Compliance (ACA, SBEA, Year-End, COVID-19)

This file is a combined export of PrismHR help topics in Compliance (ACA, SBEA, Year-End, COVID-19). Source help system: https://tech-docs.prismhr.com/SP_help/Default.htm Each topic is separated by a heading and includes its original URL.

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ACA Processing Center

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA%20Work%20Center.htm Path: CMP/ACA/ACA Work Center.htm

ACA Processing Center

The ACA Processing Center provides convenient access to the forms required to perform the following functions:

• ACA Feature Setup & Configuration
• ACA Data Builds, Rebuilds, and Resets
• ACA Reporting

To open an ACA Processing Center page:

• On the Work Centers panel, click ACA Processing and then select the page. You can also open the page by searching for its name.

To get detailed instructions for using the open form:

• Click [Image: screenshot] (Help) in the header area.

To return to the processing page:

• Click JUMP TO in the header area of the form.

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Common Questions about Forms 1094‑C and 1095‑C

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Data-Build/1094-1095-Common-Qs.htm Path: CMP/ACA/ACA-Data-Build/1094-1095-Common-Qs.htm

Common Questions about Forms 1094‑C and 1095‑C

These are some frequently asked questions about the IRS forms for Affordable Care Act (ACA) reporting.

What goes in Line 14 (Offer Code) and Line 15 (Employee Share)?

The register build only looks at company-level eligibility and contribution rules when it determines what populates each employee’s line 14 and line 15.

The system then scans through the contribution rules for the employee-only plan types for these benefit plans. Generally, the benefit plan with the lowest employee cost is used as the employee share, and this determines the value for the line 14.

Preference is given to a 1A benefit plan, as well as 1I relief.

Note: Note: If terminated employees receive offer codes, your organization probably did not set your eligibility rules to exclude terminated employees. If you receive 1H when you should not, your organization probably did not set a company-level rule entry for any medical plan.

Known Issue

The system assumes one type of employee-only benefit plan per offering. If you have more than one, register build results may vary. This includes usage of networks where the employee is eligible for more than one network.

Workaround

1. Set up a “dummy” benefit plan by copying a benefit plan with multiple employee-only plan types (or multiple networks).

2. Assign a single employee-only plan type (the plan type with the lowest cost available to the employee) to this benefit plan.

3. Assign this benefit plan to the company. Make sure to enter a start date that matches when the benefit should be considered for register build purposes.

4. Assign the appropriate eligibility and contribution rules to this benefit plan.

If the above steps do not work, terminate the benefit plan that is causing the issue at the company level, making sure to backdate the termination date to a day before January 1 of the current reporting year.

An employee register was note built. What happened?

There are circumstances where the system might not build a register for an employee when your organization believes that employee should have one.

Form 1095-Cs are only necessary for those employees entitled to an offer of coverage during any part of the reporting year. This includes the following:

• Employees who have the full-time Employee Type, who were hired on or before September 1, and who are therefore out of their limited non-assessment period before the end of the year.

• Employees listed in the company’s Offered Employees Maintenance form. Your organization must use this register to alert the system of any variable-hour employee (employees who have the part-time Employee Type), who measured full-time in a previous measurement period. You must enter these employees in the company’s Offered Employees Maintenance and include the start and end dates of their subsequent stability period. The system treats these employees as full-time and entitled to an offer of coverage for the duration of this stability period.

Note: Note: Check your system-level setup to see if your employee type codes are appropriately flagged as full- or part-time.

Why are there blank entries in Line 16?

Once an employee is entitled to an offer of coverage (see the previous question for more information), there are three possible scenarios for Line 16 (Safe Harbor Code):

• The value 2C, if the employee was enrolled in any medical coverage for the entire month

• Depending on which safe harbor you select, the values 2F, 2G, or 2H, if the employee share meets that safe harbor standard

• A blank value, if the system determines that the safe harbor was not satisfied by comparison to the employee share

For the W-2 wages safe harbor, federal regulations provide a very specific method of proration for any employee not offered coverage for the entirety of the year.

For the rate-of-pay safe harbor, federal regulations provide numerous options based on changes in rate-of-pay, whether an employee is salaried or paid hourly, and whether the plan offerings are calendar year.

Known Issues

• When using the rate-of-pay safe harbor with a non-calendar year plan entry, entering rate-of-pay changes may result in the incorrect rate being used to calculate the safe harbor. The PrismHR Customer Support Team recommends that you review the results for any employee with a rate-of-pay change during the appropriate plan years when using this safe harbor.

• In some instances, you may get a blank safe harbor entry in the employee’s month of termination. The PrismHR Customer Support Team recommends that you review the register build results for any employee terminated during that year.

Why is a 2D Code in Line 16?

The value 2D may appear on the 1095-C for any full-time employee hired between October 2 of the previous year and September 1 of the current reporting year. The standard limited non-assessment period for full-time employees is three months, plus any first partial month after hire. 2D is the code associated with the limited non-assessment period. The system prioritizes 2D over anything other than 2C. Therefore, a 2D code would be appropriate, and take precedence over anything other than 2C, for the following:

• Three consecutive months, starting with the month of hire, for any employee hired on the first of the month; and

• Four consecutive months, starting with the month of hire, for any employee not hired on the first of the month.

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Importing Form 1095-C Data

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Data-Build/1095-C_Data_Import.htm Path: CMP/ACA/ACA-Data-Build/1095-C_Data_Import.htm

Importing Form 1095-C Data

Note: Note: This form does not use Client Access Group Security.

Use this form to adjust employee 1095 registers using data from an imported file. The system supports the following file formats:

• .txt

• .csv

If you encounter issues during the import process, click Error Report at the bottom of the form.

To import 1095-C data:

1. Open the Work Centers menu.

2. Under Work Centers|Compliance, select ACA Processing.

3. Under ACA Processes and Import/Export, select 1095C Data Import.

4. Click Upload File and select the appropriate import file from your system file explorer.

5. Review the information in the Preview panel to ensure its accuracy. This panel displays one employee per page.

6. Click Import Data.

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Exporting 1095 Registers

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Data-Build/1095_Register_Export.htm Path: CMP/ACA/ACA-Data-Build/1095_Register_Export.htm

Exporting 1095 Registers

Note: Note: Client Access Group Security is enabled on this form.

You can use this export utility to review 1095-C register data, efficiently identify errors, and correct them.

Running the Export

This feature exports Form 1095-C register data as a text (TXT) file that you can then view, edit, and import back into the system. The export file includes the records for employee offer and coverage data (type 2), covered individuals (type 3), and the employee’s employer and home worksite location. The Employer and Home worksite are provided for reference only. You will want to delete these fields before moving forward with the edit and import.

Note: Note: Please note that the report includes only employees and months with Form 1095-C register data. For example, if you run the report at the end of October 2026, it will not include any information for November or December of that year.

To export 1095-C registers:

1. Open the Work Centers menu.

2. Under Work Centers|Compliance, select ACA Processing.

3. Under ACA Processes and Import/Export select 1095 Register Export.

4. Select the appropriate Report Year.

5. Enter a Client ID if necessary. If you do not specify a client, the export runs for all clients.

6. You can apply Export Filters to limit the data returned by the export file. By default, the report includes all register data and all codes.

Specify the months and codes you want to include in the report:

• In the Months selector, specify any months you want to specifically include. The export will exclude data from other months.

• Use the Offer Codes and Safe Harbor Codes selectors to specify filters for these codes. The report will include only the registers that have those codes.

7. In the Include Employees with Share Not Less Than field, enter the maximum number of shares needed to exclude an employee from the report. Leave this field blank to include all share amounts.

8. In the Include Employees with Share Not Greater Than field, enter the minimum number of shares needed to exclude an employee from the report. Leave this field blank to include all share amounts.

9. Click Build.

10. After the file builds, click Download 1095 Registers.

Editing the File

You can open the file with a text editor or a spreadsheet program such as Microsoft™ Excel®. Make sure to save it as a text file so you can import any changes back into the system.

There are some important things to note about making edits:

Decimal Places in Employee Share

Note: Note: If a column in a text file is not formatted correctly, decimals can be lost during the import process.

The import process requires 2 decimal places for any Employee Share value. If the decimal places are missing, the import function inserts them.

For example, if the export runs and an employee share is 100.00, but the spreadsheet program changes this to read 100 and saves the value without the decimal places, the system will import it as 1.00. Therefore, you must ensure that values in the text file include the two decimal places.

To prevent decimal place errors for any Type 2 entry (employees):

• Before you save and import, make sure the seventh column (G, in Excel) only contains numbers with two decimal places.

• For any Type 3 entry (covered individual), do not format the data as a number with two decimal places: this data represents a birth date.

• You can sort the spreadsheet so Type 2 entries are at the top and Type 3 entries are at the bottom, and then select all the cells in that column that apply to Type 2 entries.

Considerations for Covered Individuals

When importing the file, covered individuals are identified by Social Security number first, and then by date of birth if no Social Security number is present.

• If you find that a covered individual’s name is incorrect, you can edit it in this file.

• If the Social Security number or date of birth is incorrect or missing, do not try to edit these values in the export file. Instead of updating this record with an import (which would create a new covered individual record), you must use the Edit Employee 1095 form to change this information directly (See Editing Form 1095-C Information).

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About 1095 and 1094 Registers

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Data-Build/About_1095_1094_Registers.htm Path: CMP/ACA/ACA-Data-Build/About_1095_1094_Registers.htm

About 1095 and 1094 Registers

The system stores ACA-related data in the employee 1095-C registers and the client 1094-C registers. Forms 1094-C and 1095-C rely on the data accumulated in these registers over the course of the reporting year. If you want to generate the IRS forms, you must first build these registers. The system does not create them automatically.

About 1094-C Registers

Note: Note: See here for a copy of Form 1094-C.

The system will pre-populate most data while building these client registers. We highly recommend checking to ensure the accuracy of this data. Remember that this register includes some auto-populated data and some fields that require manual entry.

About 1095-C Registers

Note: Note: See here for a copy of Form 1095-C.

Employee 1095-C registers contain data for lines 14 through 16 of Form 1095-C, for each employee. They also include Part 3/covered individual information, when applicable.

You can build employee 1095-C registers in one of three ways, or using a combination of all three:

• Register builds

• Data import

• Manual data entry

The Data Build Process

The register build feature clears all prior register data. The import and manual entry processes overwrite the specific data, respective to the row being adjusted (or write it, if no entries exist).

• The data build process is controlled by the ACADATABUILD custom feature code.

• The next time a user logs into the system after this code is enabled, data begins building for the year-to-date for any large employers.

• When a user logs in after January 1, the data build completes for the prior year (the reporting year).

The system builds data in the background over the course of the year for clients indicated as ACA large employers, . The system routinely checks if the data is up to date for all prior months in the calendar year. If not, it compiles the data for any missing months.

Manually Re-triggering Data Builds

Note: Note: If you need to re-trigger for 1000 or more employees, please contact the PrismHR Customer Support Team for assistance.

Users can manually re-trigger the data build at any time.

Once re-triggered, the system no longer builds the ACA data for the months that were built with the background process prior. For example, if you manually re-trigger the process in December after using the background process to build the data for January through November, the system will not automatically build the data in the background for January–November, (unless you contact the PrismHR Customer Support Team for assistance). The background process will continue to automatically build the ACA data for future months.

When the data for the final calendar month finishes building, the system uses the aggregated information to make any final adjustments to the data. This is because certain codes, like 1G, cannot be assigned unless data is known for the full year (in the case of code 1G, the system needs to “know” whether the employee was ever not full-time at any point during the year, but was enrolled in self-insured coverage).

Notes on Building 1095-C Registers

Note: Note: The register build process relies almost entirely on ACA data. This means the system must build the data before the register build can work properly. If you have a partial year of data, the system only builds a partial register.

If you previously built your registers based on an incomplete year of data, you can rebuild the registers again once the complete ACA data is recorded. You do not have to perform a rebuild in this case.

If you alter your ACA or benefit plan setup and want to trigger different register build results, you must first rebuild the data.

Form Generation

The system only creates Forms 1095-C for:

• Employees outside of their 2D limited non-assessment periods, who had an employee type of “full-time” during any part of the year.

• Employees on the ACA Offered Employees Register (See Setting Up ACA Offered Employees) who were eligible for coverage at some point during the year, based on the standard client-level benefit rules as well as ACA benefit eligibility rules.

• Employees enrolled in self-insured coverage at any point in the year.

The system does not create Forms 1095-C for:

• Employees flagged as a sub-S-corp principal

• Business owners

• 1099 contractors

The system does not automatically determine if an employee flagged as part-time should be measured as full-time. You must use the ACA eligibility reports and add any part-time employees who should be counted as full-time to Offered Employees Maintenance.

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Setting Up ACA Offered Employees

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Data-Build/ACA-Offered-Employees.htm Path: CMP/ACA/ACA-Data-Build/ACA-Offered-Employees.htm

Setting Up ACA Offered Employees

Note: Note: Client Access Group Security is enabled on this form.

Use the ACA Offered Employees form, also known as the ACA Offered Employees Register, to specify part-time employees who need to be reported as full-time employees for ACA purposes.

Overview

Once you have determined the eligibility of employees under a certain client based on the client-level benefits eligibility rules, you can specify stability periods for those employees.

The system uses stability periods to determine whether to generate Form 1095-C for that employee. In the given calendar year, if an employee has at least one month of stability, they will receive a Form 1095-C. The system will populate the appropriate 1095-C offer code for the month (or months) within the stability period.

In short, based on the information entered on this form, any full-time employees who have a stability period of at least one month in the current calendar year will receive a Form 1095-C.

Procedure

To configure the offered employees register for ACA reporting purposes:

1. Open the Work Centers menu.

2. Under Work Centers|Compliance, select ACA Processing.

3. Under ACA Setup and Client Setup, select ACA Offered Employees. The form displays.

4. Set the following parameters.

• Yes displays only rows where the ACA Offer of Coverage = Y.
• No displays only rows where the ACA Offer of Coverage = N or empty. | Grid Columns | | | Employee ID | Enter or select the employee ID. | | Employee Name | Employee’s full name (populates automatically). | | Stability Start Date | Stability period start date. | | Stability End Date | Stability period end date. This populates automatically when you select a start date. This value is based on the predefined stability periods for the relevant employee type: - First, the system checks for client-level Period Setup information, located in the Client ACA Processing Parameters. (See Configuring Client ACA Parameters). - If the client has no Period Setup information, the system uses the setup information from system-level ACA parameters. (See Configuring Global ACA Parameters). |
• First, the system checks for client-level Period Setup information, located in the Client ACA Processing Parameters. (See Configuring Client ACA Parameters).
• If the client has no Period Setup information, the system uses the setup information from system-level ACA parameters. (See Configuring Global ACA Parameters). | Current Employee Status | Status code associated with the employee. For example, “A” for Active or “T” for Terminated. This value populates automatically. | | Type | Employee type. You can select On-Going (default), New Hire, or Null. | | ACA Offer of Coverage | Whether the employee has had an offer of coverage (Y or N). This read-only field populates automatically. Use the Offer of Coverage field to filter the grid based on this column. |

5. Click Save.

Importing ACA Offered Employees Data

You can access the ACA Offered Employees import template in the Data Import Tool from this form to import ACA offered employees data by clicking Import

[Image: Import icon]

. The ACA Offered Employees import template option and its tabs/fields automatically display.

Note: Note: You can also navigate directly to the Data Import Tool by opening the Back Office menu, then selecting Data Import Tool from the Operations|Import Processing menu. In the Data Import Tool form, select the ACA Offered Employees import template option.

Note: Note the following when importing ACA Offered Employees data:

• Users whose user role is set to DENY for the ACA Offered Employees form cannot import data using the ACA Offered Employees import template and subsequently, the Data Import Tool icon will not display on this form.

• Users whose user role is set to FULL or INQUIRY for the ACA Offered Employees form, but whose user role is also set to DENY for the Data Import Tool cannot view the Import icon on the ACA Offered Employees form.

• Users whose user role is set to INQUIRY for the ACA Offered Employees form can view the ACA Offered Employees import template for Miscellaneous Invoice, but cannot import data.

• Users whose user role is set to INQUIRY for the Data Import Tool can view the form and import template options, but cannot import data.

• Users who do not have access to a particular company through client access groups are unable to import data into that company.

• A warning displays if you import an employee who is not a part-time employee, but you can still import that employee.

• You can import duplicate part-time employees if they do not have the same dates. For example, if employee ZXY uses the date 1/1/2023, you cannot import that employee using the date 1/1/2023, but you can import employee ZXY using the date 5/1/2023.

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Creating the ACA Third Party Download/1095 Export

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Data-Build/ACA-Third-Party-Download.htm Path: CMP/ACA/ACA-Data-Build/ACA-Third-Party-Download.htm

Creating the ACA Third Party Download/1095 Export

Note: Note: Client Access Group Security is enabled on this form.

Use the Third Party 1095 Export form to download 1094-C and 1095-C data, which you can then export for processing by third-parties.

This export is supported by the following third-party processors:

• CIC

• BDS

• Print Management Partners

State Records

The ACA Third-Party Download indicates whether to include New Jersey and Washington, D.C. residents on the ACA Transmission Files of those states. It generates a STATEREC record for each employee who resided in NJ or DC at some point during the year. It appends these records to the end of the file. For NJ residents, additional steps are required (see the note below).

This download also creates STATEREC records for employees in Rhode Island and California.

• New Jersey - If the Third-Party Download indicates that employees resided in NJ in the prior year, you can use the new NJ State Submission setting on the ACA Transmission File form to report only those residents, as specified by state requirements. There is no DC equivalent to this setting, as DC reporting requirements are different and do not require a filtered submission like New Jersey does. Please see See Creating the ACA Transmission File

• Rhode Island - The system generates a STATEREC record if the employee address was located in Rhode Island at any point in the given year (same logic as New Jersey).

• California - The system generates a STATEREC record if the employee had one or more covered individuals on their Form 1095-C and the employee address was located in California at any point in the given year.

Procedure

Note: Note: If needed, you can include the three Jurat signature fields in the download file. These fields are optional, so you only need to supply this information if the third-party will be producing E-files.

Note: Note: An error message displays for each client on the download if the MEC indicator is not enabled for any month. This provides visibility to potential errors that could result in penalties upon submission to the Internal Revenue Service.

To generate the ACA Third-Party Download:

1. Open the Work Centers menu.

2. Under Work Centers|Compliance, select ACA Processing.

3. Under ACA Processes and Import/Export, select Third Party 1095 Export.

4. Select the Tax Year.

5. If you want to include specific clients, select the appropriate Client ID. The Client Name displays. If you leave this grid blank, the download will include all clients.

6. Select whether you want to Include ALE Members on the file. If selected, the system will create ALE Group records on the download file.

7. If your organization offers early electronic Form 1095-C access to your employees, you can use Exclude Electronic 1095C to mark the records of employees who do not want a printed copy of the form. This indicates to the third party that they should not print the forms, but allows them to include the employee information in a data transmission to the IRS. The default behavior is to include all employees.

8. In the Use SSN OR EEID as Employee ID field, indicate whether to use the employee ID (default) or Social Security Number as their ID on the export file.

9. Enter an optional Employee ID Prefix, such as a database account prefix.

10. If appropriate, enter the Jurat Signature Pin, Signature Title, and Signature Date. See the note above for details.

11. When you are ready to create the file, click Build. When the build completes, the system sends you an email notification.

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ACA 1095‑C Data Import Specifications

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Data-Build/ACA_1095-C_Data_Import_Specifications.htm Path: CMP/ACA/ACA-Data-Build/ACA_1095-C_Data_Import_Specifications.htm

ACA 1095‑C Data Import Specifications

Employee Form 1095-C data must meet the following specifications before it is imported into the system.

File Format

The file should be in ASCII text file (.txt) with tab delimiters. For example, you can use an Excel spreadsheet to enter all of the data as specified below, then save it as a tab-delimited .txt file.

Record Types

The 1095 Data import file contains two record types:

• Employee Offer and Coverage (2) – Transaction record to submit employee offer and coverage data included in Part II of the form.

• Covered Individuals (3) – Transaction record to submit data on covered individuals included in Part III of the form.

Field Type in the Import File

• Alphanumeric – any printable character

• Amount – any digit from 0 through 9 and an embedded decimal, for example, 123.98

• Numeric – any digit from 0 through 9

• Date – date field in either MM-DD-YYYY or MM/DD/YYYY format

Covered Name Formatting

Covered (dependent) names cannot include any special characters, such as commas, periods, apostrophes, or quotations marks. It should be in a format such as:

FirstName LastName

FirstName MiddleInitial LastName

FirstName MiddleName LastName Suffix

For example:

Jason Argonis

Jason A Argonis

Jason Aristos Argonis Jr

Notice that there are no periods after abbreviations, nor commas before the suffix.

File Order

The records in the file can be submitted in any order.

File Name

We recommend that you use a unique name for each file, for example, CL100_1095C.txt.

Record Layouts

Employee Offer and Coverage Data (2)

Covered Individuals (3)

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Building ACA 1095 Registers

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Data-Build/Build%20ACA1095%20Registers.htm Path: CMP/ACA/ACA-Data-Build/Build ACA1095 Registers.htm

Building ACA 1095 Registers

Note: Note: Client Access Group Security is enabled on this form.

Use this form to build Form 1095-C data registers for ACA reporting. To avoid building incomplete data, PrismHR generally recommends running the register build after the end of the reporting year.

Whenever your organization runs the build process, the system will overwrite any existing ACA 1095 register records. It will also update the counts in the client 1094-C register for the selected reporting year, because those counts are derived from the employee 1095-C registers.

Note: Note: Before building registers, we also recommend running the ACA Data Status Report to verify that the ACA data is complete. See Running the ACA Data Status Report.

To build ACA 1095-C registers:

1. Open the Work Centers menu.

2. Under Work Centers|Compliance, select ACA Processing.

3. Under ACA Processes, select Build ACA 1095 Registers.

4. Select the reporting Year for which you need to build registers.

5. Enter or select a Client ID if you want to build registers for only that client, or leave the field blank to process all applicable clients.

6. Click Create 1095 Data. The system will send you an email notification when the process completes.

[Image: PrismHR system email notification, stating that an initialized build of the ACA 1095 registers has completed.]

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Deleting ACA Data

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Data-Build/Delete%20ACA%20Data.htm Path: CMP/ACA/ACA-Data-Build/Delete ACA Data.htm

Deleting ACA Data

WARNING: You cannot retrieve ACA data after running this process on it.

Note: Note: This form does not use Client Access Group Security.

Use the Delete ACA Data form to permanently delete ACA data for one or more clients, for a particular reporting year.

To permanently delete the system’s existing ACA data:

1. Open the Work Centers menu.

2. Under Work Centers|Compliance, select ACA Processing.

3. Under ACA Processes, select Delete ACA Data.

4. Select the appropriate Year.

5. If you want to delete data for a specific client, select its Client ID. Otherwise, the system will delete ACA data for all clients.

6. Click Delete.

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Editing Form 1094-C Information

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Data-Build/Editing_1094.htm Path: CMP/ACA/ACA-Data-Build/Editing_1094.htm

Editing Form 1094-C Information

Use this Edit 1094 Form form in PrismHR to generate or edit Form 1094-C for clients. When you send the Form 1095-Cs for employees to the IRS, you also need to file Form 1094-C. This form is a summary of the associated Form 1095-C information related to the Client / Applicable Large Employer. It provides information about:

• Employer Contact Information.

• Total Number of Form 1095-Cs submitted.

• ALE Member information including those part of an Aggregated ALE group.

• Monthly summary of coverage offered.

• Federal Transmittal Information.

If you need to review any definitions or line-by-line rules for Form 1094-C, you can access them on the official IRS website.

Note: Note: Client Access Group Security is enabled on this form.

To access this form in PrismHR: open the Work Centers menu, then under Compliance, click ACA Processing. Under ACA Processes, select Edit 1094 Form.

To generate/edit the Form 1094-C information:

1. Complete the following:

• Yes – Select this option if this is the authoritative transmittal for this ALE member.
• No – Select this option if this is not the authoritative transmittal for this ALE member. | Part 2 - ALE Member Information This panel contains ALE Member and Certificate of Eligibility information. > Note: Note: Ensure that the Certificate of Eligibility information is correct before you build the employee 1095 registers for ACA Reporting using the Build ACA 1095 Registers form. | | | 20. Total Forms 1095-c File By And/or On Behalf Of Ale Member | This number is generated using the data from the Build ACA 1095 Registers process. | | 21. Is ALE Member a Member of an Aggregated ALE Group? | You can assign a control group to a set of clients who are members of an Aggregated ALE Group. A single Client ID is added as the Control Group Client field in the Benefits tab of the Client Details form for each of the ALE Group members. - This field will default to a “Yes” if the client is part of a Control Group of clients. You must save them earlier already on the Applicable Large Employer (ALE) Members section in the Configuring Client ACA Parameters form to make this default. - If the client is not part of an Aggregated ALE Group, this will default to “No” and Part 4 of this form will be disabled. |
• This field will default to a “Yes” if the client is part of a Control Group of clients. You must save them earlier already on the Applicable Large Employer (ALE) Members section in the Configuring Client ACA Parameters form to make this default.
• If the client is not part of an Aggregated ALE Group, this will default to “No” and Part 4 of this form will be disabled. | 22. Certifications of Eligibility (select all that apply) | Select applicable certifications from the following: - A. Qualifying Offer Method - B. Qualifying Offer Method Transition Relief (Valid for years 2014-2015) - C. Section 4980H Transition Relief (Valid for Years 2014-2016) - D. 98% Offer Method > Note: Note: For more information on these options, refer to the official IRS website. |
• A. Qualifying Offer Method
• B. Qualifying Offer Method Transition Relief (Valid for years 2014-2015)
• C. Section 4980H Transition Relief (Valid for Years 2014-2016)
• D. 98% Offer Method | Part 3 - ALE Member Information - Monthly | | | 23. All 12 Months | If the value is the same for all twelve months of the year noted above for any of the five fields in this section, enter them here and not individually by month below in the “Individual Months” section. | | A. Minimum Essential Coverage Offer Indicator | Select the appropriate option: - Yes – Select this option if Minimum Essential Coverage (MEC) was offered for all 12 months for the year indicated above. The Minimum Essential Coverage Offer Indicator in the “Individual Months” grid must display Yes for all 12 months. - No – Select this option if Minimum Essential Coverage (MEC) was not offered for all 12 months for the year indicated above. You will need to select the value for each month MEC was offered in the “Individual Month” grid. > Note: Note: For details, please review the guidance from the official IRS website. |
• Yes – Select this option if Minimum Essential Coverage (MEC) was offered for all 12 months for the year indicated above. The Minimum Essential Coverage Offer Indicator in the “Individual Months” grid must display Yes for all 12 months.
• No – Select this option if Minimum Essential Coverage (MEC) was not offered for all 12 months for the year indicated above. You will need to select the value for each month MEC was offered in the “Individual Month” grid. | B. Section 4980H Full-Time Employee Count for ALE Member | This number populates during the 1095 register build. If all 12 months are the same, it displays both in the “All 12 Months” and the “Individual Months” sections. | | C. Total Employee Count for ALE Member | This number populates during the 1095 register build. If all 12 months are the same, it displays both in the “All 12 Months” and the “Individual Months” sections. | | D. Aggregated Group Indicator | Select this field if this ALE Member was a Member of an Aggregated ALE Group for all 12 months of the given year. Selecting this field will also select the fields for all twelve months in the “Individual Months” grid. If you deselect this field for one or more months in the “Individual Months” grid, then this field here will be deselected. | | E. Section 4980H Relief (Valid for Years 2014 – 2016) | Select the appropriate option from the following: - A – Select this option if this client chose transitional relief for the report year and had between 50 and 99 employees for all 12 months of the report year. - B – Select this option if employer initiated changes in measurement methods for one or more permissible categories of employees for all 12 months of the report year. This value will display for all 12 months for this field in the “Individual Months” grid. > Note: Note: This field will remain disabled if the year selected above is not 2014, 2015 or 2016. |
• A – Select this option if this client chose transitional relief for the report year and had between 50 and 99 employees for all 12 months of the report year.
• B – Select this option if employer initiated changes in measurement methods for one or more permissible categories of employees for all 12 months of the report year. | Individual Months Lines 23 – 35 | If the value for any field in this section is not the same for all twelve months of the year noted above, enter them individually by month here. The fields in this section are the same as above and refer to the same information. | | Part 4 - Other ALE Members of Aggregated ALE Group Lines 36 - 65. Enter the names and EINS of other ALE Members of the Aggregated ALE Group (who were members at any time during the year). This section will display the Client Name and EIN of all those clients who have the same Control Group Client number in PrismHR at the time of the build. > Note: Note: This section will appear only if # 21 in Part 2 above is YES. | | | Name | This section displays the Client Name of any client who is a part of the same Control Group in PrismHR. This will populate on this form after you have saved them in the Applicable Large Employer (ALE) Members section on the Configuring Client ACA Parameters form. You may add, edit or remove the Client Name. > Note: Note: The member information will only be automated for those form years that have not been modified. Once the record has been modified and saved, automation to these fields will no longer occur and any adjustments will be manual. | | EIN | This section displays the Client EIN of any client who is a part of the same Control Group in PrismHR. This will auto-populate on this form after you have saved them on the Applicable Large Employer (ALE) Members section in the Configuring Client ACA Parameters form. You may add, edit or remove the Client Name. > Note: Note: The EIN will only auto-populate for those form years that have not been modified. Once the form for a year has been modified and saved, automation to these fields will no longer occur and any adjustments will be manual. | | Federal Transmittal Information - Use this panel to review basic information about previously generated transmission files for this client. You must also use this panel to enter the Receipt ID provided by the IRS in response to your transmission. | | | File Date | This is the date when the ACA Transmission file was generated in PrismHR. | | File Time | This is the time when the ACA Transmission file was generated in PrismHR. | | Transmission Id | This is the transmission identifier created when the ACA Transmission file was generated in PrismHR. | | Submission ID | This is the submission identifier created when the ACA Transmission file was generated in PrismHR. | | Receipt Id | This is the receipt identifier provided by the IRS upon submission of the file. You must enter this information in the form when received by the IRS.. | | Test Scenario | Use this field when sending a test submission to the IRS. For details about this process, see Creating the Test Submission. | | Test Start Month | Use this field when sending a test submission to the IRS. For details about this process, see Creating the Test Submission. Select the appropriate month from the drop-down field. | | Send as Correction | Check this field when sending a correction file to the IRS. For details about this process, see Submitting a Correction. | | Clear Correction Flag | Click this button to clear the “Send as Correction” flag on all the 1095 records for the year indicated above. | | Add Correction Flag | Click this button to add the “Send as Correction” flag on all the 1095 records for the year indicated above. |

2. Click Save to save the changes to this form.

Viewing Audit Details

Form 1094-C audit data is available under the Actions menu

[Image: screenshot]

. The audit reflects any change made on this form, manual updates to Parts 1-4, and selecting the Update Form Counts and ALE Info button at the top of the form.

Note: Note: If you select the Update Form Counts and ALE Info button, the audit only reflects updates when you Save after the form changes.

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Notes on Form 1094‑C and Form 1095‑C

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Data-Build/Notes_On_1094c_1095c.htm Path: CMP/ACA/ACA-Data-Build/Notes_On_1094c_1095c.htm

Notes on Form 1094‑C and Form 1095‑C

Note: Note the following about the way the system handles the information and builds the registers for these forms.

Employee Data in the Form 1094-C Register Build

The Full-Time Employee Count includes any employee who was active on the first of a month that the system determined to be ACA full time for the month. It determines this at the time of the register build or the import.

Employees in the Form 1095-C Register Build

Employees’ employment status determines whether they are included in the Form 1095-C register build.

Full-Time Employees

If an employee is flagged as full-time, the system considers them eligible on the first of the month that is three months after the hire date. If, under company eligibility rules, the employee was not offered benefits on or before that date, Line 16 is blank for those months.

Variable-Hour Employees

If an employee qualifies for coverage under the client’s benefits eligibility rules, the system populates the correct code on the Form 1095-C. This is based on the entries in Offered Employees Maintenance form. See Setting Up ACA Offered Employees.

COBRA Enrollees

The register build handles employees who were offered or enrolled in COBRA during the current year. Employees who were covered by COBRA but were not employed at any point during the year are correctly excluded from the register.

W-2 Wages for Affordability Testing Calculations

The system factors the number of months that an employee was offered coverage into the Safe Harbor proration.

When the system uses the employees’ W-2 wages for affordability testing, it adjusts the amounts used in the calculation by performing these steps:

1. Get the year-to-date W-2 wages.

2. Get the number of months in the year when coverage was offered for any day in the month.

3. Get the number of months in the year when the employee was active on any day in the month.

4. Divide the number of months coverage was offered by the number of months employed.

5. Multiply the result by the W-2 wages.

6. Multiply that result by 9.5 percent (0.095).

7. If the lowest-cost contribution is less than or equal to the final result, then the plan is affordable.

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More Notes About Offer Code Calculation

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Data-Build/Offer_SafeHarbor_Code_Calc.htm Path: CMP/ACA/ACA-Data-Build/Offer_SafeHarbor_Code_Calc.htm

More Notes About Offer Code Calculation

The system calculates the offer codes based on information entered in the various forms that pertain to the ACA.

A few notes about this calculation logic:

• The system replaces 1E with 1A when the employee share is less than the federal poverty line.

• If an employee has the 1G offer code in a month, the employee’s share and safe harbor codes (Lines 15 and 16) are empty.

• Code 1J indicates that the employee was offered a medical plan that covers the employee and conditionally covers a spouse.

• Code 1K indicates that the employee was offered a medical plan that covers the employee and other dependents and conditionally covers a spouse.

• Codes 1I and 2I were valid for reporting year 2015. They are not valid codes for any year after that.

• Codes 1L through 1S were introduced in 2020. They correspond to individual coverage health reimbursement accounts (HRAs) offered to employees, non-employees, spouses, and dependents. Some codes also determine whether the employee’s worksite ZIP code or their residential ZIP code displays on line 17, which was also introduced on the 2020 version of the form.

Form 1095-C Decision Trees

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Rebuilding ACA Data

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Data-Build/Rebuild%20ACA%20Data.htm Path: CMP/ACA/ACA-Data-Build/Rebuild ACA Data.htm

Rebuilding ACA Data

Note: Note: This form does not use Client Access Group Security.

Use the Rebuild ACA Data form to rebuild employee ACA data for one or more clients within a single reporting year. You can also use it to build data for a client that was not set up for ACA reporting in time to have its data built automatically over the course of the year.

Note: Note: This process overwrites any existing employee ACA data in the holding file. It can take a long time to run, so you should run this process during off-peak hours, if possible.

The system may look like it is frozen while it rebuilds the ACA data. Please be patient: a message will display when the process completes.

To rebuild ACA Form 1095-C data:

1. Open the Work Centers menu.

2. Under Work Centers|Compliance, select ACA Processing.

3. Under ACA Processes, select Rebuild ACA Data.

4. Select the Report Year.

5. Enter one or more client IDs in the Client table. To rebuild data for all clients, leave this table blank. Building for all clients will take a long time.

6. Click Rebuild ACA Data. The system will send you an email when the rebuild completes.

7. Once the process completes, build the 1095-C registers for the client: see Building ACA 1095 Registers.

[Image: Notification email from the PrismHR system stating that the ACA Rebuild Data is complete.]

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Before You Begin

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Data-Build/Section_Build_BYB.htm Path: CMP/ACA/ACA-Data-Build/Section_Build_BYB.htm

Before You Begin

We recommend running the reports in this section before you proceed to the data build procedures.

Report setup:

• You can ensure that certain pay codes do not display on ACA reports: See Excluding Pay Codes from ACA Reports.

• You can override the employment type of certain employees, for ACA reporting purposes: See Setting Up ACA Type Overrides.

• You can determine the leave status codes to include on the Eligibility Report: See Including Leave Status Codes on the Eligibility Report.

Reports you can run:

• You can use the Employee Classification Analysis Report to review employee types. Use this information to correct system data before you run the Large Employer Test Report to determine which companies are affected by the Affordable Care Act. See Running the Employee Classification Analysis Report.

• The Large Employer Test Report indicates clients who qualify as ACA “large employers”. For details about setting up and using this report. See About the Large Employer Test Report.

• You can use the Eligibility Report to review employee eligibility for ACA coverage under your current system setup. For details about setting up and using this report, see Running the Monthly ACA Eligibility Report and Running the ACA Eligibility Report.

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Additional Information about Building ACA Forms

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Data-Build/Section_Build_Info.htm Path: CMP/ACA/ACA-Data-Build/Section_Build_Info.htm

Additional Information about Building ACA Forms

This section contains any other documentation relevant to the ACA data build process, including helpful notes and an FAQ.

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Build Procedures

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Data-Build/Section_Build_Procedures.htm Path: CMP/ACA/ACA-Data-Build/Section_Build_Procedures.htm

Build Procedures

Use the procedures in this section as a guide for building your ACA data.

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ACA Penalty Avoidance Recommendations

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Data-Build/TS-ACA_Penalty_Avoidance.htm Path: CMP/ACA/ACA-Data-Build/TS-ACA_Penalty_Avoidance.htm

ACA Penalty Avoidance Recommendations

Before submitting Forms 1094‑C and 1095‑C to the IRS and your employees, PrismHR strongly recommends you review the contents of these forms for common errors resulting in penalties.

The IRS leverages three types of penalties for (real, or perceived) employer mandate violations. These penalties are:

• Failure to file/furnish: up to $270 (or more in the case of intentional disregard) per Form 1095‑C with incorrect data or if the form is submitted late to the IRS/employees

• 4980H(a): $2,320 per every full-time employee for any month the 95% minimum essential coverage (MEC) standard is not met, if a single employee receives a premium tax credit

• 4980H(b): $3,480 per individual employee who was not offered MEC

The most common errors that result in penalty assessment notices are usually self‑evident reporting errors on Forms 1094‑C and 1095‑C. Two specific examples include:

• Form 1094‑C submissions with the MEC Indicator for one or more months set to No

• Form 1095‑C submissions with blank Box 16Safe Harbor code entries

WARNING: In order to provide the most accurate reporting results possible, PrismHR uses configuration and data‑driven logic when it sets the MEC Indicator and Safe Harbor codes. This leaves open the possibility that the system might set the MEC Indicator to No and leave Box 16 for Safe Harbor codes blank. Therefore, we highly recommend reviewing MEC indicators and safe harbor codes before submission.

Recommended Review Processes

PrismHR recommends using the following processes to avoid potential issues when submitting Forms 1094‑C and 1095‑C to the IRS.

MEC Indicator

Use the Part 3 of the Edit 1094 Form screen (See Editing Form 1094-C Information) to adjust the MEC Indicator for all ALE clients.

The values for any month and client can be edited. If a value for any month is incorrectly set to “No”, set it to “Yes.”

Safe Harbor Codes

Use the Form 1095-C Register Export utility (See Exporting 1095 Registers) to review system-generated safe harbor codes on this form.

The default download configuration produces all Form 1095‑C data for all clients and employees in our import format. You can scan the output to identify any missing safe harbor codes.

[Image: Section of the 1095-C register export file. In the safe harbor codes column, blank spaces are highlighted indicating missing codes.]

To add or edit any codes in the export file:

1. Edit the export file.

2. Save the file on your local machine.

3. Import the updated file back into the system (See Importing Form 1095-C Data).

You can also adjust Form 1095‑C data per employee directly (See Editing Form 1095-C Information).

ACA 1094 Count Report

In PrismHR, use the ACA 1094 Count Report (found in theReports menu under HR > Report) to review MEC Indicator values per employee for any month of the year.

[Image: Example spreadsheet output for 1094 Count Report. Employee IDs, names, and employers are listed along with the total, full-time, and MEC counts for a month.]

MEC must be offered to at least 95% of ALE Member’s full-time employees and their dependents. The report tests if employees are included in the count by using the total full‑time count for any month as the denominator, and the total MEC count for any month as the numerator.

On this report, review any employee with 1 for full‑time count (FT) and 0 for MEC, as this indicates they should have been offered MEC, but were not. This is any employee out of a 2D limited non‑assessment period that either:

• was a full‑time employee for the month, or

• was identified as being ACA Full Time for that month on the ACA Offered Employees register.

Common Sources of Coding Issues

Coding issues are a common source of configuration/data errors within PrismHR. The most common of these errors are related to incomplete medical plan setup, including:

• System‑level ACA configuration in Group Benefit Plans (in the Back Office menu under System|Change)

• Company‑level eligibility rules in Benefit Plans (found in the Client menu under Client|Change)

Note: ACA data and Form 1095‑C registers must be rebuilt in order for configuration changes to take effect.

To rebuild ACA data and Form 1095‑C registers, see:

• Rebuilding ACA Data

• Building ACA 1095 Registers

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Building Form 1094‑C and Form 1095‑C

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Data-Build/UG_Chapter_1094c_1095c.htm Path: CMP/ACA/ACA-Data-Build/UG_Chapter_1094c_1095c.htm

Building Form 1094‑C and Form 1095‑C

After setting up and building your data over the course of the year, you can use PrismHR to build ACA reporting forms for clients and employees.

This chapter contains four primary sections:

• Background information: About 1095 and 1094 Registers

• Running pre-build Reports: Before You Begin

• Building the registers: Build Procedures

• Additional information including common questions, avoiding penalties, resetting data, and safe harbor code calculation diagrams: Additional Information about Building ACA Forms

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Creating the 1094-C Report Download

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Reports/1094C_Report_Download.htm Path: CMP/ACA/ACA-Reports/1094C_Report_Download.htm

Creating the 1094-C Report Download

The Form 1094-C Report creates a PDF version of Form 1094-C and populates it with information from the current client, for the given year.

To run this report:

1. Open the Work Centers menu.

2. Under Work Centers|Compliance, select ACA Processing.

3. Under ACA Reporting, select 1094C Report Download.

4. Enter the Year for the 1094-C report.

5. By selecting the Generate All Clients option, you will only receive a PDF for all the clients you have access to. Now, you do not have to print client by client the ACA Form 1094-Cs.

6. Once you click Run, a Job Control window displays the progress and the number of selected clients.

In case of any errors, redo the process. The system downloads a zip file to your computer, containing a Form 1094-C PDF for each client to which you have access.

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Creating the 1095-C Report Download

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Reports/1095C_Report_Download.htm Path: CMP/ACA/ACA-Reports/1095C_Report_Download.htm

Creating the 1095-C Report Download

Use the 1095-C Report Download form to generate a PDF of Form 1095-C for employees within a specific client or for employees for all clients that you can access.

Note: Note: Client Access Group security is enabled on this form.

To access this form, on the Work Centers under Compliance, click ACA Processing. Under ACA Reporting, click 1095-C Report Download.

To download the ACA 1095-C Report:

1. Complete the following fields:

Field Name — Description

Tax Year — Select the appropriate tax year.

From Employee ID — This field is optional. If you want to run this report for a set of employees, enter the first Employee ID here.

To Employee ID — This field is optional. If you want to run this report for a set of employees, enter the last Employee ID here.

Mask SSN — This field is optional. Select this option if you want to mask the Social Security number of the employees in the output.

2. Click Run to generate the report for the selected tax year.

• You can generate Form 1095-C PDFs for a maximum of 50,000 employees for a client.

• When the job completes, you receive a confirmation email. You need to use the Transfer Downloads File to PC form to download the zip file.

• The zip file will contain the PDF files in the format COMPANYID.YEAR.EMPLOYEEID.f1095c.pdf.

• The zip file will be downloaded to your system from the main form. Depending on the number of employee records, this can take a while. However, you can continue with your work while this process runs in the background. For example, it can take about two hours to process records for 40,000 employees.

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Running the ACA Data Status Report

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Reports/ACA-Data-Status-Report.htm Path: CMP/ACA/ACA-Reports/ACA-Data-Status-Report.htm

Running the ACA Data Status Report

Note: Note: This form does not use Client Access Group Security.

Note: Note: Run this report on or after the new year to verify that data has been built for all employees.

Before you build the 1095-C registers, you can use this report to verify that employee ACA data is complete. First, the system selects all clients set up as ACA large employers (ALEs) for that year. Then, it checks employee ACA data to ensure that data exists for all twelve months of the reporting year.

If data for the specified year is not complete, the report will display all clients as incomplete.

