Obtain
Transmitter Control Code (TCC) from IRS
NOTE: Please become familiar with the IRS instructions for Forms 1094-C and 1095-C on pages 9-13 (https://www.irs.gov/pub/irs-pdf/i109495c.pdf).
This process will complete Part I and Part II of the 1095-C Form.
1. Data to verify BEFORE printing 1095-Cs
Obtain
Transmitter Control Code (TCC) from IRS
NOTE: The TCC is required to electronically submit the 1094-C/1095-C information to the IRS. The TCC is NOT required to print the 1095-C Forms for employees.
REMINDER: If this will be your first year to process 1094-C and 1095-Cs in-house, you are a new employee to your district, or you have never electronically filed your 1094-C/1095-C information, you will need to obtain a TCC using the following steps. Otherwise, you will use your existing TCC.
A. Register with IRS eServices.
B. Apply for a Transmitter Control Code (TCC):
a. Role: Issuer for 1094-C/1095-C
b. Transmission Method: ISS-UI for ACA Internet Transmitter
NOTE: For more information on completing these items, please refer to the Affordable Care Act Information Returns (AIR) Program Overview website: https://www.irs.gov/e-file-providers/affordable-care-act-information-returns-air
Obtain
1095-C Forms
NOTE: Please email edsales@sylogist.com if you do not have credentials for the SylogistEd Online Forms Ordering platform.
A. Received 1095-C Forms for all employees.
Validate
Employee Names and SSNs
NOTE: It is imperative that employee names match what the Social Security Administration has on file for their Social Security Number. (If this validation step was already completed during the W-2 procedures, you may skip this step.) We have created a training video to assist you when using the SSN Verification Service.
Ø SSN Verification Service (access video directly through the application: PR/Home Screen/Training Videos Link/Ctrl+F keys/Search for ‘Verification’)
PR/Employee Maintenance/Employee
A. Manually validate each Employee’s Name and SSN with their Social Security Card for accuracy.
-OR-
B. Use the automated Social Security Number Verification Service (SSNVS) tool to validate all Employee Names and SSNs with SSA records. The SSNVS handbook and information on how to register and use the SSNVS tool can be accessed here: https://www.ssa.gov/employer/ssnv.htm
PR/Options/Reports/SSN Verification Service
a. Enter the Calendar Year.
b. Select Employee Export.
c. Save the file.
d. Navigate to the Business Services Online website to login and upload the file through the SSNVS tool.
NOTE: Follow this link to login to the Business Services Online website to use the Social Security Number Verification Service (SSNVS) tool provided by the SSA: https://www.ssa.gov/bso/bsowelcome.htm
e. The SSA will verify the file overnight and return the SSN Verification results.
f. To view the results, import the SSN Verification results file to Payroll.
PR/Options/Reports/SSN Verification Service
i. Browse to select the Import File.
ii. Select Results Viewer.
iii. Open the file to view the SSN Verification Service Results.
iv. If an employee’s verification status is not verified, make the necessary corrections to the employee’s record in SylogistEd prior to proceeding.
2. Complete ACA 1094-C & 1095-C Setup
NOTE: We have created a training video to assist you when completing the ACA 1094-C and 1095-C Setup.
Ø Setup 7 (access video directly through the application: PR/Home Screen/Training Videos Link/Ctrl+F keys/Search for ‘Setup 7’)
Enter
ACA 1094-C and 1095-C Setup Information
PR/Options/Setup/Form W2/1095-C Setup
A. Select the Calendar Year.
B. Truncate Employee SSN on 1095-C – this option will truncate the employee’s SSN on employee copies of Form 1095-C.
C. Scroll down to the Specify the ACA 1094-C And 1095-C information section.
D. Enter the Transmitter Control Code – this is provided by IRS (required to electronically submit the 1094-C/1095-C information; not required to print the 1095-C Forms for employees).
E. Select the Qualifying Offer Method and/or the 98% Offer Method accordingly.
NOTE: It is very important to select the Offer Method(s) that apply to you. For any questions regarding the 1095-C Form, please consult the IRS, your auditor and/or insurance provider.
F. Select the Plan Start Month of the health plan in which employees are offered coverage.
NOTE: This is a required field for 1094/1095-C reporting. If you are not an Applicable Large Employer (ALE) and are not required to file 1094/1095-Cs, select January as the start month and save the settings. Otherwise, select your Plan Start Month.
ACA Monthly Coverage Information (must be set for each month)
G. Coverage Code (1095-C Form/Section II/Line 14) – select the appropriate code for each month.
NOTE: It is very important to select the Coverage Code that applies to you. For any questions regarding the 1095-C Form, please consult the IRS, your auditor and/or insurance provider.
H. Coverage Cost Difference (1095-C Form/Section II/Line 15) – enter the amount for each month.
NOTE: To calculate the Coverage Cost Difference, take the lowest-cost monthly premium for self-only minimum essential coverage and subtract the Flexible Benefit Allowance amount. If that calculated amount is less than zero, enter 0.00 for the amount. Otherwise, use the calculated amount.
I. FBA In Lieu Default Safe Harbor Code - select the appropriate FBA In Lieu Default Safe Harbor Code, if applicable. For any questions regarding the 1095-C Form, please consult the IRS, your auditor and/or insurance provider.
I. Click the Save button.
3. Populate 1095-C Data & Prepare 1095-Cs
NOTE: We have created a training video to assist you when populating and preparing 1095-Cs.
