ACA Processing

Updated on Dec 14, 2022

Resources

Springbrook Community – Affordable Care Act Playbook.

https://enterprisehelp.springbrooksoftware.com/a/1365161-affordable-care-act-playbook

IRS.gov – 2022 1094-C & 1095-C instructions (currently in Draft)

https://www.irs.gov/pub/irs-dft/i109495c--dft.pdf

Affordable Care Act Information Returns (AIR) Program page

https://www.irs.gov/e-file-providers/air/affordable-care-act-information-return-air-program

Due Dates

Filing of Forms 1094-B and 1094-C (transmittals with statements) with the IRS by February 28, 2023, or March 31, 2023, if filing electronically.

Extension can be requested by using Form 8809 with the IRS.
The threshold for mandatory electronic filing with the IRS is 250 returns.

There is an automatic 30-day extension from January 31, 2023 to March 2, 2023 for furnishing Forms 1095-B and 1095-C (statements) to individuals.

Access

We are targeting to begin release of the Springbrook Cloud hosted ACA processing solution for the next filing year the week of December 12th, 2022.
For prior year Springbrook Enterprise self-hosted, KVS, and SoftRight Payroll clients you will receive a direct email to your target user from [email protected] when your cloud environment is ready.
Please submit a request to our support team if you would like to use our solution and did not use it in prior years.

To use the Springbrook ACA Solution

Log in at https://portal.springbrooksoftware.com/
- If this is your first time logging:
  - There are technical requirements for your workstation, including a new this year requirement that WebView2 must be installed. Please see our Hardware & Software Requirements for more information.
  - The username is your email address.
  - You will establish a password using the 'Forgot Password' option presented in the login flow.
  - You will be required to use Multi Factor Authentication for login. Your options for the second factor include a FIDO Security Key, Authenticator App, Voice Call, and Text message.
Note that this year you can use either our Springbrook Enterprise or Cirrus application interfaces to process ACA.
- Cirrus is fully browser based and supported on modern browsers like Safari, Chrome, Mozilla, and Edge.
- If using Springbrook Enterprise we recommend you use Edge as your browser.

Troubleshooting Access Issues

Please refer to our user login guide for details on authentication
- https://sprbrk.box.com/s/zc3g50bon9ddxjpha4g42dglw6c9mb9w
Please refer to our troubleshooting guide for issues launching the Springbrook Cloud Enterprise Application
- https://help.sprbrk.com/PDF/LoginHelp.pdf

Getting data ready to Import

Use the Data Extraction Utility for your software
Review data to remove disallowed characters.
Open file in Notepad.
- Use the Replace option under Edit to search for disallowed characters.
- Type in what you want to replace with. If removing a period or similar character, leave the Replace With field BLANK. Don’t add extra spaces.

Disallowed Characters

Characters the IRS does not allow in their electronic filing are not allowed in the Affordable Care Act process.

/ (common in address ½)

‘ apostrophe

. Period

# (common in address – replace with No)

“ double quotes

< less than

> Greater than

& Ampersand

Disallowed characters will import but create a Review in the Job Viewer.
If filing on paper (have less than 250 forms) it is possible to file with the disallowed characters but electronic filings will be rejected.
Springbrook recommends not using disallowed characters in any filings.

Prepare to Import

The import process brings in data from CSV spreadsheets and adds the information to the Edit Employees window.
Extract the data from your existing system (Springbrook, KVS or SoftRight.
The data must be in a CSV format and contain the defined number of columns/fields.
When reviewing exported data from your system consider using Notepad to remove/replace disallowed characters.
Remember opening a CSV formatted file will delete leading zeros in any column.
- MOST IMPORTANT in zip codes and Social Security numbers!!!! These fields must contain accurate data.

Import Formats – Employee File

File formats are at the top of the Import window.

All columns must have data or space. Must have 13 columns.
The last column (Self Insured) must be true if reporting dependents and false if you are not reporting dependents.

Import Formats – Dependent file

Only used if agency is considered self-insured and must report dependents.
If importing Dependents make sure the “Self-Insured” field in the Employee file is marked true.
Employee number must match the Employee file.
Must have 18 columns/fields.
Must have all the covered months marked either true or false. Yes/No will not import.

Import Formats – Coverage File

Coverages can be added directly into the application so this is not commonly used.
If you decide to import the Month must be spelled out.
Coverage amount is the amount the employee pays (per IRS instructions).
These records must be a separate line for each month.

Affordable Care Act batch process

Import or Generate
Edit Employees
Edit Employer
Proof List
Forms
Export
Commit – never needed just deletes information.

Generate – Only Available for Cloud Payroll clients

Check Security if it is not on the menu.
Select reporting year – Will default to the current fiscal year. This may need to be changed to 2020. The system will only bring in employees that are active in 2020.
Sort Order – This will determine the order the forms are printed. This is helpful to match up forms to W2’s to mail.
Mark Self-Insured coverage if you need to report dependents.
- The generate will bring in dependents in HR if selected and will not if this toggle is not marked.
- If self-insured reporting is needed import dependents from a file if they are not in your system.