To run this report:

1. Open the Work Centers menu.

2. Under Work Centers|Compliance, select ACA Processing.

3. Under ACA Reporting, select ACA Data Status Report.

4. Select the appropriate reporting Year.

5. Click Build ACA Data Report.

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Running the ACA 1094 Count Report

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Reports/ACA_1094_Count_Report.htm Path: CMP/ACA/ACA-Reports/ACA_1094_Count_Report.htm

Running the ACA 1094 Count Report

Note: Note: This form supports entity-level security for Worksite Managers and Worksite Trusted Advisors, as defined on the Users > Actions > Data Security form.

Use the ACA 1094 Count Report to view a complete list of the employees that make up the Total and Full‑Time Counts per month. In the system, this data is located on Part 3 of Form 1094‑C (See Editing Form 1094-C Information). This report indicates whether or not employees were included in the count and how they influence the Minimum Essential Coverage Offer for a year.

PrismHR populates the Minimum Essential Coverage Indicator, Full‑Time Employee Count, and Total Employee Count fields of the Form 1094‑C when building Form 1095‑C registers, or when you click Update Counts on the Edit Form 1094‑C form. This data displays on the Form 1094‑C third‑party download, eFile, and PDF.

[Image: Detail view of Part III of Form 1094-C, showing the Minimum Essential coverage indicator box for a few months, along with other ALE Member details.]

Procedure

To run this report:

1. Open the Work Centers menu.

2. Under Work Centers|Compliance, select ACA Processing.

3. Under ACA Reporting, select ACA 1094 Count Report.

Worksite Managers and Worksite Trusted Advisors can access this report through Reports > HR | Report > ACA 1094 Count Report.

4. Enter the report Year.

5. Enable Include Employer ID? to list employer IDs on the report.

6. Click Run. The ACA 1094 Count Report window displays.

[Image: ACA 1094 Count Report progress dialog, showing steps in the report build process.]

7. Select Close to download the report. The report output file opens in Excel.

[Image: Example spreadsheet output for 1094 Count Report. Employee IDs, names, and employers are listed along with the total, full-time, and MEC counts for a month.]

Report Columns

Refer to the table below for a description of the report columns.

Field Name — Description

Employee ID — The employee ID number in PrismHR.

Employee Name — The employee name in PrismHR.

Employer ID — The ID of the employer that the employee was hired under. You must enable the Include Employer ID? field to view this column.

(Month) Total — Indicates whether or not the employee was included in the total count, including full‑time and non‑full‑time employees, and employees in a Limited Non‑Assessment Period, for each calendar month. 1 = Yes, 0 = No

(Month) Full‑Time — Indicates whether or not the employee was included in the total count for full‑time employees, including employees in a Limited Non‑Assessment Period, for each calendar month. 1 = Yes, 0 = No

(Month) MEC — Indicates whether or not the employee was included in the minimum essential coverage (MEC) offer, for each calendar month. 1 = Yes, 0 = No

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Running the ACA 9.5% Rule Test Report

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Reports/ACA_9point5_Percent_Report.htm Path: CMP/ACA/ACA-Reports/ACA_9point5_Percent_Report.htm

Running the ACA 9.5% Rule Test Report

Note: Note: Client Access Group Security is enabled on this form.

This report displays the Total Annualized Pay and Form W-2 Box 1 calculations for currently elected employee health plans. The results of this report can help employers decide which type of wages they will use to determine plan affordability.

The ACA advises employees to not pay more than 9.5% of their household income to an employer in exchange for a single portion of the lowest cost health care plan available to that employee. If employers need to use alternative methods for calculating this value, ACA regulations specify three safe harbor options they can use instead of the annual household income:

• Form W-2, Box 1 wages

• Total Annualized Pay

• Federal Poverty Level (FPL)

Note: Note: During the annualizing process, the system bases employee rate of pay on the last day of the report period.

Procedure

To run this report:

1. Open the Work Centers menu.

2. Under Work Centers|Compliance, select ACA Processing.

3. Under ACA Reporting, select ACA 9.5% Rule Test Report.

Worksite Managers and Worksite Trusted Advisors can access this report through Reports > HR | Report > ACA 9.5% Rule Test Report.

4. Enter the Client ID or IDs for each client you want to include in the report. To include all clients in the report, leave these fields blank.

5. Enter a report Report Start Date and Report End Date – no more than twelve months.

6. If you need to include the information for only large employers on the report, select Yes in the Large Employer? field and then enter the Large Employer Year.

7. To exclude employees who do not have coverage, select the Exclude Employees Without Coverage? option.

8. Click Generate Report.

Report

The report output includes the following columns:

• Company ID and Name

• Employee ID and Name

• Status and Status Class

• Type and Type Class

• Hire Date

• Health Coverage (Y/N)

• Waived Coverage (Y/N)

• Monthly Single Coverage

• Employee Contribution

• 9.5% of Fed Taxable Income

• 9.5% of Employee Annualized Pay

• Exceeds 9.5% of Fed Taxable

• Exceeds 9.5% of Annualized Pay

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Running the ACA Eligibility Report

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Reports/ACA_Eligibility_Rpt.htm Path: CMP/ACA/ACA-Reports/ACA_Eligibility_Rpt.htm

Running the ACA Eligibility Report

Note: Note: Client Access Group Security is enabled on this form.

Note: Note: This form supports entity-level security for Worksite Managers and Worksite Trusted Advisors, as defined on the Users > Actions > Data Security form.

The Eligibility Reports indicate employee eligibility for health care coverage under the ACA.

Eligibility is based on employee hours worked over a certain measurement period. You can establish this period at the global level and override it at the client level, if necessary. For more information about these setup parameters, see the topics on global and client-level period setup:

• Configuring Global ACA Parameters

• Configuring Client ACA Parameters

You can run the Eligibility Report for either current employees or new hires. The period information comes from the Period Setup section of the Client ACA Parameters. If that information is not defined, the Period Setup values come from the system-level ACA parameters.

The following example of the global Periods panel includes sections for new employees and ongoing employees. These correspond to the two types of ACA eligibility report you can run.

[Image: Eligibility period controls on the Client ACA Parameters form, for initial/new employees and standard/ongoing employees. You can set the measurement, administration, and stability periods by the number of months or days.]

Before You Begin

You can specify certain leave status codes to include on the report, even if the report would not normally include those employees: use the Leave Status Codes Overrides for ACA Coverage Report form to do this. See Including Leave Status Codes on the Eligibility Report for details.

About the Start and End Date Fields

When setting up this report, you must enter a Start Date and End Date. The system uses this date range to select any employees who had a measurement period during this time. These dates can be up to one (non-calendar) year apart.

The report logic is different based on whether you run the report for new hires or for ongoing employees.

New Hire Report

The new hire report selects employees using the report start and end dates, in conjunction with the New Hire Measurement Period in the global or client ACA settings.

For example, if you run the report for new hires with a start date of 9/15/2026 and an end date of 10/15/2026, and the New Hire Measurement Period is 9 months, then for all clients on the report the system will include employees who were hired between 12/16 of the previous year and 1/16/2026 (notice that this range is 9 months before the entered dates).

Note: Note the following:

• This measurement start date is specific to this report. Each employee has a different measurement start based on their effective hire date.

• To select vouchers, the system uses the date that comes 31 days after the End Date.

• There is nothing in the client or global Period settings that affects the validity of the start and end dates you enter for this report.

Ongoing Employee Report

For the ongoing report, the system uses the year passed in the report start and end date fields. The month and day must be within the range from the Start Month/Day specified for the ongoing period.

For example, if you enter 1/1/2026 and the start for the period is January 1, then the measurement start date for the report will be 1/1/2026. If the Ongoing Measurement Period is 6 Months, then the measurement end date will be 6/1/2026.

• Like the new hire report, this report selects vouchers based on the date that comes 31 days after the specified End Date.

• The Start Date must be before, or the same as, the Measurement End Date.

• The End Date must be the same as, or after, the Measurement End Date.

• If these dates are not correct, the report will not be generated for the client.

Procedure

To run this report:

1. Go to the Work Centers menu.

2. Under Work Centers|Compliance, select ACA Processing.

3. From the ACA Reporting column, select ACA Eligibility Report.

Worksite Managers and Worksite Trusted Advisors can access this report through Reports > HR | Report > ACA Eligibility Report.

4. Do one of the following:

• To enter individual clients, enter each client that you want to include in the report in the Client ID field.

• To include all clients in the report, leave the Client ID field blank. (Later, when you click Generate Report, a confirmation message displays asking you to confirm whether you want to run the report for all clients. Select Yes to continue.)

5. Enter the Report Start Date and Report End Date. The date range cannot be greater than a year.

The employees included in the report are those who have a measurement period that ends between these dates. See the previous section for details about this logic.

6. Select Large Employer to include only large employers in the report. Otherwise, the report includes all clients.

Note: Note: If you select the Large Employer field, you must also enter the Large Employer Year. If a client was not a large employer in that year, the report does not include it.

7. In the Include in Report panel, select one of the following options:

• All Employee Types and Classes – this is the default option.

• Employee Type – in the look-up field that displays, select any employee types you want to include on the report.

• Employee Type Classification – in the field that displays, select whether you want to include Full-Time, Part-Time, or all employee type classes.

8. In the Report Type field, select whether you want to run the New Hire or Ongoing employee report. The default is Ongoing.

See the previous and next sections for more details about the differences between these two reports.

9. Click Generate Report to run the report.

10. After the report generates, click Download Summary Report to obtain the report download.

Interpreting the Eligibility Report Output

Use this section to better understand the output of the eligibility report.

“Number of Weeks” and Week End Dates

• Weeks run from Sunday through Saturday, except the first and last weeks in the measurement period.

• The first week starts on the measurement period start date, and ends on the following Saturday.

• The last week starts on Sunday and ends on the last day in the measurement period.

• The number of weeks in the report is based on the measurement periods, as well as the Start Date and End Date from the report setup parameters.

• The Number of Weeks count is the number of days in the measurement period divided by seven. It is not the total number of weeks for all employees on the report.

Employee-level “Number of Weeks” and Hours

• Report hours accumulate for each employee, in each week in the measurement period.

• When assigning hours to a particular week, the system uses the charge date on the employee time sheet to select that week.

• If the hours do not have an associated charge date, then the system uses the Pay Period End date for the voucher.

• If there are no hours for a certain week within the employee measurement period, the report still uses that week when it calculates the average.

Calculating Hours

• If the pay code Calculation Method is Standard and the Pay Reason is Hourly, then the report counts the number of Hours Paid. Otherwise, it counts the Hours Worked.

• If a pay code is set to be excluded from ACA hours calculation, the report does not include those hours in the report.

• You can also import external hours into the system. The report will include these hours.

Review the following table for descriptions of other values in the report:

• is not actively enrolled in any other medical benefit plan, and
• has waived coverage in any other medical benefit plan with a coverage start date before the end of the measurement period | Break in Service | A break in service is a period when the employee is not active. The Break in Service Term is usually 13 weeks unless otherwise specified in the client-level ACA Period setup. Valid leave days are counted as active and are not treated as a break in service. The report uses the last hire date for all employees when determining a break in service: - If the last hire and original hire dates are the same, then there was no break in service. - If the dates are not the same, but the difference is fewer than 4 weeks, the system counts those weeks as zero. - If the system determines that the total employment time – before being terminated or going on invalid leave – is greater than the difference between 4 weeks and the number of Break in Service Term weeks, then the system counts those weeks as zero. - If total employment time – before being terminated or going on invalid leave – is less than the difference between 4 weeks and the Break in Service Term weeks, then the employee starts new on the last hire date. - If the difference between the last hire date and original hire date is greater than the Break in Service Term, the employee starts new on the last hire date. - If the employee goes back and forth between employed and not employed, and never exceeds the maximum break in service time, the system uses their original hire date. If a break in service with the allowed weeks occurs during an employee measurement period, a double asterisk displays in front of the employee status class (for example, **A) and the report includes an explanatory footnote. |
• If the last hire and original hire dates are the same, then there was no break in service.
• If the dates are not the same, but the difference is fewer than 4 weeks, the system counts those weeks as zero.
• If the system determines that the total employment time – before being terminated or going on invalid leave – is greater than the difference between 4 weeks and the number of Break in Service Term weeks, then the system counts those weeks as zero.
• If total employment time – before being terminated or going on invalid leave – is less than the difference between 4 weeks and the Break in Service Term weeks, then the employee starts new on the last hire date.
• If the difference between the last hire date and original hire date is greater than the Break in Service Term, the employee starts new on the last hire date.
• If the employee goes back and forth between employed and not employed, and never exceeds the maximum break in service time, the system uses their original hire date. ## More Information About the Dates on the Eligibility Report

On both reports

• The Effective Hire Date is the last employee hire date, based on the hire date in the employee record and the break in service logic.

• If Period setup requires that the administration period start on the first of the month, the measurement end date is extended to the last day of the month when it is calculated.

• Both reports select employee vouchers by employee ID, then by client, and finally by the period end date on the voucher.

• To select vouchers, both reports use the date 31 days after your entered End Date. The system processes the hours in the voucher based on the charge date or — if a charge date is not used — based on the voucher period end date. These settings ensure that the system processes all charge dates.

• Both reports use the charge data associated with the hours from the voucher (or the voucher period if there is no charge date associated with the hours) to determine the week within the measurement period. The reports then accumulate the hours in that week.

• If the voucher hours date is outside the employee measurement period, the reports do not include those hours.

On the new hire report

On the New Hire report, all start and end dates vary based the employee effective hire date.

Date — Description

Measurement Start Date — The employee effective hire date. The starting date to include in the report is the Start Date that you entered minus the number of days or months in the New Hire Measurement Period fields, defined in the client or global Period Setup.

Measurement End Date — The last day of the employee measurement period based on the effective hire date and the New Hire Measurement Period fields, defined in the client or global Period Setup.

Admin Start Date — The day after the Measurement End Date. If this day must be the first of the month, the Measurement End Date is extended to the last day of the previous month.

Admin End Date — Based on the Admin Start Date and the New Hire Administration Period fields in Period Setup.

Stability Start Date — The day after the Admin End Date.

Stability End Date — Based on the Stability Start Date and the New Hire Stability Period fields in Period Setup.

On the ongoing employee report

On the Ongoing report, all start and end dates will be the same for all employees. These dates are based on the criteria in Period Setup and the year for the Start Date you entered.

Date — Description

Measurement Start Date — Based on the Start Month/Day in Period Setup and the Start Date you entered when you ran the report.

Measurement End Date — The last day of the employee’s measurement period, based on the Measurement Start Date and the Ongoing Measurement Period fields in Period Setup.

Admin Start Date — The day after the Measurement End Date. If this day must be the first of the month, the Measurement End Date is extended to the last day of the previous month.

Admin End Date — Based on the Admin Start Date and the Ongoing Administration Period fields in Period Setup.

Stability Start Date — The day after the Admin End Date.

Stability End Date — Based on the Stability Start Date and the Ongoing Stability Period fields in Period Setup.

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Running the Monthly ACA Eligibility Report

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Reports/ACA_Eligibility_Rpt_Monthly.htm Path: CMP/ACA/ACA-Reports/ACA_Eligibility_Rpt_Monthly.htm

Running the Monthly ACA Eligibility Report

Note: Note: Client Access Group Security is enabled on this form.

Note: Note: This form supports entity-level security for Worksite Managers and Worksite Trusted Advisors, as defined on the Users > Actions > Data Security form.

Use this report to display month-by-month ACA eligibility information (hours) for specific clients and employees. An employee is considered full-time if they worked an average of 130 hours or more per month.

Procedure

To run this report:

1. Open the Work Centers menu.

2. Under Work Centers|Compliance, select ACA Processing.

3. From the ACA Reporting column, select ACA Eligibility Report (Monthly Summary).

Worksite Managers and Worksite Trusted Advisors can access this report through Reports > HR | Report > ACA Eligibility Report (Monthly Summary).

4. In the Clients grid, specify the clients you want to include on the report. You must specify at least one client.

5. Set the Report Start Date and Report End Date. This is the date range of data included on the report. The start and end dates must be at least 3 months apart and can be up to one non-calendar year apart.

6. If you only want to include data from large employers on the report, select Yes in the Large Employer? field. Specify the corresponding Large Employer Year.

7. Select the employee types you want to Include in Report. You can include all types, a specific type, or a specific type classification.

8. When ready, select Generate Report.

Report

The report generates with the following columns:

• is not enrolled in a medical benefit plan, and
• has waived coverage under any other medical benefit plan with a Coverage Start Date prior to the end of the measurement period. | FTE | Whether or not the employee counts as a full-time equivalent for the purposes of ACA reporting. Y if their average hours per month is greater than or equal to 130. Otherwise, N. | ========================================================================

Running the Large Employer Test Report

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Reports/ACA_Lg_Employer_Test_Report.htm Path: CMP/ACA/ACA-Reports/ACA_Lg_Employer_Test_Report.htm

Running the Large Employer Test Report

Note: Note: Client Access Group Security is enabled on this form.

Note: Note: This form supports entity-level security for Worksite Managers and Worksite Trusted Advisors, as defined on the Users > Actions > Data Security form.

The Large Employer Test Report identifies clients that employ 50 or more employees. It displays the status of each employee, as of the End Date of the report.

Background

The system pulls the hours for this report from two sources:

• Processed payroll data

• Imported employee hours

Note: Note: Before running the Large Employer Test Report, PrismHR recommends that you analyze average employee hours worked and whether each employee’s type is appropriate. For example, if an employee averages 80 hours per month, they should not be flagged as full-time. If they are, it can have a negative impact on the output of the report.

Important Notes and Considerations

Employment Classifications

The system considers the following information when creating the Large Employer Test Report:

• If an employee is classified as full-time active on the first and last day of a month, the report displays 120 hours for that month.

• If an employee is not full-time, the report displays their actual hours , but the amount displayed will not exceed 120 hours per month.

The report uses hours paid for any Standard pay codes with Pay Reason set to Hours. For pay codes that do not meet these criteria, the report uses hours worked, if any exist.

• If the employee works at least 120 hours each month for the months specified, the report counts the employee as 1.

Seasonal Employees

• Employees with Seasonal status will not be included if they worked 120 or fewer consecutive days.

• The report does include employees who were not considered seasonal-only during the reporting period. In other words, if they were Active and Full- or Part-Time, Non-Seasonal at any point in the report period, the report will include them. The system will also activate the Seasonal flag on their employee record so that, if there is any question about their status, the Seasonal flag will make them stand out in the report.

Consider this example: Joe starts the year as a seasonal employee. Sixty days later, Joe becomes a full-time employee. After this change, a service provider runs the Large Employer Test Report for the year and includes Joe’s client or employer. In this scenario, Joe’s entire employment period will be included in the report, and his Seasonal column entry will display as Y on the report (and on his employee record in the system).

Procedure

To run the Large Employer Test Report:

1. Open the Work Centers menu.

2. Under Work Centers|Compliance, select ACA Processing.

3. Under ACA Reporting, select ACA Large Employer Test Report.

Worksite Managers and Worksite Trusted Advisors can access this report through Reports > HR | Report > ACA Large Employer Test Report.

4. Select either Employer or Client and then, in the grid that displays, enter the IDs of any employers or clients you want to include on the report. Leave the grid blank to include all employers or clients.

5. Specify whether you want the report to select data from a specific Date Range (Start Date and End Date) or for the Full Year.

The Start and End Dates must be the first and last days of the month, respectively.

There is no minimum number of months that you can include in the range, but the maximum is 12 months.

6. Select Generate Report.

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Accessing the ACA Report Library

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Reports/ACA_Reports_Library.htm Path: CMP/ACA/ACA-Reports/ACA_Reports_Library.htm

Accessing the ACA Report Library

The ACA Reports form provides access to any Affordable Care Act reports generated in the system. In the ACA User Guide, this form is called the ACA Report Library.

To access this form, open the Back Office menu and select ACA Reports under System|View.

[Image: Example of the ACA Reports form, providing a history of recently generated reports and downloads.]

Click

[Image: Download Icon]

to open a report as a PDF. Click

[Image: Info/Inquiry Icon]

to view the print service information.

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Running the Employee Classification Analysis Report

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Reports/EE_Classification_Analysis_Rpt.htm Path: CMP/ACA/ACA-Reports/EE_Classification_Analysis_Rpt.htm

Running the Employee Classification Analysis Report

Note: Note: Client Access Group Security is enabled on this form.

Note: Note: This form supports entity-level security for Worksite Managers and Worksite Trusted Advisors, as defined on the Users > Actions > Data Security form.

This report displays any employee hours worked associated with the provided employment type class codes or employment type codes. It uses current employee statuses to gather this information.

You can use this report to review selected employee types so that employers can correct their data before running the Large Employer Test Report. The Large Employer Test Report helps determine which clients are affected by the Affordable Care Act, so accurate employee type data is essential.

To run this report:

1. Open the Work Centers menu.

2. Under Work Centers|Compliance, select ACA Processing.

3. Under ACA Reporting, select ACA Employee Classification Analysis Report.

Worksite Managers and Worksite Trusted Advisors can access this report through Reports > HR | Report > ACA Employee Classification Analysis Report.

4. Enter the Ending Year and Ending Month for the report data.

5. Enter a Client ID for each client you want to include in the report

Use the following fields to limit the classes and codes included in the report. Otherwise, the system will include all classes and codes:

6. In the Employment Type Classification field, specify which employment type (or types) to include: Full-Time, Part-Time, or both.

7. Enter each Employment Type Code to include in the report.

8. Specify any Status Classification Codes and Status Codes you want to include in the report.

9. In the Exclude from Report panel, specify any Status Classification Codes and Status Codes you do not want to include in the report.

10. Click Generate Report.

Report

For each employee on the report, the system includes:

• Employment type and status (for example, Full-Time and Active)

• Type class and status class associated with the type and status codes

• Whether the employee is seasonal

Finally, the report displays their last active date and the date of their last termination (if applicable), followed by the number of hours worked for each month in the date range.

Review this data and ensure that employee hour counts are appropriate for their current status and type.

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Running the Electronic 1095-C Report

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Reports/Electronic_1095C_Report.htm Path: CMP/ACA/ACA-Reports/Electronic_1095C_Report.htm

Running the Electronic 1095-C Report

The Electronic 1095-C Report lists employees for a specified year, along with their Form 1095-C register status and the identity of the individual designated to receive an electronic Form 1095-C.

Procedure

To run this report:

1. Open the Work Centers menu.

2. Under Work Centers|Compliance, select ACA Processing.

3. Under ACA Reporting, select Electronic 1095-C Report.

4. Enter the reporting Year.

5. If you want to include employees who have a Form 1095-C for the selected year, select Yes for Employees with 1095C.

6. If you want to include employees who elected early access to Form 1095-C, select Yes for Employees with Electronic 1095C Form. The report will include employees if Electronic 1095C Form is selected in the Tax section of their Employee Details record.

7. Click Run to generate the report.

Report

The report includes the following columns:

• Employee Name: Employee name displays as last name first.

• Employee ID

• 1095C Register: Y (yes) if the employee is listed on the 1095-C Register, or N (no) if they are not listed on the 1095-C Register.

• Electronic 1095C: Y (yes) if the employee receives a electronic 1095-C or N (no) if they receive a paper 1095-C.

========================================================================

Omitting Employees from the Large Employer Test Report

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Reports/Employees-to-Omit-for-Large-Employer-Report.htm Path: CMP/ACA/ACA-Reports/Employees-to-Omit-for-Large-Employer-Report.htm

Omitting Employees from the Large Employer Test Report

Note: Note: This form does not use Client Access Group Security.

This form defines the employees – company owners and/or their family members – that you want to exclude from the Large Employer Test Report.

Note: Note: You can find a client’s Business Entity type in the Detail tab of the Client Details form. You can configure an employee’s Business Owner and Family Member settings in the Work tab of the Employee Details form.

To configure employee exclusion from the Large Employer Test Report:

1. Open the Work Centers menu.

2. Under Work Centers|Compliance, select ACA Processing.

3. Under ACA Setup and Reporting Setup, select Employees to Omit on Large Employer Report.

4. Select a Business Entity type.

5. Select whether you want to omit the Owner and/or Family Members from the report.

6. Repeat as needed for other rows and business entities.

7. Click Save when you finish.

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Establishing ACA Large Employer Status

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Reports/Establish_ACA_Large_ER_Status.htm Path: CMP/ACA/ACA-Reports/Establish_ACA_Large_ER_Status.htm

Establishing ACA Large Employer Status

After running the ACA Large Employer report (See About the Large Employer Test Report), you can use PrismHR to indicate which clients count as Large Employers according to ACA Guidelines. You only need to perform this procedure if a client actually qualifies as a Large Employer.

To set a client as a large employer:

1. Open the Client menu. Select Client Details under Client|Change and then select the Benefits tab.

2. Specify the calendar Year in which this client is considered a Large Employer according to ACA guidelines.

3. Select Yes in the ACA Large Employer field.

4. Click Save.

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Excluding Pay Codes from ACA Reports

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Reports/Excl_Pay_Codes_from_ACA_Reports.htm Path: CMP/ACA/ACA-Reports/Excl_Pay_Codes_from_ACA_Reports.htm

Excluding Pay Codes from ACA Reports

You can exclude specific pay codes from the output of several reports, including the Large Employer Test Report, Eligibility Report, and Eligibility Report (Legacy).

To exclude pay codes from these reports:

1. Open the Back Office menu.

2. Under System|Change, select Pay Codes.

3. Enter the ID of the Pay Code you need to change.

4. Select the Exclude From ACA Hours Calculation option.

5. Click Save.

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Granting ACA Report Access to Client Users

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Reports/Granting_ACA_Rpt_Access_to_Clients.htm Path: CMP/ACA/ACA-Reports/Granting_ACA_Rpt_Access_to_Clients.htm

Granting ACA Report Access to Client Users

Though most ACA processing forms are only accessible to Service Provider users, you can give your client-level users – such as Worksite Managers and Worksite Trusted Advisors – access to certain ACA reports.

To grant client users access to these reports, you must add that form to the User Role of the relevant user.

Note: Note: To grant ACA report access to a client-level user, you must select the path that starts from the Reports menu instead of the Work Centers menu. You cannot grant Work Center access to Worksite Managers or Trusted Advisors, but you can reach the same set of ACA reports from either menu.

Example

For example, to grant a Worksite Manager access to the ACA 9.5% Rule Test Report:

1. Click Back Office.

2. Select User Roles under System|Change.

3. Enter or select the Role ID associated with the relevant client-level user.

A list of accessible forms displays.

4. Click Add at the bottom of the User Roles form. A new form overlays on the previous one and displays a list of forms you can add to the role.

5. Locate the name of the form you want to add. For example: HR > Report > ACA 9.5% Rule Test Report.

6. Select that form in the list and then click Accept to return to the User Roles form.

7. Click Save on the User Roles form. Any Worksite Manager or Worksite Trusted advisor with this user role will now have access to the 9.5% Rule Test Report.

========================================================================

About the Large Employer Test Report

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Reports/Large_Employer_Test_Report.htm Path: CMP/ACA/ACA-Reports/Large_Employer_Test_Report.htm

About the Large Employer Test Report

The Large Employer Test Report identifies clients that employ 50 or more employees. It displays the status of each employee, as of the End Date of the report.

The system derives the hours for this report from two sources:

• Processed payroll information from the system.

• External ACA-related employee hours that have been updated using the External ACA Hours utility.

Note: Note: Before running the Large Employer Test Report, PrismHR recommends that you analyze the average hours worked and if the current employee type is appropriate. For example, if an employee averages 80 hours per month then they should not be flagged as full-time. If they are, it can have a negative impact on the Large Employer Test Report.

Review the following topics for more guidance:

• Large Employer Test Report Considerations

• Omitting Employees from the Large Employer Test Report

• Establishing ACA Large Employer Status

========================================================================

Including Leave Status Codes on the Eligibility Report

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Reports/Leave-Status-Code-Report-Overrides.htm Path: CMP/ACA/ACA-Reports/Leave-Status-Code-Report-Overrides.htm

Including Leave Status Codes on the Eligibility Report

Note: Note: This form does not use Client Access Group Security.

The system uses the information entered on this form to determine whether an employee has worked enough hours during the reporting period to be identified as full-time. If you identify an employee as on leave, the report calculation will include the days they were on leave.

Background

To be considered a full-time employee, an employee must work an average of 130 hours for each month included in the date range for which the report is run. If the report is run from January 1 to March 31, that would mean an employee needs to work at least 390 hours during the reporting period:

(9 months x 130 hours)/1 month = 1170 hours

(where one month = 24 hours x 31 days = 744 hours)

If, during that same time period, an employee was on valid leave (as indicated by one of the Leave Status codes on the ACA Reports Parameters), then the number of required hours will be adjusted by a factor based on the total days in the report and the total number of days the employee was on valid leave. For example:

• Employee is on valid leave for 25 days

• The number of days in the report is 273 days

• Factor = (273 - 25) / 273 = .9084

• The number of hours for this employee to be full time = .9084 x 1170 hours = 1062.828 hours.

Procedure

To set up leave status codes:

1. Open the Work Centers menu.

2. Under Work Centers|Compliance, select ACA Processing.

3. Under ACA Setup and Reporting Setup, select Leave Status Codes Overrides for ACA Coverage Report.

4. Enter or select each Leave Status Code you want to include in the eligibility report.

5. Click Save.

========================================================================

Large Employer Test Report Considerations

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Reports/LgER_Report_Considerations.htm Path: CMP/ACA/ACA-Reports/LgER_Report_Considerations.htm

Large Employer Test Report Considerations

Employment Classifications

The system considers the following information when creating the Large Employer Test Report:

• If an employee is classified as full-time active on the first and last day of a month, the report displays 120 hours for that month.

• If an employee is not full-time, the report displays their actual hours , but the amount displayed will not exceed 120 hours per month.

The report uses hours paid for any Standard pay codes with Pay Reason set to Hours. For pay codes that do not meet these criteria, the report uses hours worked, if any exist.

• If the employee works at least 120 hours each month for the months specified, the report counts the employee as 1.

Seasonal Employees

• Employees with Seasonal status will not be included if they worked 120 or fewer consecutive days.

• Employees will be included on the report if they were not considered seasonal-only during the reporting period. In other words, if they were Active and Full- or Part-Time Non-Seasonal at any point in the report period, they will be included in the report, regardless of the number of days this was true. The Seasonal flag will also be enabled on their employee record so that, if there is any question about their status, the Seasonal flag will make them stand out in the report.

Consider this example: Joe starts the year as a seasonal employee. Sixty days later, Joe becomes a full-time employee. In this scenario, Joe’s entire employment period will be included in the report and the Seasonal flag will be set to Y.

Control Groups

When clients are part of a Control Group, as indicated in Client Details or Company Master configuration, they will be listed under that Control Group Client in the Large Employer Test Report.

========================================================================

Other ACA Reports

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Reports/UG_Chapter_Reports.htm Path: CMP/ACA/ACA-Reports/UG_Chapter_Reports.htm

Other ACA Reports

The system includes several other reports to help you during your ACA setup and compliance processes.

========================================================================

Importing External ACA Hours

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Setup/ACA%20External%20Hours%20Import.htm Path: CMP/ACA/ACA-Setup/ACA External Hours Import.htm

Importing External ACA Hours

Use the ACA External Hours Import form to import external ACA hours into PrismHR. This import allows you to add hours to be used in ACA eligibility calculations when bringing on a client mid-year.

For example: if your client started in PrismHR in June last year but you are now processing ACA eligibility for the prior year, you can use this form to import each employee’s hours for January to May last year, month by month.

Note: Note: This form does not use Client Access Group Security.

To access this form, under Work Centers click ACA Processing. Under ACA Processes, under IMPORT/EXPORT click ACA External Hours Import.

To import external hours for ACA eligibility calculations using the ACA External Hours Import form:

1. Complete the following fields:

• Skip record – Select this option to skip the new data completely for the existing employees in PrismHR.
• Overwrite record – Select this option to overwrite the existing import file with new employee hours.
• Add hours to existing record – Select this option to add new data to the existing import file. | Upload File | Click the Upload File button here and the following dialog box opens. [Image: screenshot] Choose the file to upload in your system and drag it into the dialog box and click Start Upload, or you can click Add Files button in the dialog box above, select it from your system and then click Start Upload. The uploaded file will display on the panel. Once the upload completes, click Close to close this dialog box. - The upload file must be in .txt or .csv format. - You need to set up the upload file with the following four columns, separating values with tabs: - Column A – Client ID - Column B – Employee ID - Column C – Charge Date - Column D – Hours Worked - You cannot import hours for an employee that is not in the client on that record of the import. |
• The upload file must be in .txt or .csv format.
• You need to set up the upload file with the following four columns, separating values with tabs:
• Column A – Client ID
• Column B – Employee ID
• Column C – Charge Date
• Column D – Hours Worked
• You cannot import hours for an employee that is not in the client on that record of the import. | Preview Data | Click the Preview Data button to preview the list of records to be imported. Depending upon the number of records to be imported, there can be multiple pages to be reviewed in the Preview panel – you can scroll page by page using the controls at the bottom right corner of the Preview panel. [Image: screenshot] |

2. Click Import Data to import the external hours for the employees into PrismHR. This button will remain grayed out in case there is any error, and the Error Report link is displayed.

3. Click the Error Report link to review the errors, correct them and redo the process. If there is no error, then this link will not appear.

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Setting Up ACA Benefits Eligibility Rules

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Setup/ACA-Bnft-Elig-Rules.htm Path: CMP/ACA/ACA-Setup/ACA-Bnft-Elig-Rules.htm

Setting Up ACA Benefits Eligibility Rules

Note: Note: Client Access Group Security is enabled on this form.

Use the Benefit Eligibility Rules form to manage the eligibility rules for client benefits that apply to employees in Offered Employees Maintenance (see Setting Up ACA Offered Employees). These are typically variable-hour employees that are considered full-time for ACA reporting purposes.

You must specify the employment status and type for each of the relevant medical plans. You do not need to accommodate employee statuses and types that satisfy standard client-level benefit rules.

Note: Note: The system determines benefits eligibility based on employee status and type, based on the rules your organization entered into the system, how you assign employees, and other factors. This form defines eligibility for both benefits enrollment and under the ACA. If an employee does not qualify for the benefit plan offered by the client – for example, by not working enough hours – then they are eligible for coverage under the ACA. For more details, see How the System Determines Employee Eligibility.

To set up ACA benefits eligibility rules:

1. Open the Work Centers menu.

2. Under Work Centers|Compliance, select ACA Processing.

3. Under ACA Setup, select Benefit Eligibility Rules (ACA).

4. Select the Benefit Plan ID from the Select Benefit Plan list to configure.

5. Enter a Network ID, if applicable, and specify an Effective Date for the benefit plan.

6. Specify the Employment Statuses that qualify as eligible for this plan.

7. Select the Employment Types that qualify as eligible for this plan.

8. Click Save.

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Setting Up ACA Type Overrides

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Setup/ACA-Type-Overrides.htm Path: CMP/ACA/ACA-Setup/ACA-Type-Overrides.htm

Setting Up ACA Type Overrides

Note: Note: Client Access Group Security is enabled on this form.

Use this form to define full-time employees as part-time for certain periods, if this is required for ACA reporting.

To set up employee type overrides for ACA reporting:

1. Open the Work Centers menu.

2. Under Work Centers|Compliance, select ACA Processing.

3. Under ACA Setup and Client Setup, select ACA Type Overrides.

4. Select an Employee.

5. Enter the Start Date and End Date of the period in which the system will treat the employee as part-time, for ACA reporting purposes.

6. Click Save.

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Build 1095-C Registers for Employees

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Setup/Build_ACA_1095_Registers_Concept.htm Path: CMP/ACA/ACA-Setup/Build_ACA_1095_Registers_Concept.htm

Build 1095-C Registers for Employees

At this point in the process of granting Form 1095-C access (See Giving Employees Access to Form 1095-C) your organization must the 1095-C registers themselves. The details of this process are described in Building ACA 1095 Registers.

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Configuring Client ACA Parameters

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Setup/Client-ACA-Parameters.htm Path: CMP/ACA/ACA-Setup/Client-ACA-Parameters.htm

Configuring Client ACA Parameters

Note: Note: Client Access Group Security is enabled on this form.

You can use the client-level ACA parameters to override system-level ACA parameters (see Configuring Global ACA Parameters). You can also specify other client-specific information on this form.

Basic Parameters

Review the information below for details about some of these override settings.

Safe Harbor Compensation Basis Types

The system provides three basis type options to determine employee compensation and, by extension, the affordability of offered ACA coverage:

Basis Type — Description

Federal Poverty Level — Affordability is based on annual household income, factored by household size; you can set annual federal poverty level overrides in the table below.

Rate of Pay — Affordability is based on a multiple of the lowest pay rate for the employee.

Form W-2 Wages — Affordability is based on a multiple of the employee’s Form W-2 wages for the calendar year.

About the Rate of Pay Safe Harbor

The Rate of Pay safe harbor looks at the monthly pay of salaried employees. It also excludes any salaried employee whose rate of pay dropped, during the calendar year, from the safe harbor consideration.

Rate of pay is determined differently for salaried and hourly employees:

• For salaried employees, the system uses the rate of pay on the first day of the plan year.

• For hourly employees, the safe harbor uses the lesser of: either the rate of pay at the start of the year or the rate of pay as of the first of each month.

As documented on the form and in the official ACA guidance, each of these basis types is also associated with its own ACA series 2 offer code:

• 2G – The coverage offered is affordable based on the Federal Poverty Level safe harbor

• 2H – The coverage is affordable based on the Rate of Pay safe harbor

• 2F – The coverage is affordable based on employee Form W-2 Wages

Federal Poverty Level Overrides

If you set the client basis type to Federal Poverty Level/2G, you can also specify override values for this metric. The Federal Poverty Amount and Percent of Federal Poverty Amount fields are assigned based on plan years, not calendar years.

For example, if the plan year runs from June 1, 2019 through May 31, 2020, the system users the amounts entered for Plan Year 2019. If the plan year starts on January 1, then the plan year matches the calendar year.

Use the table on this form to specify yearly poverty level overrides, as needed:

• First, select the appropriate calendar Year.

• Enter the Federal Poverty Amount for a household of one.

• Finally, enter the % of Poverty Level used to calculate affordability.

Procedure

To establish general client-level override parameters for the ACA:

1. Go to Work Centers > ACA Processing > ACA Setup > Client ACA Parameters (Overrides).

2. Select a Safe Harbor Compensation Basis Type (see above for details).

3. Select the Benefit Plan Year Start Month and Day if the plans are not on a calendar year cycle and you need to override the system-level date settings.

4. Specify whether Cafe Plans Are For Medical Only – this only applies to clients who have cafeteria plans. This determines whether the system takes into account the client cafeteria plan contribution when calculating the cost of insurance for applicable employees and benefit plans.

5. If necessary, specify any annual overrides related to the Federal Poverty Level (see the sections above for details).

6. Click Save.

Setting Up Look-back Periods

Use the Periods panel to set up measurement, administration, and stability periods for new and ongoing employees at the client level. These settings override the settings at the system level.

About Look-back Periods

The ACA specifies three periods for determining employee eligibility: Measurement, Administration, and Stability.

• Measurement Period: This look-back period determines whether new variable hour/seasonal employees are full-time (working 130 hours or more within the period). For Ongoing Employees, who have worked one full standard measurement period, this determines the average number of hours they work (130 or more = full-time).

• Administration Period: This is the period between the Measurement Period and implementation of benefits. 90 days maximum.

• Stability Period: This is the coverage “lock-in” period for employees identified by the system as full-time (based on the results from the Measurement Period). Must be 6-12 months long.

On this form, you can configure these periods for both new and existing employees.

Procedure

To configure look-back and eligibility periods on the client level:

1. Specify the number of Months or Days in the Measurement Period. For Ongoing Employees, specify the period Start Month/Day.

2. Specify the number of Months or Days in the Administration Period, and indicate whether the period Starts First of the Month.

3. Specify the number of Months or Days in the Stability Period.

4. Indicate the Break-In Service Term. This field specifies maximum number of weeks (default is 13) where the employee is not employed but remains eligible for healthcare if they are rehired. After this period, the system counts the employee as “starting new” instead of as ongoing. For example, you might enter 26 weeks for an educational institution.

Setting Up ALE Members

Use this panel to enter any control group clients (Applicable Large Employers, or ALEs) besides those specified at the system level, who will use the same FEIN that your organization uses in other parts of PrismHR.

To configure ALE members for this client:

1. Expand the Applicable Large Employer (ALE) Members panel.

2. Enter or select an ALE Group ID. All the clients in PrismHR who have the same Control Group populate on the form.

• This data is dynamically displayed as clients under this group change.

• You can edit this information as you may need to list members that are not stored in PrismHR.

• This data populates using the Client Legal Name and FEIN.

3. Edit the entries as necessary.

4. Click Save.

Configuring the Lowest Cost Calculation Table

Note: Note: This table does not allow you to enter values in both the Benefit Plan ID and Amount fields. You can only use one or the other.

If your organization cannot pull the lowest-cost plans from your database, enter the data in the Lowest Cost Plan Calculation Table. You do not need to use this form unless accurate reporting absolutely depends on it.

The system uses this information when some employees are not eligible for any medical plans under either standard or ACA benefit rules (for example, if there are no medical plans set up for the client, or if employees are not eligible for any medical plans based on their benefit rules).

The system checks each line item in the grid, for each affected employee, to determine whether the employee meets the criteria specified on that line. If so, the system uses the information on that line and does not check any more lines. With this in mind, ensure that you dedicate the top of the list for the plans with the most criteria.

To set up the Lowest Cost Plan Calculation Table:

1. Expand the Lowest Cost Calculation Table panel.

2. Enter the eligibility information as appropriate (all fields are optional):

• Start Date

• End Date

• Location

• Division

• Department

• Benefit Group

• Plan ID

• Amount

• Offer Code

3. Click Save.

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Specifying ACA Large Employer Information

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Setup/Client_ACA_Reporting_Fields.htm Path: CMP/ACA/ACA-Setup/Client_ACA_Reporting_Fields.htm

Specifying ACA Large Employer Information

To set ACA large employer reporting information in PrismHR:

1. Make sure you see the correct client record and name near the top of the form. If not, click on the client name and select the correct client.

2. Open the Client menu.

3. Under Client|Change, select Client Details.

4. Select the Benefits tab.

Then, for each year:

1. Enter the Year.

2. Indicate whether the client qualifies as an ACA Large Employer according to the IRS definition. If you do not select a value, the system defaults to No.

3. Indicate whether to Show in ESS (this determines whether or not employees can see their 1095-C information in Employee Portal (EP)). You should do this for a reporting year once you have built the registers and confirmed that the information is complete. If you do not select an option, the system defaults to No.

4. In the 1095 Employer field, indicate whether the system should use the employer name and address from Form 1094-C or the Employer Master/Employer Details record. These values populate in the Applicable Large Employer Member fields on the Form 1095-C.

5. Click Save.

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Giving Employees Access to Form 1095-C

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Setup/EE_Access_to_1095C.htm Path: CMP/ACA/ACA-Setup/EE_Access_to_1095C.htm

Giving Employees Access to Form 1095-C

Your organization can grant electronic access to employee Forms 1095-C by adding menu items to the Employee Portal (EP) menu. You can also give employees early access to this form.

To set up employee access to Form 1095-C (follow the links for detailed instructions):

Employees who elected to participate in early Form 1095-Cs can see them online as soon as the registers are built and available. Employees who did not elect to participate in early Form 1095-Cs can see them starting on March 2.

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Run the Electronic 1095-C Report

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Setup/Electronic_1095C_Report_Concept.htm Path: CMP/ACA/ACA-Setup/Electronic_1095C_Report_Concept.htm

Run the Electronic 1095-C Report

This topic is part of the procedure for giving employees access to Form 1095-C. For a complete overview, see Giving Employees Access to Form 1095-C.

You can run the Electronic 1095-C Report to see a list of employees for a selected year, their Form 1095-C register status, and who is receiving an electronic Form 1095-C. See Running the Electronic 1095-C Report for details on running and reviewing this report.

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Employee Election for Early 1095-C

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Setup/Employee_Elects_Early_1095C.htm Path: CMP/ACA/ACA-Setup/Employee_Elects_Early_1095C.htm

Employee Election for Early 1095-C

Part of a process on giving employees access to Form 1095-C (See Giving Employees Access to Form 1095-C).

Employees of clients managed in PrismHR can elect to get early access to their Forms 1095-C.

In Employee Portal (EP), the employee uses the screen that you set up to elect coverage.