Ø Form 1095-C (access video directly through the application: PR/Home Screen/Training Videos Link/Ctrl+F keys/Search for ‘Form 1095’)
Populate
and Edit 1095-C Data
PR/Options/Reports/Form 1095-C
A. Select the Calendar Year.
B. Select Populate to auto-populate the employee 1095-C information.
NOTE: The Populate option is a helper process to populate as much of the information as possible. Some values are defaulted based on common scenarios or values you selected in the 1095-C Setup. It is your responsibility to ensure the population logic used below applies to your reporting requirements. Each employee must be carefully validated and updated before printing the 1095-C Forms.
- To populate the 1095-C information, the Flexible Benefit Allowance (FBA) is used to determine if the employee was full-time. If the employee received FBA for any month, they will be added.
- If the employee received the FBA for a month, that month will be set as full-time and the Coverage Code and Coverage Cost Difference will be set based on the values in the Form W2 Setup. The Section 4980H Code will be set to 2C.
- If the employee received the FBA In Lieu Of for a month, that month will be set as full-time and the Coverage Code and Coverage Cost Difference will be set based on the values in the Form W2 Setup. The Section 4980H Code will be set to N/A.
- If the employee was paid during a month, but did NOT receive the FBA for that month, the Coverage Code will be set to 1H. The Employment Status and Section 4980H Code will be set to blank.
- If the employee was NOT paid during a month, the Coverage Code will be set to 1H. The Employment Status and Section 4980H Code will be set to blank.
- If it is determined that the employee was full-time for the entire year, the Ready To Print indicator will be set to True.
- If it is determined that the employee was not full-time for the entire year, the Ready To Print indicator will be set to False. Each month that the employee was not marked as full-time must be carefully validated and updated. Until each month has an Employment Status, Coverage Code, and Section 4980H Code, the employee cannot be marked as Ready To Print.
- Employees who are full-time for at least one month in the calendar year, but did not receive the FBA, must be added manually (i.e., Superintendent).
C. Validate and Edit employees that are not marked Ready To Print.
a. Select the employee.
b. Click the Edit button.
c. Verify and update each month if necessary.
d. Specifically, verify the Employment Status, Coverage Code, and Section 4980H Code for months when the Coverage Code is 1H. For months that the employee was full-time, but not offered coverage, verify you are using the proper Coverage Code and Section 4980H Code.
e. Once the employee information is correct, check the Ready To Print checkbox.
f. Click the Save button.
D. Add Full-Time employees that did not receive the FBA (i.e., Superintendent)
a. Click the New button.
b. Type to enter and select the Employee.
c. Set the Set All Months As Full-Time checkbox accordingly.
d. Select the Coverage Code (1095-C Form/Section II/Line14).
e. Enter the Coverage Cost Difference (1095-C Form/Section II/Line15).
NOTE: To calculate the Coverage Cost Difference for employees that did not receive the FBA, take the lowest-cost monthly premium for self-only minimum essential coverage and subtract the amount paid as a fringe. If that calculated amount is less than zero, enter 0.00 for the amount. Otherwise, use the calculated amount.
f. Select the Section 4980H Code (1095-C Form/Section II/Line16).
g. Click the Save button.
h. If you did not check the Set All Months As Full-Time checkbox, you must edit the employee information accordingly. Follow the instructions in Step C above.
E. Delete employees who should not receive a 1095-C Form if applicable.
a. Select the employee.
b. Click the Delete button.
Print
a Test 1095-C Form for One Employee to Validate Alignment
PR/Options/Reports/Form 1095-C
A. Select the Calendar Year.
B. Select Print Forms to bring up the Print Form 1095-C criteria.
C. Enter one employee vendor number for testing.
D. Select Print 1095C Forms and open PDF.
E. Select File and Print.
F. Verify PDF Viewer Page Sizing and Handling is set to Actual Size.
G. Print to actual 1095-C Form to validate alignment.
4. Print 1095-Cs, Form 1094-C Information, Publish IRS Forms & Create E-Files
Print
1095-C Forms & 1094-C Information
PR/Options/Reports/Form 1095-C
A. Select the Calendar Year.
B. Select Print Forms to bring up the Print Form 1095-C criteria.
C. Select the Print e-Consent Employees checkbox if applicable.
NOTE: In order to print a Form 1095-C for ALL employees, check this box. Otherwise, if left unchecked, only employees that did NOT enroll to electronically receive their Form 1095-C through the Employee Portal will print.
D. Select Print 1095C Forms and open PDF.
E. Select File and Print.
F. Verify PDF Viewer Page Sizing and Handling is set to Actual Size.
G. Print to actual 1095-C Forms.
H. Save the PDF file for your records.
I. Distribute 1095-C Forms to employee(s) by the appropriate deadline.
J. Select Print 1094C Info and open PDF.
K. Save File and Print the Form 1094-C Information for your records.
Publish
IRS Forms to Employee
Portal
NOTE: In order to allow employees to electronically print IRS forms through the Employee Portal, the IRS forms must be published using the following steps. Otherwise, skip this step.
PR/Options/Setup/Employee Portal Settings/Publish IRS Forms
A. Select the Calendar Year.
B. Check the appropriate checkbox to publish the 1095-C Forms.
NOTE: Make sure all IRS Forms and all related data have been verified and are ready to publish.
C. Click Save to publish the 1095-C Forms to the Employee Portal and make them available for those employees enrolled to electronically receive them.
Create
1094-C and 1095-C E-Files
NOTE: For detailed information on creating electronic files for submission to the IRS, please use the SylogistEd PR ACA 1094-C and 1095-C E-File Procedures document provided.
A. Remember to electronically file Form 1094-C and 1095-C information to the IRS using the ACA Information Return (AIR) system by the appropriate deadline.
NOTE: SylogistEd, Inc. does not support paper filing of Form 1094-C and 1095-C information. If choosing to paper file, please contact the IRS to obtain the appropriate landscape forms and refer to the instructions for paper filing and the appropriate deadline.