Review Errors

If the job viewer says Review (the Edit Employees step does not check off), open the job viewer report to review any errors.
The system will now automatically remove the disallowed characters for you so you do not need to take any additional action to process ACA.

If there are errors – keep the list and modify employee records to remove disallowed characters.

In almost every case the employee on the review list have been imported into the batch with the invalid data.

Import Files – Used for Provisioned Databases

Open Import step in the batch. This can be done after employees are imported.
Select the employee file (dependent and coverages if also importing).
Select the sort order you want the forms printed in.
- Important if matching to W2’s to mail.
- Click Check mark to import.

NOTE: If employees are imported after the Generate step was run the new file will remove all employees currently in the batch.

Review import Files

Springbrook export will export employees and dependents only.
Employee file – Review for disallowed characters and double spaces.
Dependent file - If not reporting as “self insured” delete the dependent file. If the file is needed make sure to review it for disallowed characters (except / from birth dates).
Remember opening CSV files in Excel will remove all leading zeros. Critical for employee and Social Security numbers.

Import Formats – Employee File

File formats are in the Import window.
All columns must have data or space. Must have 12 columns.
The last column (Self Insured) must be true if reporting dependents and false if you are not reporting dependents.

Tip for Dependent and Coverage Import

Consider importing only Employees to start.
Dependent and Coverage files can be imported after Employees are imported.
Additional employees cannot be imported without deleting ALL employees and information in the batch.

Import Formats – Dependent file

Only used if the agency is considered self-insured and must report dependents.
If importing Dependents make sure the “Self-Insured” field in the Employee file is marked true.
Employee number must match the Employee file.
Must have 18 columns/fields.
Must have all the months marked either true or false.

Import Formats – Coverage File

Coverages can be added directly into the application so this is not commonly used.
If imported, the Month must be spelled out.
Coverage amount is the amount the employee pays (per instructions).
These records must be a separate line for each month.

Review/Errors

Open the Scheduled icon at the top of the database.
Make sure the “Show jobs that didn’t complete due to an error” toggle is checked.
Click on the Refresh button in the upper left corner of the Job Viewer window.
If there were any errors the Edit Employees step will not show completed.

If the status is “Review” there are errors in the files so the import did not include all information.
Click on the View Report icon at the top or double click on the item below. The errors will display.

In almost every case the employee has been imported into the batch with the invalid data.

NOTE: If additional employee files are imported, ALL employees in the batch will be deleted. Not the case if you import dependents or coverages.

Affordable Care Act batch process

Import or Generate
Edit Employees
Edit Employer
Proof List
Forms
Export
Commit – never needed just deletes information.

Edit Employees

This window contains all the employee reporting information.
The + in the left margin will open each employee monthly information. Clicking it again will close the employee information.

Tip: It works well to go through the batch and delete any employees that do not need to be reported before doing anything else.

Edit Employee Functions

Edit Employees – Recommended process

If doing entry within Springbrook the quickest way to process the batch is to change all employees to the most common values, then modify the ones that are different (part timers or employees that did not work the full year).
Click the Select all employees button – This will mark all employees selected. Employees can be removed by clicking in the selected box manually.

Use Maintain Records > Plan Period Maintenance to add coverage start dates to selected employees.

Plan period maintenance – Adds the plan start month to each employee. This is the month your agency plan starts, not the employee specific information.

Often this is the same for all employees.
This is required for 2020 reporting.
Will display the month number.

Edit Employees – Update Coverage

Use the Maintain records to do the following to each selected employee.
Coverage maintenance – Adds the coverage and safe harbor codes to months specified.

Tip: Click on January and use the ctrl-A to select all months. Once selected you can use the space bar to check all the months.

Type in the Coverage dollars, coverage type and safe harbor codes. Refer to pages 11-12 of the 2020 1094/95 instructions for code help. Springbrook does not give advise of the codes to use.

Each selected employee will now show the coverage updated.
The save button will also enable. Save often.
Recommend saving at this point.
The window will take a while to save, please be patient.
You will need to reopen the window after saving.

Edit Employees – Save errors

If the window does not close in a minute or so, scroll down through the employees.
The system will identify errors with a red exclamation mark.
Items like missing SSN’s or zip codes will not be allowed to save and must be fixed.

Edit Employees – Cloud databases only

Non-employees can be added to the batch.

The insert button has an additional choice (currently add employee and add dependent) to add a non-employee. This is not true for provision databases.

When selected a new blank line will be added to the grid. All information can be added.

Employee numbers cannot be duplicated or changed after saving.

If there are a lot of employees to add (typically for retirees) run through the steps and export. Then add the additional employees to the spreadsheet and import all the data into a new batch.

Edit Employees – Entry tips

NEVER have more than one employee working in the Edit Employees window at the same time. One person working will lose their work.

The provision databases are single user databases. Login information can be shared and used by multiple users.