• When an employee chooses to participate in the early electronic 1095-C program, this is indicated by the Electronic 1095C Form option in the Miscellaneous panel of the Employee Details > Tax tab. They will be able to log on to EP and check for their 1095-C using the 1095-C menu item before March 2.

• Employees who do not elect to participate in the program will receive it in the mail. They can access it online starting on March 2.

[Image: Miscellaneous panel of Employee Details Tax tab. The checkbox “Electronic 1095C Form” is selected and highlighted.]

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Activating the ACA Data Build

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Setup/Enabling_ACA_Databuild.htm Path: CMP/ACA/ACA-Setup/Enabling_ACA_Databuild.htm

Activating the ACA Data Build

After your organization enables the ACADATABUILD custom feature code, the system builds employee 1095-C registers once a month over the course of the year. This improves the performance of the final register build.

Note: Note: After setting the feature code, the first user who logs in will initiate the first build process. You should either log out and lock back in to start the build, or have another user log in.

If you have not set the custom feature code yet, you can set it up and initialize it during an off-peak time, like the evening or a weekend. This is because the initial run of the process takes a long time and impacts performance. After the initial run, the process will run in the background when users log in, updating information.

If at any point you need to adjust your information and rebuild it, you must do that manually.

Procedure

To enable this feature:

1. Open the Back Office menu and select System Parameters under System|Change.

2. In the Custom Feature Codes table, create a new row and enter ACADATABUILD.

3. Click Save.

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Employee Portal Menu Items for Form 1095-C

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Setup/EP_Menu_Items_for_Form_1095C.htm Path: CMP/ACA/ACA-Setup/EP_Menu_Items_for_Form_1095C.htm

Employee Portal Menu Items for Form 1095-C

Part of the process on giving employees access to Form 1095-C (See Giving Employees Access to Form 1095-C).

You can use the global or client-level “ESS Default Menu Builder” to add the Early 1095-C and 1095-C tiles to the Employee Portal (EP) menus of your clients.

These tiles serve two different roles:

• The Early 1095-C tile lets employees choose to receive their Form 1095-C electronically.

• The 1095-C tile lets employees see their Form 1095-C in EP for the years specified in the Client Details > Benefits tab.

To add 1095-C tiles to client Employee Portal (EP) menus:

1. Open the appropriate form:

• Global: Open System Parameters from the Back Office menu (under System|Change) and select ESS Default Menu Builder from the Actions menu [Image: screenshot] .

• Client: Open Client|Change > Client Details and select ESS Menu Builder from the Actions menu [Image: screenshot] .

2. Expand the menu header where you want to place the item. (If you want to create a new menu header, click New Menu Header and fill out the form).

3. Drag Early 1095-C to the menu and place it where you want it to display in the menu.

4. Repeat steps 2 and 3 for 1095-C.

5. Click Save.

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Configuring Global ACA Parameters

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Setup/Global-ACA-Parameters.htm Path: CMP/ACA/ACA-Setup/Global-ACA-Parameters.htm

Configuring Global ACA Parameters

Note: Note: This form does not use Client Access Group Security.

To process ACA data properly, you must establish system-level ACA parameters. If necessary, you can also override these at the client level: see Configuring Client ACA Parameters.

Setting Up Global ACA Parameters

To set up global ACA parameters:

1. Open the Work Centers menu.

2. Under Work Centers|Compliance, select ACA Processing.

3. Under ACA Setup and Global Setup, select Global ACA Parameters.

4. First, set the global safe harbor compensation basis. You can choose one of three options, described by the fields below.

Select this field… — to…

Federal Poverty Level (2G Series 2 Code) — Base affordability on the federal poverty amount for the appropriate year, specified in the table below.

Rate of Pay (2H Series 2 Code) — Base affordability on each employee’s lowest pay rate during the plan year. You must enter the Benefit Plan Year Start Month and Day.

Form W2 Wages (2F Series 2 Code) — Base affordability on employee Form W-2 wages for the calendar year.

The Rate of Pay Safe Harbor looks at monthly pay for salaried employees. It excludes any salaried employee whose rate of pay dropped from the Safe Harbor consideration during the calendar year.

• For salaried employees, it uses the rate of pay as of the first of the plan year.

• For hourly employees, it uses either the rate of pay at the start of the year or the rate of pay as of the first of each month (whichever is less).

5. Set the Benefit Plan Year Start Month and Day. These values support benefit plans that are not on a calendar year cycle. You can override this at the client level. If you do not enter a value, the system defaults to January 1.

6. If your clients use cafeteria plans, select the Cafe Contributions Are For Medical Insurance Only field. The system will take into account the client cafeteria contribution when it calculates the cost of insurance for applicable employees and benefit plans.

7. The next field is called Enter “Yes” for MEC on 1094 Form Starting In. Beginning with the year selected here, the system will automatically set the Minimum Essential Coverage indicator to “Yes” in the Form 1094-C record. This option overrides the Does NOT Meet ACA Minimum Essential Coverage field on the Group Benefit Plans form.

8. Select whether you want to Mask Employee SSN on 1095 Forms. This replaces the first five digits with ‘X’.

9. Adjust the data in the Federal Poverty Levels table, as needed. See Setting Federal Poverty Data, below, for details.

10. The Limited Non-Assessment Period (LNAP) Overrides panel provides three options for adjusting LNAP calculation logic. Select only one option. For details, see Setting LNAP Overrides below.

11. Configure your look-back period settings in the Periods panel. For details, see Setting Up Look-back Periods

12. Click Save.

Setting LNAP Overrides

These parameters relate to IRS code 2D: “Employee in a section 4980H(b) Limited Non-Assessment Period”.

By default, PrismHR will assign the 2D series 2 code for the maximum possible LNAP, even if coverage is offered during that period. These settings provide more coding flexibility on Forms 1095‑C for employees who are still within their first 90 days of employment.

Field Name — Action

Limit “2D” Status to 3 Months — Limits the 2D offer code to the first 90 days of employment. After 90 days, you must select a different offer code, even if the employee has a mid-month hire date.

Continue “2D” if Employee’s Status Changes to Full-Time During LNAP — When an employee’s status changes to full-time, PrismHR will continue using “2D” for up to 3 calendar months, or 4 months if the period includes a partial month. You cannot use this setting to include more “2D” months than defined in the initial measurement period.

End “2D” Period on Offer of Coverage — Prevents the system from defaulting to a “2D” code when the employee’s series 1 code reflects an offer of coverage (for example, 1A).

Setting Federal Poverty Data

The Federal Poverty Amount and % of Poverty Level fields are assigned based on plan years, not calendar years.

For example: if the plan year runs from June 1, 2019, through May 31, 2020, the system uses the amounts entered for Plan Year 2019. If the plan year starts on January 1, then the plan year matches the calendar year.

This feature provides flexibility in case the IRS makes changes to the percentage before the start of the next year.

To configure federal poverty data:

Enter the federal poverty amounts for each year. You need to do this for each upcoming year before the end of January of that year. For example, you need to enter the amounts for 2026 before the end of January 2026.

1. Create a new row in the table.

2. Select the reporting Year.

3. Enter the Federal Poverty Amount for a household of one.

4. Enter the % of Poverty Level the system uses to calculate affordability. Do not include the percent sign: for example, 9.5% = 9.50.

For example: the Federal Poverty Amount for 2015 was $12,000 and the percentage was 9.5%. To determine the affordability of benefits in this year, PrismHR divides 12,000 by 12 to get a monthly amount, and then multiplies the result by 0.095. The final result is $95. If a benefit plan costs an employee more than $95 per month, then it is not considered affordable for ACA reporting.

Setting Up Look-back Periods

Use the Periods panel to set up measurement, administration, and stability periods for new and ongoing employees at the global level. You can override these settings at the client level.

About Look-back Periods

The ACA specifies three periods for determining employee eligibility: Measurement, Administration, and Stability.

• Measurement Period: This look-back period determines whether new variable hour/seasonal employees are full-time (working 130 hours or more within the period). For Ongoing Employees, who have worked one full standard measurement period, this determines the average number of hours they work (130 or more = full-time).

• Administration Period: This is the period between the Measurement Period and implementation of benefits. 90 days maximum.

• Stability Period: This is the coverage “lock-in” period for employees identified by the system as full-time (based on the results from the Measurement Period). Must be 6-12 months long.

In this panel, you can configure these periods for both new and existing employees.

Procedure

To configure look-back and eligibility periods on the system level:

1. Specify the number of Months or Days in the Measurement Period. For Ongoing Employees, specify the period Start Month/Day.

2. Specify the number of Months or Days in the Administration Period, and indicate whether the period Starts First of the Month.

3. Specify the number of Months or Days in the Stability Period.

4. Indicate the Break-In Service Term. This field specifies maximum number of weeks (default is 13) where the employee is not employed but remains eligible for healthcare if they are rehired. After this period, the system counts the employee as “starting new” instead of as ongoing. For example, you might enter 26 weeks for an educational institution.

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Configuring Group Benefit Plan Settings for the ACA

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Setup/Group_Benefit_Plans_for_ACA.htm Path: CMP/ACA/ACA-Setup/Group_Benefit_Plans_for_ACA.htm

Configuring Group Benefit Plan Settings for the ACA

On the Group Benefit Plans form, your organization can indicate that a plan does not meet ACA guidelines. Since most plans meet those guidelines, you only need to edit the few plans that do not.

To enter the ACA reporting information for group benefit plans in PrismHR:

1. Click Back Office.

2. Open the Group Benefit Plans form under System|Change.

3. Enter the Benefit Plan ID. Benefit information populates on the form.

4. Locate the ACA panel.

[Image: screenshot]

5. Set any of the nine ACA parameters, as needed.

Note: Note: The ACA section is visible only when you select an existing Benefit Plan ID which has an Insurance Class set up as Medical.

• Yes: the medical plan covers spouses
• No: the medical plan does not cover spouses
• Conditional: the medical plan conditionally covers spouses. Typically, this applies to medical plans that only offer coverage to spouses if they are not offered medical insurance by their own employer. | Plan Covers Other Dependents? | Select if the plan covers other dependents. | | Single Coverage Gross Wages % | Whether the benefit plan is employee-only. | | Allow Gross Wage % Contribution Method | Select this checkbox to set the Percent of Gross Wages as the employee contribution towards a medical plan (employee premium only). Clicking this checkbox will display the multivalued grid where you can enter an Effective Date along with a Percent of Gross Wages which will be used as a default setting. > Note: Note: To select the Allow Gross Wage % Contribution Method checkbox please ensure that the following checkboxes have been unchecked: - Single Coverage Gross Wage % - Do NOT Include In ACA Reporting Additionally, you can select this checkbox only if the Cost Basis field is set to either Monthly, Quarterly, or Yearly. If it is set to Weekly, then a message stating This feature is not compatible with a Cost Basis of Weekly is displayed. |
• Single Coverage Gross Wage %
• Do NOT Include In ACA Reporting

6. Repeat for any applicable benefit plans.

7. When you finish, click Save.

Workarounds for Multiple Employee-Only Plans Within a Single Benefit Plan

To ensure the best results and performance, the register build does not consider benefit plans for employee-only plans if the benefit plan has more than one employee-only plan defined. There are some workarounds, listed below. Use the one that works best for your organization.

Option 1: Temporarily Change the Higher Cost Plan Types

1. Immediately before building the ACA data, adjust the setup of higher cost employee-only Benefit Plan Types to be not employee-only.

2. Build the ACA data.

3. Set the plan types back to employee-only.

Option 2: Change the Higher Cost Plan Types in Test Environment

If you have a test environment that matches and is perfectly up to date with your live environment, you can follow this procedure.

1. In your test environment:

• Before you build the ACA data, adjust the setup of higher cost employee-only Benefit Plan Types to be not employee-only.

• Build the ACA data.

• Build the 1095-C and 1094-C registers.

• Export the register data using the Export 1095-C Registers feature.

2. Import the register data into your live environment.

3. Verify that the information is correct in the live environment.

4. Set the plan types back to employee-only in your test environment.

Option 3: Set Up a Dummy Plan

Create a “dummy plan” with the same system- and client-level rules as an existing plan, but with a single employee-only plan type that reflects the lower cost employee-only plan type offered.

1. Create a new Group Benefit Plan, and assign it one employee-only plan type, entering all of the amounts for the lowest cost employee-only plan type that you offer.

2. Assign it to the client.

3. Proceed with the ACA data and register builds.

Option 4: Use the Export 1095-C Register Feature

1. Export the register data using the Export 1095-C Registers feature.

2. Review the data, searching for shares and offer codes that reflect the higher-priced employee-only plan types. Correct those inappropriate codes.

Note: Note: If the higher-cost plan type was picked up, also note this could result in the employee not satisfying the applicable safe harbor code. In those cases, no safe harbor code is applied. In that case, review the safe harbor codes for months with the higher share, review the safe harbor codes. If blank, make any necessary adjustments.

3. Import the register data.

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How the System Determines Employee Eligibility

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Setup/How_System_Determines_Elig.htm Path: CMP/ACA/ACA-Setup/How_System_Determines_Elig.htm

How the System Determines Employee Eligibility

The system checks for the lowest-cost single plan for which an employee qualifies. The lowest cost is based on the size of the employee contribution, so it is important to set up this information correctly.

1. First, the system checks the benefits rules. Employees qualify for these based on their status, type, and seniority:

• Status indicates whether the employee is active, on leave, or terminated.

• Type indicates whether the employee is full-time, part-time, and so on.

• Seniority is based on either the hire date or seniority date, depending on your settings.

2. If the employee does not qualify for any of those and is included in Offered Employees Maintenance, the system then checks the ACA benefit rules.

3. If employees do not qualify based on either of those sets of rules, the system uses the optional grid. It checks the grid line-by-line until it reaches a plan for which the employee qualifies. Your organization should use the optional grid only if you are not maintaining benefits and benefit rules in the system and you have no other option for getting the information out of the system.

[Image: A flowchart showing the three steps in determining eligibility: 1. Looking at eligibility settings on the benefit rule 2. Company benefits eligibility rules and 3. Finding a plan on the Lowest Cost Plan Calculation Grid.]

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Display Forms 1095-C In Employee Portal (EP)

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Setup/Show_In_EP_Concept.htm Path: CMP/ACA/ACA-Setup/Show_In_EP_Concept.htm

Display Forms 1095-C In Employee Portal (EP)

This is the last part of a multi-step process for providing Form 1095-C access to employee users. See also Giving Employees Access to Form 1095-C.

In PrismHR, you can allow employees to see their Form 1095-C information in Employee Portal (EP).

On the Client Details > Benefits form, set Show In ESS to Yes for the year. If you do not select Yes or No, the system defaults to No.

Note: Note: Once you have built the registers and confirmed that the information is complete, we recommend setting the Form 1095-C to display in Employee Portal (EP) for one year.

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Client-Level Setup

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Setup/UG_Chapter_Client_Setup.htm Path: CMP/ACA/ACA-Setup/UG_Chapter_Client_Setup.htm

Client-Level Setup

You must establish some ACA settings at the client level. Some settings are optional.

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System-Level Setup

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-Setup/UG_Chapter_System_Setup.htm Path: CMP/ACA/ACA-Setup/UG_Chapter_System_Setup.htm

System-Level Setup

You must configure certain system-level settings to prepare for ACA processing.

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Setting Up ACA Transmitter Control Information

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-XML-Transmission/ACA-Download-Master-Code.htm Path: CMP/ACA/ACA-XML-Transmission/ACA-Download-Master-Code.htm

Setting Up ACA Transmitter Control Information

Note: Note: This form does not use Client Access Group Security.

Under the Affordable Care Act (ACA) insurance companies, self-insured companies, and large businesses that provide health insurance to their employees must submit information returns to the IRS reporting on the health insurance coverage of each individual. You are required to file electronically if you plan to submit 250 or more returns.

You must have a Transmitter Control Code (TCC) to electronically file AIR Forms 1094/1095-B and 1094/1095-C. You can obtain this code during the registration process. Use the ACA Download Master Code form to add your master code to PrismHR.

To download the master code for the Affordable Care Act:

1. Open the Work Centers menu.

2. Under Work Centers|Compliance, select ACA Processing.

3. Under ACA Setup and Global Setup, select ACA Download Master Code.

4. Complete these fields as required:

5. Click Save.

Entering State TCCs

You can use the table at the bottom of this form to enter any Transmitter Control Codes assigned by state-level reporting authorities. In a new row, enter a two-character State code (for example, CA) and its corresponding Transmitter Control Code, as needed.

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ACA Transmission File

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-XML-Transmission/ACA_Transmission_File_Form.htm Path: CMP/ACA/ACA-XML-Transmission/ACA_Transmission_File_Form.htm

ACA Transmission File

This form is used as part of the ACA process: see Transmitting ACA Data to the IRS.

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ACA Transmittal Tips & Tricks

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-XML-Transmission/ACA_Transmittal_Tips.htm Path: CMP/ACA/ACA-XML-Transmission/ACA_Transmittal_Tips.htm

ACA Transmittal Tips & Tricks

Use this information if you need help during the IRS electronic transmission process.

Important: Register Rebuilds Require PrismHR Support

If you already submitted an original file and you find that you need to rebuild the 1095-C registers, you must contact PrismHR support! Do not do this without assistance from a representative of the PrismHR Customer Support Team. Rebuilding the 1095-C registers on your own could cause you to lose critical transmission ID data and the IRS will reject your new transmission in that case.

Contacting Support

If you need to contact the PrismHR Customer Support Team, please provide this information in your ticket:

1. Take a screenshot of the errors.

2. Click Download and save the error file.

3. Open a support ticket and include the screenshot.

4. When a support representative contacts you, send a secure e-mail containing the files you submitted to the IRS and the detailed download of errors.

[Image: Example of IRS tranmission status page with errors. The errors state “TIN validation failed”.]

Additional Clients

Based on client setup, you might need to select additional clients so that you can file your forms correctly with the IRS. Our system creates Form 1094-C and Forms 1095-C at the client level. If you select additional clients, they will all be reported under the Form 1094-C filing of the active client. This includes all employee Forms 1095-C.

One possible real-world example is a staffing organization that needs to separate a single company into multiple client accounts.

Keep Transmission IDs and Receipt IDs

Make sure you keep a record of each transmission ID and its corresponding receipt ID, when you receive it from the IRS. The system populates the transmission ID on “Edit 1094 Form” (See Editing Form 1094-C Information), but you must enter the receipt ID when the IRS sends it to you.

Note: Note: The receipt ID is separate from the submission ID. Make sure you use the receipt ID.

Transmission versus Submission

A transmission is an entire file that you transmit to the IRS. The transmission also contains the submission, which is the Form 1094-C record with or without associated Form 1095-C records.

At this time, PrismHR supports only one submission per transmission. That means that there will be only one Form 1094-C on each XML file that you create in the system.

It is possible that the IRS will reject either the transmission or the submission.

• If they reject the transmission, that means that there is something inherently wrong with the file overall.

• If they reject the submission, there are some specific issues with the file.

When you submit a replacement, you will indicate whether you are replacing a transmission or submission based on the rejection statement from the IRS.

Error in Transmission File Upload

If you receive an immediate error upon submission (as shown below), you need to submit another transmission using the same type, whether it was an original, correction, or replacement.

[Image: Example error on the IRS transmission file upload page, showing error message about the file name containing an invalid character.]

Transmission/Submission Accepted with Errors

If a transmission or submission is accepted with errors, you should submit a correction. The IRS will identify the specific items that are in error. For example, they might specify an item in the Form 1094-C or certain Forms 1095-C.

Once you make the corrections, submit them: see Submitting a Correction.

If you cannot resolve the problem, submit a ticket to the PrismHR Customer Support Team: to see the information you need to provide so that they can quickly assist you.

Correcting a Correction

Consider the following special case:

1. The IRS accepted a transmission, with errors.

2. You submit the correction and the IRS accepts it.

3. Later, you determine that you actually need to make another correction to that record.

In this case, when you submit the correction, you need to use the receipt ID for the correction (not receipt ID of the original transmission).

The IRS Rejected My Transmission or Submission

If the IRS rejects your original transmission or submission (as in the case below), then you must send another one using the Replacement Submission Type.

• Do not use replacement for rejected corrections. See Submitting a Replacement.

• If you are having trouble understanding the issues, see Contacting Support above.

[Image: Another example of IRS tranmsision file errors. These errors state “XML Schema Validation Failed - not well formed or missing required elements”]

What do the error codes mean?

See Appendix A of the AIR Submission Composition and Reference Guide for a list of error codes and descriptions.

Other Common Issues

Here are some common issues that can cause the IRS to reject a transmission, or accept it with errors:

• Any non-standard punctuation, as well as starting or trailing spaces

• A covered individual is listed, but not marked as “covered” for any month

• The value in an All 12 months field is different from a setting in any an individual month or months

• Invalid Social Security or Employer Identification numbers

• Invalid Receipt ID

• Incomplete data, such as the information for only the first six months of a year

• Sending the same file after it got “through the door” and was rejected (you must send a new one).

• Creating the wrong type of file (original, replacement, or correction). If you submit an original and it should be a replacement, the IRS rejects it.

• Manually editing a file: the manifest has a checksum and a file size count. If someone manually edits the form file and does not manually edit these, it will not work.

• Trying to submit a test file for a client after your TCC code has moved to the IRS Production system.

• Attaching the wrong files to send to the IRS, such as the Form file from one ZIP and the Manifest file from another.

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AIR Transmission: Uploading the ACA Files

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-XML-Transmission/AIR_Submission.htm Path: CMP/ACA/ACA-XML-Transmission/AIR_Submission.htm

AIR Transmission: Uploading the ACA Files

Use these instructions as general guidelines for submitting final client information to the IRS.

If you submit this file to the state of New Jersey or to Washington, D.C., you must select the NJ State Submission option before you create the file. When you select this option, the system appends a record to the transmission file for every employee who resided in New Jersey or D.C. at some point during the year.

Note: Note: These instructions are not meant to replace the instructions provided by the IRS or your state reporting body. Refer to Section 4 of the Affordable Care Act (ACA) Information Returns (AIR) Submission Composition and Reference Guide, or any documentation provided by your state government.

To submit your ACA transmission files:

1. Log in to the AIR UI Channel (Testing or Production) using the credentials for the Contact or Responsible Official on the AIR TCC Application.

2. Select the organization and click Submit Selected Organization.

3. If prompted, select AATS and click Submit Selected Version. The Affordable Care Act Information Returns page displays.

4. Click Upload ACA Forms. The ACA Transmission File Upload page displays. Use it to upload the Manifest and Form files that you generated for the client. Make sure that these files have the same time stamp and have same names (aside from the prefix), or the IRS will not accept the transmission.

5. Click the Browse button next to the Manifest File field.

6. Find and select the manifest file for the upload. This is the file that begins with the Manifest_ prefix.

7. Click the Browse button next to the Form File field.

8. Select the form file for the upload. It has the same name as the manifest file, only without the prefix.

9. Verify that the information in the ACA Transmission File Upload page is correct.

[Image: ACA Tranmission File Upload webpage]

10. Click Transmit.

• If there is a problem with the files, the system requires you to correct them.

• If there is not a problem “at the door”, the system takes you to a page with the Receipt ID. You must make record of it: see Entering the IRS Receipt ID.

Checking the AIR Transmission Status

Use these instructions as general guidelines for checking the status of the transmission.

Note: Note: These instructions are not meant to replace the instructions provided by the IRS. Refer to Section 4 of the Affordable Care Act (ACA) Information Returns (AIR) Submission Composition and Reference Guide.

To check the status of your transmission file:

1. Log in to the AIR UI Channel (Testing or Production) using the credentials for the Contact or Responsible Official on the AIR TCC Application.

2. Select the organization and click Submit Selected Organization.

3. On the Select the AATS Version page, select AATS [Year] and click Submit Selected Version. The Affordable Care Act Information Returns page displays.

4. Click Check Transmission Status. The Transmission Status Record page displays.

[Image: IRS webpage to check the transmission status]

5. Enter your TCC.

6. Enter the Receipt ID.

7. Click Find. The Transmission Status Details page displays.

[Image: IRS webpage containing the details about a specific transmission and its status]

Click Back to return to the Transmission Status Record page. Click Print to print the details.

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Submitting a Correction

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-XML-Transmission/Correction_Transmission.htm Path: CMP/ACA/ACA-XML-Transmission/Correction_Transmission.htm

Submitting a Correction

If you want to create an Original or Replacement file, please see See Creating the ACA Transmission File or See Submitting a Replacement

Introduction

If you need to correct a Form 1094-C record or any Form 1095-C records after you already made an accepted submission to the IRS, you need to submit a correction file. This file only includes the employees whose information changed.

For detailed information about submitting corrections to the IRS, please see Section 7 of the Guide for Electronically Filing Affordable Care Act Information Returns for…Transmitters.

State Reporting

For details about PrismHR’s support for state reporting, please see the introductory material under Creating the ACA Transmission File.

Note About File Sizes

According to IRS guidelines, the transmission file must be smaller than 100 MB. However, there is no consistent rule about the number of records that will cause a file to exceed 100 MB. Internal testing shows that it involves many thousands of employees. Please check the size of the output file after you create it. If it exceeds the limit, use the From Employee and To Employee fields as described below to specify a smaller range of employees instead.

Procedure

WARNING: Before running this process, ensure that there are no users accessing any 1094-C or 1095-C records in the system. If anyone is editing those records, the system will hang.

Before starting the correction process, ensure that you already have the Receipt ID for the transmission you need to correct.

Please only use the Jurat Signature PIN, Person Title Text, and Signature DT if you know precisely what should go in those fields. If you enter the wrong information, or the information is in the wrong format, the IRS will reject the submission.

To submit an ACA correction file:

1. Open the Work Centers menu.

2. Under Work Centers|Compliance, select ACA Processing.

3. Under ACA Processes, select Edit 1094 Form.

4. Under the Federal Transmission Info tab, select Send As Correction.

5. Click Save.

6. For each employee that you need to correct:

• Go to the employee Form 1095-C edit form (Editing Form 1095-C Information).

• Enter the Employee ID.

• Select Send As Correction.

• Click Save.

7. Log in to PrismHR, click the Reports menu [Image: Reports menu icon] , and navigate to the HR|Report > ACA Transmission File form.8. Enter the Year.

8. In certain situations, you may need to report multiple clients as one single company. In this case, select the IDs of any additional clients you want to include in the file (See ACA Transmittal Tips & Tricks).

9. Use the From Employee and To Employee fields only if this is a large client and you need to create multiple smaller files. The IRS requires that the XML file be less than 100 MB in size. for detailed instructions.

10. In the State Code field, select Federal or California depending on which transmission file you want to create.

11. Set Submission Type to Correction.

12. If you are submitting a Federal correction, select whether the Correction Type is for the 1094 or 1095.

13. Enter the Original Receipt ID from the IRS.

14. Click Create File.

If there are many hundreds or thousands of records, this can take a few minutes; the system might time out without warning you. Please contact the PrismHR Customer Support Team if you experience an issue.

Checking the Generated File

The system creates a ZIP archive containing two files: the form file and the manifest file. The manifest file includes the unique transmission ID for the client company, and the system populates that ID in the Par 1 panel of the Client 1094 record.

If you unzip the aca.zip file, you will see two XML files with similar names, as in the example below. The manifest file has the prefix Manifest_, and the other file contains the Form 1094-C and Form 1095-C information. Make sure that the files are smaller than 100 MB. If they are not, you must perform the procedure again and follow the instructions for Editing Form 1094-C Information. Also, refer to About 1095 and 1094 Registers for more information.

Note: Note: The two files you ultimately submit must have the same time stamp. Check the Date modified column in your file explorer, as shown below.

[Image: Example of IRS transmission and manifest files in the Windows file explorer.]

see Reviewing the ACA Transmission File XML Output for error-checking suggestions. When you are satisfied with the contents of the files, you can submit them to the IRS (see AIR Transmission: Uploading the ACA Files or the appropriate state reporting entity. Remember: as soon as you receive your receipt ID from your reporting entity, enter it into the system (see Entering the IRS Receipt ID).

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Creating the ACA Transmission File

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-XML-Transmission/Create_Transmission.htm Path: CMP/ACA/ACA-XML-Transmission/Create_Transmission.htm

Creating the ACA Transmission File

Note: Note: This form supports entity-level security for Worksite Managers and Worksite Trusted Advisors, as defined on the Users > Actions > Data Security form.

If you want to create a Correction or Replacement file, please see See Submitting a Correction or See Submitting a Replacement

Introduction

When you are ready to finalize your submission, you can create and submit your official (“Original”) transmission file. To review details about this process, refer to Section 4 of the IRS guide linked here.

California Reporting

As part of the state’s 2021 individual health care mandate, California requires self-insured employers to submit their reporting data to the California Franchise Tax Board. The specifications for this transmission file differ from those of the federal transmission file. If you need to create the California version of the file, select California in the State Code field.

New Jersey Reporting

If the ACA Third Party Download (see Creating the ACA Third Party Download/1095 Export) indicates that employees resided in New Jersey in the prior year, you can enable NJ State Submission to report only those residents, as specified by state requirements.

While the Third-Party Download includes a similar option for Washington, D.C., there is no D.C. equivalent to this setting on this form, because D.C. reporting requirements are different and do not require a filtered submission like New Jersey does.

Note About File Sizes

The transmission file must be smaller than 100 MB. However, there is no consistent rule about the number of records that will cause a file to exceed 100 MB. Internal testing shows that it involves many thousands of employees. Please check the size of the output file after you create it. If it exceeds the limit, use the From Employee and To Employee fields as described below to specify a range of employees instead.

Procedure

WARNING: Before running this process, ensure that there are no users accessing any 1094-C or 1095-C records in the system. If anyone is editing those records, the system will hang.

Note: Note: Please only use the Jurat Signature PIN, Person Title Text, and Signature DT fiels if you know precisely what should go in them. If you enter the wrong information, or the information is in the wrong format, the IRS will reject the submission.

To create the ACA transmission file:

1. First, go to the Form 1094-C data screen (in PrismHR, go to Work Centers|Compliance > ACA Processing > ACA Processes > Edit 1094 Form). Ensure that the Year is correct and that the Test Scenario Code and Test Start Month fields are blank.

2. Click Save.

3. Next, go back to the ACA Transmission File form in PrismHR: go to Work Centers|Compliance > ACA Processing > ACA Processes > ACA Transmission File.

Worksite Managers and Worksite Trusted Advisors can access this report through Reports > HR | Report >ACA Transmission File.

Worksite Managers and Worksite Trusted Advisors can access this report through Reports > HR | Report > ACA Transmission File.

4. Enter the Year: for example, 2026.

5. In certain situations, you may need to report multiple clients as one single company. In this case, select the IDs of any additional clients you want to include in the file (See ACA Transmittal Tips & Tricks).

6. Use the From Employee and To Employee fields only if this is a large client and you need to create multiple smaller files: the IRS requires that the XML file be less than 100 MB in size. for detailed instructions.

7. In the State Code field, select Federal or California.

8. Set Submission Type to Original.

9. If appropriate, identify this transmission file as a NJ State Submission. See the note above.

10. Click Create File.

If there are many hundreds or thousands of records, this can take a few minutes; the system might time out without warning you. Please contact the PrismHR Customer Support Team if you experience an issue.

Checking the Generated File

The system creates a ZIP archive containing two files: the form file and the manifest file. The manifest file includes the unique transmission ID for the client company, and the system populates that ID in the Edit 1094 Form > Part I tab.

If you unzip the aca.zip file, you will see two XML files with similar names, as in the example below. The manifest file has the prefix Manifest_ , and the other file contains the Form 1094-C and Form 1095-C information. Make sure that the files are smaller than 100 MB. If they are not, you must perform the procedure again and follow the instructions for . You can also for more information.

Note: Note: The two files you ultimately submit must have the same time stamp (check the Date modified column in your file explorer, as shown below).

[Image: Example of IRS transmission and manifest files in the Windows file explorer.]

See Reviewing the ACA Transmission File XML Output for error checking suggestions. When you are satisfied with the contents of the files, you can submit them to the IRS (see AIR Transmission: Uploading the ACA Files or the appropriate state reporting entity. Remember: as soon as you receive your receipt ID from your reporting entity, enter it into the system: see Entering the IRS Receipt ID.

Reviewing Transmission File History

On the Form 1094-C edit form, you can view a list of past transmission files for a specific employee or client, for both the Federal and California downloads.

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Entering the IRS Receipt ID

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-XML-Transmission/Enter_IRS_Receipt_ID.htm Path: CMP/ACA/ACA-XML-Transmission/Enter_IRS_Receipt_ID.htm

Entering the IRS Receipt ID

You must enter the receipt ID for each transmission once you receive it from the IRS.

Note: Note: The receipt ID is different from the submission ID. Make sure you enter the Receipt ID into the system.

1. After you successfully submit your transmission, the IRS system displays the Transmission Confirmation page, including the Receipt ID and other information.

[Image: IRS transmission confirmation webpage]

1. Open the Work Centers menu and select ACA Processing under Work Centers|Compliance.

2. Select Edit 1094 Form under ACA Processes. Locate the panel labeled Federal Transmittal Info.

3. Enter the corresponding Receipt ID provided by the IRS, whenever they supply it. You MUST perform this step after you receive the Receipt ID!

4. Click Save.

Entering the California Receipt ID

If you submitted your transmission files to the State of California, you can use a state-specific table on the Form 1094-C screen to enter the receipt ID they gave you.

[Image: California state transmission details, listed in a panel on the Form 1094-C form in PrismHR]

To enter a receipt ID provided by California:

1. Open the Work Centers menu and select ACA Processing under Work Centers|Compliance.

2. Select Edit 1094 Form under ACA Processes. If a California transmission file exists, the form displays a panel labeled California Transmittal Info.

This panel includes a grid that lists basic metadata about the file, including the transmission ID and date and time of transmission.

3. In the Receipt ID column, enter the receipt ID provided by the State of California.

4. Click Save.

Viewing Employee-Level Information

You can also view transmission file data for California employees who were included in the build.

To view this data:

1. Open the Work Centers menu and select ACA Processing under Work Centers|Compliance.

2. Select Edit Employee 1095 Form under ACA Processes. If a California transmission file exists, the form displays a panel labeled California Transmittal Information.

3. In the grid, review the relevant transmission file IDs and their corresponding record IDs.

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Creating the Test Submission

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-XML-Transmission/IRS_Test_Submission.htm Path: CMP/ACA/ACA-XML-Transmission/IRS_Test_Submission.htm

Creating the Test Submission

This process creates an XML file and populates the required fields for a test communication to the reporting body. Once the reporting body (for example, the IRS) informs you that your test submission was accepted, you do not need to use this procedure again.

The IRS provides various test scenarios, and each test requires the system to have invalid Social Security numbers embedded.

The system is configured to allow the SSN required for Tests 3-0 and 3-1. Please use Tests 3-0 and 3-1 for the approval process, as described here.

Note: Note: For further details, please see the Test Package for Electronic Filers of Affordable Care Act (ACA) Information Returns (AIR) here.

Overview

To set up data for the one-time IRS test transmission:

1. Set up your test client.

2. Set up your test employee.

3. Update the client Form 1094 record.

4. Update the employee Form 1095 record.

These steps are reviewed in detail below.

Setting Up the Test Client

Ensure that your test client has the following setup. Create a new test client if one does not already exist. Otherwise, update the existing client.

Click Save when finished.

Setting Up the Test Employee

Ensure that your test employee has the following setup. Create a new test employee if one does not already exist. Otherwise, update the existing employee.

Click Save when finished.

Updating the Client Form 1094 Record

You must set up the information as described below, and only that information. If you submit information in any fields not included in these procedures, the IRS might reject your submission.

To set up the 1094 record for a one-time test transmission:

1. Ensure that you have set up the test client and employee as described above.

2. Under Work Centers|Compliance, select ACA Processing.

3. Under ACA Processes, select Edit 1094 Form.

4. Select the appropriate year.

5. In the Part 1 panel, enter the following information:

6. In the Part 2 panel, enter the following information:

7. In the Part 3 panel, enter the following information:

• Jan: 312
• Feb: 312
• Mar: 315
• Apr: 320
• May: 322
• Jun: 325
• Jul: 329
• Aug: 333
• Sep: 341
• Oct: 344
• Nov: 361
• Dec: 372 | C. Section 4980H Full-Time Employee Count for ALE Member | Set the following values for each month: - Jan: 351 - Feb: 352 - Mar: 358 - Apr: 365 - May: 369 - Jun: 376 - Jul: 372 - Aug: 369 - Sep: 366 - Oct: 363 - Nov: 377 - Dec: 385 |
• Jan: 351
• Feb: 352
• Mar: 358
• Apr: 365
• May: 369
• Jun: 376
• Jul: 372
• Aug: 369
• Sep: 366
• Oct: 363
• Nov: 377
• Dec: 385 | D. Aggregated Group Indicator | Enable each box for all months |

8. In the Part 4 panel, add the following items to the grid of other Aggregated ALE Group Members:

9. Finally, in the Federal Transmittal Information panel:

• Set Test Scenario to 3-0.

• Set Test Month to 1.

10. Click Save.

Updating the Employee Form 1095 Record

You must set up the information as described below, and only that information. If you submit information in any fields not included in these procedures, the IRS might reject your submission.

Note: Note: No other 1095 records should exist for this test client and year.

To set up the 1095 record for a one-time test transmission:

1. Ensure that you have completed the procedures above.

2. Under Work Centers|Compliance, select ACA Processing.

3. Under ACA Processes, select Edit Employee 1095 Form.

4. Select the appropriate Employee ID and Year.

5. Set up the Employee Offer of Coverage grid as follows:

6. In the Federal Transmittal Information panel, set Test Scenario to 3-1.

7. Click Save.

Generating the Test Submission

Once you have set up the test client and test employee (and their 1094 and 1095 records), you are ready to create the test file.

Note About File Sizes

The transmission file must be smaller than 100 MB. However, there is no consistent rule about the number of records that will cause a file to exceed 100 MB. Internal testing shows that it involves many thousands of employees. Please check the size of the output file after you create it. If it exceeds the limit, use the From Employee and To Employee fields as described below to specify a range of employees instead.

Procedure

WARNING: Before running this process, ensure that there are no users accessing any 1094-C or 1095-C records in the system. If anyone is editing those records, the system will hang.

To send the test submission to the IRS:

1. Select the Reports menu [Image: Reports menu icon] , then navigate to HR|Report > ACA Transmission File.

2. Enter the appropriate Year.

3. Enable the Test Mode option.

4. If this is a large client and you need to create multiple smaller files, use the From Employee and To Employee fields. The IRS requires that the XML file be less than 100 MB in size.

If the file size does not exceed 100 MB, continue.

5. Set Submission Type to Original.

6. Click Create File. If there are many hundreds or thousands of records, this can take a few minutes; the system might time out without warning you. Please contact the PrismHR Customer Support Team if you experience an issue.

Checking the Generated File

The system creates a ZIP archive containing two files: the form file and the manifest file. The manifest file includes the unique transmission ID for the client company, and the system populates that ID in the Par 1 panel of the Client 1094 record.

If you unzip the aca.zip file, you will see two XML files with similar names, as in the example below. The manifest file has the prefix Manifest_, and the other file contains the Form 1094-C and Form 1095-C information. Make sure that the files are smaller than 100 MB. If they are not, you must perform the procedure again and follow the instructions for . You can also for more information.

Note: Note: The two files you ultimately submit must have the same time stamp (check the Date modified column in your file explorer, as shown below).

[Image: Example of IRS transmission and manifest files in the Windows file explorer.]

See Reviewing the ACA Transmission File XML Output for error checking suggestions. When you are satisfied with the contents of the files, you can submit them to the IRS (see AIR Transmission: Uploading the ACA Files or the appropriate state reporting entity. Remember: as soon as you receive your receipt ID from your reporting entity, enter it in the system: see Entering the IRS Receipt ID.

========================================================================

Submitting a Replacement

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-XML-Transmission/Replacement_Transmission.htm Path: CMP/ACA/ACA-XML-Transmission/Replacement_Transmission.htm

Submitting a Replacement

If you want to create a Correction file, please see See Submitting a Correction

Introduction

You only need to submit a replacement when the IRS rejects a transmission or submission after it “gets through the door” to them. This process replaces the entire file.

For detailed information about replacement files, please see Section 7 of the Guide for Electronically Filing Affordable Care Act Information Returns for…Transmitters.

State Reporting

For details about support for state reporting, please see the introductory material under Creating the ACA Transmission File.

Note About File Sizes

The transmission file must be smaller than 100 MB. However, there is no consistent rule about the number of records that will cause a file to exceed 100 MB. Internal testing shows that it involves many thousands of employees. Please check the size of the output file after you create it. If it exceeds the limit, use the From Employee and To Employee fields as described below to specify a range of employees instead.

Procedure

Before you begin, ensure that you have the original receipt ID for the transmission that you need to replace. Note that the receipt ID is different from the submission ID. Make sure you use the receipt ID.

WARNING: Before running this process, ensure that there are no users accessing any 1094-C or 1095-C records in the system. If anyone is editing those records, the system will hang.

Note: Note: Please only use the Jurat Signature PIN, Person Title Text, and Signature DT if you know precisely what should go in those fields. If you enter the wrong information, or the information is in the wrong format, the IRS will reject the submission.

To submit an ACA replacement file:

1. Log in to PrismHR, select the Reports menu and navigate to HR|Report > ACA Transmission File.

2. Enter the appropriate Year.

3. In certain situations, you may need to report multiple clients as one single company. In this case, select the IDs of any additional clients you want to include in the file (See ACA Transmittal Tips & Tricks).

4. Use the From Employee and To Employee fields only if this is a large client and you need to create multiple smaller files: the IRS requires that the XML file be less than 100 MB in size. for detailed instructions.

If the file size does not exceed 100 MB, continue.

5. In the State Code field, select Federal or California depending on which transmission file you want to create.

6. Set Submission Type to Replacement.

7. Select the Replacement Type, based on the instructions from the IRS:

• Replacing Transmission: replacing the entire file to resolve a transmission error.

• Replacing Submission: replacing the entire file to resolve a submission error.

8. Enter the Original Receipt ID that you received from the IRS or the corresponding reporting entity.

9. Click Create File.

If there are many hundreds or thousands of records, this can take a few minutes; the system might time out without warning you. Please contact the PrismHR Customer Support Team if you experience an issue.

Checking the Generated File

The system creates a ZIP archive containing two files: the form file and the manifest file. The manifest file includes the unique transmission ID for the client company, and the system populates that ID in the Par 1 panel of the Client 1094 record.

If you unzip the aca.zip file, you will see two XML files with similar names, as in the example below. The manifest file has the prefix Manifest_, and the other file contains the Form 1094-C and Form 1095-C information. Make sure that the files are smaller than 100 MB. If they are not, you must perform the procedure again and follow the instructions for . You can also for more information.

Note: Note: The two files you ultimately submit must have the same time stamp (check the Date modified column in your file explorer, as shown below).

[Image: Example of IRS transmission and manifest files in the Windows file explorer.]

see Reviewing the ACA Transmission File XML Output for error checking suggestions. When you are satisfied with the contents of the files, you can submit them to the IRS (see AIR Transmission: Uploading the ACA Files or the appropriate state reporting entity. Remember: as soon as you receive your receipt ID from your reporting entity, enter it into the system: see Entering the IRS Receipt ID.

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Reviewing the ACA Transmission File XML Output

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-XML-Transmission/Reviewing_XML_Output.htm Path: CMP/ACA/ACA-XML-Transmission/Reviewing_XML_Output.htm

Reviewing the ACA Transmission File XML Output

Open the XML output file in a text editor, like Notepad, and search for the words “Issue”, “Omit”, and “Null”.

• If you find “Issue” then there is a data discrepancy on the client side.

• If you find “Omit” or “Null” then you need to contact PrismHR Customer Support for assistance.

Checking that the File Size is less than 100 MB

The IRS requires that files be smaller than 100 MB. The size of a file is dictated by the number of characters in it, so file size varies based on many different factors.

There is no hard and fast rule about the number of records that will cause a file to exceed 100 MB. Internal testing shows that it involves many thousands of employees. You must check the size of the output file to ensure that it is the correct size.

If the file is larger than 100 MB, use data from an employee report to complete the From Employee and To Employee fields. See

Using the From Employee and To Employee Fields

Use the From Employee and To Employee fields in the ACA Transmission Form only if the output files you created for this client were larger than 100 MB. With these fields, you can specify a range of employee IDs to include in the file. Using some simple math, you can calculate the approximate number of employees you can include on the file based on the size of the original output file, and then use the report output below to adjust your range appropriately.

