Feeling lost and confused about the new IRS reporting requirements for the Patient Protection and Affordable Care Act? Let Paylocity guide you down the road to compliance.

1. THE R OAD T O
Paving Your Way to Understanding
The Patient Protection and Affordable Care Act (PPACA) aims to ensure all Americans have access to
quality and affordable healthcare. Under the PPACA, employers are required to offer all full-time
employees insurance coverage. This provision is called Employer Shared Responsibility.
THE QUICK SUMMARY:
Employer Shared Responsibility requires
large employers to offer an affordable
health plan that provides minimum value to
a percentage all full-time employees.
EXIT
YES
Affordable Care Act (PPACA) Compliance
IRS Reporting Requirements
AFFORDABLE:
Minimum, essential insurance coverage that does not exceed 9.5 percent
of income.
How is income determined? By utilizing a combination of any of the
following three safe harbors: Box 1 of W-2 wages, Federal Poverty Level
and Employee Rate
HOW CAN YOU PAVE THE WAY TO SUCCESSFUL COMPLIANCE?
EXIT
UNSURE
EXIT
NO
Patient Protection and
ARE YOU A
LARGE EMPLOYER?
SLOW
SLOW
1095-C:
A document provided to
each employee that shows
a month-by-month view of
what coverage the employer
offered. All employees receive
this information whether or not
coverage was accepted.
This also lists, if any, what safe
harbors the employer elected.
1094-C:
A cumulative record of the 1095-C’s
that were issued to employees. This
file is submitted either electronically
or via mail to the IRS to show
compliance of PPACA.
I’m a variable
employee! Which
way do I go?
50
WHEN DO THE IRS REPORTS
NEED TO BE FILED?
COMPLIANCE
COUNTY
Welcome to
Compliance County
STOP
STOP
CONSTRUCTION AHEAD
WHO IS
ELIGIBLE FOR
COVERAGE?
MERGE
WHAT IRS
FORMS ARE
REQUIRED?
MERGE
FULL-TIME
EMPLOYEE:
On average, I
work 30 hours
per week every
month. I must
be offered
coverage!
PART-TIME EMPLOYEE:
In general, I work less
than 30 hours per
week every month.
My employer does
not need to offer me
coverage.
SEASONAL EMPLOYEE:
As a seasonal worker,
I normally work six
months or less in a
single year. My
employer does
not need to offer
me coverage.
VARIABLE EMPLOYEE: Based on
the conditions of my start date or
my position, my employer cannot
figure out whether or not I am
expected to work an average of
at least 30 hours per week.
My coverage eligibility is
dependent upon my average
hours in the measurement
period.
Determined large employer status
Monitored full-time status for
variable-hour employees
Evaluated and modeled plan
affordability
Offered insurance coverage to
a percentage of all full-time
employees
Completed and submitted
required IRS forms
Submitting 1095-C’s and 1094-C’s is optional
for calendar year 2014 and mandatory for 2015.
Key dates for 2015 include:
 January 31, 2016: All employees receive their
1095-C
 February 28, 2016: The 1094-C form is mailed
to the IRS
 March 31, 2016: If more than 250 1095-C’s
are issued, the 1094-C must be submitted
electronically to the IRS
I’m a full-time
employee!
I’m a part-time
employee! I’m a seasonal
employee!
A large employer is any company that employs
or more full-time individuals. A company may
also be considered a large employer if it employs a
combination of full-time and part-time employees that
is equivalent to at least 50.
Compliance County
Checklist
View Paylocity’s video on FTE Count.
View Paylocity’s Hours Analysis
Report video to learn more.
View Paylocity’s Plan Affordability Report video.
www.paylocity.com