ACA Coverage / ACA Compliance

When we are processing our ACA Compliance filings for 1095C and we select the people that we should send out the 1095C for, we had 140 something people that didn't come over when we selected them to.  We learned that the only way for the forms to go out is to change from "Not Working" to "Not Exempt" in order for those terminated people to get their 1095C documentation.

Obviously the "Not Working" is causing us extra work when doing the ACA Compliance to change them to "Not Exempt" to get their forms.  And once we are done with that, we need to change them back to "Not Working" as they are terminated.

So the question I have is: Does it matter if an employee is terminated that instead of using "Not Working" that we can just change them to "Not Exempt"?  Does it affect anything besides the ACA compliance reporting?  

We just want less work to do and have the system send out the 1095C with no other follow ups.

  • The ACA Exempt status set on the Employee on the ACA Coverage tab applies specifically only to ACA reporting, however it is possible that your company uses this field for other reporting as well. You may want to check with other members of your staff and review any custom reporting you are using to be sure.   It is recommended that the ACA Exempt Status not be changed on an employee until AFTER you have processed the forms for the reporting year in which the employee was terminated.  For example if an employee was terminated in July 2021 you would not change the ACA exempt status on the employee until after you have generated the 2021 ACA forms, and instead go into Tasks, ACA compliance to change it manually for those months in the year the employee did not work for you anymore. Then change the ACA Exempt status on the employee after you have processed the 2021 forms. 

  • in reply to Denise Paulus

    So instead of placing "not working", from now on we can just leave them as "not exempt" and it won't screw up anything?  We checked with our Sage guru but she didn't know anything about the ACA.

    Great pic by the way!  I love it!