To use the From Employee and To Employee fields:

Step 1: Run the Employee Report, Sorted by ID

1. Select the Employee Name report and set the Primary Sort to Employee ID.

2. Click Run.

Step 2: Use this Information In the Submission Process

1. In the Employee From and Employee To fields, enter the range of employees that will reduce the size of the output file to meet the IRS requirements.

For example, if you generated a file for all of the client’s employees and the output file was 150 MB, you can estimate that if you include the first half of the employees from the report in first file and the second half of the employees in the second file, then each of the two output files will be less than 100 MB.

2. Proceed with the remaining steps in the process, then check the size of the output file. If any file exceeds the limit, begin the procedure again and use a more limited range of employees.

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Transmitting ACA Data to the IRS

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA-XML-Transmission/UG_Chapter_Transmit_to_IRS.htm Path: CMP/ACA/ACA-XML-Transmission/UG_Chapter_Transmit_to_IRS.htm

Transmitting ACA Data to the IRS

The PrismHR system can electronically transmit client ACA returns to the IRS. This process is called E-filing.

Note: Note: If you want to electronically transmit your Forms 1094-C and 1095-C, you must register in the ACA Information Returns (AIR). You can register with the IRS at this link.

These procedures are required for each 1094-C client account that you need to submit:

In some circumstances, you might need to correct or replace information:

• Corrections: If you need to make adjustments to a client or employee after the IRS accepted the transmission, you can send a correction. See Submitting a Correction.

• Replacements: If the IRS rejected a transmission or submission, you must send a replacement. See Submitting a Replacement.

If you encounter problems, see ACA Transmittal Tips & Tricks for suggestions.

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ACA Processes

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA_Process_Forms.htm Path: CMP/ACA/ACA_Process_Forms.htm

ACA Processes

This section explains how to use the forms in the ACA Processes section.

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ACA Reporting

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA_Reporting_Forms.htm Path: CMP/ACA/ACA_Reporting_Forms.htm

ACA Reporting

This section explains how to run ACA reports.

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ACA Setup

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/ACA_Setup_Forms.htm Path: CMP/ACA/ACA_Setup_Forms.htm

ACA Setup

This section explains how to use the ACA Setup forms.

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About the Affordable Care Act

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/Background/About_ACA.htm Path: CMP/ACA/Background/About_ACA.htm

About the Affordable Care Act

The Affordable Care Act (ACA) is a comprehensive health care reform law enacted in March 2010. The law was enacted to make affordable health insurance available to more people. It provides consumers with subsidies in the form of premium tax credits. These tax credits lower costs for households with incomes between 100% and 400% of the federal poverty level.

The Affordable Care Act also expanded the Medicaid program to cover all adults with incomes below 138% of the federal poverty level. However, not all states have expanded their Medicaid programs.

The Affordable Care Act requires employers to offer health insurance to their full-time employees if they have at least fifty full-time equivalents . According to the act, employers must complete Internal Revenue Service (IRS) Form 1095-C for any employees who qualify as full time and send this form to them. Once per reporting year, employers must also send one Form 1094-C and all employee Forms 1095-C to the IRS.

Employers must submit the information to the IRS by the end of February if filing by paper, or by the end of March if filing electronically. To review the official IRS documentation, see the online Instructions for Forms 1094-C and 1095-C.

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About Year-End Processing: IRS Forms

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/Background/About_YE_IRS_Forms.htm Path: CMP/ACA/Background/About_YE_IRS_Forms.htm

About Year-End Processing: IRS Forms

ACA-related year-end processing involves working with IRS Forms 1094-C and 1095-C.

Background

Form 1095-C indicates, for each month of the reporting year:

• Coverage offered to an employee

• Lowest-cost premium available

• Safe harbor coding

• Plan enrollment for self-insured plans

Form 1094-C contains employer information (“client” information in PrismHR). This includes:

• Contact information

• Number of employees

• Percentage of employees offered appropriate coverage

• Transitional relief or methods used

• Other employers part of the same large employer group

Supported Outputs

Note: Note: Because the Form 1095-C PDF uses employer information from Form 1094-C, you must fill in this information in the client 1094‑C record before you can print any 1095-Cs.

The system builds ACA data and ACA reports on a client-by-client basis. If you configure your settings correctly, you can also account for employees who worked for multiple clients within the same group. In this case, you must identify the appropriate employees and then manually adjust their coding – for one or more clients.

At this time we do not support Forms 1095-B and 1094-B.

The system produces the following ACA transmission outputs:

• Printable Form 1094-C and Form 1095-C PDFs, for each client

• Billing Document Specialists (BDS) and CIC Plus (CIC) download files to submit to third-party processing companies

• Employee Portal (EP) PDF downloads – PrismHR only

• ACA Information Return (AIR) file

The ACA Information Return File

After you finish building your ACA data, you can create the ACA Information Return (AIR) file, which enables you to e-File your ACA information to the IRS.

This file includes:

• A checksum in the SHA256 format.

• A Prior Year indicator. This tells the IRS if you are filing for a reporting year prior to the most recent one. It is set to No unless you run it for a year two or more years before the year in which you build the AIR file. For example, if you run the report in 2021 for 2020, it will be No. If you run it for 2019, it will be Yes.

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A General Outline of ACA Processing

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/Background/ACA_Proc_General_Outline.htm Path: CMP/ACA/Background/ACA_Proc_General_Outline.htm

A General Outline of ACA Processing

This chapter provides a step-by-step general description of how to set your system up for ACA processing, from configuring system parameters to transmitting your data. If you need concrete procedures for completing these tasks, please skip to the next chapters. However, if you need a more general overview of the major steps in the process, review this chapter.

Step 1: Ensure Proper Benefit Setup

Note: Note: If you need to refresh your knowledge of benefits administration concepts, you can review the Benefits Administration User Guide.

Before setting up ACA features in PrismHR, review and adjust your global and client benefit plan settings. Proper configuration will provide a smoother experience with our ACA reporting features.

For detailed procedures, see Setting Up ACA Benefits Eligibility Rules.

System-Level Group Benefit Plan Setup

Set up the following benefit parameters on the Group Benefit Plans form (from the Back Office menu under System|Change):

Parameter — Action

Insurance Class — Ensure medical plans are set to Medical. Exclude non-medical plans flagged as Medical from ACA reporting (select Do NOT Include in ACA Reporting).

Plan Types — This panel requires one employee-only plan type.

Bill Rates — You must set these up for an employee-only plan type.

Review and set the seven ACA parameters in the Special Options panel:

Client-Level Benefit Plan Setup

You might need to adjust client-level benefit plans and benefit rules.

When you adjust client benefit plans:

Set the following parameters on the Client > Change > Benefit Plan Setup form:

• The appropriate Status, Start Date, and Stop Date for each medical plan.

• The Coverage Ends On field in Group Benefits Setup.

When you adjust client benefit rules:

Set the following parameters on the Client > Change > Benefit Rules form:

• The Contribution Rules for each plan, for each effective date.

• The Eligibility Rules for each plan for each effective date: employee status, type, and service rules.

• For any plan with networks, set an eligibility rule for a plan without entering a network ID.

Other Settings

Remember to adjust these miscellaneous settings as necessary:

• If a benefit plan contains multiple employee-only plan types, use one of the workarounds to ensure that the correct codes are reported. See Configuring Group Benefit Plan Settings for the ACA.

• If employees are eligible for multiple networks within a single plan, you might need to configure a “dummy plan” for the client without networks.

• Otherwise, configure all plans appropriately. These configurations include but are not limited to:

• Cafeteria plan rules

• Networks

• Risk factors

• Employee overrides

• State-based offerings

• Alternate contribution plans

Step 2: Adjust System and Client Parameters

After you review and adjust your benefit plan setup, you can set global and client-specific ACA parameters. Your configuration can vary based on your organizational needs. Contact the PrismHR Customer Support Team for help.

The following procedures relate to this topic:

• Configuring Global ACA Parameters

• Configuring Client ACA Parameters

Step 3: Configure Other Client-Level Settings

Set up the following client-level parameters as necessary:

Step 4: Start Building Data in Background

After setting up the appropriate parameters, you can initiate ACA data builds.

This procedure is documented under Activating the ACA Data Build.

At the start of the next month after you enable the ACA data build feature code, the system automatically builds ACA data for any previous months in the reporting year. Users cannot see or access the ACA data, but the register build process uses it to generate the reporting files and forms.

If your organization made any system changes that, you think, unintentionally impacted your ACA data, then you need to rebuild it. The system will not rebuild those months as a background process. For assistance with these issues, contact the PrismHR Customer Support Team.

Step 5: Process ACA Data

When you are ready to begin year-end reporting, use these and related procedures to review your ACA data, finalize it, and prepare it for transmission to the IRS and employees.

Step 6: Adjust 1095-C Registers

Review the following procedures for details:

• Editing Form 1095-C Information

• Importing Form 1095-C Data

Manually Adjusting Employee Form 1095-C Registers

If needed, you can manually adjust or create any register entries. Data from the registers populates on the Form 1095-C PDFs, the third-party download file, and the IRS transmission form.

Importing 1095-C Data

You can also import ACA data for an employee’s Form 1095-C:

• Go to Work Centers > ACA Processing > ACA Processes > Import/Export > 1095C Data Import.

• Any month imported for any employee will overwrite that month’s data only.

• Existing covered individuals will be overwritten only if there is an exact name match. If the name does not match precisely, the system creates a new entry on the register.

• Your organization can use the import in place of the register build, or in conjunction with it.

Step 7: Handle Mid-Year Client Considerations

Review the following common issues and apply the suggested workarounds if they arise. If you need additional help, do not hesitate to contact support.

For more troubleshooting-related topics, please see Common Questions about Forms 1094‑C and 1095‑C and, more generally, the section on Additional Information about Building ACA Forms.

Issue 1: Employee is not in the system but requires a 1095-C

Issue: You cannot create a 1095-C register record for former employees that are not in the system, either manually, by register build, or by import.

Solution: Create a terminated take-on employee record. Access the Terminated Take-On Employee Entry form (located in the HR menu under HR|Action. Complete this form.

Issue 2: No Offer Codes or Employee Share

Issue: For the months prior to the client start date with your service provider, there are no offer codes or employee share data. This is because there is no benefit plan or eligibility data.

Solution: Before the ACA data build, set up one or more benefit plans for the client with the appropriate bill rates, eligibility rules, and so on, to reflect the offerings in those previous months.

Issue 3: 2C Safe Harbor Coding/Enrollment Data Not Working Correctly

Issue: For months prior to the client start date with your service provider, there will be no employee enrollment data. As a result, the 2C safe harbor code will not populate appropriately for those months. For self-insured plans, covered individuals’ coverage will also not be reflected accurately.

Solution:

1. Build the ACA 1095-C registers.

2. After building the registers, use the Export 1095-C Register Data feature to export the months prior to the client start date.

3. Adjust any safe harbor code to 2C (other than 2A or anywhere 1G applies) for months each employee was enrolled in coverage.

4. Adjust covered individual entries as well.

5. Import the file.

Issue 4: 2F Safe Harbor Coding/W-2 Wages Safe Harbor not Generating

Issue: For the entire year (including after the client start date with your service provider), 2F might not generate in situations it otherwise should if the W-2 wage data does not reflect the total W-2 wages for the year. Blank entries would generate in its place.

Solution:

1. Build the 1095-C registers.

2. After building the registers, use the Export 1095-C Register Data feature to export all months.

3. Review for blank safe harbor code entries.

4. For employees where blank entries exist, determine the full-year W-2 data and whether it would satisfy the 2F safe harbor.

5. Adjust the file and import it.

Step 8: Processing the AIR Transmission File

When ready, you can use PrismHR to set up and process the transmission file for the Affordable Care Act Information Returns (AIR) Program.

Note: Note: If you submit this file to the state of New Jersey, you can select the NJ State Submission option before you create the file. When you select this option, the system includes only employees who lived in New Jersey at some point during the prior year, in accordance with state reporting requirements.

For detailed procedures, see the chapter: Transmitting ACA Data to the IRS.

Important Notes

Please note that:

• PrismHR creates these files for the specified client.

• You must be registered with the IRS to submit files.

• The Additional Clients selection list is not for submitting multiple clients at once. It is only for adding other client 1095-C records under a single client 1094-C record. For example, you have a single company, ABC, with a single FEIN, split up as company 100, company 101, and company 102.

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How the System Builds ACA Data

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/Background/How-the-System-Builds-ACA-Data.htm Path: CMP/ACA/Background/How-the-System-Builds-ACA-Data.htm

How the System Builds ACA Data

The system builds ACA data using specific rules outlined here.

Determining Employee Eligibility

The system checks for the lowest-cost single plan for which an employee qualifies.

Note: Note: The cost is based on the size of the employee contribution. Therefore, set this information up carefully.

1. First, it checks the benefit rules. Employees can qualify for benefit rules based on their status, type, and seniority:

• Status indicates whether the employee is active, on leave, or terminated.

• Type indicates whether the employee is full-time, part-time, or some other designation.

• Seniority is based on either the employee hire date or seniority date, depending on your settings.

2. If the employee does not qualify under any of those benefit rules, and is included in Offered Employees Maintenance (see Setting Up ACA Offered Employees), the system then checks the ACA Benefits Eligibility Rules (see Setting Up ACA Benefits Eligibility Rules).

3. If employees do not qualify based on either of those sets of rules, the system checks the optional grid. It reviews the grid line-by-line until it reaches a plan for which the employee qualifies. We recommend using the optional grid only if you do not maintain benefit plans and benefit rules in the system and you have no other option.

Determining Offer Codes and Employee Shares

Form 1095-C provides spaces for a monthly breakdown of employee healthcare coverage offers and contributions. The system uses specialized logic to determine which offer code (line 14) and contribution amount (line 15) to populate in these spaces.

For the purposes of the data build process, an offer of coverage – as defined by the ACA rules – has been made if an employee is eligible for at least one qualifying benefit plan.

Note: Note: Ensure that you have already set up the appropriate system-level billing rates for the relevant benefit plans.

For more information about offer code and safe harbor code calculation logic, see the reference flowchart under Additional Information about Building ACA Forms.

The system reviews data in the following locations:

• The appropriate start and stop dates are set up for each plan.
• Employee statuses are associated correctly on each plan.
• The Coverage Ends On field is correct – this field impacts safe harbor coding. | System-level group benefit plan setup | System > Change > Group Benefit Plans/Group Benefit Plan Types The process checks the system-level setup of each plan for which the employee is eligible. It determines whether it is a medical plan, is self-insured, meets the ACA minimum value and minimum coverage requirements, and is offered to employees, spouses, and/or dependents (see image below for the associated settings). Plans can also be conditionally offered to spouses (defined by 1J and 1K coding). You can configure this in the Special Options panel of the Group Benefit Plans form. | [Image: Part of the special options panel of Group Benefit Plans form. The following fields are highlighted: Self Insured Plan, Does NOT Meet ACA Minimum Essential Coverage, Does NOT Meet ACA Minimum Value Requirements, Plan Covers Spouse for ACA Reporting, Plan Covers Employee for ACA Reporting, and Plan Covers Other Dependents for ACA Reporting.]

Offer Code Selection Logic

Note: Note: For detailed descriptions of each code, please see the IRS instructions for Form 1095-C. You can also review the status code logic flowchart under Additional Information about Building ACA Forms.

To populate offer codes, the system determines the appropriate “Code Table 1” code for each eligible plan, for each month. It populates the code in this priority order (where 1A is highest priority):

1A > 1E > 1K > 1C > 1D > 1J > 1F > 1H

The other two offer codes follow specific rules:

• When an employee is inactive for an entire month.
• In the month of termination if coverage would not have continued through the end of that month (as determined by the Coverage Ends On field in client-level benefit setup). | 1G | Populates only when all 12 months of data are complete for any employee who was: - Not full-time during any part of the year. - Enrolled in self-insured coverage at any time during the year. |
• Not full-time during any part of the year.
• Enrolled in self-insured coverage at any time during the year. ## Employee Share Calculation Logic

For each month, the system compares the cost of the employee-only plan type of all eligible plans for the employee. It then selects the lowest value and populates it in the ACA register.

An employee share only populates on Form 1095-C when line 14 contains one of the following offer codes: 1B, 1C, 1D, 1E, 1J, or 1K.

Determining Safe Harbor Codes

Safe harbor codes populate on line 16 of Form 1095-C (“Section 4980H Safe Harbor Codes and Other Relief for ALE Members”). The safe harbor code logic is complex and based on many factors. First, the system checks the applicability of IRS non-safe harbor codes in the following order: 2A > 2C > 2D > 2B. Then, it follows the order 2F > 2G > 2H, based on the safe harbor method enabled in the system- or client-level ACA parameters. For details, see Configuring Global ACA Parameters and Configuring Client ACA Parameters.

Important Notes About Safe Harbor Determination

The safe harbor column clears at year-end for any employees who have offer code 1G.

If you have set client-level plans to terminate at the end of the month (rather than when the employee is terminated) normal safe harbor coding applies in the month of termination. If the plan terminates upon employee termination, code 2B populates.

System Limitations

The IRS states that if the Minimum Essential Coverage Indicator is No for any month, then codes 2F, 2G, or 2H should not be used for those months. To avoid any situation where the value is set incorrectly to No, we did not create any logic for this use case.

If you want the Minimum Essential Coverage Indicator to be “No” for any months:

1. Use the Export 1095 Registers tool. See Exporting 1095 Registers.

2. Limit the results to only the months in question with safe harbor codes 2F, 2G, or 2H.

3. When you generate the file, delete those safe harbor codes from the file. Leave the entries blank.

4. Import the file back into the system.

The Indexed 9.5%

According to the IRS, the 9.5% standard for affordability testing is actually an indexed percentage and follows the plan year. The system allows your organization to enter the appropriate indexed percentages at the system- and client-level. The percentage you enter follows the plan year. For example, the system uses the 2019 amount until the benefit plan year start date, and the 2020 amount for the remainder of the year.

Form W-2 Wages Safe Harbor Logic (Code 2F)

To evaluate this safe harbor code, the system:

1. Calculates employee Form W-2 wages for the entire calendar year.

2. Divides the wages by the months the employee was employed during the calendar year.

3. Multiplies the resulting value by the indexed percentage (see the section above).

4. Compares this value to the employee share of any month during which the employee was offered coverage.

Federal Poverty Level Safe Harbor Logic (Code 2G)

Like the 9.5% indexed percentage, the system value for the federal poverty level also follows the plan year. This means that it would use the 2019 value until the benefit plan year start date, and would use the 2020 amount for the remainder of the year.

The IRS provides flexibility on the federal poverty value you can use for a given year. Federal poverty levels are released at the end of every January and must be adopted within six months (mid-July). For this reason, your organization can indicate the appropriate federal poverty level for each plan year on a client-by-client basis, using the client-level ACA Parameters. If you do not enter anything at the client level, the system-level values apply.

When applying the safe harbor, the system:

1. Multiplies the applicable federal poverty level by the indexed percentage indicated.

2. Divides this value by 12.

3. Compares it to the employee share for the month.

Rate-of-Pay Safe Harbor Logic (Code 2H)

Per federal regulations, the system rate-of-pay logic also follows the plan years.

• For employees who are not salaried, the system uses either the hourly rates at the start of the plan year OR the rate during the month tested (whichever is less). That rate is multiplied by 130.

• For salaried employees, the system uses the monthly salary at the start of the plan year. If the employee salary is reduced during the year, the system does not apply the safe harbor for the entire plan year.

When applying the safe harbor, the applicable rate of pay is multiplied by the indexed percentage indicated and compared to the employee share for the month, as it does for codes 2F and 2G.

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Background

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/Background/UG_Chapter_Background.htm Path: CMP/ACA/Background/UG_Chapter_Background.htm

Background

This guide describes the setup and administration of system features related to the Affordable Care Act.

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Editing Form 1095-C Information

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/ACA/Legacy-Data-Building/Employee_Form1095c.htm Path: CMP/ACA/Legacy-Data-Building/Employee_Form1095c.htm

Editing Form 1095-C Information

Note: Note: Client Access Group Security is enabled on this form.

Use this form to maintain employee Form 1095-C information.

To configure employee 1095-C data:

1. Go to Work Centers > Compliance > ACA Processing > ACA Processes > Edit Employee 1095 Form.

2. Ensure that you have selected the appropriate client.

3. Select an Employee ID.

4. Specify the Reporting Year. The information for that year displays in the Employee Offer of Coverage grid, organized by Month.

Property — Description

Offer Code — Indicates the offer code reported for that month.

Employee Contribution Amount — Indicates the employee’s plan contribution for that month.

Safe Harbor Code — Specifies the safe harbor code associated with this month, if any. Enter any code from 2A through 2H, or leave the field blank.

Reported Employee Type — Indicates the employee type that will be used for ACA reporting for that month.

Work Zip and Resident Zip — These fields indicate the employee worksite and residence ZIP codes for each month. These fields do not auto-populate: you must enter this information manually or using an import. The information stored in these fields will display on line 17 of Form 1095-C, from 2020 onwards. The Offer of Coverage code for that month will determine whether the work or resident ZIP is used. See the Form 1095-C instructions for more information.

5. Use the Covered Dependents panel to specify the months in which certain individuals counted as covered dependents of this employee.

6. Review Federal transmission histories for this employee, if necessary.

7. Click Save.

Setting Up Covered Dependents

Use this grid to identify the employee’s covered dependents for each month of the reporting year. Enter the individual’s basic information and then select all months in which the individual counts as a covered dependent.

Reviewing Federal Transmissions

This panel displays the history of the employee’s inclusion on federal ACA reporting files.

The Test Scenario Code and Send As Correction refer to special cases of IRS transmission. For details, please see:

• Submitting a Correction

• Creating the Test Submission

Reviewing California Transmissions

Note: Note: This panel is currently disabled while PrismHR continues developing support for the California transmission file.

This panel displays the history of the employee’s inclusion on the California individual mandate reporting files.

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Manually Creating Client-level COBRA Subsidy Credits

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/2021/Cobra_Credit_Entry_Prism.htm Path: CMP/COVID-19 Docs/2021/Cobra_Credit_Entry_Prism.htm

Manually Creating Client-level COBRA Subsidy Credits

You can use the COBRA Premium Credit Entry form to create new COBRA benefit cost credits for employees, in compliance with the provisions of the American Rescue Plan Act (ARPA).

When you save a new COBRA credit, the system creates a Tax Adjustment voucher for tax deduction code 00-19, which tracks the accumulation of COBRA credits. If you select Credit Client? the system also creates a client bill pending record for the credit, for refund purposes.

Note: Note: You can configure creditable clients on the Cobra Credit Parameters form, available from the Actions menu

[Image: screenshot]

on System Parameters.

To create a new COBRA credit:

1. To access the form, select the Client menu and go to Client|Change > Client Details.

2. Open the Actions menu [Image: screenshot] and select Cobra Credit Entry.

3. Click New Adjustment.

4. Select the Employee to associate with this credit.

5. Enter the Credit Date.

6. Select the Employer to associate with this credit.

7. Enter the COBRA Credit Amount as a positive value. This amount will accumulate as a negative value under tax code 00-19. If you enter a negative value in this field, a positive entry will accumulate under 00-19 and on the bill pending entry.

8. Select Credit Client? if you want to create a Bill Pending entry for this client.

9. If you selected Credit Client, you can also enter a Credit Billing Date to associate with the newly created client bill pending entry.

10. Click Save. The system creates the new COBRA credit under the specified employee and employer.

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Introduction and Background

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/Background-Content/COVID_941_Intro.htm Path: CMP/COVID-19 Docs/Background-Content/COVID_941_Intro.htm

Introduction and Background

The changes implemented under the Families First and CARES Acts significantly altered the tax reporting structure of the 2020 Form 941. In the weeks and months following these acts, PrismHR began planning features to track the associated wage and tax credits so they can populate on employers’ quarterly Forms 941.

The draft version of Form 941 also evolved over this same period as its instructions became clearer and more precise. New features in PrismHR, developed according to these guidelines, can help service providers pass this new tax information into MasterTax and ensure that their 941 calculations comply with the new legislation. These features include:

• Master Tax RTS File v. 39, which introduced file updates directly related to COVID-19 data transfer between PrismHR and MasterTax.

• A Form 941 Worksheet report, designed to help employers fill out their tax forms in accordance with IRS calculations.

• A Schedule R report, designed to help employers detail their client by client tax data.

You can find documentation for these features in the following sections.

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Background

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/Background-Content/COVID_Background.htm Path: CMP/COVID-19 Docs/Background-Content/COVID_Background.htm

Background

Coronavirus Disease 2019 (COVID-19) is a 2019-2021 pandemic caused by the virus SARS-CoV-2. In March of 2020, the United States government began passing legislation to help mitigate the economic effects of the viral outbreak. From March onward, PrismHR began introducing features to help service providers comply with these new legislative requirements.

Note: Note: The information in this section is included to help place the new COVID-19 features in their proper context. This section is not an exhaustive summary of these federal acts and their provisions.

Families First Coronavirus Response Act (FFCRA)

The first legislative initiative took effect on April 1, 2020 and applies to employers with fewer than 500 employees, with some exceptions. It establishes special expansions to family medical leave and paid sick leave for employees affected by the COVID-19 outbreak. These payments can all be rebated, up to certain limits, by the federal government. The PrismHR COVID-19 features include logic that helps determine how these rebate credits accrue.

PrismHR Features

Using the new, system-level COVID-19 Emergency Processing Parameters form, you can designate special pay codes and billing events to track COVID-related employee sick and medical leave. When you run a payroll batch that includes these pay codes, the system calculates the accrued (and remaining) rebate credits for each type of leave. It creates Client Bill Pending items associated with each type of rebate credit and, if any credits remain after the client rebate is applied, the system stores these credits in a carry-forward bill pending entry. The underlying logic can be adjusted at the system level. You can also view and adjust these bill pending entries in the system, if needed.

Please note the following characteristics of the new Families First feature set:

• Creditable wages paid under the sick leave and FMLA pay codes accrue under the following tax deduction codes: 00-80 (FMLA) and 00-81 (Sick time, self-care and dependent-care). The system uses these codes to track tax credits associated with these wages.

• Medicare taxes associated with these creditable wages accrue under tax deduction code 00-82. Employers are entitled to a credit on all employer-side medicare taxes associated with these creditable wages.

• The system uses payroll warnings and hard stops to enforce wage cap limits, credit cap limits, and auto-rebate logic based on your configuration.

CARES Act

The CARES (Coronavirus Aid, Relief, and Economic Security) Act was also passed by the United States government in response to the 2019-2020 coronavirus pandemic. It provides financial support to both individuals and businesses affected by the pandemic. This support includes payments to taxpayers, expanded unemployment benefits, and payroll tax credits for businesses (see the section below).

Businesses can claim tax credit on 50% of employee wages paid between March 13 and December 31, 2020. There is a cap of $5,000 credit per employee (equivalent to $10,000 in wages paid between these dates).

Additional legislation at the beginning of 2021 updated these values to 70% of employee wages and $7000 credit per employee. This currently applies between 1/1/2021 and 7/1/2021.

Both acts also establish rebates associated with healthcare-related payments. The system records rebate credits under tax deduction code 00-83 for this piece of legislation.

Paycheck Protection Program

The CARES Act also implemented the Paycheck Protection Program (PPP), which provides 100% federally guaranteed loans, backed by the Small Business Administration, to small businesses with financial need. It provides an incentive for small businesses to retain their employees during coronavirus-influenced economic turbulence. Businesses can use the PPP to cover payroll and employee benefit costs (up to $100,000 in payroll expenses per employee), as well as mortgage interest payments, rents, and utility costs, to a certain extent.

From this loan program, small businesses can claim 2.5 times their 2019 monthly average payroll costs OR 10 million dollars (whichever is less). Seasonal employers calculate their average monthly costs using one of two lookback periods:

• February 15, 2019 – June 30, 2019

• March 1, 2019 – June 30, 2019

PPP Loan Forgiveness

To qualify for full PPP loan forgiveness, businesses must demonstrate that their full-time equivalency count did not decrease when compared to a provided lookback period. They must also indicate their use of loan funds for payroll and other costs.

August 8 Executive Order

On August 8, President Trump authorized “Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster,” which instructs the Treasury to provide guidance on employee deferral of Social Security taxes between September 1 and December 31, 2020. PrismHR implemented basic functionality to support this deferral. For more information, please see Deferring Employee Social Security Tax.

You can use Paycheck Protection Program Reports in PrismHR to determine your clients’ loan forgiveness details. One report breaks down your PPP-related payroll costs. Another displays a breakdown of your monthly full-time equivalents.

2021: Extensions to the CARES Act and the FFCRA

In late 2020 and early 2021, Presidents Trump and Biden authorized legislation extending the benefits of the CARES Act and the FFCRA, respectively. The first round of legislation emerged from the Bipartisan-Bicameral Omnibus COVID Relief Deal and extended the expiration of CARES Act credits until March 31, 2021.

The second round, passed in March 2021 as the American Rescue Plan Act of 2021, extended the expiration of FFCRA credits and expanded their original caps. It also implemented some extensions to the CARES Act’s Employee Retention Credit and introduced new benefits for affected workers, such as fully-subsidized COBRA coverage for employees who lost their insurance during the pandemic.

Response and Interpretation

PrismHR’s development approach was based around the following assumed requirements:

• Reset COVID-19 wage, credit, and hour caps, such that on April 1 2021, any employee who previously used qualified sick leave would once again be able to claim the full amount of hours/wages allotted by the act.

• Add support for a new employer Social Security tax credit.

• Orient credit calculation toward charge dates. In other words, the prior legislation’s rules and limits would apply to sick leave taken on March 31, regardless of pay date. For example, if an employee took sick leave that was charged for March 31, but that employee was not paid until April 10th, they should accumulate sick leave credits under the old legislation because the charge date falls before April 1.

Important Setup Procedures

1. Separate the payroll into two pay periods: one containing March charge dates and the other containing April charge dates.
2. Adjust the SS Credit Start Date to be sometime later in April.
3. Run the payroll for your March pay period. This will ensure that tax credits calculate correctly on March (pre-ARPA) charge dates.
4. Finally, reset the start and end dates to their appropriate values and run your April batch to begin compliance with the new legislation. Finally, we suggest that you use each pay code’s Conditional Rules to create a new custom payroll warning. Associate these warnings with both your old and new COVID-19 pay codes during the changeover period (see the example below). This can help raise the profile of these pay codes for payroll staff and serve as a reminder that the changeover is in progress.

[Image: Detail of Conditional Rules tab, showing the Payroll Warning field. The field contains the text “Enter your payroll warning here.”]

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Before You Begin

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/Background-Content/COVID_BeforeBegin.htm Path: CMP/COVID-19 Docs/Background-Content/COVID_BeforeBegin.htm

Before You Begin

Before configuring any COVID-19-specific settings, ensure that you have set up all the appropriate pay codes, billing codes, and billing events.

Note: Note: You do not need to set up any new PTO plans for these features. But if you want to do so, you can.

Background

In order to claim and properly account for the tax credits specified under the Families First/CARES Acts and the ARPA, you need to create spaces in the system to track each component of the payments and their credits:

• Billing Event Codes: for tracking client-level credit rebates on invoices.

• Billing Events: to trigger the recording of qualified wage and tax credits, for invoicing purposes.

• Pay Codes: for paying any COVID-related wages that qualify for tax credits.

• Accounting Settings (not addressed in this document).

After creating pay codes for the different types of COVID-19 qualified wages, you should also mark them as exempt from employer-side Social Security taxes (tax deduction code 00-16).

Setting Up Billing Codes for COVID-19-Related Leave

You must set up billing codes to track coronavirus-related credits. We recommend using the same setup as the standard tax billing code.

To set up a COVID-19 billing code:

1. Open the Back Office menu.

2. Select Billing Codes under System|Change.

3. Enter a unique Bill Code ID, such as COVID19.

4. If you want, enter a Bill Description.

5. Save the record.

6. Repeat for the second bill code.

Setting Up Billing Events for COVID-19-Related Leave

You must also set up billing events and associate them with the new billing codes. These events are assigned on the system-level COVID-19 parameters, described later.

To set up a COVID-19 billing event:

1. Open the Back Office menu.

2. Select Billing Events under System|Change.

3. Enter a unique Bill Event Code, such as COVID19.

4. If you want, enter a Description.

5. Select the appropriate Bill Code to associate with this event.

6. Save the record.

7. Repeat for the second billing event.

Setting Up Pay Codes for COVID-19-Related Leave

You must set up pay codes to track COVID-19 “qualified” wages. If you have pay codes for state-mandated sick leave in your system, we recommend using those as a model. The procedure below provides general setup information for an example pay code.

To create pay codes specific to COVID-19 leave:

1. Open the Back Office menu. Select Pay Codes under System|Change.

2. On the Pay Codes form, enter a new Pay Code ID, such as COVIDSELF.

3. Enter a Pay Description.

4. Set the Pay Type to Regular.

5. Set the Pay Class to Earnings.

6. For Cash/Non-Cash, select Cash.

7. Set the Calculation Method to Standard.

8. Set the Pay Reason to Hours.

9. For Subject to Work Comp, select Yes, This Pay Code is Subject to W/C.

10. Enter the appropriate Factor. We recommend 0.67.

11. For the Bill Code, enter 000 (Gross Wages).

12. Save the record.

Repeat this procedure for all the other pay codes.

Exempting Pay Codes from Social Security Tax

You can configure tax exemptions on the Pay Codes form in PrismHR. Under the FFCRA, COVID-19 qualified wage pay codes needed to have a tax exemption for Social Security tax. Under the ARPA, however, this requirement goes away. You do not need to apply any tax exemptions to ARPA-related pay codes.

Important: This exemption still applies after you go over the wage limits. This can be highly problematic. Use extreme caution to avoid exceeding the mandated wage caps.

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About MasterTax RTS 39 through 42

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/Background-Content/MasterTax_RTS_Updates.htm Path: CMP/COVID-19 Docs/Background-Content/MasterTax_RTS_Updates.htm

About MasterTax RTS 39 through 42

To provide support for COVID-19-related changes to the 2020 Form 941, PrismHR developed support for versions 39 and 40 of the MasterTax RTS file. Version 39 of the file includes updates designed to streamline the passage of COVID-19-related data from PrismHR into MasterTax.

Support for MasterTax RTS version 40 was released in October 2020. Support for version 41 was initially released in March 2021 and expanded in May 2021. Support for version 42 was released in July 2021.

To enable version 42 of the RTS file:

1. Click the Work Centers menu and select MasterTax Processing under Work Centers|Tax. Then, under Setup Forms, select MasterTax Interface Parameters.

2. Set MasterTax RTS Import File Version to 42.

3. If you are a Certified PEO or you leverage the PrismHR SBEA features, select Schedule R Breakout.

4. Click Save.

Important Changes in Version 42

• The file no longer includes 00-87 data.

• The file now includes 00-19 data as a positive value, instead of a negative value.

• For each 00-19 value in a 500 record, the system creates a corresponding 501 record. Statistic 4 of this record reflects the number of employees who contributed to the 00-19 value in the 500 record.

• The file now splits 00-80 and 00-81 data into “Accrual Before April 1” and “Accrual After March 31” categories. Accrual Before April 1 reports under Statistic 2 of the 501 record while Accrual After March 31 reports under Statistic 1.

• The file splits 00-84 data similarly. It now reflects pre-April 1 values in statistic 5 of the 501 record . The 501 record displays under code FE0000-116H for sick leave health care expenses, and under FE0000-117H for family leave health care expenses. The file reports these values employee by employee.

Important Changes in Version 41

• The gross taxable over limit value for New Jersey unemployment tax (31-24) is now reported in statistic 4.

• The system creates 600 and 601 records for any employee who paid Eugene, Oregon local tax for the quarter.

• The system creates records for any employee who paid taxes to support Connecticut Paid Family Leave.

Important Changes in Version 40

This version of the RTS file includes several minor updates. The most important change is the addition of a new Statistic, which adds support for year-to-date values in the 501 records for 00-80 and 00-81 credits.

Important Changes in Version 39

Version 39 includes the following updates:

• Data stored under tax deduction codes 00-80, 00-81, 00-83, 00-84, and 0-85 are passed as positive values, even if they are negative in PrismHR.

• Data under 00-82 is not passed and does not appear on the file. MasterTax uses the data from 00-80 and 00-81 to calculate the Medicare tax credit, so passing this data would result in double accounting.

• Tax deduction code 00-84 (Families First healthcare credits) does not appear on the file because this tax deduction code reflects a secondary credit which is dependent on the values in 00-80 and 00-81. Instead, it is divided into two separate tax deduction codes, according to the proportion of sick leave vs. FMLA wages:

• FE0000-117H - FMLA component of 00-84 credits.

• FE0000-116H - Sick Leave component of 00-84 credits.

• On 500 records, CARES Act/Retention credits are recorded under both Quarter-to-Date (positions 95-108) and Year-to-Date (109-122) metrics. The taxable values for these credits are equal to twice the tax amount stored under the credit. For example, if the tax amount under 00-83 was $100.00, the taxable amount in the 500 record is $200.00. This is because MasterTax performs its own calculation on CARES Act creditable wages.

• For Q2 only, the RTS file also accounts for Q1 retention credits and passes them into the new tax deduction codes listed below. Quarter-to-Date taxable values (positions 109-122) are double the credit values, for the same reason as described above.

• FE0000-178 - Q1 values for 00-83.

• FE0000-178H - Q1 values for 00-85.

• The system creates 501 records for tax deduction codes 00-80 and 00-81. The format resembles that of 501 records for tax deduction code 00-10. MasterTax uses the values in this record to populate boxes 5a(i) and 5a(ii) on Form 941 (capped by the difference between employee and employer Social Security tax). This means that these boxes should reflect only employee-side taxable wages for COVID-19 sick and medical leave, without generating additional tax on over-limit wages.

• Offshoot federal codes are also added to these tax deduction codes, when applicable. For example GU is added for Guam.

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Important Notes About Tax Reporting

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/Background-Content/TS-tax_report_note.htm Path: CMP/COVID-19 Docs/Background-Content/TS-tax_report_note.htm

Important Notes About Tax Reporting

The COVID-19 legislation defines the ways in which businesses can claim tax credits for wages paid as coronavirus-related sick/medical leave. PrismHR uses several system-defined tax deduction codes to track the accumulation of these “qualified” wages, taxes calculated on based on those wages, and associated benefit plan costs.

2021: Updates to Tax Credit Caps

The new COVID-19 legislation resets the accumulation of tax credits for coronavirus-related paid leave; in PrismHR, this means the caps will reset for the following system-defined tax deduction codes:

• 00-81 (COVID-19 Paid Sick Leave — Wage credit)

• 00-82 (Credit for Medicare tax on qualified wages)

• 00-84 (Benefit plan costs associated with COVID-19 Paid Sick and Family Leave)

PrismHR will begin accumulating the tax credits against this reset cap for all charge dates from April 1, 2021 onward.

The new 00-80 tax credit cap will also be increased to $12,000 from $10,000 as specified by the legislation. Please note that, unlike the credits listed above, the accumulation of this credit will not reset to $0 on April 1.

Updating Medicare and Social Security Tax Credit Settings

When the new regulations take effect on April 1, our understanding is that there will be a new credit for Social Security tax, which can be associated with employee qualifying wages.

Because of variations in interpretation, PrismHR also allows you to specify a pay date upon which 00-82 (Medicare tax) credits will stop accruing. To set this date, use the new Medicare Credit End Date field on the COVID-19 Emergency Processing Parameters form.

[Image: Detail of ARPA Configuration fields: Medicare Credit End Date, SS Credit Start Date, SS Credit Billing Event]

PrismHR also implemented a new tax deduction code: 00-87. This code will track the accumulation of the new Social Security tax credit on payroll vouchers. You can set up a SS Credit Start Date and a SS Credit Billing Event on the COVID-19 Emergency Processing Parameters form. The start and end dates are based on pay dates, not charge dates; this will allow service providers to organize their payroll batches and pay them in such a way that pre- and post-ARPA credit accumulations are handled separately.

[Image: Tax Deductions form open to code 00-87 (Employer SS tax credit), paid by Employer.]

Note: Note: Previously, the instructions below specified that the new pay codes should have a tax exemption set up for Medicare tax. This has now changed. Do not apply any tax exemptions to these pay codes.

Finally, service providers will need to set up new pay codes from which the tax credits will be calculated. You can add these pay codes to the existing tables on the COVID-19 Emergency Processing Parameters form. The Emergency Paid Sick Leave (Self-Care) Pay Code table now supports multiple values to accommodate this.

The new pay codes you create should be exact replicas of the old ones, except with no tax exemptions.

As with the previous pieces of COVID-19 legislation, some of these features and descriptions are subject to change as further guidance becomes available.

New Tax Codes

The system uses the following new tax deduction codes to track the various COVID-19 rebate credits. Note that benefit cost credits are distributed between two tax deduction codes corresponding to the Families First Act and the CARES Act.

These tax deduction codes populate on the MasterTax PTS download. You can also apply tax adjustments to them in the system.

As with all other federal tax deduction codes, the system tracks these at the employer level. This is a purposeful decision to align the tax credits with their Form 941 tax liability. However, Families First tax credits will apply to — and will ultimately be reported at — the client level. According to IRS Form 7200, all PEOs with clients claiming tax credit must complete Schedule R (client-by-client breakdown) with their Form 941 return.

Additionally, the CARES Act permits certain distressed businesses to defer their employer-side OASDI (Social Security tax) payments. Statutory language clearly establishes this is a client-level election, despite PEO reporting at the employer level.

About Tax Code 00-86

To comply with the August 8th Executive Order, “Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster,” PrismHR introduced tax deduction code 00-86 to track employee Social Security tax deferrals, which are permitted under the order between September 1 and December 31, 2020.

For all employees who defer this tax on payrolls between these dates, the system generates a 00-86 entry. The entry is equal to the negative of the employee’s 00-12 tax value.

Values stored under 00-86 accrue on either the client federal entity or employer tax register, whichever is used to store other federal tax data. The system also reports this data on the MasterTax PTS file under an E or F code, as appropriate.

Passing Tax Credits Into MasterTax

Note: Note: Under our traditional PEO configuration, credits accrue in MasterTax on the employer level. This means that aggregate client credits will reduce the PEO employer’s 941 liability and deposits. This could result in billing and deposit inconsistencies on a payroll-to-payroll basis. You will also be unable to track these credits appropriately in MasterTax.

MasterTax created three new core tax deduction codes to support the Families First and CARES Acts:

• FE0000-116 Federal - Employer Sick Leave Wages Credit

• FE0000-117 Federal - Employer Family Leave Wages Credit

• FE0000-118 Federal - Employer Employee Retention Credit

MasterTax users must map the three PrismHR tax deduction codes to the MasterTax deduction codes as follows:

PrismHR Code — Mapping

00-80 — FE0000-117

00-81 — FE0000-116

00-82, 00-84 — Can currently be mapped to either of the above. Our RTS file structure will, for reporting and reconciliation purposes, break out the Medicare tax portion (00-82) to correspond with its associated wage credit.

00-83, 00-85 — FE0000-118

Note: Note: Please contact MasterTax with any questions about setting up 00-87 in that application.

Within MasterTax, users can toggle whether individual clients defer employer Social Security payments under the CARES act. However, under a traditional PEO configuration, the applicable federal tax data will not exist at the client level. As a result, users will be unable to leverage this setting. We recommend the following two solutions to this issue:

PrismHR Solution Options

Use SBEA Certified PEO Setup

In PrismHR, you can enable our CPEO functionality, which was developed to support Schedule R reporting under the Small Business Efficiency Act (SBEA). This configuration enables you to:

• Break out federal taxes by client, by employer.

• Pass this federal tax data to MasterTax on that level.

• Accrue and track credits on the client level and deposit accordingly.

• Flag clients in MasterTax for employer-side OASDI deferral.

This is the preferred approach if you want the most accurate, consistent, and automated tax management and reporting.

Note: Note: Before you start, please note that it will take time to set up these features. You can consult the PrismHR Customer Support Team and the SBEA User Guide for details about enabling SBEA-compliant functionality. You can find a COVID-specific SBEA setup guide by searching for “SBEA User Guide” in the PrismHR Customer Resource Center.

If you decide to use this solution and you are a non-certified PEO, or if you want to start leveraging this configuration mid-year, we strongly recommend setting the Limit testing on Employer Register flag immediately after flagging the employer as a CPEO.

