty line.

If you use the code 1B, 1C, 1D, or 1E, and

  • they enroll in coverage your code in section 16 is 2C.
  • If they do not enroll in coverage, you must enter the save harbor code in section 16 that applies to your company. This is an explanation to the government as to why your offer of coverage is affordable. The IRS safe harbor codes are listed below, followed by a summarized explanation of those codes.

IRS Safe Harbor Codes

2E – Multiemployer interim rule relief. Enter code 2E for any month for which the multiemployer arrangement interim guidance applies for that employee, regardless of whether any other code in Code Series 2 (including code 2C) might also apply. This relief is described under Offer of Health Coverage in the Definitions section of these instructions.

Note. Although ALE Members may use the section 4980H affordability safe harbors to determine affordability for purposes of the multiemployer arrangement interim guidance, an ALE Member eligible for the relief provided in the multiemployer arrangement interim guidance for a month for an employee should enter code 2E (multiemployer interim rule relief), and not codes 2F, 2G, or 2H (codes for section 4980H affordability safe harbors).

2F – Section 4980H affordability Form W-2 safe harbor. Enter code 2F if the ALE Member used the section 4980H Form W-2 safe harbor to determine affordability for purposes of section 4980H(b) for this employee for the year. If an ALE Member uses this safe harbor for an employee, it must be used for all months of the calendar year for which the employee is offered health coverage.

2G – Section 4980H affordability federal poverty line safe harbor. Enter code 2G if the ALE Member used the section 4980H federal poverty line safe harbor to determine affordability for purposes of section 4980H(b) for this employee for any month(s).

2H – Section 4980H affordability rate of pay safe harbor. Enter code 2H if the ALE Member used the section 4980H rate of pay safe harbor to determine affordability for purposes of section 4980H(b) for this employee for any month(s).

 

UNDERSTANDING SAFE HARBOR CODES

FEDERAL POVERTY LINE SAFE HARBOR – 2G

If an employer satisfies the requirements for this Safe Harbor, their insurance coverage offering will be considered affordable under the employer mandate.

Who should use the Federal Poverty Line Safe Harbor?

This safe harbor may be most useful for employers with seasonal employees and employers who use the look-back measurement period to determine if variable-hour or seasonal employees have full-time status.

How to use the Federal Poverty Line Safe Harbor

Take the Federal Poverty Line (FPL) for a household of one in the current plan year ($11,880 in 2016), and divide it by 12. If your employees are not paying more than 9.66% (for plan years beginning in 2016) or 9.56% (for plan years beginning in 2015) of the FPL for their health coverage premiums, your coverage is considered affordable under the employer mandate.

Disadvantages of Federal Poverty Line Safe Harbor

This method typically provides the lowest threshold allowed for monthly premiums. Other methods generally allow for a higher monthly premium.

W2 SAFE HARBOR – 2F

If an employer satisfies the requirements for this Safe Harbor, their insurance coverage offering will be considered affordable under the employer mandate.

Who should use the W2 Wages Safe Harbor?

This safe harbor may be most useful to an employer with full-time employees who regularly work 40 hours per week and whose compensation is unlikely to decrease during the year.

How to use the W2 Wages Safe Harbor

Refer to Box 1 of an employee’s current year W2 form. If the employee’s health coverage premium is not more than 9.66% (for plan years beginning in 2016) or 9.56% (for plan years beginning in 2015) of Box 1, your coverage is considered affordable under the employer mandate.

Disadvantages of W2 Wages Safe Harbor

This safe harbor counts only earned wages, and does not permit an employer to impute income that would have been earned had they not taken a leave of absence. Box 1 income does not include pre-tax contributions, which will reduce the maximum affordable amount; this must be calculated monthly for every employee in your company.

RATE OF PAY SAFE HARBOR – 2H

If an employer satisfies the requirements for this Safe Harbor, their insurance coverage offering will be considered affordable under the employer mandate.

Who should use the Rate of Pay Safe Harbor?

This safe harbor may be most useful for employers with hourly employees and the need for a fast, “failsafe” calculation method. If the Rate of Pay safe harbor is met for your lowest-paid employee, then it will also be met for all other employees.

How to use the Rate of Pay Safe Harbor

Multiply an hourly employee’s lowest pay rate during the calendar month by 130 hours. If the employee’s health coverage premium is not more than 9.66% (for plan years beginning in 2016) or 9.56% (for plan years beginning in 2015) of this amount, your coverage is considered affordable under the employer mandate.

Disadvantages of Rate of Pay Safe Harbor

You can only multiply the hourly pay rate by 130 hours per month, even if employees actually work more hours. If you have any employees who are paid purely on commission, you cannot select this safe harbor. You cannot use the rate of pay safe harbor for any salaried employee who experiences a pay reduction in any month.

