ACA in Escape Online
Always concerned about new regulations that affect our customers, Escape Technology makes a special effort to address new regulations proactively. We even have a web page dedicated to Regulatory Changes, providing our customers with a summary of the regulation and how we plan to address the change within Escape Online. Recently, we have had several questions about the Affordable Care Act. Well, we have implemented several changes since the act was signed into law on March 23, 2010.
The following is a summary of the changes we have implemented and are currently discussing with our customers.
In 2011, the Federal Government gave companies the option to start reporting the cost of employer sponsored healthcare coverage (in box 12, code DD), so we updated our W2 processing to accommodate that. In 2013, we added the ability to suppress W2 printing for those retirees with information ONLY in box 12, code DD since the government did not require W2 information under those circumstances.
In 2013, we updated payroll processing (and W2 processing) to include the additional Medicare tax for employee earnings above $200,000, applying and reporting the extra 0.9%. In addition, benefit cap processing was changed to adhere to the new guidelines for the Employer Shared Responsibility provision. All payroll reports were also updated to recognize the new tax and benefit processing.
Calculating Hours Worked
For the ACA Measurement Period reporting, we made several changes in 2014. We added fields to Addons (pay that is not tied to a position) for defining the number of hours-worked for the measurement period calculation. We also made the fields for ACA reporting in Addons available to more users for more efficient setup. And, of course, we ensured that all hours associated with a position were automatically included in the calculation.
What is a government regulation without reporting? Now, we already mentioned that W2 and Payroll reports were updated to include new taxes, but we also created reports for helping you give the Federal Government the required information.
ACA Measurement Period Report - This report was made available in June 2014, release v14.02. The report provides detail on employees and substitutes who have worked at least 30 hours per week over a specified period of time (measurement period) that is no less than 3 months and no greater than 12 months. You can filter the report by employee ID, person type, employment status, and bargaining unit. You can also specify a minimum and maximum number of hours paid. In addition, you have numerous selections for how and if you want to select employees based on enrollment in a medical plan and/or opted-out.
ACA Affordability Report - This report is pending. We are currently working with customers to develop the specifications. You can keep track of our progress by asking Escape Customer Care to add your organization to the change request or by checking our Regulatory Page for updates.
More to Come
As we learn of more requirements for ACA, we will update our Regulatory Page and work closely with our customers to implement the tools and reports they need in a timely manner.
We hope this information helps you understand how Escape Online includes the requirements for the Affordable Care Act. If you have any questions, please contact Escape Customer Care.