[Image: Detail of the Employer Details form with “Limit Testing on Employer Register” enabled]

Self-Manage Tax Settings

Users who opt not to leverage CPEO Schedule R functionality can elect to preserve the employer-level configuration within MasterTax and pass these tax credits on that level.

Alternatively, users opting not to leverage CPEO Schedule R functionality, who nonetheless want to preserve a client-centric approach in MasterTax, must then self-manage this process. To prevent certain tax deduction codes from flowing into MasterTax, you can enable the Suppress Reporting to MasterTax setting as shown in the images below.

Neither of these options will organically generate a Schedule R through MasterTax. However, to better support all users, including MasterTax users, PrismHR also developed the 941 Quarterly Return Worksheet Report to provide some insight into the COVID-19/Form 941 reporting process.

[Image: Tax Deductions form open to code 00-80 (emergency FMLA tax credit). The field “Suppress Reporting To Mastertax” is highlighted and enabled.]

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Processing Form 941

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/COVID-Chapters/941_Divider.htm Path: CMP/COVID-19 Docs/COVID-Chapters/941_Divider.htm

Processing Form 941

Certain changes were made to IRS Form 941 in 2020 and 2021, to aid in COVID-19 reporting. PrismHR includes several features that can assist you with completing these forms.

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Setting Up Core Features

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/COVID-Chapters/UG_COVID_CoreSetup.htm Path: CMP/COVID-19 Docs/COVID-Chapters/UG_COVID_CoreSetup.htm

Setting Up Core Features

This chapter demonstrates how to configure the primary COVID-19 processing utilities in PrismHR. Please carefully read the introductory sections to ensure proper system preparation.

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Introduction

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/COVID-Chapters/UG_COVID_Intro.htm Path: CMP/COVID-19 Docs/COVID-Chapters/UG_COVID_Intro.htm

Introduction

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Other Useful Features

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/COVID-Chapters/UG_COVID_OtherFeatures.htm Path: CMP/COVID-19 Docs/COVID-Chapters/UG_COVID_OtherFeatures.htm

Other Useful Features

This section explains some of the other useful COVID-19 features, including Refunds form and the Recalculation Tool.

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Reports

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/COVID-Chapters/UG_COVID_Reports.htm Path: CMP/COVID-19 Docs/COVID-Chapters/UG_COVID_Reports.htm

Reports

Use the reports in this section to track COVID-19 credits and Paycheck Protection Program loan forgiveness.

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COVID-19 Credit Tracking Report

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/COVID-Reports/COVID-19_Credit.htm Path: CMP/COVID-19 Docs/COVID-Reports/COVID-19_Credit.htm

COVID-19 Credit Tracking Report

Use the COVID-19 Credit Tracking Report to view accrued tax credits, refunds or deferrals associated with COVID-19 paid leave.

To access this form, click Reports. Under Operations|Report, click COVID-19 Credit Tracking Report.

To generate the COVID-19 Credit Tracking Report:

1. Complete the following fields:

• Employee Report
• Client Summary (Client Totals Only) | Break Out 941 Liability Total | This field is optional. Select this option if you want to include the break out of the 941 Liability Total in your report. | | Breakout Tax Credits Accrued Total | This field is optional. Select this option if you want to include the break out of the total for the Tax Credits Accrued under tax deduction codes 00-80 to 00-85 in your report. In the report parameters, this column is further divided into totals for each tax deduction code, as well as the FMLA Medicare, FMLA Healthcare, Sick Leave Medicare, and Sick Leave Healthcare components. | | Include Only Clients with Credits or Deferrals | This field is optional. Select this option if you want to only include clients with credits of deferrals in your report, which is the employer-side Social Security Tax Deferred plus Tax Credits Accrued. | | Include Refunds | This field is optional. You can only select this option for the Client Summary (Client Totals Only) Report. Select this option if you want to only include those clients with refunds in your report. | | Client Ids | This field is optional. If you want to limit your report to specific clients only, you can enter the Client IDs here or click the Client Ids hyperlink and select them from the Client Master Search selector. |

2. Click Run to generate the selected report with the selected parameters on screen. If you are running this report for all employees, it might take a while for the system to complete.

3. Click Close to close this form at any time.

Report Columns

This report is organized by clients, then by employers, then by employees. For each employee, the report displays:

Report Column — Description

Total 941 Liability — Liability associated with tax deduction codes 00-10, 00-11, 00-12, 00-15, and 00-16. If you select Break Out 941 Liability Total in the report parameters, this column is further divided into totals for the above tax deduction codes (income tax, employer-side Medicare tax, employee-side Medicare tax, employer-side Social Security tax, and employee-side Social Security tax).

Employer Social Security Tax Deferred — The employer-side Social Security tax liability that accrued between the dates specified in the Cares Act Employer Social Security Deferral table and between the dates specified in the report setup parameters.

Tax Credits Accrued — Tax credits accrued under tax deduction codes 00-80 to 00-85. If you select Break Out Tax Credits Accrued Total in the report parameters, this column is further divided into totals for each tax deduction code, as well as the FMLA Medicare, FMLA Healthcare, Sick Leave Medicare, and Sick Leave Healthcare components.

Total Tax Credits and Deferrals — Employer-side Social Security Tax Deferred plus Tax Credits Accrued.

Net Current 941 Liability — Total 941 Liability minus Total Tax Credits and Deferrals.

The report also displays client totals for each of these values.

Refund columns

If you select Include Refund, the report includes these columns:

Rebate Column — Description

Credit Refund — Total credit rebates.

Form 7200 — COVID credits rebated under Form 7200.

Defer Refund — Refunded employer-side Social Security taxes.

UnRefund SS — Intended Social Security tax deferrals MINUS the actual rebate.

UnRefund CR — Total credits minus Credit Refunds and Form 7200 Refunds.

Pending — Future-dated bill pending items. This total displays at the top of the COVID-19 Refunds form. Please see Viewing Refund Data.

Examples

Following is the first page of a sample COVID-19 Credit Tracking Report for employees from 10/1/2021 to 12/31/2021. As you can see there are 659 pages in this report.

[Image: screenshot]

Following is the first page of a sample COVID-19 Credit Tracking Report for employees from 10/1/2021 to 12/31/2021 limited to two clients with all options selected. As you can see there are 3 pages in this report.

[Image: screenshot]

Following is the first page of a sample COVID-19 Credit Tracking Report for Client Summary from 10/1/2021 to 12/31/2021. As you can see there are 14 pages in this report.

[Image: screenshot]

Following is a sample COVID-19 Credit Tracking Report for Client Summary from 10/1/2021 to 12/31/2021 for two clients with all options selected. As you can see there is data for only one client as the other one did not have refunds and so was omitted from this report.

[Image: screenshot]

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Using the COVID-19 Leave Estimate Report

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/COVID-Reports/COVID-19_Report.htm Path: CMP/COVID-19 Docs/COVID-Reports/COVID-19_Report.htm

Using the COVID-19 Leave Estimate Report

This report retrieves employee hours and payment information to help you set up emergency paid leave that complies with the Families First Coronavirus Response Act.

To run this report:

1. If you want to filter by Employee Type or Pay Method, select the appropriate option(s).

2. If you want to filter by employee, select the appropriate Employee(s).

3. Click Run. The report generates.

[Image: Report column headers: Hours Worked (Total and 2 Week Average), Standard Hours (2 weeks), Sick Leave Hours (Suggested, Actual, Taken, Remaining), and Rate of Pay (Standard, two-thirds of that value, Average from last pay period, and two-thirds of that value).]

Analyzing the Report

For each employee, the report returns:

• General employee information (employee number, name, type, pay method, and hire date).

• Hours Worked (total and two-week average). Does not include sick time hours.

• Standard Hours (2 weeks). Uses the Standard Hours value on Employee Details > Pay, adjusted based on the employee’s pay method. For example, the value for employees on a monthly pay cycle is:

[Image: Equation showing hours calculation: Standard Hours times 12 months, divided by 52 weeks, and then multiplied by two.]

• Sick Leave Hours (Suggested, Actual, Taken, and Remaining). Suggested hours default to 80 for full-time employees. For part-time employees, the value is their two-week average unless the employee was hired within the last 6 months. In that case, the value is just the employee’s Standard Hours on Employee Details > Pay. You can override the Actual Sick Leave Hours value using a new field on Employee Details > Other, called COVID-19 Paid Sick Max Hours.

• Rates of Pay and 2/3 these values, in compliance with the legislation. The Standard value pulls from Employee Details. The Average (Last Pay Period) value is calculated using data from the last pay period. The system divides wages by hours, adjusted according to any FLSA settings on the employee’s pay codes. If no FLSA settings exist, the system simply divides all gross payments to the employee by the number of hours.

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941 Quarterly Return Worksheet Report

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/COVID-Reports/COVID_941_WSReport.htm Path: CMP/COVID-19 Docs/COVID-Reports/COVID_941_WSReport.htm

941 Quarterly Return Worksheet Report

This report displays the system-recommended values to enter in Form 941, using the calculation instructions provided by the Form 941 worksheet.

Important Notes

• If you use Quarterly Express Plus (QEP), you need to leverage and rearrange the data on your Form 941. Do not provide the SBEA/CPEO version of this download to QEP.

Running the Report

To run the report:

1. Click the Work Centers menu and select Quarterly Tax Processing under Work Centers|Tax. Then, under Quarterly Tax Reports, select 941 Quarterly Report.

2. Specify whether you want this build to include the specified employer, all clients, one of the other options. Click the question mark icons for details.

3. Select an Employer ID, Year, and Tax Quarter.

4. For Schedule B Format, select Post COVID-19.

5. Click Build.

About this Report

This report displays suggested values for each box of the 2020 Form 941. It also includes FEIN and employee count information. The following table describes the new and updated report line items, along with their system calculation logic.

Mid-2021 Additions: About the Pre-March and Post-April Categories

The Q3 2021 additions to Form 941 subdivide COVID-19 credits even more finely than before, requiring updates to the PrismHR reporting logic. For reporting purposes, the system now divides “Sick and Family Leave” credits into two categories:

• Credits accrued on charge dates falling before April 1 (pre-April credits)

• Credits accrued on charge dates falling after March 31 (post-March credits)

The pre-April category is determined using the following calculation:

• For any vouchers with pay period start and end dates prior to April 1, include all 00-80, 00-81, 00-82, 00-84, and 00-87 credits in this category.

• For any vouchers with pay period start dates before April 1 and pay period end dates on April 1 or later (but with the pay date in Q1), determine the ratio of COVID pay codes used on pre-April charge dates versus on post-March charge dates. Multiply this ratio by the values of any 00-80, 00-81, 00-82, 00-84, and 00-87 credits on the voucher, and place each portion of each credit in the corresponding category. For example, if 80% of the COVID credits are associated with charge dates before April 1, then this category receives (0.8 * sum of total COVID credits). The post-March category would then receive the remaining 20%.

The post-March category contains the credits remaining after these calculations, plus credits from any vouchers with pay period start/end dates after March 31.

• Accumulated 00-81 credits for the quarter
• Difference between employee (00-12) and employer (00-16) Social Security tax costs for the quarter. | 5a(ii) | Qualified Family Leave Wages | The system uses the lesser of these two values (calculated employee-by-employee): - Accumulated 00-80 credits for the quarter - Difference between employer (00-16) and employee (00-12) Social Security tax costs, minus the value in 5a(i), for the quarter. |
• Accumulated 00-80 credits for the quarter
• Difference between employer (00-16) and employee (00-12) Social Security tax costs, minus the value in 5a(i), for the quarter. | 7 | Adjustment for Fraction of Cents | Displays the difference between taxes calculated from payrolls and taxes calculated for Form 941. | | 11a | Qualified R&D Credits | 0 | | 11b | Nonrefundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken Before April 1, 2021 | Only using credits from the “pre-April” category (see section above). 0 for Q3 and Q4 of 2021. For previous quarters, uses the lesser of the following two values: - Total credits accrued under 00-80, 00-81, 00-82, and 00-84. - Employer Social Security Cap: This corresponds to line 1l of the 941 Worksheet. Equal to the sum of the values in boxes 5a and 5b, times 0.5. This calculated value is also used to calculate the value in box 11c. |
• Total credits accrued under 00-80, 00-81, 00-82, and 00-84.
• Employer Social Security Cap: This corresponds to line 1l of the 941 Worksheet. Equal to the sum of the values in boxes 5a and 5b, times 0.5. | 11c | Nonrefundable Employee Retention Credit from Worksheet 1 | The lesser of the following two values: - The Employer Social Security Cap value calculated above minus the value in 11b. - The sum of the credits accrued under 00-83 and 00-85. If this report is run for Quarter 2 of 2020, the Q1 00-83 and 00-85 are also added. |
• The Employer Social Security Cap value calculated above minus the value in 11b.
• The sum of the credits accrued under 00-83 and 00-85. | 11d | Nonrefundable Portion of Credit for Qualified Sick and Family Leave wages for Leave Taken After March 31, 2021 | The lesser of the following: - Credits stored under the post-April category. - 0.5 × line 5c value (employer Medicare tax) |
• Credits stored under the post-April category.
• 0.5 × line 5c value (employer Medicare tax) | 11e | Nonrefundable Portion of COBRA Premium Assistance Credit | Client-level 00-19 amount, capped at the amount of remaining employer-side Medicare tax. | | 11f | Number of Individuals Provided COBRA Premium Assistance | Number of employees who have a 00-19 tax adjustment voucher associated with the reporting entity. | | 11g | Total Nonrefundable Credits | 11a + 11b + 11c + 11d + 11e + 11f. | | 12 | Total Taxes After Adjustments & Nonrefundable Credits | 10 minus 11g. | | 13a | Total Deposits for Quarter | 0 | | 13b | Deferred Amount of ER and EE SS | Value stored under tax deduction code 00-86. | | 13c | Refundable Portion of Employee Retention Credit for Qualified Sick and Family Leave Wages for Leave Taken After April 1, 2021 | 0 for Q3 and Q4 of 2021. For previous quarters, uses the remainder of the credits in the pre-April category, after the calculations for line 11b. | | 13d | Refundable Portion of Employee Retention Credit | Quarterly credits accrued under 00-83 and 00-85, minus the value in box 11c. The Quarter 2 2020 report also includes credits from Quarter 1. | | 13e | Refundable Portion of Employee Retention Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2021 | Remainder of credits in the post-March category, after the calculations for line 11d. | | 13f | Refundable Portion of COBRA Premium Assistance Credit | Any 00-19 credits remaining after the calculation of 11e (including all employer-associated 00-19 credits). | | 13g | Total Deposits, Deferrals, and Refund Credits | 13a + 13b + 13c + 13d + 13e + 13f. | | 13h | Form 7200 Advances | 0 | | 13i | Deposits, Deferrals, and Refundable Credits Less Advances | 13g minus 13h. | | 19 | Health Plan Expenses Allocable to Sick Leave Wages (Pre-April) | Applies only to credits in the pre-April category. 00-81 credit amount divided by ((00-80 + 00-81 credits) × 00-84 credit amount). | | 20 | Health Expenses Allocable to Family Leave Wages (Pre-April) | Applies only to credits in the pre-April category. Total 00-84 credits minus the value in box 19. | | 21 | Wages for Employee Retention Credit | Double the 00-83 credits. | | 22 | Health Plan Expenses Allocable to Line 21 | Double the 00-85 credits. | | 23 | Sick Leave Wages for Leave Taken After March 31 | 00-81 values in the post-March category. | | 24 | Health Plan Expenses Allocable to Line 21 | Same logic as line 19, applied to credits in the post-March category. | | 25 | CBA Sick Leave | 0 | | 26 | Family Leave Wages for Leave Taken After March 31 | 00-80 values in the post-March category. | | 27 | Health Plan Expenses Allocable to Line 26 | Same logic as line 20, applied to credits in the post-March category. | | 28 | CBA Family Leave | 0 | ========================================================================

COVID-19 941 Over-Limit Error Report

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/COVID-Reports/COVID_Over_limit_report.htm Path: CMP/COVID-19 Docs/COVID-Reports/COVID_Over_limit_report.htm

COVID-19 941 Over-Limit Error Report

Use this report to identify employees affected by the employee vs. employer-side Social Security tax over-limit issue.

Background

Because COVID-19 credits (00-80 and 00-81) are exempt from employer-side Social Security tax, an employee who was paid COVID-19-related wages in 2020 may have a higher 00-12 (Employee SS Tax) value compared to their 00-16 (Employer SS Tax) value, for that quarter. If this employee later reached the $137,700 Social Security tax threshold under 00-12, the system continued to accrue Social Security tax on the employer side, since the 00-16 value had not yet reached the limit. This behavior is incorrect and can have significant downstream effects.

This issue was corrected in the October release and 00-16 now stops accruing as soon as 00-12 reaches the Social Security tax limit. That release also introduced this report, which can help you identify any employees affected by this issue and provide data to help you fix the issue for them.

Running the Report

To run the COVID-19 941 Over-Limit Error Report:

1. Click the Back Office menu.

2. Under Operations|Report, select COVID-19 OverLimit Report. The setup form displays.

3. Enter a Year and, if necessary, a Quarter.

4. Select an Employer if you want to run the report for that employer. To run the report for all employers, leave this field blank.

5. Click Run. The report generates.

Analyzing the Report

Note: Note: This over-limit issue was corrected in the October release. If none of your employees reached the Social Security tax limit before this release, this report may not pull any data as the issue will not exist for them.

This report returns information about the differences between employer-side and employee-side Social Security tax. It displays the Net Taxable amount, the actual tax amount, and the “over limit” amount for both the employer and employee components of the tax, along with calculated differences between these two components. You can then use this information to correct the records of the affected employees. (Note that employee information was cropped out of the left-hand side of this screenshot).

The report provides client-level and employer-level totals for these values (in bold).

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Paycheck Protection Program Reports

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/COVID-Reports/COVID_PPP_Report.htm Path: CMP/COVID-19 Docs/COVID-Reports/COVID_PPP_Report.htm

Paycheck Protection Program Reports

Note: Note: Several settings on the COVID-19 Emergency Processing Parameters form can influence the output of these reports. Please review the descriptions of these settings to better understand how you can customize the outputs of the reports.

You can use these reports to assist with Paycheck Protection Program (PPP) loan forgiveness. The Payroll Cost Report helps you determine payroll-related costs incurred over the loan forgiveness period. The Full-Time Equivalent Analysis report helps you determine whether your loan forgiveness will be decreased due to workforce reductions.

Known Issues/Things to Know

This section describes aspects of the reports that may cause unexpected outputs. Some of these will be fixed and others are consequences of the reports themselves. Please keep this information in mind when you run and analyze your reports.

• The Cash Compensation column includes payments flagged as Reported Tips.

• The FTE Simplified report sometimes does not complete for very large clients. However, the standard calculation now works for clients of all sizes.

Background

Loans received through the Paycheck Protection Program are forgivable up to 100%, but this value can vary based on several factors:

• The loan can only be forgiven for payroll costs over a specified period.

• If a client’s full-time equivalent (FTE) count decreases over this period, the loan forgiveness percentage also decreases.

• The forgiveness amount can also decrease based on employee compensation reductions.

The Payroll Cost Report provides insight into the first bullet point above. The FTE Analysis Report provides insight into the second.

Before You Begin

These reports use a new field on the CARES Act Parameters form, called Paycheck Protection Program Loan Start Date.

Before you run any of the reports, navigate to Client Details >Actions menu

[Image: screenshot]

CARES Act Parameters and enter the appropriate date in this field.

If you do not enter a date in this field, you can enter it in the field that displays on the report setup form.

Full-Time Equivalent Analysis Report

Note: Note: You can now exclude specific pay codes from the FTE report logic. On the COVID-19 Emergency Processing Parameters form, enter these pay codes in the new Exclude FTE Pay Code table.

This report includes all employees with hours that fall within the appropriate PPP window. It also calculates the number of full-time equivalents employed during the given time frame and provides insight into whether, and to what extent, a FTE reduction occurred (see the Reduction Quotient description below).

Employee hours are based on charge dates within the associated time frame. The system then divides these hours by the number of days in that period to return a daily hours amount, and multiplies this value by 7 to return a weekly hours amount. Finally, the report divides this value by 40 to return a Full-Time Equivalency value, capped at 1.0 and rounded to the nearest tenth.

Report Background

This report displays a breakdown of employees who have hours in the system within two lookback periods and a Covered Period (specified during report setup). The two lookback periods are:

• February 15, 2019 – June 30, 2019

• January 1, 2020 – February 29, 2020

Additionally, please note the following:

• For all employees, the system calculates hours using the total Hours Paid under Standard-type hourly pay codes and the total Hours Worked for any other pay codes.

• The report does not include employees with 0 hours.

• The report does not include 1099 contractors or business owners.

• The report does not include pay codes with the Exclude from ACA Reporting option enabled.

Finally, this report calculates several total values: Total FTE and a calculated Reduction Quotient, which indicates whether an FTE reduction occurred during any of the time frames. The Reduction Quotient equals the Covered Period total FTEs divided by the total FTEs for the appropriate Lookback Period.

See Analyzing the Report for a description of these calculations.

Running the Report

Note: Note: While the report now runs for very large clients, the Simplified FTE method does not always finish calculating for clients of this size. The standard (non-Simplified) report does run completely for large clients.

To run the COVID-19 PPP Forgiveness Report:

1. SelectReports menu and then select COVID-19 PPP Forgiveness Report under HR|Report.

2. In the Report field, choose Full Time Equivalent Analysis.

3. Enter a Covered Period Start Date if one does not populate.

4. Select whether you want to run the report for 8 weeks, 24 weeks, or until a Custom End Date.

5. If you want to filter the report results by location, select a Worksite Location.

6. If the option displays, select whether you want to use the Simplified Method for FTE calculation. See the description of the system-level parameter in the Cap and Credit settings table of Configuring System-Level Parameters

7. If the option displays, enter your custom start and end dates for Lookback Periods 1 and 2.

8. Click Run. The report generates.

Analyzing the Report

The report includes the following columns for each employee:

Column Title — Description

Employee No, Name, ID, Current Status, Status Date, Current Type Class, Type Date, Original Hire Date, and Last Hire Date — All these values can be found on the corresponding Employee Details > Name tab, in the Employment panel.

Covered Period (Full-Time Equivalency) — Full-time equivalent value for the employee over the selected time period, beginning with the Loan Start Date. Calculation: employee’s weekly hours during the covered period divided by 40 and capped at 1.0 and rounded to the nearest tenth. Simplified Method: Active full-time employees receive 1/7th of a unit per day worked. Active part-time employees receive 1/14th of a unit.

Lookback Option 1 — Average weekly employee hours between February 15, 2019 and June 30, 2019, divided by 40 and capped at 1.0 and rounded to the nearest tenth. Simplified Method: Active full-time employees receive 1/7th of a unit per day worked. Active part-time employees receive 1/14th of a unit.

Lookback Option 2 — Average weekly employee hours between January 1, 2020 and February 29, 2020, divided by 40 and capped at 1.0 and rounded to the nearest tenth. Simplified Method: Active full-time employees receive 1/7th of a unit per day worked. Active part-time employees receive 1/14th of a unit.

The report also provides several Average Hours Analysis columns (Excel output only):

Column Title — Description

Covered Total Hours — Employee’s total hours starting from the loan start date and ending after the selected number of days.

Covered Weekly Average — Covered Total Hours divided by the number of days, multiplied by 7.

Lookback 1 Total Hours — Total employee hours between February 15, 2019 and June 30, 2019.

Lookback 1 Weekly Average — Lookback 1 Total Hours divided by 136 days, then multiplied by 7.

Lookback 2 Total Hours — Total employee hours between January 1, 2020 and February 29, 2020.

Lookback 2 Weekly Average — Lookback 2 Total Hours divided by 60 days, then multiplied by 7.

Finally, the report includes the following totals, displayed for both lookback periods:

Total Name — Description

Total — Total FTEs for the column.

Reduction Quotient (Lookback periods only) — Covered Period column value divided by total FTEs for the appropriate time frame. A value greater than or equal 1.0 indicates that no workforce reduction occurred during that period. A value less than 1.0 indicates that there was some reduction in FTEs compared to this period.

Payroll Cost Report

Report Background

This report uses the value entered in the new Paycheck Protection Program Loan Start Date field. If you have not configured this field yet, please see the Before You Begin section above.

The report displays payroll costs over the 8-week, 24-week, or user-entered time period, beginning with the loan start date. The report includes any employee who has existing data for any of the payroll cost columns (defined further in Analyzing the Report

Running the Report

To run the COVID-19 Payroll Cost Report:

1. SelectReports menu and then select COVID-19 PPP Forgiveness under HR|Report.

2. In the report setup field, choose Payroll Cost Report.

3. Enter a Covered Period Date if one does not populate.

4. Select whether you want to run the report for 8 weeks, 24 weeks, or until a Custom End Date.

5. Select whether you want to use the Simplified FTE calculation method, as with the FTE Analysis Report.

6. Select a Worksite Location if you want to limit the report results to only that location.

7. If you want the report to include health and retirement contributions made by owners, select Include Owner Health and Retirement.

8. Click Run. The report generates.

Analyzing the Report

Values for Employee Wages and all subsequent report columns are based on data from any payroll batches with pay dates that fall within the chosen time period, as specified by the PPP Loan Start Date value you entered.

The report does not include 1099 contractors, but it currently does include non-resident alien employees owners. If you do not want to include non-resident aliens on the reports, go to the COVID-19 Emergency Processing Parameters and select Exclude NRAs from PPP Reporting. If you want to exclude owners from the report, select Exclude Owners from PPP Reports on the same form.

The report includes the following columns for each employee:

Column Title — Description

Employee No, Employee Name, Employee ID — All these values can be found on the corresponding Employee Details > Name tab, in the Employment panel.

Estimated Table Type — Whether the employee is expected to fall under either Table 1 or Table 2 in the Schedule A Worksheet of the PPP Loan Forgiveness Application. If the employee is the owner, this column populates an O. Subtotals for both table types also display. An employee is considered “Table 2” if their 2019 earnings and reported tips, divided by their active days in 2019 and multiplied by 365, is greater than $100,000 OR If the employee has annual pay at a rate of $100,000 or more for more than one day at any point in 2019.

Full Time Equivalency — Full-time equivalent calculation for this employee based on their hours. This is the same value as the one found in the Covered Period Column in the FTE Analysis Report. Owners display in this column as an O.

Total Cash Compensation — Any employee cash compensation (including Earnings and Reported Tips) recorded under pay dates within the selected time period.

Allowable Cash Compensation — The value in Total Cash Compensation, minus any COVID FMLA/Sick Leave pay codes, and capped at $15,385.

Health Care Expenses — Employer premium contributions toward plans flagged as Medical, Dental, and Vision, minus employee contributions toward these plans. Healthcare-related FSA plans are also included. For these plans, the report just uses the employer contribution. This column does not include any plans where the Do NOT Include in ACA Reporting option is selected.

Retirement Contributions — The total of all employer match amounts (including Regular Employer Match, Safe Harbor 1 Match, Safe Harbor 2 Match, and Non-Elective Match).

Employer State and Local Taxes — All employer-side tax liability, except for Federal Government (00-XX) tax deduction codes and tax deduction codes for U.S. territories, such as Guam and the Virgin Islands (52-XX and above).

Total Payroll Costs — Allowable Cash Compensation + Health Care Expenses + Retirement Contributions + State and Local Taxes.

Salary Reduction Report

The PPP Salary Reduction Report provides information about COVID-19-related employee pay reductions during the specified PPP covered period. It includes comparison calculations between pre-pandemic pay rates and covered period pay rates, along with indications about whether the employee’s pay was restored according to PPP guidelines.

Report Background

The SBA’s Paycheck Protection Program Loan Forgiveness Application describes the calculations you need to complete in order to determine your PPP loan forgiveness eligibility. Forgiveness eligibility is based on several factors, including the use of the loan funds and maintaining PPP staffing requirements. This report is designed to help you quantify your compliance with those staffing requirements.

In Table 1 of the Schedule A worksheet, you must specify each employee’s “Salary/Hourly Wage Reduction” if their pay during the loan’s Covered Period was at least 25% lower than their pay during the reference Lookback Period. You must also take into account whether the employee’s pay reductions qualified for any PPP safe harbor provisions before determining the final salary reduction.

This report provides:

• Calculated employee pay rates for both the Covered Period and the Lookback Period.

• A fractional comparison between the two rates.

• A determination of whether the employee’s pay rate was restored by the date of submission of the loan forgiveness application.

• An estimated final total for the employee’s pay reduction.

Running the Report

Note: Note: Depending on how your organization keys in payroll data, you may need to adjust the report setup dates so that you can capture data from full pay periods. In other words, report calculations may be “off” if you enter the correct covered period start and end dates, because they may not capture the entirety of the pay period data from the beginning or end of the covered period.

To run the report:

1. SelectReports menu and then select COVID-19 PPP Forgiveness under HR|Report.

2. In the report setup field, choose Salary Reduction Report.

3. Enter Covered Period start and end date information as you would for the other PPP reports.

4. Enter the SBA Loan Forgiveness Application Submission Date. The report uses this date in its calculations (see below). If you leave this field blank, the system uses today’s date OR December 31, 2020 (whichever is earlier).

5. The report breaks out employees as either “Salaried” or “Hourly” based on certain factors. If you want the system to group “Commission” employees as Salaried, select the Treat Commissioned as Salaried? field. (“Commission employees” = employees whose Pay Method on Employee Details is set to Commission).

6. If you need to use a custom lookback period, enter the Lookback 1 Start Date and End Date.

7. Click Run. The report generates.

Analyzing the Report

Employee Information

The report sorts employees based on two criteria:

• Estimated Table Type (1 or 2)

• Salaried/ Hourly

The second category is based on the employee’s Pay Method on the Employee Details form. “Hourly” and “Driver” employees are considered Hourly (H). “Salary” employees are considered Salaried (S). “Commission” employees are grouped based on whether or not you selected the Treat Commissioned as Salaried? field on the report setup form.

Covered Period Average Annualized Salary/Hourly Rate

The Covered Period begins and ends on the dates specified in the report setup parameters.

The calculation involves the following steps:

1. Calculate employee compensation using charge dates within the Covered Period (paid under pay codes flagged as Earnings or Tips).

2. Divide compensation by other figures, depending on Pay Method:

• Salaried: Compensation / Active Days * 365

• Hourly: Compensation / Hours, where Hours = hours paid if the pay code is set to Standard and Hourly. Otherwise, hours worked is used. Hours worked are also used if the Pay Reason is set to Units.

• The system excludes any pay codes flagged for exclusion for ACA or PPP purposes.

Lookback Period Average Annualized Salary/Hourly Rate

This is calculated using the same logic as in the section above, but in this case the Covered Period is replaced by the period from Jan 1 through Mar 31, 2020, unless an override period is entered in the report setup parameters.

Lookback Period Average Hours Worked

This column value = (hours worked in the lookback period/ number of days in the lookback period) * 7

Reduction Comparison

This column value = Covered Period Average Annualized Rate/ Lookback Period Average Annualized Rate

Feb 15 Rate Restored by: [DATE]

[DATE] = Application Submission Date entered during report setup. If you left this field blank, the report defaults to either today’s date or December 31, 2020 (whichever is earlier).

The value in this column can be Y, N, or NA.

The system prints NA if:

• The Reduction Comparison calculation ≥ 0.75.

• There is no employee compensation data for February 15, 2020.

• The employee is not active on the Application Submission Date.

The system prints Y if:

• The Reduction Comparison calculation is less than 0.75

• AND

• The employee’s annualized pay on the Application Submission Date ≥ their annualized pay on 2/15/20.

Otherwise, the system prints N.

Estimated Step 3 Reduction Amount

This is the final system estimation of the employee’s Schedule A, Table 1 pay reduction amount.

The report prints 0 if the Reduction Comparison calculation ≥ 0.75

The report also prints 0 if the value in the Feb 15 Rate Restored by: [DATE] column is Y.

Otherwise, the report uses the following formula: ((Lookback Average * 0.75) - Covered Period Average), and then adjusts that value based on whether the employee is hourly or salaried:

• For Hourly (H) employees, multiply by Lookback Period Average Hours Worked, then multiply by 8 (weeks) OR 24 (weeks), depending on the length of the covered period. Any covered period longer than 8 weeks is treated as 24 weeks.

• For Salaried (S) employees, divide by 52 (weeks), then multiply by either 8 or 24 weeks, according to the same logic described above.

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Employee Retention Credit Recalc Report

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/COVID-Reports/ERC_Report.htm Path: CMP/COVID-19 Docs/COVID-Reports/ERC_Report.htm

Employee Retention Credit Recalc Report

Note: Note: When applying Employee Retention Credit (ERC) “caps” or limits, both this report and the COVID-19 Recalculation Utility will take into account the fact that the 2020 credit limit was raised for 2021 (from $5000 per employee to $7000 per employee).

In December 2020, the CARES Act legislation was updated, introducing the possibility for businesses to have periods wherein they do not qualify for 00-83 or 00-85 credit accumulation (remember: 00-83 tracks the wage component of the Employer Retention Credit and 00-85 tracks the benefit cost component). Other scenarios are also possible: businesses might retroactively discover that their ERC credit dates overlap with their PPP forgiveness period. In this case, they would need to make adjustments to their reporting periods in order to claim both benefits to the fullest extent possible.

To support these changes, there are new exclusion date setup fields on the COVID-19 Client Parameters form (see Setting Up CARES Act Compliance).

This new ERC exclusion date feature significantly impacts three parts of the system:

• Payroll - ERC credits will not calculate on any pay dates within the specified period.

• COVID-19 Recalculation Utility - As noted elsewhere, running this utility after setting up the ERC exclusion dates will cause the utility to zero out ERC credits if those credits are associated with pay dates falling within the exclusion range.

• ERC Recalc Report - This report was created to provide more insight into the behavior of this feature.

The Employee Retention Credit Recalc Report can help you independently determine any retroactive calculations related to ERC credits. If you need to test several date ranges to maximize your PPP loan forgiveness and ERC credit claims, you can run this report multiple times while adjusting the date range. Compare the outputs of these test reports and use your observations to inform any decisions about your reporting period dates.

Alternatively, you can use the report to preview the effects of the COVID-19 Recalculation Utility. PrismHR highly recommends doing this if you plan to run the utility after setting up your exclusion dates.

Running the Report

To run the Employee Retention Recalc Credit Report:

1. ClickReports menu and select ERC Recalc Report under HR|Report. A setup form displays containing the name and ID of the selected client.

2. Click Run. The report generates.

Report Output

The report data is displayed by employee. It lists the employee’s name, ID, associated Employer ID, and associated Client entity ID. After this general information, the report displays quarterly before and after calculations for both 00-83 and 00-85 credits, extending from Q1 2020 to the current quarter.

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Setting up System-level COBRA Parameters

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/COVID-Settings/ARPA_COBRA_System.htm Path: CMP/COVID-19 Docs/COVID-Settings/ARPA_COBRA_System.htm

Setting up System-level COBRA Parameters

Use the Cobra Credit Parameters form, located off the menu of the System Parameters form, to configure system-level COBRA settings in compliance with the American Rescue Plan Act (ARPA).

To configure system-level COBRA parameters for ARPA compliance:

1. Click Back Office.

2. Under System|Change, select System Parameters.

3. Click the Actions menu [Image: screenshot] and select COBRA Credit Parameters.

4. Set your Cobra Billing Event Code, which will track 00-19 credits as they accrue.

5. In the Creditable Clients table, specify all the clients to whom you want to provide a billing refund of 00-19 credits.

6. Click Save.

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Setting Up CARES Act Compliance

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/COVID-Settings/COVID_CARES_Setup.htm Path: CMP/COVID-19 Docs/COVID-Settings/COVID_CARES_Setup.htm

Setting Up CARES Act Compliance

Note: Note: If you are a large employer as defined by the act, you must set up separate pay and billing codes to pay employees who otherwise would not be paid. See the steps above for details on this setup. If you are a small employer, you can use your standard pay codes to track CARES Act credits. You only need to set up a new billing code and billing event and then assign the billing event at the system level.

Important Notes

Please note the following about this feature:

• You can use this form to assign CARES Act-specific pay codes to the client.

• Tax credits will accrue on employees who are paid with the specified pay codes.

• They stop accruing once they reach the $5,000 employee limit.

• Medicare tax is not credited.

• These tax deduction codes populate on both the employer registers and (if SBEA functionality is enabled) the client federal entity registers.

• Wage and credit limits are not applied.

• If you select the 941 Liability rebate option on the system-level COVID-19 settings, CARES Act credits will be rebated along with Families First Act credits. All these credits are compared with the client’s 941 liability during rebate calculation.

• If you assign pay codes with a non-Standard Calculation Method, the system uses Hours Paid (instead of Hours Worked) to calculate CARES Act credits for that employee.

• Credit limits were adjusted to conform with new legislation.

• Use the ERC Exclusion Dates to disable credit accrual for one or more date ranges.

• The COVID-19 Credit Recalculation Utility also respects ERC Exclusion Dates. It zeros out any CARES credits on vouchers found within those date ranges.

• The system no longer calculates employer retention credits on employees flagged as business owners. If you still want to perform these calculations, you can enable the Calculate ERC for Owners setting.

Procedure

To configure the system for CARES Act compliance:

1. On the system-level COVID-19 settings, assign a billing event to the new Emergency Employee Retention Credit Billing Event field.

2. Click Client and select Client Details under Client|Change.

3. Click the Actions menu [Image: screenshot] and select COVID-19 Client Parameters.

4. In the Emergency Retention Credit Pay Codes list, select all pay codes you set up to track CARES Act compliance.

5. If you need to disable 00-83 and 00-85 credit accrual for certain date ranges (for example, your organization took out a PPP loan), enter the appropriate date ranges in the ERC Exclusion Start and End Date fields. Set the Category for each date range to Cares.

6. Save the record.

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Deferring Employer Social Security Taxes

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/COVID-Settings/COVID_Deferring_Employer_SS.htm Path: CMP/COVID-19 Docs/COVID-Settings/COVID_Deferring_Employer_SS.htm

Deferring Employer Social Security Taxes

You can use a new table on the Client Overrides form to defer employer-side Social Security taxes. To track deferrals, you must set up a unique billing code and a billing event. You must then assign that billing event on the COVID-19 system parameters form.

Note: Note: If you set up this feature for a client with no rebate cap logic set, all employer-side Social Security tax deferrals for that client are rebated back using a client bill pending entry. Alternatively if you set up this feature and the client has a 941-based rebate cap set, the client’s rebate will exclude deferred employer-side Social Security tax. In other words, the client rebate = the client 941 liability minus Social Security deferrals.

To set up employer-side Social Security tax deferrals:

1. Ensure that you are on the COVID-19 Emergency Processing Parameters Client Overrides form.

2. Locate the CARES Act Employer Social Security Deferral table.

3. Select a Client ID for each applicable client.

4. Enter the appropriate start and end dates for each client. The system will defer employer-side social security taxes for any client payroll batches that have a pay date in this range.

5. Save the record.

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Configuring Employee-Level Settings

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/COVID-Settings/COVID_Employee_Settings.htm Path: CMP/COVID-19 Docs/COVID-Settings/COVID_Employee_Settings.htm

Configuring Employee-Level Settings

The system-level and client-level settings may not apply to all employees. Specifically, you may want to cap employee paid sick leave at a value other than the default 80 hours. A new field on the Employee Details > Other tab allows you to configure this setting.

Note: Note: The default value for COVID-19 Paid Sick Leave Max Hours is 80. If the value in this field is reached during payroll initialization, the system displays a payroll warning.

To configure employee-level COVID-19 settings:

1. Click HR and then select HR|Change > Employee Details.

2. Enter the appropriate Employee ID.

3. Select the Other tab.

4. In the Miscellaneous panel, enter the employee’s COVID-19 Paid Sick Leave Max Hours. This overrides any client-level settings or system-level defaults. This value also displays in the Actual Sick Leave Hours column of the COVID-19 Leave Estimate Report.

5. Save the record.

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Setting Up Access to the New Forms

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/COVID-Settings/COVID_Form_Access.htm Path: CMP/COVID-19 Docs/COVID-Settings/COVID_Form_Access.htm

Setting Up Access to the New Forms

As usual, you must configure user role access to the new COVID-19 forms. This is an example list to get you started, but please ensure that you have granted access to all COVID-19 forms appropriately even if they are absent from this list.

On the User Role Maintenance form, these forms have the following Process IDs:

Add any other Process IDs, as needed. Please contact the PrismHR Customer Support Team if you need help with this process.

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Tracking Healthcare Payment Credits

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/COVID-Settings/COVID_Healthcare_Credits.htm Path: CMP/COVID-19 Docs/COVID-Settings/COVID_Healthcare_Credits.htm

Tracking Healthcare Payment Credits

Logic

PrismHR uses two tax deduction codes to track healthcare credits:

• 00-84: Families First Act healthcare credits

• 00-85: CARES Act healthcare credits

Because these credits accrue under two different pieces of legislation, the system uses special logic to calculate and allocate them:

1. Calculates standardized healthcare costs and hours across a given payroll.

2. Adds FSA plan costs for that payroll to the standardized value.

3. Determines the percentage of hours worked under each act (vs. Standard Hours) and allocates credits to the appropriate tax deduction codes, according to these percentages.

The table below includes descriptions of each calculation step, along with the credit cap logic for each act. Note that aspects of this calculation may be impacted by the settings you configured on the system-level COVID-19 parameters form (see above).

Calculation Element — Description

(Step 1) Standardized Healthcare Cost Calculation — The system compiles all monthly billing-side costs of any employee plans with an insurance class of Medical, Dental, Vision, Life Insurance, and Short/Long-Term Disability. If the plan is flagged as a Section 125 plan, the system includes the full billing amount (employee-side and employer-side). Otherwise, the system only uses the employer contribution. It then multiplies this sum by 12 to get an annual standardized cost, and then, to get a per-batch cost, divides this value by the number of pay cycles per year for that employee (for example, 52 for a weekly employee or 26 for a biweekly employee).

(Step 2) FSA Plans — This value is not standardized. Instead, it is handled on a batch-by-batch basis. For a given payroll batch, if the employee has an FSA plan flagged as a healthcare plan, the system takes the standardized healthcare cost (calculated above) and adds the FSA plan’s cost for that payroll (both employer and employee contributions).

(Step 3) Allocating Costs to the Appropriate Tax Codes — The system calculates the percent to allocate to each tax deduction code, based on the hours worked under Families First pay codes and CARES Act pay codes. For each act, the system divides the hours worked under that act’s pay codes by the employee’s Standard Hours (found on Employee Details). The resulting fraction is multiplied by the total healthcare costs for the payroll, and that amount is allocated to the appropriate act’s tax deduction code.

Cap Logic (Families First Act) — For tax deduction code 00-84 (Families First healthcare credit), there is no cap on the amount of healthcare credits you can accrue. However, healthcare credits stop accruing once you reach the employee’s wage cap as defined under the act.

Cap Logic (CARES Act) — Healthcare credits stop accruing once the combined amounts in tax deduction codes 00-83 and 00-85 reach the $5000 limit ($7000 in 2021). Note that this limit includes accrued healthcare credits.

Setup

To set up healthcare credit tracking:

1. Create two unique billing codes and billing events for this feature (one for Families First and one for the CARES Act).

2. Navigate to the COVID-19 Emergency Processing Parameters form.

3. Assign the billing event to the Families First Health Care Credit Billing Event field.

4. Assign the other billing event to the CARES Act Health Care Credit Billing Event field.

5. Select the Default Calculate Health Care Credit option. If you want to set this up client-by-client, you can set the corresponding setting on the COVID-19 client override form.

6. Click Save.

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Setting Up Client-Specific Overrides

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/COVID-Settings/COVID_Set-Up-Client-System-Settings.htm Path: CMP/COVID-19 Docs/COVID-Settings/COVID_Set-Up-Client-System-Settings.htm

Setting Up Client-Specific Overrides

Use the COVID-19 Emergency Processing Parameters Client Overrides form to establish client-specific settings, if necessary. These fields mimic the system-level fields for COVID-19 credit logic.

Note: Note: If you are not calculating health benefit credits at the system level, but you do want to track them at the client level, go to the appropriate client/company(s) and select Yes under Calc Health Care.