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ACA: How can I efile tax year 2015 data in tax year 2016?

February 20th, 2017 No comments

We are currently in tax year 2016. Many clients have approached us to efile tax year 2015 originals and corrections. This is more challenging then I originally expected but the process is easy in hindsight.  We called and emailed the IRS to attain the below steps and I have successfully efiled tax year 2015 data in tax year 2016.  The steps are:

  1. Use tax year 2015 ACA software to generate the data file.  The header and body of the XML data file must match Schema 2015v8.0 for the form data file which is the last schema version the IRS released for tax year 2015.
  2. Use tax year 2016 ACA software to generate the manifest file. But you need to make changes to the 2016 manifest file.
  3. When your generate the manifest file, the software asks for ‘payment year’ and ‘are you efiling a prior year’.  Select payment year 2015 and yes that are efiling a prior year.
  4. Remember to change the software IDs to reflect 2015.

Those are the steps.  If you have any problem efiling prior year ACA data, call or email us anytime.  We can efile on your behalf.

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ACA Software: Can I delete a file which has been Accepted or Accepted With Errors?

February 20th, 2017 No comments

No, there is not a way at this time to delete accepted ACA transmissions.  You can efile a correction.

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Extended due dates for 1095 forms in tax year 2016

November 21st, 2016 No comments

The IRS released Notice 2016-70. The notice does two things.

  • The notice gives employers additional time to print and mail the 1095-B and/or 1095-C forms to employees.

The due date was January 31, 2017 and is now March 2, 2017.  Employers must furnish the 1095 forms to the employees by March 2, 2017.  Paper copy of Form 1095 must be sent to the IRS by February 28, 2017 or file Form 1095 electronically to the IRS by March 31, 2017.

Last year, the IRS released Notice 2016-4 which extended the deadlines for furnishing the 1095 forms to individual taxpayers as well as filing the 2015 ACA forms to the IRS (both the paper and electronic filing deadlines were extended in 2015). Notice 2016-70 only extends the due date for providing the 2015 ACA forms to the employees.

  • The notice “extends good-faith transition relief” for another year.

In tax year 2015, the IRS announced that they would not penalize employers for incorrect or incomplete forms if the employer made a good-faith effort to comply with the ACA reporting requirements.  This same good-faith effort is asked of employers in tax year 2016.  Specifically, employers that make a good-faith effort to comply with the ACA reporting requirements for 2016 are not subject to penalties under Code sections 6721 (penalties for late, incomplete, or incorrect filing with IRS) and section 6722 (penalties for late, incomplete, or incorrect furnishing of statement to individual taxpayers).

 

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1095 forms: More than 6 covered individuals

November 21st, 2016 No comments

A common comment is

The total number of employees auto populated does not match my employee count.

Our printers can print, fold, stuff and seal a fixed number of pages per envelope. We have it set to print, fold, stuff and seal one page per envelope. We cant our printers look ahead and include a continuation sheet if it exists when there are more than 6 covered individuals.  So if there are more than 6 covered individuals, the software puts the first 6 covered individuals on one 1095 form and the 7th through 12th on the next 1095 form.  The forms are printed and mailed separately.  While we can make the software do anything, our printers are more rigid.

For efiling, its different.  You can have as many covered individuals as you like. When you efile, the software looks ahead to see if the next record has the same employee SSN and is a continuation and if so, it lists those covered individuals for that employee.  You can have any number of covered individuals when efiling and the software will treat that as one employee and not separate.  So when you efile to the IRS, the number of employees will equal the number of 1095 forms sent.
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How can I order the 1095 software?

November 16th, 2016 No comments

Our 1095 software contains 1095-B (and its 1094-B transmittal summary) and 1095-C (and its 1094-C transmittal summary) forms.  You order the software online at this link

https://www.1099fire.com/buy_now.htm

There are 2 versions:

  1. Single-employer.  The single employer option is less expensive and lets you efile forms for one employer with multiple employees.  You will type in the employer EIN during registration and then the software will lock in that EIN for printing and electronic filing.
  2. Enterprise.  The enterprise version lets you efile for multiple employer EINs and their respective employees.

You can also order by phone at (480) 460-9311.

 

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Do I need multiple TCC numbers to efile 1095 forms?

November 16th, 2016 No comments

No.

You need one transmitter control code or TCC number in order to efile any number of 1095-B and/or 1095-C forms.  You can efile for multiple employers using that one TCC number.

We are a service bureau and as such, we can efile on your behalf using our TCC number.  Email sales at info@1099fire.com or call sales at 480-460-9311 for more information on how we can efile 1095 forms on your behalf.

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