Items to Edit and Check

Sort by the following columns to make sure there are no blanks that will fail when uploading to the IRS AIR system.

First Name – no spaces at the beginning.
SSN – review to make sure all appear to be 9 digits.
City – no spaces at the beginning.
Zip – must be either 5 or 9 digits. Anything else will fail.

Add Dependents

Dependents can be either keyed or imported.
Dependents are ONLY included if you need to report as self-insured. You can get that information from your insurance carrier.
If manually adding dependents click on the employee and use the New Dependent option.
A dependent line will open in the Dependents field.
Be certain to check all the months the dependent was covered.
Use the Copy Employee to dependents to copy employee information to the dependent field.

TIP: Do not add dependents (even employee) if the employee waived coverage. It will throw errors in the import to AIR.

Saving tips

Save often when manually updating Affordable Care Act records. It takes time but will help if there is a mistake. It is possible to exit without saving and only have a few records to do again.
If window doesn’t close in a couple minutes max (will have an hourglass icon until saved) scroll though the employees to see if there is an error.

Affordable Care Act batch process

Import or Generate
Edit Employees
Edit Employer
Proof List
Forms
Export
Commit – never needed just deletes information.

Edit Employer

Edit Employer information is CRITICAL if you are going to file electronically. If you are filing on paper, you can simply fill out the Contact tab information.

In order to get to the proof list you must complete the Edit Employer window. Information follows to complete this step.
Open the Edit Employer window.
Click the Authoritative toggle and save.
You can now print the Proof List to review.

Edit Employer window

Provides critical information needed in the export file.
Fields not required for 2020. Leave blank.
- Signature PIN
- Persons Title
- Signature Date

Employer tab

Request Type – Generally Business TIN. Must be indicated.
Authoritative – Must check unless part of an Aggregated group.
Aggregate group - most not toggled unless you are part of an Aggregated group.
Qualifying offer – Most clients check this.
Qualifying offer transition relief – NOW RESERVED (page 8)
Section 4980H transition relief

Applicable Large Employer section

This information should only be included on the Authoritative transmittal for the ALE member.

Month – If need to re-sort Jan. – Dec. click to sort by the Aggregate Group column label
Total Employee Count – This is for the total number of employees.
Eligible FTE Count – Number of employees eligible for insurance. MUST BE LESS THAN OR EQUAL TO THE TOTAL EMPLOYEE COUNT FOR THE MONTH.
Min Essential Coverage - Yes
Transition Relief – Not used for 2020.
Aggregate Group – If applicable.

Contact tab

Complete the First Name, Middle Name, Last Name, Suffix (if applicable) and Phone for the person with the TCC number. This is the person responsible for answering any questions from the IRS (page 7).

NOTE: Make sure there are no spaces after the typed information to avoid filing errors with the AIR system.

Aggregated Group - Uncommon

If Aggregated Group is toggled on the General tab two additional tabs will appear.
An Aggregated Group is based on how you file W2 information.
If uncertain it is likely the entity is not part of an Aggregated Group.
If checked, two additional tabs will display.

Government Entity tab

ONLY used if the organization is part of an aggregate group. Will only display if Aggregated group is checked on the Employer tab.
Enter complete address and DGE information. See page 7 of the instructions.

Aggregated Entities tab

ONLY used if the agency is a part of an aggregate entity.
This window should include each entity that is included with your reporting and the EIN number. The entities listed here will be filing non-authoritative returns.

NOTE – The EIN names and numbers must match tax filings and are often the same as the Government entity.

Affordable Care Act batch process

Import or Generate
Edit Employees
Edit Employer
Proof List
Forms
Export
Commit – never needed just deletes information.

Proof List

Run the Proof List – This is a required step but you don’t have to use the report. We have added the employee count to the last page of the report to give you the information for your Export step.
- Changed when the additional pages were added for dependents.
Page break will print one employee to a page.
Forms to Print on the last page will give you the number to report in the export step.

Affordable Care Act batch process

Import or Generate
Edit Employees
Edit Employer
Proof List
Forms
Export
Commit – never needed just deletes information.

Forms

Many users find review of the information is easier by reviewing the Forms rather than the Proof List.

Forms will print in the order selected during the Import or Generate process.
These are only mentioned here to help get your form order set at the earlier step. The default form order is by Employee Number.
We have also added the third page to print for employees that have more than 6 dependents. This will only be important for clients that are considered self-insured and report dependents.

This step is for printing employee forms.
Be sure to NOT include any punctuation in the information in this window.
Federal Tax ID – no dashes
Address – no characters
Select the Calendar (reporting) Year. Provision will default to 2020. Cloud Payroll clients will default to fiscal year of the system and may need to be changed.
Forms will print in the order selected on the import or generate step.

Forms print – Use a duplex printer

IRS Filing on Paper

If there are fewer than 250 forms filing on paper to the IRS is allowed.
Complete the 1094C transmittal form from the IRS website.
Contains the same information as the Edit Employer window does in the ACA process.

https://www.irs.gov/pub/irs-pdf/f1094c.pdf