To set up client overrides:

1. On the COVID-19 Emergency Processing Parameters form, select the Actions menu [Image: screenshot] .

2. Select Client Overrides. A new form displays.

3. Add clients to this form as needed. To add clients, enter the Client ID. The Client Name populates automatically.

4. Select the appropriate options for each client override parameter. These are identical to the system-level settings.

5. When you finish, click Save.

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Configuring System-Level Parameters

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/COVID-Settings/COVID_System_Settings.htm Path: CMP/COVID-19 Docs/COVID-Settings/COVID_System_Settings.htm

Configuring System-Level Parameters

Note: Note: We strongly recommend setting your Default Wage Cap Logic and Default Tax Credit Cap Logic to the same value. Using different settings can cause serious irregularities.

If you completed the steps in the previous sections, you have already created pay codes and billing events to track coronavirus-related leave, and you also understand how client rebate credits accrue under the new tax deduction codes. Use the settings below to associate those pay codes and billing events with the appropriate leave type. You can also configure your wage and credit capping logic, along with many other global COVID-19 calculation and reporting settings.

To access this form, click the Back Office menu and then select System Parameters > Actions menu > COVID-19 Emergency.

Setting Up Pay Codes and Billing Events

The system uses the pay codes and billing events entered here to track COVID-19-related tax credits and calculate client rebates for these credits. You must create unique pay codes and billing events for each field on this form.

Field — Description

Emergency Tax Credit Rebate Billing Event — Billing event you set up to track COVID-19 paid leave credits.

Emergency Medicare Credit Rebate Billing Event — Billing event to track employer-side Medicare tax credit rebates for COVID-19 leave.

Emergency Employee Retention Credit Billing Event — Billing event to track credits accrued in compliance with the CARES Act.

Employer Social Security Deferral Credit Billing Event — Billing event to track credits for deferred employer Social Security taxes.

Families First Health Care Credit Billing Event — Billing event to track credits for healthcare-related benefits payments allocated under the Families First Coronavirus Response Act.

CARES Act Health Care Billing Event — Billing event to track credits for healthcare-related benefits payments allocated under the CARES Act.

COVID-19 Emergency Paid Sick Leave (Self-Care) Pay Code — One or more pay codes to use for COVID-19-related sick leave payments when the employee takes time off to care for themselves.

Emergency Paid Sick Leave (Dependent-Care) Pay Code — One or more pay codes to use for COVID-19-related sick leave payments when the employee takes time off to care for a dependent.

Emergency FMLA Pay Code — One or more pay codes to use for COVID-19-related FMLA payments. For example, you can enter one pay code with a Factor of 1.00 and another with a Factor of 0.67.

Establishing Tax Credit Caps and Other Settings (Updated for 2021)

You can configure credit cap settings according to your organizational needs. Refer to the following table for descriptions of the fields and their settings. See the sections below for an outline of the FFCRA’s tax credit limits.

CARES Act Employer Retention Credit Rules

Please note the following important details about the Employer Retention Credit under the CARES Act:

• In 2020, the CARES Act allowed businesses to claim tax credit on 50% of employee wages and healthcare benefit costs paid between March 13 and December 31, 2020. The cap per employee was $5,000 (equivalent to $10,000 in wages paid between these dates).

• In 2021, new legislation updated these values to 70% of employee wages and $7000 total. The system performs these calculations automatically for 2021 pay dates, while 2020 pay dates retain the calculation logic described above.

The system also tracks credits related to health care benefit payments and employer-side Social Security tax deferrals. For more information, see the field-level descriptions below, as well as the sections below called Deferring Employer-Side Social Security Taxes and Note About Health Care Credits.

2021 FFCRA Credit Rules

In March 2021, the legislation governing FFCRA credits was extended. Beginning on April 1, 2021, the system will respect the following qualified wage caps:

• FMLA: $12,000 (credit accumulation does not reset)

• Sick (Dependent-Care): $2000 or $5110 minus credits from Sick (Self-Care), whichever is less

• Sick (Self-Care): $5110 minus credits from Sick (Dependent-Care)

2020 FFCRA Credit Rules

Aggregate

• FMLA: $10,000

• Sick (Dependent-Care): $2000, or $5110 minus credits from Sick (Self-Care), whichever is less

• Sick (Self-Care): $5110, minus tax credits associated with Sick (Dependent-Care)

• If an employee works 8 hours or fewer in a day, there is a cap of $200 per day

Daily (2020)

• FMLA: $200 per time sheet line item

• Sick (Dependent-Care): $200 per time sheet line item

• Sick (Self-Care): $511 per time sheet line item

• No Limits: Rebate the client for the full claimable credit amount for this payroll. The rebate is not reduced according to any rules or restrictions.
• Cap at Client QTD 941 Liability: The system will only rebate the client up to the amount calculated for their 941 liability (quarter-to-date).
• Cap at Payroll Batch 941 Liability: The system only rebates the client up to the amount calculated as 941 liability for that payroll batch. | Default Calculate Health Care Credit | Select this option if you want the system to calculate healthcare credits for all clients as defined by the CARES Act. | | Medicare Credit Limited to Tax Amount | > Note: Note: This option is enabled by default. Leave this option enabled if you want to continue to use the system’s default logic. However, the draft of the new Form 941 implies that Medicare tax credits should equal a straight 1.45% of accrued credits under 00-80 and 00-81. If you want to follow this guidance instead of using the system logic, deselect this option. Select this option if you want the system to calculate Medicare tax credits (00-82) as either 1.45% of the accrued Families First credits OR the actual employer Medicare tax amount on the associated voucher (whichever is less). This is the default system logic. If you do not select this option, the system calculates this credit only using the first strategy, taking the credits accrued under 00-80 and 00-81 and multiplying them by 1.45%. This is the logic implied by the draft Form 941. | | Exclude EE S125 Contributions | As federal guidance does not yet clarify whether to include these costs in the healthcare credit calculation, you can toggle this setting yourself. If you select this option, the system does not include employee-side contributions to Section 125 plans when determining the healthcare credit. > Note: Note: If you select this option, the system also excludes employee-side FSA plan contributions from the healthcare credit calculation (effective 6/15/20). If you want to include these contributions (the standard system logic), leave this option unselected. | | COVID-19 Sheltered Wage Allocation | > Note: Note: This logic also applies when you run the COVID-19 Recalculation tool (see Recalculating COVID-19 Credits Retroactively). In the system, 00-80 and 00-81 credits accrue on sheltered wages. This can affect the values in boxes 5a(i) and 5a(ii) of Form 941, potentially implying that the employee went over the tax limit when they did not. You can use this option to determine how the system handles sheltered wages related to COVID-19 payments. Select None if you want to preserve previously described system behavior and continue including sheltered wages in these calculations. Otherwise, select one of the other options below. - Cap Wage Credits if Sheltered: This option caps COVID-19 wage credits at qualified wages by limiting the credit to 00-12 taxable wages. Generally, this may result in a reduction for Sheltered Earnings. More specifically, the system first takes employee COVID wages and compares them to taxable earnings on the employee voucher. The lesser of these two values becomes the new 00-81 credit amount. The system then subtracts the employee’s 00-81 credits from their taxable earnings and compares this value to their 00-80 credits. The lesser of these two values becomes the new value for 00-80. For 00-83 credits, the system subtracts the employee’s 00-80 and 00-81 credits from their taxable earnings and multiplies this value by 0.5. If this value is less than the employee’s current 00-83 credits, it replaces that value as the 00-83 credit. - Cap and Allocate to Health Care: The same calculation as described above, but the system also takes the amount reduced from the qualified wages above and adds that amount to the newly calculated 00-84 and 00-85 values, as appropriate (e.g. the Families First credit adjustment is added to 00-84 and the CARES credit adjustment is added to 00-85). |
• Cap Wage Credits if Sheltered: This option caps COVID-19 wage credits at qualified wages by limiting the credit to 00-12 taxable wages. Generally, this may result in a reduction for Sheltered Earnings. More specifically, the system first takes employee COVID wages and compares them to taxable earnings on the employee voucher. The lesser of these two values becomes the new 00-81 credit amount. The system then subtracts the employee’s 00-81 credits from their taxable earnings and compares this value to their 00-80 credits. The lesser of these two values becomes the new value for 00-80. For 00-83 credits, the system subtracts the employee’s 00-80 and 00-81 credits from their taxable earnings and multiplies this value by 0.5. If this value is less than the employee’s current 00-83 credits, it replaces that value as the 00-83 credit.
• Cap and Allocate to Health Care: The same calculation as described above, but the system also takes the amount reduced from the qualified wages above and adds that amount to the newly calculated 00-84 and 00-85 values, as appropriate (e.g. the Families First credit adjustment is added to 00-84 and the CARES credit adjustment is added to 00-85). | Exclude NRAs from PPP Reporting | Select this option if you want to exclude non-resident aliens from the Paycheck Protection Program reports. | | Use Bill Amount for Taxes | Select this option if you want to use the value in the Bill Amount column (under the Billing Voucher Payroll Tax tab) when displaying taxes on the Payroll Cost Report. Otherwise, the system uses the tax liability as displayed on the employee voucher. | | Exclude Owners from PPP Reporting | Select this option to exclude business owners from the Payroll Cost Report. > Note: Note: There are special rules related to business owner PPP calculations. These calculations involve data not stored in PrismHR, such as last year’s profits. We therefore recommend excluding owners from PPP reports and performing these calculations outside the system. If you do include the owner, you may need to adjust their data on the PPP reports. | | Use Billing for Healthcare on PPP Report | Select this option if you want to use the benefit plan Premium Amount (reflective of the Bill Rate) to calculate the Health Care Costs column in the Payroll Cost Report. Otherwise, the system uses the Premium Cost to calculate this value. In either case, the system subtracts the employee contribution from this value to determine the health care cost. Both these values refer to columns in the Benefits tab of employee Payroll Vouchers. | | Simplified Method for FTE | Select your global preference for FTE calculation on the PPP Forgiveness - FTE Analysis Report: - Option to use simplified method: Display the simplified method as a toggle on the report setup form. - Always use simplified method: Default to the simplified calculation. No toggle displays on the report setup form. - Never use simplified method: Default to the standard FTE calculation as described in the report documentation. No toggle displays on the report setup form. |
• Option to use simplified method: Display the simplified method as a toggle on the report setup form.
• Always use simplified method: Default to the simplified calculation. No toggle displays on the report setup form.
• Never use simplified method: Default to the standard FTE calculation as described in the report documentation. No toggle displays on the report setup form. | Look Back Options for FTE | Select whether or not you want to display the custom lookback period fields on the FTE Report setup form. | | Bill to Highest COVID Wages | Select this option if you want the system to assign COVID-related bill pending items to the worksite location/division/department that has the most COVID-relatedwages, instead of the location with the most wages in general. | | Show Health Care Credits | Select whether you want to display 00-84 credits (including tax adjustments) on the PPP Payroll Cost Report. | | Exclude FTE Pay Code | In this table, enter any pay codes you want to exclude from the calculations of the PPP Full-Time Equivalent Analysis Report. | | EE Deferral 4K Check | Select this option to prevent the system from deferring Social Security tax on employees whose pay period compensation exceeds the IRS and Treasury-imposed limit ($4000 per bi-weekly pay period, or the equivalent amount for that employee’s pay period type). This feature takes effect during payroll processing. For details, please see Deferring Employee Social Security Tax. | | Include Owner Health and Retirement | Select this option if you want to include on the PPP Payroll Cost Report any health and retirement contributions made by owners. | | COVID-19 Wages on W2 | Select this option if you want to display labeled 00-80 and 00-81 qualified wages in Box 14 of employee Forms W-2. The values for 00-81 are further broken down and labeled depending on whether they are associated with dependent care or self care. If you create employee Forms W-2 with this option enabled, the system first checks the pay code parameters above to determine which pay codes correspond to self care leave and dependent care leave. The system then checks the employee’s pay history for the year. If the employee was paid under both pay codes, the system allocates the employee’s pay proportionally on the W-2. If the employee was only paid under one of the pay codes, all 00-81 wages are allocated to the appropriate 00-81 category. | | Stop Carryover Accruals | Select this option to prevent the system from automatically creating “carryover” Client Bill Pending items when COVID-19 credits exceed the tax liabilities defined above. Typically, these bill pending items would pull into the next payroll. If this carryover functionality causes issues with your reconciliation process, you can use this setting to deactivate it. | | COVID-19 Processing Stop Date | Enter the date when you want to the system to stop calculating COVID-19-related credits. The system default is July 1, 2021. > Note: Note: If you enter a date prior to July 1 2021, both Families First credits and CARES Act credits will stop accruing on the entered date. Additionally, when FFCRA pay codes are used on charge dates following 09/30/21, the system will generate payments and credits of $0, by default. Payroll warning will also reflect this. | ## ARPA Configuration

Note: Note: The date that automatically populates in the Medicare Credit End Date field is incorrect. Please set this field to 12/31/21.

The 2021 American Rescue Plan Act seems to state that employers can claim credit on Social Security taxes that were paid on COVID-19 qualified wages. In PrismHR, these credits are tracked under tax deduction code 00-87. Use this section to set up dates and billing events associated with the provisions of this act.

The two date fields are designed to increase your flexibility when handling payrolls that extend across the April 1 changeover date. You can adjust these dates as needed to ensure that the proper credits calculate on the proper payroll vouchers. For details, please review the suggestions and workarounds in the Introduction.

Setting — Description

Medicare Credit End Date — On any pay dates after the date entered here, the system will no longer calculate 00-82 credits for Medicare tax associated with FFCRA qualified wages. The default value is 03/31/21, but this is incorrect. To ensure compliance with the provisions of the ARPA, PrismHR strongly recommends setting this field to 12/31/21. > Note: Note: To avoid field validation errors, enter a value in the SS Credit Start Date field before you change the date in this field.

SS Credit Start Date — On any pay dates after the date entered here, the system will start accruing 00-87 credits for Social Security tax associated with FFCRA qualified wages. The system will not calculate 00-87 credits when this field is blank.

SS Credit Billing Event — Specify the billing event you want to associate with the new Social Security tax credit. If you do not have a billing event for this credit, you can create one on the Billing Events form.

COBRA Settings

See See Setting up System-level COBRA Parameters and See Manually Creating Client-level COBRA Subsidy Credits

2021 W-2 Box 14 Settings

Note: Note: To use these fields, you must enable the COVID-19 Wages on W-2 option (see above).

In 2021, the American Rescue Plan Act introduced a split in COVID-19 credit rules based around April 1, 2021. As a result, credits accrued prior to this date must display separately from credits accrued after this date, in Box 14 of the 2021 Form W-2.

Box 14 includes extra space for identifying the “other” amounts included there. Use the 2021 Sick and FMLA Box 14 Entry fields to enter custom identifiers for each of these credits. If you leave these fields blank, the system inserts preset, default text labels instead.

Note: Note: If you enter more than 12 characters in these fields, the remaining text will be cut off during in-house printing.

If you do perform in-house printing, PrismHR highly recommends performing test prints to ensure that all Box 14 entries display correctly, especially if you override the default text.

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Reporting ARPA COBRA Subsidy Credits on the Employer Level of PTS and RTS Files

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/COVID-Utilities-and-Tools/ARPA_COBRA_MasterTax.htm Path: CMP/COVID-19 Docs/COVID-Utilities-and-Tools/ARPA_COBRA_MasterTax.htm

Reporting ARPA COBRA Subsidy Credits on the Employer Level of PTS and RTS Files

You can use MasterTax interface settings to determine whether ARPA-related COBRA subsidy credits (tracked under tax deduction code 00-19) report on the employer level or the client level.

By default, the system displays these credits on the F-code/client/client federal entity level of these files. You can use the procedure below to override this.

To report 00-19 credits on the employer level of the RTS and PTS files:

1. Click the Work Centers menu and select MasterTax Processing under Work Centers|Tax.

2. Under Setup Forms, select MasterTax Interface Parameters.

3. Locate the SBEA Tax Code Reporting Override panel.

4. In the next available row of the SBEA Tax Codes table, select 00-19.

5. Click Save.

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Generating COBRA Subsidy Credits Automatically

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/COVID-Utilities-and-Tools/Auto-Generate_COBRA_Credits.htm Path: CMP/COVID-19 Docs/COVID-Utilities-and-Tools/Auto-Generate_COBRA_Credits.htm

Generating COBRA Subsidy Credits Automatically

You can still create 00-19 tax adjustments manually, if necessary. But you can also configure the system-level COBRA settings and Participant Record settings so that the system automatically generates 00-19 credits when you create COBRA invoices.

To use these new features:

1. Go to COBRA Administration > File > COBRA Global Setup Record.

2. Select F9-Subsidy. The COBRA Subsidy Set-up form displays.

3. Enter a Start Date of 4/1/2021 and a Stop Date of 9/30/2021.

4. Enter 100 in the Subsidy Percent field.

5. Click F2-Save.

6. Next, go to COBRA Administration > File > Participant Record.

7. Enter the appropriate Participant ID.

8. Set Subsidy Percent to 100 and click F2-Save.

9. Repeat for all applicable participants.

Next time you create COBRA invoices, the system will automatically generate 00-19 tax adjustments for all the affected participants who have this setup, and will then create a corresponding invoice line item to reflect the subsidy.

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Viewing Refund Data

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/COVID-Utilities-and-Tools/COVID_Bill_Pending.htm Path: CMP/COVID-19 Docs/COVID-Utilities-and-Tools/COVID_Bill_Pending.htm

Viewing Refund Data

The COVID-19 Refunds form displays a breakdown of all COVID-19-related client rebate credits. More specifically, this form reflects all COVID-19-related Client Bill Pending entries. It also allows you to add and edit existing entries to correctly account for COVID-19-related leave.

Note: Note: For reporting purposes, you can enter new data on this form without creating an associated client bill pending entry. To do this, enter all appropriate data except for the Billing Event.

To access this form, go to Client Details >Actions menu

[Image: screenshot]

COVID-19 Refunds.

The form displays the total client bill Pending Amount at the top.

Adding an Entry

To add a new client bill pending entry:

1. Click Add. The COVID-19 Refunds Maintenance form displays.

2. Enter the Bill Date.

3. Select the Type of COVID-19 credit for this entry.

4. If you want to create a Bill Pending entry, enter the appropriate Billing Event Code. If you only want this data to display on reports without creating a true bill pending item, leave this field blank.

5. Select a Location to associate with the entry.

6. Enter the Amount of the entry.

7. Click Save.

Editing an Entry

To edit an entry in this list:

1. Select the Bill/Pay Date of the item you want to edit. The COVID-19 Refunds Maintenance form displays.

2. Update the credit Type and Amount as needed.

3. Click Save, then Save again.

Generating a Form 7200 in MasterTax

Service providers who use MasterTax and who have Form 941 liability carryover can generate a Form 7200 in MasterTax for this liability amount.

If you choose to do this, PrismHR recommends taking the following steps to ensure most accurate reporting:

To configure the system after creating a Form 7200 in MasterTax:

1. Note the Bill Pending Amount at the top of the form. Record this value (write it down if necessary) and then delete it.

2. Click Add to add a new line item.

3. Set a Bill Date and Location as appropriate.

4. Set the Type to Form 7200 Credit.

5. Do not select “Bill” as this is a non-billed line item.

6. Set the Amount equal to the Pending Amount you deleted in step 1.

7. Click Save and then Save again.

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Viewing Payroll Batch Calculation Variables

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/COVID-Utilities-and-Tools/COVID_PayrollSteps.htm Path: CMP/COVID-19 Docs/COVID-Utilities-and-Tools/COVID_PayrollSteps.htm

Viewing Payroll Batch Calculation Variables

You can view each COVID-19 variable used in payroll batch calculations.

To display this form:

1. Click the Payroll menu and select Payroll Control under Payroll|Change.

2. Select a Payroll Number.

3. Open the Actions menu [Image: screenshot] and select COVID Rebate Audit.

[Image: COVID Tax Credit Rebate Calculation Audit form, showing a breakdown of calculation steps. These include 941 tax liabilities, batch payroll credits for the various COVID credits, rebate amounts, pending rebates, and other calculations.]

The form displays a breakdown of COVID-19 credits and Form 941 liabilities, including the Pending Rebate amount displayed at the top of the COVID-19 Refunds form. Below these totals, the form displays all the major variables used to calculate the client rebate and carryover amount for the batch. Finally, it displays the total calculated rebate, any change to the pending rebate amount, and the final pending rebate amount.

What do these variables mean?

Variable — Description

Form 941 Tax Liability — Equal to the Tax Liability total displayed by the client Quarterly Tax Summary form. 941 tax liability = the tax amounts stored under the following codes: 00-10 (Federal Income Tax), 00-11 (FICA - Medicare), 00-12 (FICA - OASDI), 00-15 (Medicare - Employer side) and 00-16 (OASDI - Employer side).

Batch 941 Tax Liability — The sum of employee federal income tax, employee & employer Social Security tax, and employee & employer Medicare tax for the given payroll batch. You can view these deductions on the Payroll Check Journal Report.

Batch Medicare Credit — Value stored in tax deduction code 00-82. Equal to COVID wages multiplied by 0.0145 (unless altered by some other system-level calculation setting).

Batch Family First Payroll Credit — Value stored in tax deduction codes 00-80 and 00-81.

Batch CARES Credit — Value stored in tax deduction code 00-83. Equal to 50% of qualified wages as determined by the IRS. These qualified wages are paid through pay codes specified in the COVID-19 CARES Act Parameters form.

Batch Family First Health Credit — Value stored in tax deduction code 00-84.

Batch CARES Health Credit — Value stored in tax deduction code 00-85.

Total Credit AMT — The total of all credit amounts above.

QTD Form 941 Tax Liability — The Form 941 Tax Liability plus the Batch 941 Tax Liability, minus any quarter-to-date Medicare credit.

QTD Rebate — Quarter-to-date tax rebate total.

Batch Employer OASDI — This value can also be found on the Payroll Check Journal Report.

Pending Rebate — Calculation (with current payroll amount) of what is not yet rebated.

Available to Rebate — Pending rebate minus tax liabilities.

Calculated Gross Rebate — The total available rebate.

Calculated Add to Pending — The amount that should be added to the Pending Rebate. This value varies depending on the Default Tax Credit Cap Logic, which is set on the COVID-19 Emergency Processing Parameters form.

Calculated Carry Over — The amount that will be added to the carry-over bill pending line item (the item with the date 10/14/2241).

CARES Credit Rebate — Social Security credit based on COVID-19 qualified wage payments.

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Recalculating COVID-19 Credits Retroactively

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/COVID-Utilities-and-Tools/COVID_Recalc_Utility.htm Path: CMP/COVID-19 Docs/COVID-Utilities-and-Tools/COVID_Recalc_Utility.htm

Recalculating COVID-19 Credits Retroactively

WARNING: We strongly recommend running this utility in a test or demo environment first! This utility clears your entire COVID-related billing history and creates new, recalculated billing amounts. Please read the entire section carefully before running this utility. Contact PrismHR Support if you have questions or concerns.

Note: Note: As of the October 2020 off-cycle release, you can now use this utility to recalculate on vouchers that were paid when COVID-19 functionality was disabled.

Background

Some organizations might have implemented COVID-19 features after the official start of the legislation’s requirements. You can use a new tool to retroactively recalculate COVID-19 credits on these missed payrolls.

For a specified client, the recalculation utility cycles through the client’s payroll batches, starting with any batch that contains the Starting Pay Date. For each batch, the utility calculates the appropriate sick hours, credit accruals, and tax credits.

Important Considerations

If you choose to recalculate (and therefore delete) all prior COVID billing data, we recommend the following workaround strategies:

• Using a screenshot or similar, make a note of all your existing refund data before running the utility. Then, after you recalculate, use the COVID-19 Refunds form (Viewing Refund Data) to re-enter your billing data as needed.

• Run this utility in a test environment and then run the COVID-19 Credit Tracking Report in the test environment. Run the same report in your live environment and then compare the two reports and note any differences. Make adjustments to your live environment as needed.

Because this utility does not create tax adjustments, the data on your MasterTax RTS file may not match up with the data you passed into MasterTax over the course of the quarter. There are two major workarounds for this issue:

• Manually make the appropriate tax adjustments based on the results of the recalculation utility.

• Pass the data to MasterTax using your RTS file and then reconcile at the end of the quarter.

Recalculation Options

If you do not want the utility to recalculate everything as describe above, you can use several options to limit the extent of the work done during recalculation. Enter Y in any of these fields, as appropriate, if you want the utility to recalculate that data.

Note: Note: Messages will only display in the Rebate Calculation Audit Results window if you choose to recalculate Billing. By design, messages do not display in this window if you set Billing (rebates) to N, even if you select any of the other recalculation options.

Running the Utility

Note: Note: If you are using this utility to recalculate CARES Act credits after setting up ERC exclusion dates, PrismHR recommends running the ERC Recalc Report in preparation. See Employee Retention Credit Recalc Report.

Note: Note: This utility updates existing vouchers and does not create new tax adjustments. If you want the tax registers to reflect these updated tax values, you must rebuild client tax registers AND (if you enabled the SBEA feature set) Client Federal Entity tax registers.

To run the recalculation utility:

1. Navigate to System Administration > Process > Utility Processing > Payroll Utilities > Recalculate COVID-19 Tax Credits/Client Rebates.

2. Enter a Company ID. You must run this utility one client at a time.

3. Enter a Starting Pay Date.

4. Enter a Y the appropriate recalculation options (see the table above).

5. Click F5-Process to run the utility.

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Deferring Employee Social Security Tax

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/COVID-19%20Docs/COVID-Utilities-and-Tools/COVID_Social_Security_Deferral.htm Path: CMP/COVID-19 Docs/COVID-Utilities-and-Tools/COVID_Social_Security_Deferral.htm

Deferring Employee Social Security Tax

Note: Note: Known Issue. The Garnishment Report currently incorporates 00-86 values into the Disposable Income calculation for any employee who defers this tax. However, this does not impact the actual garnishment calculation.

On August 8, President Trump authorized “Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster”. This executive order enables employees to defer Social Security tax payments between September 1 and December 31, 2020, with some exceptions. Because the language in this order is brief and nonspecific, PrismHR developed new features to support this new requirement as generally as possible.

These features may be developed further as more concrete information becomes available, especially regarding downstream reporting (such as changes to Form 941 and Form W-2). We will address any such changes once new formats and/or requirements are established.

You can use PrismHR to defer this tax on either the client or employee level:

• Payroll vouchers within this time period include a new tax deduction code entry, 00-86, for any employee who defers the tax.

• 00-86 stores a value equal to the negative of the employee’s 00-12 tax value.

• This data accrues in Client Federal Entity or Employer tax registers (whichever stores federal tax data for your organization) and appears on the MasterTax PTS and RTS files under the appropriate E or F code.

Background

Settings for employee Social Security tax deferral exist on both the employee and client level. The client-level setting is located under Client Details >Actions menu

[Image: screenshot]

COVID-19 Client Parameters. The employee-level setting is located on the Employee Details > Other tab. If you do not alter these settings, they default to “no deferral” (normal withholding).

On the client level, you can elect to defer the tax for all employees. On the employee level, you can elect to respect the client-level setting (this is the default employee setting), or you can override the client-level setting for any given employee: namely, you can either defer the tax or withhold as normal, regardless of the setting on the client level.

In other words, the employee-level setting controls whether or not that employee’s Social Security tax will be deferred. And one of the employee-level options (Use Client Level Setting) just respects the client configuration.

Employee-Level Deferral

Employees default to the client-level setting unless they are configured otherwise.

To defer Social Security tax for an individual employee:

1. Navigate to the employee’s Employee Details > Other tab.

2. In the new 2020 COVID-19 Social Security Deferral field, select whether you want to

• Defer 2020 EE [Employee] SS Tax Accruals

• Withhold 2020 EE SS Tax Accruals

• Use Client Level Setting (see below)

3. Save the record when you finish.

[Image: The field “2020 COVID-19 Social Security Deferral” is highlighted. The field is set to “Use Client Level Setting”.]

Client-Level Deferral

Client-level settings apply to all employees associated with that client, except for any employees configured otherwise (see above).

To defer Social Security tax for all employees of a particular client:

1. Open the Client menu and select Client Details under Client|Change.

2. Open the Actions menu [Image: screenshot] and select COVID-19 Client Parameters.

3. Select 2020 Executive Order Social Security Deferral.

4. Click Save.

[Image: System/Change/COVID-19 Client Parameters form with focus on the field “2020 Executive Order Social Security Deferral”]

Payroll Voucher Example

Note: Note the addition of the 00-86 entry on the payroll voucher below. The value associated with this line item is the negative of the value in the line above it, which represents the employee’s Social Security tax.

[Image: Employee Tax panel of payroll voucher. Tax codes 00-12 (OASDI EE) and 00-86 (SS Payroll Tax Deferral) are highlighted.]

Setting the $4000 Employee Social Security Deferral Limit

New guidance from the Department of the Treasury and the IRS states that employees who make $4000 or more in a bi-weekly pay period are not eligible for Social Security tax deferral under the new executive order. You can use a system-level setting to enforce this limit.

Note: Note: This setting only effects employees who are flagged to default to the client-level Social Security deferral setting (and where the client-level deferral setting is enabled). It does not affect employees who are set to defer or withhold this tax on the employee level (see example image below).

Client-level setting

[Image: COVID-19 client parameters form, with the “2020 Executive Order Social Security Deferral” field enabled.]

Employee-level setting

[Image: Another screenshot of the employee-level setting, “2020 COVID-19 Social Security Deferral”]

Background

This setting takes effect during payroll processing. After you enable it, the system does not create 00-86 entries if an employee’s payroll voucher exceeds a system-calculated threshold. This threshold varies based on the employee’s Pay Period:

Procedure

To set the Social Security tax withholding limit:

1. Click the Back Office menu.

2. Go to System|Change > System Parameters.

3. Open the Actions menu [Image: screenshot] and select COVID-19 Emergency Processing Parameters.

4. Select EE Deferral 4K Check.

5. Click Save.

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SBEA Overview

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Background/About_SBEA.htm Path: CMP/SBEA/Background/About_SBEA.htm

SBEA Overview

Introduction to Certified PEOs and the Small Business Efficiency Act

The IRS provides a voluntary program through which PEOs can apply for certification, under the Tax Increase Prevention Act of 2014. This act includes within it the Small Business Efficiency Act, or SBEA. A certified PEO under this system is called a CPEO.

Registering as a CPEO provides additional institutional legitimacy to PEOs by requiring them to:

• Maintain a bond with the IRS for the year

• Submit annual, independent CPA audits to the IRS

• Submit independently certified, quarterly assertions to the IRS demonstrating payment of employment taxes

• Pay an annual fee to remain certified

The act also provides benefits for both CPEOs and their clients:

• Guarantees that PEO clients still qualify for any applicable federal tax credits

• Removes any federal payroll tax liability from the PEO’s clients

• Guarantees that clients are not double-taxed if they join or leave a CPEO mid-year

• Provides the CPEO with a federal tax credit for the SUTA taxes they pay

SBEA Reporting Requirements

Every year, CPEOs must submit two additional forms to the IRS. These forms detail PEO tax liabilities, broken out client by client:

• Form 940 Schedule R: specifies federal unemployment tax (FUTA)

• Form 941 Schedule R: specifies federal income tax, OASDI (Social Security) tax, and Medicare taxes

For more information about these forms, consult this page on the IRS website.

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Form W-2 for SBEA

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Background/Form_W2_for_SBEA.htm Path: CMP/SBEA/Background/Form_W2_for_SBEA.htm

Form W-2 for SBEA

Note: Note: If your organization decides to create Form W-2 files using the setup for certified PEOs, you must contact the PrismHR Customer Support Team and request that your system be enabled for SBEA W-2s.

The Form W-2 features in the system can support SBEA-certified PEOs, breaking out the information by employer and then by client federal entity. They also support internal clients and clients not in a certified relationship, breaking the information out by employer only.

========================================================================

Important Notice About Enabling SBEA Features

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Background/Important_Notice_About_Enabling_SBEA_Features.htm Path: CMP/SBEA/Background/Important_Notice_About_Enabling_SBEA_Features.htm

Important Notice About Enabling SBEA Features

Make sure you and your organization understand the implications of enabling the SBEA feature set in the system.

Note: Note: Only perform SBEA setup and client-level Form W-2 processing if your organization has a total understanding of all components of the SBEA features.

• Before enabling the SBEA feature set, and especially before any register rebuild, PrismHR strongly advises that you test everything in a demo environment.

• Perform the setup on a “quiet system” (during off-peak use hours).

• Setting up SBEA features will transfer accrued federal tax liability from the employer level to “client entity” level. Be extremely cautious if you need to make such a change mid-year.

• If you do make a change mid-year, note that your organization must rebuild the client entity registers. Consult PrismHR before making such a change.

• Note that inserting any retroactive employer-certified start dates or client entity-certified contract start dates does not adjust payroll data for the year prior to the current date. Your organization must rebuild the register in that instance; be sure that this is what you should to do.

• SBEA setup makes no changes to your current billing structure. PrismHR strongly recommends that you use client-level billing in conjunction with your SBEA setup.

• If your organization intends to break out Forms W-2 by client entity:

• Note that the system separates the forms by entity by employer, displaying the client entity name and FEIN.

• If you will use a third-party download or e‑File, note that you might need to adjust the files to group together client records across employers or to add some employer indicator to each client entity group.

========================================================================

SBEA/COVID-19 Setup

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Background/SBEA-COVID-Intro.htm Path: CMP/SBEA/Background/SBEA-COVID-Intro.htm

SBEA/COVID-19 Setup

Even if you are not a Certified PEO, these settings can help you comply with the 2020 coronavirus legislation by breaking out your MasterTax data on the client level. While the procedures in this guide are very similar to those in the standard SBEA User Guide, some COVID-19-specific changes were added:

• In Step 2: important notes about CPEO Start Date and Limit Testing on Employer Register

• In Step 4: important note about SBEA Wage Codes for non-CPEO providers

• In Step 6: COVID-19-specific instructions regarding MasterTax interface parameters

• In the MasterTax Files section, added new information about the PTS, RTS, and SBEA Certified Relationship files.

This guide also includes documentation provided by MasterTax so you can ensure that both applications are set up to properly handle these new legislative requirements.

========================================================================

Introduction

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Background/SBEA_Introduction.htm Path: CMP/SBEA/Background/SBEA_Introduction.htm

Introduction

The SBEA onbline help explains the functions and features related to setting up, processing, and reporting information for compliance with the Small Business Efficiency Act.

The guide is divided into two major sections:

• System-level Setup – The tasks and steps involved in enabling the SBEA feature set, defining certified PEO employers, and creating and assigning client federal entities.

• Other Setup Procedures – Important SBEA-related procedures that do not fit neatly into the system-level setup process.

• Reports – Other helpful SBEA-related reports.

========================================================================

Setting Up SBEA Compliance in PrismHR

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Background/SBEA_Procedure_and_CFE.htm Path: CMP/SBEA/Background/SBEA_Procedure_and_CFE.htm

Setting Up SBEA Compliance in PrismHR

Before setting up SBEA functionality, make sure you understand the following important concepts and features.

Client Federal Entities

The SBEA requires CPEOs to break out federal taxes client by client during IRS reporting. PrismHR provides a number of features to help you comply with these reporting requirements. After completing the setup process, this functionality will be implemented in your system:

• Federal taxes are broken out by client.

• The gross-to-net calculation on an employee’s payroll voucher uses a new register for limit testing: the Client Federal Entity Tax Register. Originally, the system used employer tax registers during this calculation.

In the PrismHR system, a client federal entity (CFE) represents a client of your organization that is included in SBEA reporting. Each client federal entity corresponds to a specific client FEIN used in this reporting. During SBEA setup, the system creates a new CFE ID for each of these clients.

During the year, federal taxes accrue on the appropriate Client Federal Entity Tax Registers. Since SBEA-related reports pull data from these registers, you can break out federal taxes client-by-client for IRS reporting.

Overview of SBEA Setup in PrismHR

SBEA feature setup is a multi-step process, but PrismHR provides several automated utilities to simplify this process. Refer to the following table and diagram for a high-level overview of the process.

[Image: A flowchart of the SBEA setup process, which is described in detail below]

Complete the following steps to set up SBEA functionality in PrismHR:

Using SBEA Features

After you run the voucher update utility and rebuild client federal entity tax registers, the system will be ready to process tax information according to SBEA guidelines.

During payroll initialization, the system posts the CFE ID and an SBEA wage code to each payroll voucher. It then copies that voucher’s federal tax data to the appropriate client federal entity tax register. Later, when you run SBEA-related reports, PrismHR uses the different CFE IDs to break out this tax data properly.

========================================================================

Client Federal Entity Tax Register Report

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Reports/CFE-Tax-Register-Rpt.htm Path: CMP/SBEA/Reports/CFE-Tax-Register-Rpt.htm

Client Federal Entity Tax Register Report

Note: Note: This report is only for CPEO service providers using the SBEA feature set.

During reconciliation and quarterly tax processing, use the Client Federal Entity Tax Register Report to output client entity tax registers and identify whether or not values are spread across one or more employers.

To access this report, go to Payroll|Report|Client Federal Tax Register Report.

Procedure

To run the report:

1. Enter a Year.

2. If necessary, select a Quarter to view data from that quarter, or select YTD Only to display all data from the start of the year to the current date.

3. Enter a Tax Code:

• 00-10: Federal Income Tax

• 00-11: Medicare – Employee

• 00-12: Social Security – Employee

• 00-15: Medicare – Employer

• 00-16: Social Security – Employer

• 00-17: FUTA – Employer

4. In the Include SBEA Wage Code Breakout field, select:

• No: does not display F codes on the report

• Yes: displays F codes on the report

5. Specify an Employer ID to restrict the report to Client Federal Entities under that employer.

6. In the Report Type field, select either Employee Detail to generate the full report, or Summary to generate only the F code subtotals by tax code.

7. In the Client Federal Entity (CFE) field, enter specific CFE IDs to include in the report. If this field is blank, the report includes all CFE IDs.

8. Select Run. The report displays.

Report

[Image: Sample report output, showing Entity, Year, Quarter, Employee ID and name, Tax Code, Taxable Amount, Tax Amount, and Employer]

Field — Description

Entity — Client Federal Entity ID

Year — Report year

Qtr — Indicates the quarter associated with this data

Employee ID — Employee ID

Employee Name — Employee name

Tax Code — System-defined tax codes as defined in the procedure above. Unless otherwise specified, all tax codes display on the report.

Taxable Amount — Net taxable amount

Tax Amount — Tax withholding amount in aggregate on payroll vouchers

Gross Payments — Gross payments associated with the data in the Taxable Amount and Tax Amount columns.

Employer — Employer ID

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Generating the Employer 940 Schedule R Report

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Reports/Employer-940-Schedule-R.htm Path: CMP/SBEA/Reports/Employer-940-Schedule-R.htm

Generating the Employer 940 Schedule R Report

Note: Note: Client Access Group Security is enabled on this form.

This form displays the aggregate information reported on IRS Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, to each home care service recipient client. You can run the report for a specified employer, tax year, and state.

To generate data, the Build FUTA Taxable Register by State field must be enabled on the MasterTax Interface Parameters form. After enabling this field, rebuild your client federal entity tax registers to ensure that data displays on this report.

To generate the Employer 940 Schedule R report:

1. On the Work Centers panel, click Tax > SBEA Processing > SBEA Reporting > Employer 940 Schedule R.

2. Select the Employer, Tax Year, and State for the report.

3. Click Build.

4. Click Yes in the confirmation prompt that displays.

5. When the process is complete, click Close to close the status window or Report to view the Job Control Status report.

You can navigate through the report by going to the next or previous page, going to a specific page, or searching for specific information. In the Actions list, you can print the report, convert it to PDF, or print specific PDF pages. You can also convert the report to XLS format by clicking the XLS link.

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Generating the Employer 941 Schedule R Report

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Reports/Employer-941-Schedule-R.htm Path: CMP/SBEA/Reports/Employer-941-Schedule-R.htm

Generating the Employer 941 Schedule R Report

The Employer 941 Schedule R report is the 2020 COVID version of the Schedule R report with additional logic.

For more information about the Form 941 Schedule R report, see the COVID-19 Feature Guide.

Note: Note: Client Access Group Security is enabled on this form.

To generate the Employer 941 Schedule R report:

1. On the Work Centers panel, click Tax > SBEA Processing > SBEA Reporting > Employer 941 Schedule R.

2. Select the Employer, Tax Year, and State for the report.

3. Select the 2020 COVID Version option, if appropriate.

4. Click Process. You are prompted for confirmation.

5. Select Yes.

6. When the process is complete, click Close to close the status window or Report to view the Job Control Status report.

========================================================================

Viewing the Federal Entity Tax Register

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Reports/Federal_Entity_Tax_Register_PHR.htm Path: CMP/SBEA/Reports/Federal_Entity_Tax_Register_PHR.htm

Viewing the Federal Entity Tax Register

The Federal Entity Tax Register displays employee tax data, collected and apportioned for SBEA reporting purposes.

If the system is set to build FUTA register data for client federal entities at the state level, that information will display on this form and will always total out to be equivalent to the data on the federal level. See Setting MasterTax Interface Parameters for more information about this setting.

Note: Note:

• This process does not use Client Access Group security.

• Worksite Managers, Worksite Trusted Advisors, and Service Providers can access the form.

To access this form, select the Back Office menu. Under Employer|View, select Federal Entity Tax Register.

To view the federal entity tax register:

1. Complete the following fields:

In this field — Enter this

Federal Entity ID — The Client Federal Entity ID number associated with the employee. Click the Federal Entity ID link to select it from the Search Entity look-up. > Note: Note: Do not enter the Federal Employer Identification Number (FEIN).

Employee ID — The ID for the employee to be reported on. Click the Employee ID link to select it from the Employee Search Results look-up.

Tax Dedn Code — The Tax Deduction Code for the register to be viewed.

For the Year — The yearly period for the register to be viewed.

Quarter — The quarterly period (1-4) of the register to be viewed. Select Year-to-Date from the drop-down to view the tax data for the entire year.

2. The following details show up as applicable:

• Gross Payments

• Tax Exempt Payments

• Tax Sheltered Amount

• Gross Taxable

• Gross Taxable Over Taxable Limit

• Net Taxable

• Payroll Tax Liability

• Net Taxable from Another State or Successor

• Net Tax Paid from Another State or Successor

3. Click Clear to clear the screen.

========================================================================

Form W-2 Reconciliation Report

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Reports/Form_W2_Reconciliation_Report.htm Path: CMP/SBEA/Reports/Form_W2_Reconciliation_Report.htm

Form W-2 Reconciliation Report

If your organization reports on SBEA-certified employers and files Forms W-2 at the employer level, you might see some unexpected results. This is because, under the SBEA, tax accruals and limits are respected at the client federal entity level. If you create Forms W‑2 at the employer level and an employee worked for two clients under the same employer, their data will be combined on a single Form W‑2.

The W-2 Reconciliation Report enables you to find employees who have Medicare or Social Security taxes greater than expected, based on their taxable amounts.

To run the Form W-2 Reconciliation Report:

1. Open the Work Centers menu and select W-2 Processing under Work Centers|Tax.

2. Under W-2 Reporting, select W-2 Reconciliation Report.

3. Enter the Employer ID.

4. Enter the Tax Year.

5. Click Run. The report generates.

The report displays any employees whose withholdings exceed the limits. Your organization can then determine how best to reconcile the data on those forms.

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MasterTax Files

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Reports/MasterTax_Files.htm Path: CMP/SBEA/Reports/MasterTax_Files.htm

MasterTax Files

Customers who enabled the SBEA feature set can also use the MasterTax PTS and RTS files to report their tax data in accordance with the act. When properly configured, the system will create F codes on the MasterTax reporting files, identifying the federal tax data based on the associated client federal entity.

Note: Note: Before submitting your files with MasterTax, you must alert MasterTax Support that you are a PrismHR customer and that you are planning to submit SBEA files. If you do not, you could be charged additional fees by MasterTax.

PTS File

The PTS file breaks out federal tax data by client. If the client is associated with multiple CPEO employers, the client will be associated with multiple F codes on the reporting files. This helps to link voucher data based on the common pay agent (the employer).

Important MasterTax Interface Settings

• Provide SBEA Payroll Breakout: If this field is enabled, the PTS file will break out the federal tax basis and liability amounts by client federal entity.

• Include Certified Relationship Setups: If this field is enabled, the PTS file output will include the 210 (company setup) records that link the client federal entity to the employer. The system creates the 210 record specifically for employers. On the 210 record for each employer, position 45 indicates the EIN Type. When this value is P (as shown below) it indicates that the employer is a common pay parent.

• The 9-digit number after the P is the employer FEIN.

