Microsoft Dynamics GP Year-End Update 2020: Affordable Care Act (ACA)

For the 2020 year, we have more change than I wanted for ACA, why make it easy it is 2020 right?

Here are the list of items you need to be aware of that changed for the 2020 year and ACA reporting.

1.  The due date for furnishing Form 1095-C to individuals is extended from January 31, 2021, to March 2, 2021.

2. If you print Dependents, they now all moved to their own page, no dependents will print on the first page of the 1095-C form as they have in years past.

3. Employee's Age will be calculated and printed on the form.  If the employee date of birth is not populated on the employee record, the age will not calculate correctly, see below example.
The age will be calculated on the fly when you print the 1095-C form, it is not stored when you create the year end wage file.  It takes the year the year end wage file is created minus birthday year.
Based on instructions example Enter the employee's age as of January 1, 2020.  
Example, my birthdate is 1/12/1961, on the form, it should print 59 NOT 60.
The employee birth date is stored under the Additional Information window from the main employee maintenance record, table UPR00100 field brthdate

select brthdate, * from UPR00100

4. Plan Start Month is now required in the 2020 year and we will calculate this on the fly when you print the 1095-C form, it is not stored in the year end table and you cannot edit the field. 
Based on the 1095-C instructions:  To complete the box, enter the two-digit number (01 through 12) indicating the calendar month during which the plan year begins of the health plan in which the employee is offered coverage (or would be offered coverage if the employee were eligible to participate in the plan). If more than one plan year could apply (for instance the employee changes the plan year during the year), enter the earliest applicable month.  In Microsoft Dynamics GP this will be automatically populated based on the codes you enter in line 14.
For Example if you have the following
January 1H (no offer of coverage)
February 1H
March 1A
The plan start month would be 03
***We do have an issue if for example the employee was 1H in January and February and March, but started working for the company in April Plan Start is printing 00 and should be 04.  This is fixed in the January 2021 Hotfix **

5. For Box 14 there are new codes for Individual coverage health reimbursement arrangement (HRA). For plan years beginning on or after January 1, 2020, employers may offer HRAs integrated with individual health insurance coverage or Medicare, subject to certain conditions (individual coverage HRAs).  The new codes for Box 14 are 1L, 1M, 1N, 1O, 1P, 1Q, 1R, and 1S.  Some of these codes when used require the Employee's primary employment site ZIP code or Employee primary Residence location ZIP Code populated in Box 17 as shown in example below.  Again we are not storing this field and it will be populated when you print the form based on what is entered in Box 14.

6. There were changes to the instructions on the back of the form.

Notes:
Relief for failure to furnish statements to certain employees enrolled in self-insured health plan.
The IRS will not impose a penalty for failure to furnish Form 1095-C to any employee enrolled in an ALE member’s self-insured health plan who is not a full-time employee for any month of 2020 if certain conditions are met.

Extension of good faith relief for reporting and furnishing.
The IRS will not impose a penalty for reporting incorrect or incomplete information on the Forms 1095-C if you make a good faith effort to comply with the information reporting requirements.

Below I have still listed some of our top items we get in support to help you, but the main change this year are listed above.

1. Inactive employees -
With how the ACA rules changed, now you cannot leave a box blank/empty, so when employee Joe leaves the company, what customers do is put 2A in Box 16 - meaning Employee not employed during the month. 

Remember, it is when you click the PRINT button for the 1095-C form, if an employee is 2A for all 12 months, the form will not print.  I feel this is a great indicator to go by.  You will see the employees get complied in the year end, (incase you need to edit this employee and make changes to the record) but when you go to print, those employees will not be included.

If you did not get all your employees / codes set correctly, here is a nice script that will remove all inactive employees for you:

delete a from UPR10111 a
inner join UPR10101 b
on a.EMPLOYID = b.EMPLOYID
and a.YEAR1 = b.RPTNGYR
where b.RPTNGYR = '2020'
and b.WGTPCOMP = 0

This removes employees that have no wages in the year, if you are using payroll we assume employees would have wages.  Back up's are always recommended.

2. Multiple insurance plans (dental and vision examples) dishevel the 1095-C reporting.
As I painfully worked with customers on this reporting YOY another area that was causing ACA data inconsistencies was insurance codes that are non ACA reportable, such as Vision or Dental as an example.  If I had a health insurance code that did not change all year, then I added Dental, we would grab that "None" record as that was the newest record for the year.  How we decided to "identify" true ACA recordable codes is from the Health Insurance Setup on the Human Resource side. The field we will use to determine if the code is ACA recordable is at the Setup, None and None.  Then we will not include this code when we create the year end wage file.

Most of you have this properly set already based on prior year learning.

What I need you to make sure and do is at the SETUP for your health codes you want ACA recordable, make sure you do not have None and None.

Pick a default that would suite most of your employees, such as 1A and 2C as an example.

This code will NOT be picked up for ACA reporting.

This code will be picked up for ACA reporting as Box 14 and 16 are something other than None

3. Microsoft Dynamics GP will NOT support the electronic filing for the 2020 year for ACA.
Greenshades and Integrity-Data will allow you to track ACA in Microsoft Dynamics GP, and just do the electronic filing for you at a lower cost option.
Thanks to both ISV's for doing this!!
Greenshades - https://www.greenshades.com /             Integrity Data - http://www.integrity-data.com/

4. Similar to prior years, the all 12 month checkbox is not required for employee so we are populating each individual amount for employee,
but on the dependent the covered all 12 month box will be populated.

5. When you need to change what is reporting for an employee for a month, change the user date to the end of that month, example, you want to change the month of March and on, set the Microsoft Dynamics GP user date to 3/31/2020 make your record change, and recreate the year end wage file and you will see the change, you can also do this by rolling down from setup by a date.  We always take the last record of the month for what should print on the form.

6. We have had a couple of requests where a few forms have been rejected by the IRS.  Make sure if you are submitting forms, the 1094-C, we only print 1 page as that is all that is in Dynamics GP for information, but the form is actually more pages.  Make sure to complete the entire 1094-C prior to sending in to the IRS.

Click HERE for the FREE SmartList Designer reports library, free to you, it includes ACA SmartLists for you and many more!!

There is no new video this year as the tracking is the same as last year, click HERE if you are just getting started to track ACA and want to ramp up.

Enjoy, and everyone have a successful ACA 2020 year.

Be sure to refer to the GP 2020 Year-End Blog Schedule  to review current and upcoming blog posts and other helpful resource links related to Year-End Closing for Dynamics GP.

Terry Heley

non-ACA expert
Microsoft