• Likewise, on the 210 record for the client federal entity (F code), position 45 will be a C, which denotes the client as a common pay child. The next 9 digits are the EIN for the associated employer.

[Image: Detail of MasterTax PTS file showing the 000, 100, 201, and 210 records. Positions 45 through 54 are highlighted, indicating common pay parent or child status, and the FEIN of the common pay agent.]

Note: Note: In order for the system to associate the 210 records with the F codes, you must enable Send Company Tax Record in PTS File on the MasterTax Interface Parameters. Activating this setting can cause issues in MasterTax if the FEIN and Unemployment ID numbers in PrismHR do not match the FEIN and unemployment IDs in Mastertax. If this describes your situation, PrismHR recommends using the SBEA Relationship file instead of performing company setup on your daily PTS file (see below).

RTS File

The MasterTax RTS (reconciliation tax summary) file accommodates client federal entities for 941 R reporting.

Note: Note: PrismHR is working with MasterTax to support the 940 R; MasterTax does not support the 943 R.

To support the RTS file, you must set your MasterTax RTS version to 36 or higher. see Setting MasterTax Interface Parameters for more information.

About the File

Effective January 2020, SBEA employers can enable the Build W-2 Records? parameter to break out Form W-2 reporting records on the RTS download.

The Build FUTA Exempt records? field can only be used with MasterTax versions 37 and above.

To build the RTS file:

1. On the Work Centers menu and select MasterTax Processing. Then, under File Exports, select Mastertax RTS File Build.

2. Complete these fields as required:

• On 501 records for 00-80 and 00-81, the full value under these tax codes populates under statistic 1.
• On FE0000-116H and FE0000-117H records, statistic 1 is set to 0. | RTS File History | You can save and download historical files with the following information: - The date and time the process was started - The user who started the process - A hyperlink to download the file - SBEA Relationship file - RTS file summary report - RTS file detail report |
• The date and time the process was started
• The user who started the process
• A hyperlink to download the file
• SBEA Relationship file
• RTS file summary report
• RTS file detail report | Configuration Information | Displays the MasterTax version number. You cannot build an RTS file unless you are using MasterTax Version 39 or greater. |

3. Click Build. A progress window displays. You can download an RTS file, or view an audit detail or summary report.

Note: Note: The SBEA Certified Relationship File includes only the 100, 200, and 210 records. The file has the payroll codes for the client federal entity (a, b, or c designation) as well as all federal tax codes, including AG codes.

CPEO e-Filing

Note: Note: To file your 940/941 Schedule R correctly, MasterTax now requires Federal Withholding and Unemployment tax data at the client level.

To file as a CPEO in MasterTax, you must contact MasterTax Support to verify that you have a MasterTax PEO license. If you do not, you will need to convert your MasterTax license to a MasterTax PEO license. MasterTax will make every attempt to ensure your invoice does not increase as a result of switching to this new license type. Please have the following information ready when you contact MasterTax Support:

• Number of Employer/PEO companies

• Number of total employees

• Number of clients.

MasterTax will provide you with the new monthly fee (if it is not the same as your existing monthly fee) and the additional client setup fee associated with adding new clients to MasterTax.

The PTS import file creates the requisite client structure within MasterTax. The import assigns new client payroll codes (which begin with the letter F) to existing clients that were previously set up within MasterTax, and creates new companies for clients that have not been set up. A client company record would typically already be set up in MasterTax for any client in a client reporting state. The file will also create the Common Pay Agent link to link the Employer to the Client for Federal tax codes so that when MasterTax creates the 941 Schedule R for the Employer, it will have the appropriate client information.

Before importing this file into MasterTax, we strongly recommend reviewing your current configuration within MasterTax by navigating to Company View, selecting a Company, and clicking the FEIN link under the Company tab

Note: Note the following implications of the import:

• All new client payroll codes on the file with the same FEIN will link together under a single company record within MasterTax;

• This company record will have a Common Pay Agent link to 1 employer;

• If a client company with the same FEIN already exists in MasterTax, any new client payroll code(s) with that FEIN will link under this existing client company record;

• If a client company with the same FEIN does not already exist in MasterTax, any new client payroll code(s) with that FEIN will create and link under a new client company record.

e-Filing with Quarterly Express Plus

As an alternative to e-filing with MasterTax, PrismHR offers the ability to e-file your Schedule R Form 941 return with Quarterly Express Plus (QEXPlus).

To export and process the QEX Plus 941 file:

1. On the Work Centers panel, click Work Centers|Tax > Quarterly Tax Processing, and under 3rd-Party Exports select 941 File Processing.

2. Complete these fields as required:

Field — Description

Employer ID — Click the link and select the ID of the employer whose information is being uploaded and processed.

Year — Year for the tax information.

Quarter — Quarter of the year for this tax information. For example, 1 indicates first quarter, and so forth.

Include Schedule R? — Generates a third, optional file that breaks out federal taxes by client. Enabling this field displays the Schedule R Report field.

Deposit Schedule — Specifies the frequency at which the employer makes deposits. Options are Monthly and Semi-Monthly.

941 Worksheet — Builds the Form 941 worksheet.

941 Schedule B — Builds Form 941 Schedule B.

Schedule R Report — Builds the Schedule R report.

3. Click Build.

To use this download for future Schedule R Form 941 filings, contact N. Wayne Lewis of Lewis Software Associates, LLC.

• Email: nlewis@qexplus.com

• Phone: 1-877-854-0100

• Company Website: www.qexplus.com

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Reports

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Reports/SBEA_Chapter_Reports.htm Path: CMP/SBEA/Reports/SBEA_Chapter_Reports.htm

Reports

PrismHR provides various reports for SBEA purposes.

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Running Tax Register Reconciliation Reports

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Reports/Tax_Reg_Recon_Report.htm Path: CMP/SBEA/Reports/Tax_Reg_Recon_Report.htm

Running Tax Register Reconciliation Reports

Evaluate employee tax registers and identify potential discrepancies between payroll vouchers and tax summaries with the Tax Register Reconciliation Report.

To run a tax register reconciliation report:

1. Click Reports.

2. Under Payroll|Reports, select Tax Register Reconciliation Report.

3. Fill out these fields as required.

4. Click Run. The report only displays employees with discrepancies between their rebuilt payroll vouchers and employee tax summaries. The output is a tab‑delimited download file that you can open in Microsoft® Excel® or another spreadsheet program.

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Build W-2s From Client Federal Tax Registers

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Setup/Build-W2s_Client-Fed-Tax-Reg.htm Path: CMP/SBEA/Setup/Build-W2s_Client-Fed-Tax-Reg.htm

Build W-2s From Client Federal Tax Registers

Note: Note: Important! The Form W-2/SBEA breakout feature was designed for a very specific use case that originates from vagueness in IRS reporting guidelines for CPEOs. Only enable this feature if you encounter this use case and need to account for it. If you want to leverage this feature, PrismHR highly recommends performing appropriate testing first, to ensure that it will have no adverse effect on your data in the context of reporting or E-filing. If you need more information, please contact the PrismHR Customer Support Team.

If your organization is a Certified PEO (CPEO), you can declare the entity under which Forms W‑2 and Forms 1099 are processed in PrismHR. Your organization can select the Name, Address, and EIN for the client, employer, or both. These changes reflect on Form W‑2 PDF generation, BDS/CIC downloads, printed Forms W‑2, and printed Forms 1099.

Note: Note: This functionality only works if SBEA features are enabled. See Enabling the SBEA Feature Set.

To build W-2s from client federal tax registers:

1. Open System|Change > Global Configuration from the Back Office menu.

2. Select Build W2s From Client Federal Tax Registers.

3. Click Save.

SBEA W2/1099 Name Control

Use the Employer Details form to declare the entity under which Forms W‑2 and Forms 1099 are processed.

To set up W2/1099 name control:

1. Open Employer|Change > Employer Details from the Back Office menu .

2. In the SBEA W2/1099 Name Control panel:

• Enter the appropriate Year.

• Select the Name, Address, and EIN you want. These values will display on Forms W‑2 and Forms 1099.

3. Click Save.

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Flagging Employers as Certified PEOs

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Setup/Certified_PEO_Employer.htm Path: CMP/SBEA/Setup/Certified_PEO_Employer.htm

Flagging Employers as Certified PEOs

After you enable SBEA features, you can designate employers as certified PEOs and specify a range of dates for collecting SBEA-related tax information. After you indicate that an employer is SBEA-certified, you must complete the setup process to run any payrolls that include a client or employee assigned to this employer — either as primary or alternate.

To designate an employer as a CPEO:

1. Click Back Office.

2. Under Employer|Change, select the Employer Details form.

3. Enter the Employer ID. Employer information populates the form.

4. Select Certified PEO. This indicates that the employer is certified as a PEO by the IRS.

5. Enter the Certified Start Date. This is the date the certification went into effect.

SBEA tracking begins with payrolls where the pay date is on or after this date.

6. If the certification expires, you can also enter the Certified End Date.

7. Click Save.

Limit Testing on Employer Register

After you enable the SBEA feature set, the system automatically performs limit testing using data from the client federal entity tax registers. However, if an employee works for multiple clients under the same employer, the limit testing does not take this into account.

Use the Limit Testing on Employer Register field to adjust this behavior so that the system checks the employer register, rather than the client federal entity register, during this testing.

Consider the following example:

• John Doe works for both Client A and Client B, both under Employer 1.

• John’s federal tax cutoff is $7000.

• John earns $5000 at Client A and $5000 at Client B.

The portion of John’s taxed income will depend on which register the system checks. This depends on how you have set up the system:

Employer is Not Marked as a CPEO

If Certified PEO is not selected, the system calculates taxes for all $5000 of John’s Client A wages and only $2000 of John’s Client B wages, or $7000 total. This is the correct tax limit.

Employer is a CPEO, Limit Testing on Employer Register is Disabled

If Certified PEO is selected and Limit Testing on Employer Register is not selected, John pays taxes on all $5000 from both clients. The system does not consider Client B’s wages along with Client A’s wages because they are stored in different client federal entity tax registers. Therefore, the system does not take into account that John has reached his tax limit.

Employer is a CPEO and Limit Testing on Employer Register is Enabled

If Certified PEO and Limit Testing on Employer Register are both selected, the system calculates taxes for all $5000 of John’s Client A wages and $2000 of John’s Client B wages, or $7000 total, the same as if Certified PEO were not selected.

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Creating Client Federal Entities

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Setup/Client_Federal_Entities.htm Path: CMP/SBEA/Setup/Client_Federal_Entities.htm

Creating Client Federal Entities

When SBEA features are enabled, you must have a client federal entity associated with each client FEIN serviced by your certified PEO. Tax liabilities accrue on client federal entities; these entities also determine relevant client tax limits during payroll calculations.

Client federal entities represent a separate level of reporting, different from the employer- and client-level reporting that otherwise exists in the system.

Relation to Client Entities

In most cases, a client federal entity is a reflection of one client record in your system. However, there are some exceptions:

• If multiple client records share the same FEIN, they would be associated with one client federal entity.

• If a client’s various worksite locations have their own FEINs, they would each need a different client federal entity.

Procedure

Note: Note: If your organization has just enabled the SBEA feature set and needs to set up client federal entities for the first time, there is a utility you can use: see Creating Client Federal Entities. After enabling the SBEA feature set, each new client record will automatically generate a new client federal entity.

To set up a client federal entity:

1. Open Employer|Change|Client Federal Entities from the Back Office menu .

2. Enter the numeric Entity ID. This can match the ID of the client to which it will be assigned (unless that number is already in use).

3. Enter the Entity Name.

4. Enter the nine-digit Federal EIN (employer identification number) assigned to the employer by the IRS. Use the format ##-#######.

5. Enter the address associated with the FEIN in the Address, City, State, and ZIP Code fields.

Users can indicate the time periods when the client company was in a certified relationship with the PEO, as defined by the SBEA.

6. In the SBEA Certified Relationship Periods panel:

• Enter the Starting Date when the client entered into a certified relationship with the PEO.

• Enter the Ending Date of the period during which the client was in a certified relationship with the PEO, if appropriate.

7. Click Save.

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Important Note About Creating New Clients

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Setup/Client_Federal_Entity_Created_For_New_Clients.htm Path: CMP/SBEA/Setup/Client_Federal_Entity_Created_For_New_Clients.htm

Important Note About Creating New Clients

If your organization has enabled the SBEA feature set, the system automatically creates a client federal entity when users create a new client record, and automatically associates the entity with the new client. If the new client shares an FEIN with an existing client, you must edit the new client record and set it to the same client federal entity ID as the existing client.

Note: Note: The system does not populate the Starting Date in the SBEA Certified Relationship Periods table. Users must manually enter the date on which the client entered into the certified relationship with the employer in the Client Federal Entities form.

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About Client Federal Entity Tax Registers

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Setup/Client_Federal_Entity_Tax_Register.htm Path: CMP/SBEA/Setup/Client_Federal_Entity_Tax_Register.htm

About Client Federal Entity Tax Registers

Client federal entity tax registers track tax information for a specific federal entity, for SBEA reporting purposes.

PrismHR supports SBEA requirements for updating the client federal entity tax registers.

• The Transfer Tax Basis and Transfer Tax Basis Import utilities support the SBEA feature set. These tools adjust employee tax bases and amounts, and they account for successor wages and the adjustment data flows to the client federal entity.

• Transfer Tax Basis Entry is in the Payroll menu under Payroll|Change.see Transfer Tax Basis Entry.

• Transfer Tax Basis Import (From Successor) is in the Back Office menu under Operations|Import Processing. See Importing Employee Tax Basis from Successor.

• Tax Adjustment Entry also adjusts client federal entity registers, correctly apportioning the changes. This form is in the Payroll menu under Payroll|Change. see Processing Tax Adjustments to Tax Register.

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Creating Client Federal Entities

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Setup/Create-Client-Fed-Entities.htm Path: CMP/SBEA/Setup/Create-Client-Fed-Entities.htm

Creating Client Federal Entities

Note: Note: Client Access Group Security is enabled on this form.

During first-time SBEA implementation, you can use the SBEA Auto Create Client Federal Entities form to create and assign client federal entity tax registers. This process assigns the “Certified PEO” flag on Employer Details. After this, the system creates and assigns client federal entity IDs to clients.

These fields are identical to what is defined under the client ID: name, address, city, state, ZIP code, and FEIN. The client federal entity ID is the same as the client ID.

To create client federal entities:

1. Click Work Centers, then go to Tax > SBEA Processing > Setup > SBEA Auto Create Client Federal Entities.

2. Select an Employer ID (the employer must be a Certified PEO).

3. Enter a Certified Relationship Start Date, which is the date the contract was signed.

This controls the SBEA wage code. Wage code A will be on any voucher after this start date. If the date is left blank, Wage code C is used.

4. Click Run. A report displays with the processing steps, number of records created, and the date and time the process ran.

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Enabling the SBEA Feature Set

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Setup/Enable_SBEA_Feature_Set.htm Path: CMP/SBEA/Setup/Enable_SBEA_Feature_Set.htm

Enabling the SBEA Feature Set

To begin setting up SBEA features in PrismHR, you must enable SBEA functionality on the global level. After enabling these settings, the system adds new fields to the Employer Details form. Use these fields to designate an employer as certified and set up basic SBEA reporting information.

[Image: Detail of the Global Configuration form. The “Enable SBEA Feature Set” field is highlighted and enabled.]

To enable the SBEA features in PrismHR:

1. Click Back Office.

2. Under System|Change, select Global Configuration.

3. Select the Enable SBEA Feature Set option. This turns on the features that support SBEA compliance.

4. Click Save.

After saving, proceed to Flagging Employers as Certified PEOs

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Exclude Internal Employees from SBEA Reporting

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Setup/Exclude_Internal_EEs_from_SBEA_Reporting.htm Path: CMP/SBEA/Setup/Exclude_Internal_EEs_from_SBEA_Reporting.htm

Exclude Internal Employees from SBEA Reporting

Your organization can exclude clients from SBEA reporting. For example, a PEO can exclude its own internal (or “corporate”) employees.

Employees of excluded clients will not appear in any client federal entity register. Note that, on the MasterTax files, employee data for internal clients displays as employer data and also displays on line 13 of Form 941 Schedule R.

To specify the clients to exclude:

1. Open System Parameters from the Back Office menu under System|Change.

2. Open the Actions menu [Image: screenshot] and then select Miscellaneous Parameters. The Miscellaneous Global Parameters form opens.

3. Enter the Internal Client ID for each client used for internal employees.

4. Click Accept.

5. Click Save at the bottom of the main System Parameters form.

[Image: Miscellaneous Global Parameters form, with the Internal Client IDs grid highlighted. An internal client ID is listed in the grid.]

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Setting MasterTax Interface Parameters

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Setup/MasterTax_Interface_Params.htm Path: CMP/SBEA/Setup/MasterTax_Interface_Params.htm

Setting MasterTax Interface Parameters

For MasterTax reporting, you must ensure that the parameters are set to RTS version 36 or later. The most current supported version is 41.

To set MasterTax interface parameters in PrismHR:

1. On the Work Centers panel, click MasterTax Processing > Setup Forms > Mastertax Interface Parameters.

2. Complete these fields as required:

• For both SBEA and non-SBEA clients, the MasterTax v29 PTS will include Work Out of State Flag which is either Y or N in position 15 for the 210 and 500 records for PA resident tax codes not including Philadelphia. This does not apply to Philadelphia residents and this position will remain blank for Philadelphia and all other locality taxes. For example:
• If an employee has a resident address and the Courtesy EIT is withheld for Lancaster, PA - position 15 for the tax code 39711930-31 will report Y for all records.
• If an employee has a resident and work address in Lancaster, PA - position 15 for the tax code 39711930-31 will report N for all records. | Include Dashes on all Eins and Feins | Enable this option to include dashes in both federal and client federal entity Employer Identification Numbers (EINs) on the PTS file. > Note: Note: You cannot enable this field if Include Dashes on Non Federal Eins Only is already enabled. | | Include Dashes on Non Federal Eins Only | Enable this option to include dashes only in the EINs of client federal entities (F codes) on the PTS file. The file will not print dashes in any FEINs. > Note: Note: You cannot enable this field if Include Dashes on all Eins and Feins is already enabled. | | Provide SBEA Payroll Breakout | Enable this option to create F codes on the PTS file for clients that are under a certified employer. This includes creating tax liabilities, by client, for federal taxes. | | SBEA Breakout Start Date | Date when the SBEA payroll breakout occurs. | | Include Certified Relationship Setups | Enable this item to create 210 records for the F codes. The 210 record is required to set up company and pay agent linking in MasterTax. | | Mastertax RTS Import File Version | Select the MasterTax RTS file version used by your system. PrismHR recommends setting this to the highest possible value, which corresponds to the most recent supported version. Presently, MasterTax RTS is updated to V48 in PrismHR. - If the MasterTax RTS Import File Version field is set to Version 47 or earlier, you will receive the following error message when you are running the RTS: You are running an older version of the mastertax RTS file download []. You must be on version 48 in order to generate the RTS file out of Prism. Your current version can be edited on the Mastertax Interface Parameters. The header on the MasterTax RTS file now also reflects 48 in Line 1 in 000 record in positions 57-58, with or without the Schedule R Breakout field selected. - For both SBEA and non-SBEA clients, the MasterTax v47 RTS will include Work Out of State Flag which is either Y or N in position 15 for the 500, 501, 601, and 616 records for PA resident tax codes not including Philadelphia. This does not apply to Philadelphia residents and this position will remain blank for Philadelphia and all other locality taxes. For example: - If an employee has a resident address and the Courtesy EIT is withheld for Lancaster, PA - position 15 for the tax code 39711930-31 will report Y for all records. - If an employee has a resident and work address in Lancaster, PA - position 15 for the tax code 39711930-31 will report N for all records. |
• If the MasterTax RTS Import File Version field is set to Version 47 or earlier, you will receive the following error message when you are running the RTS:
• For both SBEA and non-SBEA clients, the MasterTax v47 RTS will include Work Out of State Flag which is either Y or N in position 15 for the 500, 501, 601, and 616 records for PA resident tax codes not including Philadelphia. This does not apply to Philadelphia residents and this position will remain blank for Philadelphia and all other locality taxes. For example:
• If an employee has a resident address and the Courtesy EIT is withheld for Lancaster, PA - position 15 for the tax code 39711930-31 will report Y for all records.
• If an employee has a resident and work address in Lancaster, PA - position 15 for the tax code 39711930-31 will report N for all records. | Schedule R Breakout | Enable this item to display F code information for the RTS file. | | Suppress Audit Summary & Detail Rpts | Enable this item to suppress audit reports when you run the MasterTax RTS file build. | | Mastertax MTS Import File Version | Select the MasterTax MTS file version used by your system. PrismHR recommends setting this to the highest possible value, which corresponds to the most recent supported version. | | Mastertax File ID | Enter the unique three-digit file identifier provided by MasterTax. | | Mastertax Customer ID | Optional: Enter the Access ID provided by MasterTax. | | Mastertax Group Code | Use this code to differentiate PTS files when you save them in multiple accounts. The structure of the code is: MTAXPTS-XXXX-YYYYMMDD where XXXX is the account or directory where you saved the PTS file. | | Mastertax Account ID | Optional: Enter a prefix that appears in company and employer IDs in the MasterTax download files. This prefix differentiates between clients and employers that have matching IDs across different databases. | | Send Company Tax Record In PTS File | Enable this item to include a company 210 record in the PTS file. | | Send Company Accounting Record in PTS file | If you are a PEO managing multiple client accounts, you can now populate the Company General Ledger record 105 within the PTS file for both SBEA and non-SBEA clients. - This field is unchecked by default. - Check this field to report the 105 record within the PTS. Once checked the following two fields display: - MasterTax Chart of Account Code - Enter the 2 digit alphanumeric code used to identify the company’s G/L chart of accounts. - MasterTax G/L Payroll Code - the only drop-down option available at this time is Sub Cost Center. |
• This field is unchecked by default.
• Check this field to report the 105 record within the PTS. Once checked the following two fields display:
• MasterTax Chart of Account Code - Enter the 2 digit alphanumeric code used to identify the company’s G/L chart of accounts.
• MasterTax G/L Payroll Code - the only drop-down option available at this time is Sub Cost Center. | Mastertax Wage Reporting Utilized | Optional: Enable this item to use the MasterTax Wage Reporting module. If this item is not enabled, the system does not send employee detail records with the RTS file. | | Build FUTA Taxable Register by State | Enable this item to build FUTA taxable wage records by state (tax code XX-17). This was used for the FUTA credit for the federal government after the recession. If left unchecked, register records are built at the end of the year. | | Override Payment Method | Select the appropriate method: - No Override Payment Method - Check - EFT Credit - EFT Debit (sent in positions 123-124 on the PTS 210 record) |
• No Override Payment Method
• Check
• EFT Credit
• EFT Debit (sent in positions 123-124 on the PTS 210 record) | Additional Medicare Calc Method | This option is only intended for organizations that have encountered issues reconciling Additional Medicare taxes for employees who worked under multiple employers, but a single Client Federal Entity. If this describes your use case, enable this setting to implement alternative Additional Medicare tax calculation logic, specifically designed to avoid this issue. | | Include Pennsylvania Work State Flag (Y/N) | This field is optional. This field is a checkbox. It is selected by default. - Checked: - The MasterTax (v47 and above) RTS will include the Work Out of State Flag as a Y or N in position 15 for the 500 (Reconciliation Amounts), 501 (Employee Statistics), 601 (Employee Wage), and 616 (Employee State and Local W-2) records for Pennsylvania resident tax codes not including Philadelphia. - The MasterTax (v29 and above) PTS will include the Work Out of State Flag as a Y or N in position 15 for the 210 (Company Tax), 500 (Payroll Tax Detail) records for Pennsylvania resident tax codes not including Philadelphia. This does not apply to Philadelphia residents, and the position will remain blank for Philadelphia and all other locality taxes. - Unchecked: - The MasterTax (v47 and above) RTS will NOT include the Work Out of State Flag in the download. - The MasterTax (v29 and above) PTS will NOT include the Work Out of State Flag in the download. > Note: Note: This will apply for both SBEA and non-SBEA clients. |
• Checked:
• The MasterTax (v47 and above) RTS will include the Work Out of State Flag as a Y or N in position 15 for the 500 (Reconciliation Amounts), 501 (Employee Statistics), 601 (Employee Wage), and 616 (Employee State and Local W-2) records for Pennsylvania resident tax codes not including Philadelphia.
• The MasterTax (v29 and above) PTS will include the Work Out of State Flag as a Y or N in position 15 for the 210 (Company Tax), 500 (Payroll Tax Detail) records for Pennsylvania resident tax codes not including Philadelphia. This does not apply to Philadelphia residents, and the position will remain blank for Philadelphia and all other locality taxes.
• Unchecked:
• The MasterTax (v47 and above) RTS will NOT include the Work Out of State Flag in the download.
• The MasterTax (v29 and above) PTS will NOT include the Work Out of State Flag in the download. | Write PTS/RTS Files To Mastertax Directory | > Note: Note: This parameter does not apply to cloud customers. Enable to write generated files to the MasterTax directory on the PrismHR database server. | | Employer Options | Select an Employer ID; the Employer Name displays. Fill in the Employer Options field with alphanumeric values up to 20 characters. | | FUTA Credit Reduction Maintenance | Displays the year in which a FUTA credit reduction was taken and the state where it was taken. FUTA credit reductions occur when a state borrows money from the Federal Unemployment Trust Fund to pay unemployment insurance benefits for its residents. If a state has outstanding loan balances, this lowers the credit rate by 0.3% for each year in arrears until these loans are repaid. | | SBEA Tax Code Reporting Override | If you use Schedule R reporting (the client-by-client report breakdown), you can use this setting to override client-level tax reporting. In this table, specify any tax codes that you want to report on the employer level of the MasterTax RTS and PTS files. |

3. Click Save.

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Other Setup Procedures

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Setup/Other_Setup_SBEA.htm Path: CMP/SBEA/Setup/Other_Setup_SBEA.htm

Other Setup Procedures

This section describes other special considerations to keep in mind during SBEA setup.

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Rebuilding SBEA Client Federal Entity Tax Registers

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Setup/Rebuild-Client-Fed-Entity-Tax-Reg.htm Path: CMP/SBEA/Setup/Rebuild-Client-Fed-Entity-Tax-Reg.htm

Rebuilding SBEA Client Federal Entity Tax Registers

Use this form to rebuild SBEA Client Federal Entity Tax Registers for a specific tax year. To perform this action, associated employer entities must be certified and must have posted payrolls.

Note: Note: Client Access Group Security is enabled on this form.

To perform a rebuild:

1. On the Work Centers panel, click Tax > SBEA Processing > Setup > SBEA Rebuild Client Federal Entity Tax Register.

2. Enter a tax Year.

3. Optional: Select an Entity ID to limit rebuilds to one or more clients. If left blank, the rebuild is performed for all clients.

4. Click Run. The system deletes the register, sorts vouchers, and takes each voucher and runs them through a payroll posting routine that rewrites the tax registers. PrismHR recommends performing the 941 tax register rebuild.

Note: Note: You receive an email notification when the Rebuild Client Federal Entity Tax Register process has completed or failed.

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Rebuilding Client Federal Tax Registers

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Setup/Rebuild_Client_Federal_Tax_Registers.htm Path: CMP/SBEA/Setup/Rebuild_Client_Federal_Tax_Registers.htm

Rebuilding Client Federal Tax Registers

If one or more employers in your organization are SBEA-certified and you use MasterTax, you need to have payroll vouchers stamped with the A, B, or C designation. The system has a utility for updating existing vouchers from 2017 and later. When you enable the SBEA feature set, the system stamps all new vouchers appropriately.

Note: Note: Rebuild tax registers during off hours. Do not rebuild tax registers while processing payroll. This process can take a while.

To perform a rebuild:

1. On the Work Centers panel, click Tax > SBEA Processing > Setup > SBEA Rebuild Client Federal Entity Tax Register.

2. Enter a tax Year.

3. Optional: Select an Entity ID to limit rebuilds to one or more clients. If left blank, the rebuild is performed for all clients.

4. Click Run. The system deletes the register, sorts vouchers, and takes each voucher and runs them through a payroll posting routine that rewrites the tax registers. PrismHR recommends performing the 941 tax register rebuild.

Note: Note: You receive an email notification when the Rebuild Client Federal Entity Tax Register process has completed or failed.

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SBEA Processing

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Setup/SBEA-Landing-Page.htm Path: CMP/SBEA/Setup/SBEA-Landing-Page.htm

SBEA Processing

The options available in the SBEA Processing work center are organized under the following headings:

• Setup

• SBEA Reporting

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Form W-2 Processing for SBEA

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Setup/SBEA_Chapter_Form_W2_Processing.htm Path: CMP/SBEA/Setup/SBEA_Chapter_Form_W2_Processing.htm

Form W-2 Processing for SBEA

There are some special considerations to keep in mind when processing Forms W-2 in an organization that includes one or more SBEA-certified employers.

The SBEA is unclear as to how certified PEOs must produce their Forms W-2. PrismHR offers certified PEOs the option to break out Forms W-2 by employer and then by client federal entity, and to report under the client federal entity. Currently, you must contact PrismHR and request that we enable this feature.

If your organization is considering this option, contact the PrismHR Customer Support Team.

[Image: Screenshot of the “Contact Customer Support” form, requesting a low-priority support ticket in the Taxes product area, with description: “We are certified as a PEO under the SBEA and would like to learn more about our options for Form W-2 processing.”]

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System-Level Setup

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Setup/SBEA_Chapter_System_Setup.htm Path: CMP/SBEA/Setup/SBEA_Chapter_System_Setup.htm

System-Level Setup

To use the SBEA features in the system, you must first configure a range of settings. Please note that many of these setup procedures are best performed on days where there is no active payroll, because they impact the behavior of payroll processing.

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Creating Client Federal Entities

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Setup/SBEA_Create_Client_Federal_Entities.htm Path: CMP/SBEA/Setup/SBEA_Create_Client_Federal_Entities.htm

Creating Client Federal Entities

After you flag the employers that are SBEA certified, you can use the Create Client Federal Entities feature to create the client federal entity records for all clients of your certified employers.

Note: Note: To accrue taxes properly and report SBEA information, you must create client federal entity IDs and assign them to the clients. You must also have the client federal entity information set up before running payrolls so that the system includes the client federal entity ID on the payroll vouchers.

Federal Entity IDs

After an employer is flagged as a Certified PEO on the Employer Details form, a new Federal Entity ID field displays on the Client Details form for each client serviced by that employer. You must assign a Federal Entity ID to each client.

If you do not assign this ID to each client federal entity (CFE), your payroll will fail with a “hard” error because this causes severe issues later in the SBEA reporting process. The Create Client Federal Entities utility performs this task for each client automatically.

Using the Create Client Federal Entities Utility

To create client federal entities:

1. Click Work Centers, then go to Tax > SBEA Processing > Setup > SBEA Auto Create Client Federal Entities.

2. Select an Employer ID (the employer must be a Certified PEO).

3. Enter a Certified Relationship Start Date, which is the date the contract was signed.

This controls the SBEA wage code. Wage code A will be on any voucher after this start date. If the date is left blank, Wage code C is used.

4. Click Run. A report displays with the processing steps, number of records created, and the date and time the process ran.

Checking Client Federal Entity Information

Client Details

You can confirm that a client federal entity ID was assigned to a client on the Client Details form:

1. Open Client Details (found under Client|Change).

2. In the Contract panel, locate the Federal Entity ID field.

3. If this field contains a value, the system assigned a CFE ID successfully.

Client Federal Entities

You can view other details about client federal entities on the Client Federal Entities form:

1. Click Back Office.

2. Under Employer|Change, open Client Federal Entities.

3. Enter or select an Entity ID. All information about the CFE populates on the form.

4. Review this information and click Save if you made any changes.

Special Considerations

In some special cases, manual adjustments to the client federal entity records are required:

• If any of the clients of the employer(s) share an FEIN, you need to manually edit the client records. This is because the system creates separate federal entity records for each of those clients and assigns those different federal entity IDs to the clients. You must edit the clients and set them all to the same client federal entity ID in the Client Details Detail tab.

• If any of the clients’ worksite locations operate under different FEINs than the client, you need to assign a unique client federal entity ID to those locations in the Worksite Locations Other Parameters panel. If the entity does not exist, you must first create it in Client Federal Entities.

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Manually Adding Client Federal Entity IDs

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Setup/SBEA_in_Client_Details.htm Path: CMP/SBEA/Setup/SBEA_in_Client_Details.htm

Manually Adding Client Federal Entity IDs

For each client that is serviced by a certified PEO, your organization must add the federal entity ID to the client record. Please note that you can only enter this information if the employer assigned to the client is marked as a certified PEO in the employer record.

Note: Note: If your organization has just enabled the SBEA feature set, there is a utility to assign client federal entity IDs to all clients. see Creating Client Federal Entities. In a system with SBEA features enabled, when a user creates a new client and assigns it to a certified PEO employer, the system automatically creates a client federal entity record and assigns it to the new client. See Important Note About Creating New Clients.

To add a federal entity ID to the client:

1. Open Client|Change > Client Details.

2. Enter the Federal Entity ID in the Contract panel of the Detail tab.

3. Click Save.

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SBEA Settings in Worksite Locations

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Setup/SBEA_in_Worksite_Locations.htm Path: CMP/SBEA/Setup/SBEA_in_Worksite_Locations.htm

SBEA Settings in Worksite Locations

There are circumstances where you need to set SBEA information at the worksite level:

• A single client might have worksite locations with different Federal Employer Identification Numbers (FEINs) than other worksites. In this case, on the Worksite Locations form, you would assign the client federal entity that has the FEIN associated with that worksite.

• Clients can enter into a certified relationship but have one or more worksite locations that do not pass the “85% test”. In this case, you can use the SBEA Ineligibility Periods panel to enter the dates the locations were ineligible.

This information is important for your quarterly reporting for Schedule R (Form 941 and Form 940).

To set SBEA information at the worksite level:

1. Open Client|Change > Worksite Locations.

2. Enter the Location Code.

3. Expand the Other Parameters panel.

4. Enter the Federal Entity ID only if the location is a different federal entity than the client.

5. In the SBEA Ineligibility Periods panel, enter the Starting Date and Ending Date of the ineligibility periods when the location did not pass the 85% test for certification under the SBEA.

6. Click Save.

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Updating Vouchers with SBEA Information

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Setup/SBEA_Voucher_Update_Utility.htm Path: CMP/SBEA/Setup/SBEA_Voucher_Update_Utility.htm

Updating Vouchers with SBEA Information

The SBEA Voucher Update Utility takes the federal taxes that were previously tracked and accrued at the employer level and associates them with client federal entities. It adjusts previously processed payroll vouchers by flagging them with the client federal entity ID that the employees worked for. It also marks each voucher with the appropriate SBEA wage code.

Note: Note: Run the SBEA Voucher Update Utility during off hours. Do not rebuild tax registers while processing payroll. This process can take a while. Federal taxes must be associated with the client federal entity to ensure correct client tax Schedule R reporting for SBEA purposes.

Your organization needs to use this utility if:

• You did not complete SBEA setup before your certification start date. The most common example is to accommodate a retroactive certification.

• You are making adjustments mid-year or backdating start dates.

SBEA Wage Codes

Note: Note: If you are not a CPEO, you do not need to worry about SBEA Wage Codes.

The voucher update utility adds two pieces of information to each voucher: client federal entity ID and SBEA wage code. You created and assigned CFE IDs in the previous step (see Creating Client Federal Entities). The system determines which wage code to post. There are three options:

• A - The client is in a certified relationship with the employer.

• B - The client opts to use the 95% rule for a particular worksite exclusion.

• C - The client is not in a certified relationship with the employer.

Checking Voucher Information

You can confirm that the utility posted the CFE ID and SBEA wage code to each voucher on the Payroll Voucher form.

To check the SBEA information on a specific payroll voucher:

1. Open the Payroll Voucher form, found under Payroll|View.

2. Enter or select a Voucher Number. The form populates with information.

3. Check the values in the Client Fed. Entity and SBEA Wage Code fields.

4. Repeat for any other vouchers you want to check.

[Image: Employee Voucher form, open to a sample voucher. The Client Fed. Entity and SBEA Wage Code fields are highlighted. In this case the wage code is ‘C’.]

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Tax Limit Basis for Client Billing

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Setup/Taxable_Limit_Basis_for_Client_Billing.htm Path: CMP/SBEA/Setup/Taxable_Limit_Basis_for_Client_Billing.htm

Tax Limit Basis for Client Billing

If your organization uses the SBEA feature set, you must set the PEO tax limit basis to be for the Client, rather than the Employer. This setting impacts client billing.

You must also ensure that all clients with a certified PEO employer do not have their tax limit basis override set to Employer.

Setting Up the Tax Limit Basis

To set the system-level tax basis:

1. Open System Parameters from the Back Office menu .

2. Select the Actions menu [Image: screenshot] and then select Tax Year Limits.

3. In the Tax Year Limits Maintenance form, set the PEO Tax Basis for the appropriate reporting year to Client.

4. Click Accept.

5. Click Save in System Parameters.

[Image: System Parameters Tax Year Limit panel, with one year highlighted. The PEO Tax Basis dropdown is open for that row, showing Client and Employee options.]

Removing the Client Override

To remove the client-level tax limit basis override:

1. Open Client|Change|Client Details.

2. Ensure that you have selected the appropriate client . If not, click the client name that displays above the form and then choose the appropriate client.

3. Select the Other tab.

4. Set Tax Limit Basis to –Select–.

5. Click Save.

6. Repeat steps 2 through 5 for each client you need to edit.

[Image: Client Details Other tab, with Tax Limit Basis highlighted. The dropdown is open and showing the Company and Employer options.]

========================================================================

Using the SBEA Voucher Update Utility

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/SBEA/Setup/Using%20the%20SBA%20Voucher%20Update%20Utility.htm Path: CMP/SBEA/Setup/Using the SBA Voucher Update Utility.htm

Using the SBEA Voucher Update Utility

Use the SBEA Voucher update utility to retroactively add or update the client federal entity ID on the payroll vouchers. You need to run this utility for several different reasons. For example,

• When a PEO becomes a certified PEO mid-year and needs to retroactively stamp vouchers.

• When the entity ID has been edited on the client details or the client’s worksite location record.

This utility provides the capability to restamp the payroll vouchers by client. If the system detects that the client federal entity ID was updated on any vouchers, it displays the following warning message:

To ensure accurate tax calculations for subsequent payrolls, you must rebuild your client federal entity tax register under Tax > SBEA Processing > Setup > SBEA Rebuild Client Federal Entity Tax Register.

To use the SBEA Voucher Update Utility:

1. On the Work Center panel, click Tax > SBEA Processing > Setup > SBEA Voucher Update Utility.

2. Fill in the form as shown in the following table.

Use this option — To define this

Employer ID — Enter the Employer ID or click the link to display a list from which you can select an employer. The system displays the employer name.

Start Date — Enter the start date for the report.

End Date — Enter the end date for the report.

3. Click Build. The system builds the report.

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Viewing and Defining Form 1099 Layouts

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/1099%20Processing/1099-Form-Layout.htm Path: CMP/Year-End/1099 Processing/1099-Form-Layout.htm

Viewing and Defining Form 1099 Layouts

Note: Note: This form does not use Client Access Group Security.

The 1099 Form Layout form specifies different formats for the printed Form 1099, based on paper size and other factors.

Note: Note:

• Do not change this form unless instructed to do so by PrismHR Support.

• Deleting a record causes the specified form type to be unavailable for printing Forms 1099.

To configure form boxes for printing:

1. On the Work Centers panel, click Tax > 1099 Processing > 1099 Printing > 1099 Form Layout.

2. Fill in the form as required.

Field — Description

1099 Form Year — Tax year for processing.

1099 Form Code — Pre-printed form types. Options include: - T: Two-up Simplex – One-sided printing with two pages on one sheet. Copy A (1099-MISC with NEC data removed). - TA: Two-up Recipient – Two recipients are printed on one sheet. Copy B (1099-MISC with NEC data removed). - R: Address Formatted – Includes special provisions for addresses that aren’t in a standard format, and puts the address in a different position on a form. - NEC3: Three-up Simplex NEC – Form 1099-NEC, three sets of information on one sheet, one-sided printing. - NECT: Two-up Simplex NEC – Form 1099-NEC, two recipients on one sheet, one-sided printing. - NECP: Two-up Pressure Seal NEC – Form 1099-NEC, two recipients on one sheet, one-sided printing for pressure seal format. > Note: Note: In the backend system, additional options are available for printing three-up Forms 1099-NEC. For details, see the “1099s” chapter of the Year End Guide.

1099 Form Name — Description of this form layout.

1099 Lines Per Page — Number of lines to print per page.

1099 Item Code — Codes that are printed on 1099 forms.

1099 Position — Position of codes on the printed form. Enter data as Line#/Pos/Length; if more than one location is required, enter as much information as needed. For example,1/15/10/1/65/10/1 – use just a / (slash).

1099 Spec Pcl — Enter special PCL (Printer Command Language) codes in this field. This column is only used on the first position list (n/n/n), so if every form needs it, use multiple lines. These codes can send printer-relevant information, such as the font to use.

Form Adjustments

Number of Lines — Select the number of lines from the drop-down. Options available are 1-5 where 3 is the default option. > Note: Note: This option only applies to the form type within the menu. You can have a different options for different Form Types for example Form Type L can have 5 and Form Type S can have 3.

3. Click Save to save the changes made to the form.

4. Click Delete to delete the record.

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1099 Processing

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/1099%20Processing/1099-Landing-Page.htm Path: CMP/Year-End/1099 Processing/1099-Landing-Page.htm

1099 Processing

The options available in the 1099 Processing work center are organized under the following headings:

• 1099 Processes

• 1099 Reporting

• 1099 Printing

• 1099 Exports

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Creating the BDS/SOLV 1099 Download File

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/1099%20Processing/Creating-BDS-IBF-Download.htm Path: CMP/Year-End/1099 Processing/Creating-BDS-IBF-Download.htm

Creating the BDS/SOLV 1099 Download File

Use the SOLV 1099 option to generate a fixed width text file that you can send to SOLV and other third party partners that use the file to print and mail the employee’s 1099 forms. The file is formatted for Billing Document Specialists, or BDS.

Note: Note: This form does not use Client Access Group security.

To create the SOLV 1099 download file:

1. On the Work Centers panel, click Tax > 1099 Processing > 1099 Exports > SOLV 1099. The SOLV 99 page opens.

2. Complete the form.

Option — Description

Tax Year — Enter the 4-digit tax year. Typically this is the year before the current year.

Employer ID — Select the Employer IDs of the employers for whom to generate the file.

Use Company as Payer — Select No to use the employer as the payer or Yes to use the company as the payer. No is selected by default.

3. Click Accept.

4. Click Yes when prompted for confirmation. The system displays a message that shows the status of processing and a notification when processing is complete. Click Close to dismiss the message or Report to open the Job Control Status report. See See Viewing the Job Control Status Report

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Creating Employee 1099 Forms

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/1099%20Processing/Creating-EE-1099s.htm Path: CMP/Year-End/1099 Processing/Creating-EE-1099s.htm

Creating Employee 1099 Forms

Use the Create Employee 1099 form to generate the employee’s 1099 register as a background process. It was enhanced to provide a list of tax years for selection. By default, the selection defaults to the previous year. For example, in 2020 the tax year default value is 2019.

Note: Note: This form does not use Client Access Group security.

To create employee 1099 form data:

1. On the Work Centers panel, click Tax > 1099 Processing > 1099 Processes > Create Employee 1099. The Create Employee 1099 page opens.

2. Complete the form.

Option — Description

Employer ID — Select one or more employer IDs for whom to generate 1099 data. The system supplies the Employer Name.

Select 1099 Tax Year — Select the tax year for which to generate the form data.

Employee ID — To initialize a single employee’s 1099 form, select the Employee ID. The system supplies the Employee Name.

List Name — Enter the name of the file that contains employee IDs that were queried directly from unidata.

3. Click Accept. The system informs you that previously generated or manually updated 1099 forms for the selected Employer ID and Tax Year will be deleted before running the process.

4. Click Yes to continue. A progress message shows the status of processing.

5. When the status is 1099 Forms Successfully initialized, click Close to dismiss the message or Report to view the Job Control Status Report. See See Viewing the Job Control Status Report

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Downloading the IRS Form 1099 e-File

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/1099%20Processing/Download-IRS-1099-eFile.htm Path: CMP/Year-End/1099 Processing/Download-IRS-1099-eFile.htm

Downloading the IRS Form 1099 e-File

Use the IRS 1099 E File option to build an export file for 1099 employees. When the export is complete, the file is downloaded as a TXT file.

Note: Note: This form does not use Client Access Group Security.

To build an export file for 1099 employees:

1. On the Work Centers panel, click Tax > 1099 Processing > 1099 Exports > IRS 1099 E File.

2. Fill in the form.

Option — Description

Select 1099 Tax Year — Enter the 4-digit year for which to build the export file. The default selection is the current year minus 1. For example, in 2020 the default year is 2019.

Form Type — Select M for Miscellaneous or R for Retirement or Pension.

Transmitter Record Employer ID — Select the Employer ID of the employer who should appear in the T-Transmitter record.

Transmitter Control Code (TCC) — Enter the 5-character alphanumeric TCC assigned by the IRS.

Employer ID — Select the employer IDs of each employer for which to limit the download. The system provides the employer name. These employers will be shown in the A records.

Text File Indicator — Select this option to submit a test file. Leave blank if you do not want to submit a test file.

Optional State — To limit the download to a specific state, select it from the list.

Employers With Same Fein Are Single Employer? — Select this option to consider multiple employers with the same FEIN as a single employer.

3. Click Accept. You are prompted for confirmation.

4. Click Yes to begin the process. A progress box displays the status.

5. When the progress box shows that the process is complete, click Close to return to the IRS 1099 E File page or Report to open the Job Control Status Report. See See Viewing the Job Control Status Report

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Downloading the Maine 1099 e-File

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/1099%20Processing/Download-Maine-1099-eFile.htm Path: CMP/Year-End/1099 Processing/Download-Maine-1099-eFile.htm

Downloading the Maine 1099 e-File

Use the Maine 1099 E File option to build an export file for 1099 employees who reside and work in Maine. When the export is complete, the file is downloaded as a TXT file.

To build an export file for Maine 1099 employees:

1. On the Work Centers panel, click Tax > 1099 Processing > 1099 Exports > Maine 1099 E File.

2. Fill in the form.

Option — Description

1099 Tax Year — Select the 4-digit year for which to build the export file. The default selection is the current year minus 1. For example, in 2020 the default year is 2019.

Form Type — Select M for Miscellaneous or R for Retirement or Pension.

Transmitter Record Employer ID — Select the Employer ID of the employer who should appear in the T-Transmitter record.

Employer ID — Select the employer IDs of each employer for which to limit the download. The system provides the employer name. These employers will be shown in the A records.

Text File Indicator — Select this option to submit a test file. Leave blank if you do not want to submit a test file.

3. Click Accept. You are prompted for confirmation.

4. Click Yes to begin the process. A progress box displays the status.

5. When the progress box shows that the process is complete, click Close to return to the Maine 1099 E File page or Report to open the Job Control Status Report. See Viewing the Job Control Status Report

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Suppressing Client W-2 Benefits

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/W-2%20Processing/Client-W2-Benefit-Suppression.htm Path: CMP/Year-End/W-2 Processing/Client-W2-Benefit-Suppression.htm

Suppressing Client W-2 Benefits

Use the Client W2 Benefit Suppression form to specify which healthcare premiums are reported for selected clients on the W-2 form using code DD.

To suppress client W-2 benefits for selected clients:

1. On the Work Centers panel, click Tax > W-2 Processing > W-2 Setup > Parameter Setup > Client W-2 Benefit Suppression.

2. Complete the form.

Option — Description

Method for limiting — Select Exclude to suppress reporting healthcare premiums on Box 12 for all clients in the list. Select Include to only allow healthcare premiums to appear in Box 12 for the clients in the list. By default, the Create W-2 process includes healthcare premiums to appear on Box 12 for all clients.

Client ID — Select each client for whom you want benefits to be included or excluded.

3. Click Save. You can clear the selections by clicking Delete.

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Creating the EFW2 Download

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/W-2%20Processing/Create-EFW2-Download.htm Path: CMP/Year-End/W-2 Processing/Create-EFW2-Download.htm

Creating the EFW2 Download

Create different types of electronic EFW2s to upload to federal, state, or local government agencies with the EFW2 Download form.

Note: Note: This form does not use Client Access Group Security.

The Address tab on the Employee Details form populates the State field once you enter the ZIP Code field. However, you can change it manually. In case, the lower case is used for the State field, the EFW2 Download file used to pick up that lower case which resulted in filing failures. The same applies to the use of tilde in the employee’s name, etc.

From now on, to avoid filing failures, the EFW2 and EFW2C Download file will:

Will only accept any of the following; all other characters will be excluded:

• • Uppercase letters (A-Z) (If the state is in proper case, the export will translate it to upper case)
• Numbers (0-9)
• Space
• Hyphen (-)
• Period (.)

To create the EFW2 download:

1. Open the Work Centers menu and select Work Centers|Tax > W-2 Processing.

2. Under EFW2 & W-2 Exports > EFW2 EXPORT, select EFW2 Download.

3. Select an export file type (SSA (Federal), State, Local). The screen displays different fields depending on the choice made.

4. Complete these fields as required:

Field — Description

SSA (Federal)

Tax Year — Select a tax year. The Tax Year would be the year you are generating the tax form for. The Tax Year drop-down lists up to the current year and the following tax year.

Submitter — Enter the EFW2 Submitter ID. This can be set to DEFAULT if one submitter is used. For specific submitters, manually enter the ID or select it from the Submitter pop-up.

Edit EFW2 Submitter — Click the link to change the EFW2 submitter. The EFW2 Submitter Codes screen displays. See EFW2 Submitter Maintenance for more information on submitter codes.

Submission Type — Select a submission type. Options include: - Original EFW2C - EFW2C Resubmission using this Resubmission WFID (Wage File Identifier) - The WFID field is disabled unless this option is selected. Enter the ID displayed on the notice sent to you by the SSA.

File Name — The file name default is W2REP0RT.txt, to indicate this is a text file. If you rename the file, use the .txt extension.

Shared FEIN Handling — Handling options for employers with the same FEIN. Options are: - List Employers with the same FEIN under a single Employer - Individually list Employers with the same FEIN

State

Tax Year — Select a tax year. The Tax Year would be the year you are generating the tax form for. The Tax Year drop-down lists up to the current year and the following tax year.

Submitter — Enter the EFW2 Submitter ID. This can be set to DEFAULT if one submitter is used. For specific submitters, manually enter the ID or select it from the Submitter pop-up.

Edit EFW2 Submitter — Click the link to change the EFW2 submitter. The EFW2 Submitter Codes screen displays. See EFW2 Submitter Maintenance for more information on submitter codes.

State — Select the state for this file. Once a state is selected, a Resubmit field appears if a file was previously submitted. Click to resubmit your file to the selected state.

File Name — The file name default is W2REP0RT.txt, to indicate this is a text file. If you rename the file, use the .txt extension.

SSN Range (Indiana Only) — Starting SSN - Starting Social Security Number in a range. Ending SSN - Ending Social Security Number in a range.

Local

Tax Year — Select a tax year. The Tax Year would be the year you are generating the tax form for. The Tax Year drop-down lists up to the current year and the following tax year.

Submitter — Enter the EFW2 Submitter ID. This can be set to DEFAULT if one submitter is used. For specific submitters, manually enter the ID or select it from the Submitter pop-up.

Edit EFW2 Submitter — Click the link to change the EFW2 submitter. The EFW2 Submitter Codes screen displays. See EFW2 Submitter Maintenance for more information on submitter codes.

Local EFW2 Code — Local code for this EFW2. Select a code from the drop-down.

File Name — The file name default is W2REP0RT.txt, to indicate this is a text file. If you rename the file, use the .txt extension.

4. Click Create Export. The system displays the Building EFW2 Download file for tax year: window.

5. Click Close to return to the form, or Report to generate a report

6. Click Download EFW2 to download the exported .txt file.

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Creating the EFW2C Re-Submit Download

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/W-2%20Processing/Create-EFW2C-ReSubmit-Download.htm Path: CMP/Year-End/W-2 Processing/Create-EFW2C-ReSubmit-Download.htm

Creating the EFW2C Re-Submit Download

The Social Security Administration (SSA) requires you to provide the previously reported or the corrected Form W-2c information in a specially formatted electronic file. Use this form to submit or resubmit the EFW2C data for your employees to the SSA for the current year or for a previous year.

Note: Note: This form does not use Client Access Group Security.

The Address tab on the Employee Details form auto-populates the State field once you enter the ZIP Code field. However, you can change it manually. In case, the lower case is used for the State field, the EFW2 Download file used to pick up that lower case which resulted in filing failures. The same applies to the use of tilde in the employee’s name, etc.

From now on, to avoid filing failures, the EFW2 and EFW2C Download file will:

Will only accept any of the following; all other characters will be excluded:

• • Uppercase letters (A-Z) (If the state is in proper case, the export will translate it to upper case)
• Numbers (0-9)
• Space
• Hyphen (-)
• Period (.)

To create the EFW2C Re-Submit download:

1. On the Work Centers panel, under Tax click W-2 Processing. Under EFW2 & W-2 Exports, under EFW2 EXPORTS click EFW2C Download and Maintenance.

2. Complete these fields as required:

• Unsent - Once you click Create Export File to generate a file for a batch for the first time for an original EFW2C submission, it will be listed as Unsent in the grid with a new file name. Using the Update Employee W-2C Forms form, you cannot edit information for any employee on this file.
• In Process - A file that has been submitted to the Social Security Administration but is yet to be accepted by them. You can enter the Receipt ID received for that file submission on the Edit EFW2C File Status form for that file. Using the Update Employee W-2C Forms form, you cannot edit information for any employee on this file.
• Accepted - A file that was submitted successfully to the Social Security Administration and accepted by them. Using the Update Employee W-2C Forms form, you cannot edit information for any employee on this file.
• Rejected - A file that was rejected upon submission by the Social Security Administration. Using the Update Employee W-2C Forms form, you can edit information for any employee on this file, and the values will be pre-populated for that employee.
• Regenerate - A file that was regenerated prior to submission to the Social Security Administration. Using the Update Employee W-2C Forms form, you can edit information for any employee on this file, and the values will be pre-populated for that employee.
• Cancelled - A generated file that is not currently under submission the Social Security Administration and cancelled owing to some reason. Using the Update Employee W-2C Forms form, you can edit information for any employee on this file. However, you will need to re-enter all the values since all the fields will be blank for that employee. | WFID | The unique Wage File Identifier on the notice sent to you by the Social Security Administration for every initial submission. | | Ver | When a EFW2C batch is initially created, this will be version 1. If the file is then cancelled and regenerated, the original version 1 will be replaced with version 2 and so on. | | Create Date | The date when this batch was first created. | | Create Time | The time when this batch was first created. | | Last Modified on | The date when this file was last modified. |

3. Click Create Export File. The system displays the Create EFW2C Export window.

4. Click Close to return to the form, or Report to generate a report.

5. Click Download EFW2C File to download the exported .txt file.

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Creating the EES Puerto Rico W-2 Export

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/W-2%20Processing/Create_EES-PR-W-2-Export.htm Path: CMP/Year-End/W-2 Processing/Create_EES-PR-W-2-Export.htm

Creating the EES Puerto Rico W-2 Export

Generate files to upload to the EES for Puerto Rican employees with the EES Puerto Rico W2 Export form.

Note: Note: This form does not use Client Access Group Security.

To generate the EES Puerto Rico W-2 Export files:

1. On the Work Centers panel, click Tax > W-2 Processing > EFW2 & W-2 Exports > 3RD-PARTY W-2 EXPORT FILES > EES Puerto Rico W-2 Export. This message displays: Box 16 and remuneration are not currently supported in PrismHR and must currently be hand keyed onto the file, as necessary.

2. Click OK.

3. Complete these fields as required:

Field — Description

Year — Enter the tax year for this W-2.

Use SSN or EEID in Field3 — Enter the Social Security Number or Employee ID in Field 3.

Use DOB or PIN in Field4 — Enter the date of birth or employee PIN in Field 4.

Exclude Clients — Displays a grid where you can specify clients to exclude from the report by clicking the Company ID link and then selecting the client from the list that opens. The Company ID and Company Name are shown in the grid. Click + or - to add or delete rows from the grid.

Exclude Electronic W2 Employees? — Click to exclude employees that receive electronic W-2s.

Employee ID Prefix — Enter a prefix to an employee ID, such as a database account prefix.

Print client ID in the sort field (Position 52) — Select Yes to print the client ID in the sort field.

4. Click Accept.

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Creating the EES Security File Download

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/W-2%20Processing/Create_EES-Security-Download.htm Path: CMP/Year-End/W-2 Processing/Create_EES-Security-Download.htm

Creating the EES Security File Download

Use the EES Security File Download option to create a file that is uploaded to third party providers who use it to set up employee records in their systems. After this file is imported, the system imports a different file that contains the employee W-2 information.

Note: Note: This form does not use Client Access Group Security.

To create the EES security file download:

1. On the Work Centers panel, click Tax > W-2 Processing > EFW2 & W-2 Exports > 3RD-PARTY W-2 EXPORT FILES > EES Security File Download.

2. From Employer|Change, select EES Security File Download. The system displays the following message:

Please be sure to use the same EEID/SSN entry that you used for the W-2 and 1099 downloads.

3. Click OK to dismiss the message. The EES Security File Download page opens.

4. Fill in the form. See Selecting Data for instructions about how to select data using linked fields.

Option — Description

Year — Enter the 4-digit year for the import.

Employer ID — Select the Employer ID for each employer to whom the analysis should be limited.

Use SSN or EEID in Field2 — Select Social Security Number or Employee ID to print in Field 2. You cannot select the same value in Field 2 and Field 3.

Use SSN or EEID in Field3 — Select Social Security Number or Employee ID to print in Field 3. You cannot select the same value in Field 2 and Field 3.

Use DOB or PIN in Field4 — Select Date of Birth or Employee Pin to print in Field 4.

Exclude client — Select one or more clients to exclude from the download or leave blank to include all clients.

Exclude Electronic W2 Employees — Select this option to exclude electronic W-2 employees from the download. Leave the option cleared if you do not want to exclude electronic W-2 employees.

Employee ID Prefix — Enter an optional employee ID prefix, such as a database account prefix, or leave blank if you do not want to use a prefix.

5. Click Accept. You are prompted for confirmation.

6. Click Yes to begin the process. A progress box displays the status.

7. When the progress box shows that the process is complete, click Close to return to the EES Security File Download page or Report to open the Job Control Status Report. See Viewing the Job Control Status Report.

========================================================================

Creating the EES Virgin Islands W-2 Export

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/W-2%20Processing/Create_EES-VI-W-2-Export.htm Path: CMP/Year-End/W-2 Processing/Create_EES-VI-W-2-Export.htm

Creating the EES Virgin Islands W-2 Export

Generate Common Interest Company (EES) files for Virgin Island employees with the EES Virgin Islands W2 Export form. The Virgin Islands file format differs from a standard W-2, so there is a separate menu to generate these files.

Note: Note: This form does not use Client Access Group Security.

To generate the EES Virgin Islands W-2 Export files:

1. On the Work Centers panel, click Tax > W-2 Processing > EFW2 & W-2 Exports > 3RD-PARTY W-2 EXPORT FILES > EES Virgin Islands W-2 Export.

2. Complete these fields as required:

3. Click Accept.

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Creating the EES W-2 Export

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/W-2%20Processing/Create_EES-W-2-Export.htm Path: CMP/Year-End/W-2 Processing/Create_EES-W-2-Export.htm

Creating the EES W-2 Export

Generate a file that contains data from an employee’s W-2 register with the EES W-2 Export form. This file is then uploaded to EES (third party) and EES prints and mails out W-2s for the PEO.

Note: Note: This form does not use Client Access Group Security.

To create the EES W-2 Export file:

1. On the Work Centers panel, click Tax > W-2 Processing > EFW2 & W-2 Exports > 3RD-PARTY W-2 EXPORT FILES > EES W-2 Export.

2. Complete these fields as required.

Field — Description

W-2 Tax Year — 4-digit tax year for a W-2.

Employer ID/Employer Name — ID of the employer for a W-2. The employer name fills in once an ID is entered or selected. You can enter multiple employers in this field.

Use SSN or EEID in Field2/Field3 — Prints the SSN or EEID in Field 2 and 3. If the SSN is selected for one of these fields, you can select EEID to print in the other field.

Use DOB or PIN in Field4 — Prints the date of birth or Employee PIN in Field 4.

Exclude client — Excludes a client from the download file. Enter the client ID to exclude, or leave this field blank.

Employee ID Prefix — Optional: Add an employee ID prefix, such as a database account prefix.

Exclude Electronic W-2 Employees — Enable this to exclude employees who receive electronic W-2s.

Exclude Puerto Rico Employees — Enable this to exclude employees from Puerto Rico.

Exclude Virgin Island Employees — Enable this to exclude employees from the Virgin Islands.

Add the Client Name as Employer Name Line 2 — Enable this to include the client name as the employer name on Line 2.

Print Client ID in the sort field (Position 2) — Enable this to print the client ID in the sort field.

3. Click Accept. The system asks if you want to continue (click Yes) and then displays the process screen.

4. Click Close to download the report file to your local drive, or Report to display a report of this process.

========================================================================

Creating Employee W-2 Forms

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/W-2%20Processing/Create_Employee_W-2.htm Path: CMP/Year-End/W-2 Processing/Create_Employee_W-2.htm

Creating Employee W-2 Forms

Use the Create Employee W-2 Forms utility to create the electronic W-2 form data that needs to be uploaded to federal, state, and local government agencies. If the system detects any errors that will prevent processing, it displays an error message when you select the option. Click OK to dismiss the message and then resolve the errors.

The system uses the Email Services to send notification messages during and after processing.

To create employee W-2 form data:

1. Open the Work Centers menu and select Work Centers|Tax > W-2 Processing.

2. Under W-2 Processes, select Create Employee W-2 Forms.

3. If the system notifies you that it found pre-processing errors, open the report and resolve the errors if necessary.

4. Complete the form.

• Select Exclude manually updated W-2s to exclude manually updated W-2 data from processing. During processing, the system skips W-2s that have the Manually Edited option selected. The record remains as it was before the build. The entire record, including the manual updates, is retained. The employee will be flagged in the error report.
• Select All W-2s, including updated W-2s to delete any existing records and create W2s. The manually updated records are not skipped during processing and they revert to their state before they were manually changed. | Tax Year | Select the year for which to generate W-2 data. Typically this is the year before the current year. | | Employer ID | Select one or more employer IDs for whom to generate W-2 data. | | Load All Employers | Click this option to process W-2 data for all employers. | | Employee ID | Select one more specific employees for whom to generate W-2 data. | | List Name | Enter the name of the file that contains employee IDs that were queried directly from UniData. | | Suppress Local If Zero Tax | Select to suppress the reporting of taxable wages for local tax authorities when the tax amount withheld is zero. | | Suppress State If Zero Tax | Select to suppress the reporting of taxable wages for state tax authorities when the tax amount withheld is zero. | | Suppress Third-party Sick Pay | Select to suppress the reporting of all taxable and tax withheld amounts associated with third party sick pay from being added to W-2 forms. This is highly unusual. Most employers are required to report these amounts on W-2 forms. This option is intended to support employers who take advantage of an optional rule for Form W-2 that permits the employer and third party to enter into a legally binding agreement designating the third party to be your agent for preparing W-2 forms reporting sick pay. Be sure that this optional rule applies to you before choosing to suppress third party sick pay. | | Display Employees with No Earnings on Error List | Select to add an employee with no vouchers to the error log. This option is selected by default. | | Zero Out Ohio Resident-Based Taxable Wages | Ohio local taxes are work-based and resident-based. Select this option to zero out the resident-based Ohio taxes. This option is selected by default. | | Include Kentucky School Tx with Local Tax in RTS File | Select to report Kentucky school taxes with local taxes in the MasterTax RTS file. Selecting this option does not change the taxes on the W-2 form itself. | | Use PA Combined Monthly Filer PSD code in Box 20 | Select this option only if you are a service provider in the state of Pennsylvania who is registered as a combined monthly filer, and using an agency such as Keystone to collect and remit Earned Income Tax (EIT). Enter the 2 digit PA Monthly Filer Tax Collection District Code. This will appear in Box 20 of Form W-2 for the Earned Income Tax (EIT) for the state of Pennsylvania. [Image: W-2 locality name box, showing workplace PSD and central payrol codesl, separated by a hyphen] |

5. Click Create Forms. The system displays a warning any W-2 forms previously generated for the employer will be deleted before running the process.

6. Click Yes to continue. A progress message shows the status of processing.

7. When the status is shown as completed, click Close to dismiss the message or Report to view the Job Control Status Report.

Updates to Form W-2 build

The State Income Tax Account Number on the employee Form W-2 will now be pulled from the Client Details form or the Employer Details form based on the tax deduction code, unless an override exists on the Employer Details form on the SIT Rpt Entity field for that state under the State Tax section.

The State Income Tax Account Number on the employee Form W-2 will be:

• Client State Tax ID when:

• Tax deduction code set to report at Client Level and ER Details, State is set to -select- or Client

• Tax deduction code NOT set to report at Client Level, but ER Details, State is set to Client

• Employer State Tax ID:

• Tax deduction code NOT set to report at Client Level and ER Details, State is set to -select- or Employer

• Tax deduction code set to report at Client Level, but ER Details, State is set to Employer

Note: Note: If the State Tax ID is not available on the corresponding reporting entity, the Form W-2 will not be built, and an error will display.

========================================================================

Creating the BDS/SOLV W-2 Export

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/W-2%20Processing/Create_Solv_W-2_Download.htm Path: CMP/Year-End/W-2 Processing/Create_Solv_W-2_Download.htm

Creating the BDS/SOLV W-2 Export

Note: Note: This form does not use Client Access Group Security.

PrismHR partners with both BDS and SOLV for printing and mailing of employee W-2 forms. If you are using either of these third-party vendors, you will need to generate the file out of PrismHR using the BDS/SOLV W-2 Export menu.

To create the BDS/SOLV W-2 export:

1. Open the Work Centers menu and select Work Centers|Tax > W-2 Processing.

2. Under EFW2 & W-2 Exports > 3RD-PARTY W-2 EXPORT FILES, select BDS/SOLV W-2 Export

3. Enter a tax year.

4. Select or enter an Employer ID to which you want to limit analysis. The Employer Name is filled in.

5. Select or enter an Employee Status to limit to employees with a specific status.

6. Click Accept.

========================================================================

Selecting Data

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/W-2%20Processing/Data%20Selection.htm Path: CMP/Year-End/W-2 Processing/Data Selection.htm

Selecting Data

Many of the forms used in W-2 processing provide linked data fields. Each linked field provides a table where you can enter data to use. You can either enter the data manually or you can click the link to display a list from which you can make a selection. Your access privileges determine the items that are shown in the list.

This topic uses Employer ID as an example, although there are many other linked fields from which you can select other types of data. Each data item that you select is shown in a separate row in a table. You can insert and delete rows in the following ways:

• To insert a row at the end of the table, click + next to the Employer ID link.

• To insert a row at the beginning of the table > next to the selected Employer ID.

• To delete a row, select it and click x.

To manually select an employer:

• Select a blank row and enter the Employer ID. The system provides the Employer Name.

To select an employer using a linked field:

1. Select a blank row and then click the Employer ID link.

2. In the list of results, select an employer using the following navigational techniques.

Since some lists can be quite long, the system provides various navigation options for you to find the information you want. The options are shown at the bottom of each page in the list. The available options may differ slightly depending on the data that you select.

Option — Description

Select Row — Enter the row number for the employer. It does not need to be visible on the current page. The system populates the field with the selected Employer ID and Employer Name. If an employer is already selected. the new selection replaces it.

Page (n) of (n) — Displays the current page number and the total number of pages. Click Previous or Next to move one page back or forward.

Select Page — To display a different page, enter the page number and click Go to Page.

Refine Search — Displays fields where you can enter specific search information and then click Refine to narrow the results shown in the list. Click Reset to revert to the default display.

To select all employers:

• Click Load All Employers.

To remove an employer from the table:

• Click the X in the applicable row.

If there are many rows and you need to clear them all, close the page and then open a new page.

========================================================================

Creating EFW2 Submitter Codes

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/W-2%20Processing/EFW2-Submitter-Maint.htm Path: CMP/Year-End/W-2 Processing/EFW2-Submitter-Maint.htm

Creating EFW2 Submitter Codes

For EFW2 files, the first record is the RA record that requires submitter information. Since this data is not specific to an employer or individual user, you must manually enter the submitter information in the EFW2 Submitter Codes form.

The Social Security Administration (SSA) requires that all Employers be reported in one file, with exceptions. If you believe you have an exception and want to limit the export file to specific Employers, add them to the list in the Employer List Maintenance section.

Note: Note: This form does not use Client Access Group Security.

To create EFW2 submitter codes:

1. On the Work Centers panel, click Tax > W-2 Processing > W-2 Setup > Parameter Setup > EFW2 Submitter Codes. The EFW2 Submitter Codes page opens.

2. Enter or select the Submitter ID. If only one submitter is used accept DEFAULT. Otherwise select the specific submitter.

3. Make any necessary changes to the information that the system supplies based on the Submitter ID.

Option — Description

Submitter Name — The name of the company that is reporting the annual W-2 wages.

Submitter EIN — The submitter’s Employer Identification Number.

Location Address — The submitter’s location address (Attention, Suite, Room Number, and so forth).

Delivery Address — The submitter’s delivery address (Street or Post Office Box).

City — The submitter’s city address.

State — The submitter’s 2-digit state address.

Zip Code — The submitter’s zip code, inclulding the 4-digit zip code extension if applicable.

Contact Name — The name of the person that the SSA should contact concerning processing problems.

Telephone — The contact’s telephone number, including the area code. Include the extension number if applicable.

Email — The contact’s email address.

Fax — The contact’s fax number, including the area code.

Preferred Contact Method — Email or Postal Service.

Personal Submitter PIN — The personal identification number assigned to the employee who is authorized to submit this file.

Employer List Maintenance — If you want to limit the export file to specific Employers, add them to the list by clicking the Employee ID link.

4. Click Save.

========================================================================

Running the W-2 Detail Report

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/W-2%20Processing/Employee-W-2-Detail-Report.htm Path: CMP/Year-End/W-2 Processing/Employee-W-2-Detail-Report.htm

Running the W-2 Detail Report

This form displays the totals of tax amounts and tax basis for Federal, State, and Local taxes.

Note: Note: This form does not use Client Access Group Security.

To run the W-2 Detail report:

1. On the Work Centers panel, click Tax > W-2 Processing > W-2 Reporting > W-2 Detail Report.

2. Complete these fields as required:

Field — Description

Employer ID — Limits the report to a specific employer.

Client ID — Limits the report to a specific client.

Tax Year — Year in which the report is being run.

State — Filters a list of employees that had wages for the selected state.

Zip Code Above or Equal To — Five-digit zip code for an employee that is above or equal to a specific value.

Zip Code Below or Equal To — Five-digit zip code for an employee that is below or equal to a specific value.

Box 12 Code — The code for the amount to be reported in Box 12 of the federal W-2 form. This code is two alpha characters only.

3. Click Run. When complete, the report is displayed.

Note: Note: When you withhold federal and/or state income tax for W-8 employees, this data for the W-8 employees will be omitted from the W2 and W2C builds. Consequently, this report in PrismHR will not include data for W-8 employees.

========================================================================

Entering External W-2 Benefits

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/W-2%20Processing/Employee-W2-Benefit-Entry.htm Path: CMP/Year-End/W-2 Processing/Employee-W2-Benefit-Entry.htm

Entering External W-2 Benefits

Use the External W-2 Benefit Entry form to enter benefit premium amounts that are not tracked or calculated in PrismHR. When a user enters data and saves the form, the values are written to the employee’s W-2 register so that they can be shown on the employee’s W-2 form under box 12 code DD.

Note: Note: Client Access Group Security is enabled on this form.

To enter external W-2 benefits:

1. Open the Work Centers menu and select Work Centers|Tax > W-2 Processing.

2. Under W-2 Processing, click External W-2 Benefit Entry. The External W-2 Benefit Entry page opens.

3. Fill in the form.

Option — Description

Client ID — Select the Client ID for whom external benefits are entered.

Employee ID — Select the Employee ID for whom external benefits are entered.

Report Class — Select the Report Class for the type of benefits being entered (such as Medical or Health).

Year — Enter the year for the external benefits.

Month — Enter the Month for the external benefits. Most customers enter the entire year’s premiums under one month.

Employer ID — Enter one of more employers and the Externally Reported Premium for each employer. The system supplies the employer name.

4. Click Save.

========================================================================

Importing External W-2 Benefits

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/W-2%20Processing/Employee-W2-Benefit-Import.htm Path: CMP/Year-End/W-2 Processing/Employee-W2-Benefit-Import.htm

Importing External W-2 Benefits

Use the External W-2 Benefits Import form to import data for external benefits that need to be displayed on the employee’s Form W-2. The imported benefit amount data does not change the benefits register created as a result of posting payrolls. The data affects only the Employee W-2 Benefits Report.

Note: Note: This form does not use Client Access Group security.

Import File

The file format for the imported data file is as follows:

Procedure

To import external W-2 benefits:

1. Open the Work Centers menu and select Work Centers|Tax > W-2 Processing.

2. Under W-2 Processes, click External W-2 Benefit Import. The External W-2 Benefit Import page opens.

3. Fill in the form.

Option — Description

Upload File — Click the link, click Choose File, select the data file, and then click Open > submit. When you are notified that the file was uploaded, click Close. The system displays a preview of the data.

Delimiter — Select Auto, Comma, Tab, or Pipe. If you select Auto, the system selects the delimiter based on the file content.

Qualifier — Select Auto, None, ", or '.

First Lines to Skip — Select the number of lines to skip at the beginning of the file. For example, the first three lines may provide instructions or overview information.

Reimport — Select this option to reimport a data file that was previously imported.

4. Click Import. A progress box displays the status.

5. When the progress box shows that the process is complete, click Close to return to the External W-2 Benefit Import page or Report to open the Job Control Status Report.

========================================================================

Hi Running the W-3 Totals Report

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/W-2%20Processing/Employer-W-3-Totals-Report.htm Path: CMP/Year-End/W-2 Processing/Employer-W-3-Totals-Report.htm

Hi Running the W-3 Totals Report

The IRS and SSA use Form W-3 to track the wages, salary, commission, tips, and other compensation employers pay throughout the year.

Note: Note: This form does not use Client Access Group Security.

To run the W-3 Totals report:

1. On the Work Centers panel, click Tax > W-2 Processing > W-2 Reporting > W-3 Totals Report.

2. Complete these fields as required:

• All employees including US territory residents (the default)
• All employees excluding US territory residents
• US territory residents only | Output Options | > Note: Note: These options only display if the Global Configuration option, “Build W2s From Client Federal Tax Registers”, is enabled. Select one of the following output options: - Report Employer Totals - This is the default option. Use this option to report a combined total of all data reported on the Form W-2s for the selected employer for the year. - Report Employer  | Client Federal Entity Totals - This option will only appear if the selected employer has Form W-2 data that was built by Client Federal Entity register. If the selected employer is not a certified PEO and therefore has no CFE register, then this options will be disabled. This will produce the same format of a report with the addition of the client federal entity breakout. |
• Report Employer Totals - This is the default option. Use this option to report a combined total of all data reported on the Form W-2s for the selected employer for the year.
• Report Employer | Client Federal Entity Totals - This option will only appear if the selected employer has Form W-2 data that was built by Client Federal Entity register. If the selected employer is not a certified PEO and therefore has no CFE register, then this options will be disabled. This will produce the same format of a report with the addition of the client federal entity breakout.

3. Click Process. If errors occur, fix them and run the report again.

4. Click Close. The system displays the report.

Note:

• When you withhold federal and/or state income tax for W-8 employees, this data for the W-8 employees will be omitted from the W2 and W2C builds. Consequently, this report in PrismHR will not include data for W-8 employees.

• For both SBEA and non-SBEA clients, if an employer has an employee who has both FICA tax codes (00-11 or 00-15) and Railroad tax codes (00-60, 00-62 or 00-64) for the same tax year, then in the W-3 Totals Report, the W3 data will need to be adjusted to exclude the railroad wages.

========================================================================

Handling Errors

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/W-2%20Processing/Error%20Handling.htm Path: CMP/Year-End/W-2 Processing/Error Handling.htm

Handling Errors

Since W-2 processing runs as a background task, the system provides various ways to inform you when errors occur, even if you are working on another task during W-2 processing. The type of notification method used depends on the severity of the errors that are encountered.

Pre-Processing Errors

When you select Create Employee W-2 forms, the system runs a quick check and displays a list of errors that you must address before processing can occur. When processing is complete, you receive an email notification.

Non Fatal errors

These are errors on employee related data or setup parameters. The system saves errors in the error log.

Fatal errors

Fatal errors stop the W-2 build process. When a fatal occurs during processing, you receive an email notification. To see the error, open the error log from the Create W2 form.

Error Report

The system records errors that are detected during W-2 processing in an error report that it generates when the build process is complete. You can see the errors by opening the W-2 Processing Status form. The error report shows the following information:

• Number of errors found so far

• Number of W-2s generated so far

Processing Flow for Errors

The following charts show the process flow for each type of error.

========================================================================

Setting Up External W-2 Benefit Classes

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/W-2%20Processing/External-W2-Benefit-Classes.htm Path: CMP/Year-End/W-2 Processing/External-W2-Benefit-Classes.htm

Setting Up External W-2 Benefit Classes

Use the External W2 Benefit Classes form to set up the benefit reporting classes to use when manually entering or importing external benefit data for the employee’s Box 12 DD codes.

Note: Note: This form does not use Client Access Group Security.

To set up external W2 benefit classes:

1. On the Work Centers panel, click Tax > W-2 Processing > W-2 Setup > Parameter Setup > External W2 Benefit Classes. The External W-2 Benefit Classes page opens.

2. Select one of the following options:

• To add a class, click + or > to create a blank row and then enter the name of the class.

• To edit the name of a class, select the row and then type the new name over the existing name.

• To delete a class, click X in the corresponding row.

3. Click Save.

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Viewing the External W-2 Benefits Inquiry

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/W-2%20Processing/External-W2-Benefit-Inquiry.htm Path: CMP/Year-End/W-2 Processing/External-W2-Benefit-Inquiry.htm

Viewing the External W-2 Benefits Inquiry

The Employee W-2 Benefit Inquiry form displays information about employee benefits that are administered outside of the system.

Note: Note: Client Access Group security is applied.

To view the external W-2 benefits inquiry:

1. Open the Work Centers menu and select Work Centers|Tax > W-2 Processing.

2. Under W-2 Processes, select External W-2 Benefit Inquiry. The External W-2 Benefit Classes page opens.

3. Fill in the form.

Option — Description

Client ID — Select the Client ID for the external benefits inquiry.

Employee ID — Select the Employee ID for whom to display external benefits. Only employees of the selected client are available for selection.

Year — Enter the year for the external benefits.

The system displays the following external benefit information for each selected employee for the specified year in the following columns:

• Company

• Employee

• W-2 Class

• Employer ID

• Employer Amount

• Total Amount

• Year

• Month

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Viewing and Defining Form W-2 Layouts

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/W-2%20Processing/Form-W-2-Layout.htm Path: CMP/Year-End/W-2 Processing/Form-W-2-Layout.htm

Viewing and Defining Form W-2 Layouts

Note: Note: This form does not use Client Access Group Security.

The W-2 Form Layout form specifies different formats for the printed Form W-2, based on paper size, employees per page, and other factors.

This form must only be changed by PrismHR Technical Support.

To interpret or define a Form W-2 layout:

1. On the Work Centers panel, click Tax > W-2 Processing. > W-2 Printing, > W-2 Form Layout.

2. Complete these fields as required:

• S – Simplex, Four (4 panes per employee per page)
• D – Duplex, Four
• L – Legal Size, Simplex, Four
• LB – Legal Size, Simplex, Four
• E – Simplex, Four (1 pane per employee per page)
• T – Simplex, Two
• TS – Simplex, Two (TS)
• TA – Simplex, Two (copy A)
• GHF – LB Custom Legal Size, Simplex, Four
• SPDF - Simplex, Four-Up, Not Self-Mailer PDF
• LBPDF - Legal Size, Simplex, Four-Up, Self-Mailer with address panel on bottom | Legal Size? | Whether the form is printed at the dimensions of legal paper or not. | | W2 Form Name | Description of this Form W-2 layout. | | W2 Duplex | Determines whether the form is printed duplex (double-sided) or not. | | W2 Lines Per Page | Number of lines to print per page. | | Width | Width of the page. | | Repeat EE Cnt | Number of panes an employee has printed per page. This definition is for a page, so if you choose 1, each segment receives a different employee. | | W2 Item Code | Codes for Form W-2 items. | | W2 Position | Position of codes on the printed form. Enter data as Line#/Pos/Length; if more than one location is required, enter as much information as needed. For example: 1/15/10/1/65/10/1 – use just a / (slash). | | W2 Spec Pcl | Enter special PCL (Printer Command Language) codes in this field. It is only used on the first position list (n/n/n), so if every form needs it, use multiple lines. These codes can send printer-relevant information, such as the font to use. | | Form Adjustments | | | Number of Lines | Select the number of lines from the drop-down. Options available are 1-5 where 3 is the default option. Print a new copy at 2 and 1 and the data moves up a line. Print a new copy at 4 and 5 and the data moves down a line. > Note: Note: This option only applies to the form type within the menu. You can have a different options for different Form Types for example Form Type L can have 5 and Form Type S can have 3. |

3. Click Save to save the changes made to the form.

4. Click Delete to delete the record.

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Generating the Detroit EFW2 Download

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/W-2%20Processing/Generate_Detroit_EFW-Download.htm Path: CMP/Year-End/W-2 Processing/Generate_Detroit_EFW-Download.htm

Generating the Detroit EFW2 Download

Create an EFW2 download file for the city of Detroit with this form. Detroit employees must have payrolls posted and W-2 data built.

Note: Note: This form does not use Client Access Group Security.

To generate the Detroit EFW2 download:

1. Open the Work Centers menu and select Work Centers|Tax > W-2 Processing.

2. Under EFW2 & W-2 Exports > EFW2 EXPORTS, select Detroit EFW2 Download.

3. Enter a tax year for the W-2.

4. Enter an ID for the employer to limit analysis to

5. Click Accept to run the export process, and then Yes to continue.

6. Click Report to run a report for this process.

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Generating the PRPay W-2 Export

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/W-2%20Processing/Generate_PRPay_W-2_Export.htm Path: CMP/Year-End/W-2 Processing/Generate_PRPay_W-2_Export.htm

Generating the PRPay W-2 Export

Create a text file you can upload to the PRPay W-2 system with the PRPay W-2 Export form. Puerto Rico employees must have payrolls posted and W-2 data built.

Note: Note: This form does not use Client Access Group Security.

To generate the PRPay W-2 Export file:

1. On the Work Centers panel, click Tax > W-2 Processing > EFW2 & W-2 Exports > 3RD-PARTY W-2 EXPORT FILES > PRPay W-2 Export.

2. Enter a tax year for the W-2.

3. Click Accept to run the export process, and then Yes to continue.

4. Click Report to run a report for this process.

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Maintaining Local EFW2 Codes

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/W-2%20Processing/Local-EFW2-Codes.htm Path: CMP/Year-End/W-2 Processing/Local-EFW2-Codes.htm

Maintaining Local EFW2 Codes

EFW2 is a type of format that employers and payroll providers use to report W2 forms electronically with the SSA (Social Security Administration) and state and local governments. Each year, the SSA updates the W-2 electronic filing instructions through the EFW2 specification.

Use the Local EFW2 form to generate and store local EFW2 codes. These codes are assigned to the tax authority for local government and used to build the W-2 registers. The codes are then used in the EFW2 build process to denote which taxes for the applicable tax authority should be included on the EFW2 that is sent to the local government. You can view, add, and delete codes.

Note: Note: This form does not use Client Access Group Security.

To maintain local EFW2 codes:

1. On the Work Centers panel, click Tax > W-2 Processing > W-2 Setup > Parameter Setup > Local EFW2 Codes. The Local EFW2 Codes page opens. One column shows the list of codes and the other column shows the description of each code.

2. Select one of the following options:

• To insert a blank row above the selected row, click > at the beginning of the row and then enter the code and description in the new row.

• To insert a blank row at the end of the list, click + at the top of the list and then enter the code and description in the new row.

• To delete a code, click X at the beginning of the row. The system deletes the row.

3. Click Save.

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W-2 Processing Overview

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/W-2%20Processing/Overview%20of%20W-2%20Processing.htm Path: CMP/Year-End/W-2 Processing/Overview of W-2 Processing.htm

W-2 Processing Overview

This section gives a summary overview of W-2 processing. It is best practice to read it completely before you begin.

W-2 Setup

There are several setup forms for processing W2s.

Use this form — To do this

EFW2 Submitter Maintenance — Specify where PEOs report their W-2 data on the electronic files they send to various government agencies. The process of generating the W-2 data starts with the Create Employee W-2 Forms option, which creates the W-2 data and registers. You can specify whether to create W-2 data for all employers or for selected employers.

EFW2 Local List Maintenance — Create and maintain local EFW2 codes. You then assign these codes to the relevant local tax authorities. When the W-2 data is created, the system places the code on the employee’s W-2 register and then reads it when building the EFW2 files for upload to the various local governments.

Benefits W-2 Reporting Setup — Specify the types of benefit plans that need to be reported on the W-2 in Box 12.

Global W-2 Reporting Setup — Set up the reporting codes for external benefit plans. For example, assume that the employee health insurance that needs to be in Box 12 is not a PEO based plan and is calculated outside of the PrismHR system. In this scenario the benefit plan type codes are set up so that the PEO can enter the premium amounts either manually or via an import.

Client W2 Reporting Setup — Creates an exclusion for clients to report their benefits in Box 12. Consult PrismHR Support before using this functionality.

W2 Processing

The W2 Processing menu is where you build and verify the W-2 registers.

Use this form — To do this

Create Employee W-2 Forms — Build the registers that subsequent steps in the W-2 process will use.

Update W2 Record — Manually add or edit data to the W-2 register. This form is also commonly used to verify the data contained in the employee’s W2 register. The system populates this form with the W2 register data that was created using the Create W2 form.

Employee W2 Benefits Entry — Manually enter external benefit premiums on an employee by employee basis. enter the benefit premium amounts monthly. - You can create an individual record for each month using a multi-value grid where you enter each month’s premium at one time. - You can also enter a year’s worth of premiums under one month to get total premiums for a year.

Employee W2 Benefit Import — Import data for external benefit premiums instead of entering it manually. This is typically used for a client who has external benefits and gets the information from a benefits administrator.

Employee W2 Benefits Inquiry — Look at the employee’s W2 benefit data. Typically you would run the employee W2 Benefit Report, which provides the same data for a client instead of an employee.

Electronic Files

The system provides a variety of electronic file formats that you can generate for federal, state, and local governments. You can also generate electronic files for third party printers such as CIC and Solv. The files that the system generates are imported into one of the third party providers, who then print, stuff, and send them to PEOs to distribute to their employees.

Use this form — To do this

EFW2 Download — Build the EFW2 data. When you open this form, you are prompted to specify whether it is for the federal, state, or local government.

Create BDS/IBF W2 Download — Send data to SOLV so that they can print, stuff, and mail the employee W-2 forms.

Create CIC W2 Download — Send the W2 information to CIC so that they can print, stuff, and mail the employee W-2 forms.

CIC PR Download — Provide additional information required for Puerto Rico employees.

CIC Virgin Islands Download — Provide additional information required for Virgin IIsland employees.

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Updating Employee W-2c Records

Source: https://tech-docs.prismhr.com/SP_help/Content/CMP/Year-End/W-2%20Processing/Update-EE-W-2C.htm Path: CMP/Year-End/W-2 Processing/Update-EE-W-2C.htm

Updating Employee W-2c Records

You can update employee W-2c register data with this form. If an employee does not have a W-2c, the system displays a message that there is no W-2c record for the values entered and instead loads a W-2 record. The employee wages are shown on the update W-2 and update W-2c forms without having to enter a client federal entity ID.

Note: Note: This form does not use Client Access Group Security.

To update this form:

1. Open the Work Centers menu and select Work Centers|Tax > W-2 Processing.

2. Under W-2 Processes, select Update Employee W-2C Forms.

3. Complete these fields as required: