Release Overview

Arcoro (Core HR) is excited to announce the ACA release for our customers.

The release provides the new features and updates required for ACA Reporting for 2020.  This document will describe the software updates and provide details to help you get started with these enhancements.

ACA

This release provides the changes necessary to ensure accurate ACA reporting for your organization and your employees.
The ACA reporting includes the following updates:

• Updates to the ACA forms 1094B/1095B and 1094C/1095C for 2020
• ACA export file
• Ability to print 1095C 2020 form on legal size
• Ability to generate the 2020 1094 and 1095 files to be submitted to National Software for processing
• Support for ICHRA codes

Forms

Core HR provides the ability to create and print the ACA forms 1094B/1095B and 1094C/1095C forms. These forms have been updated to meet the 2020 changes including:

• Form 1095C changes
  • Date changes from 2019 to 2020
  • New Field: Employee’s Age on January 1
  • New Field: Zip Code (appears in the Part II grid)
  • IRCA codes updated when imported
    • Part II #14 – support codes 1L – 1S
    • Part II #16 – support codes 2A-2H
  • Text/instruction changes for 2020 form.
  • Made necessary adjustments based on the federal poverty line relates to item 14 on 1095C form: https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/irs-2020-affordability-threshold-for-employer-health-plans.aspx
• Form 1095C
  • Date changes from 2019 to 2020
• Form 1094 B
  • Date changes from 2019 to 2020
• Form 1094C
  • Date changes from 2019 to 2020

ACA Import

As an ACA customer you have the option to load data from a file to be used in generating the ACA forms. When selecting Settings>Affordable Care Act>Forms you will be Select “Load Data from File.  This will allow you to choose the appropriate file for the forms.

Changes to the import have been made to allow for

• New age value – employee’s age as of January 1
• New zip code values
• New 1L – 1S codes for item 14 on 1095C

ACA Export

As an ACA customer you have the option to create an export file.  By selecting Settings>Affordable Care Act>Forms you will be able to generate both the forms and the export file for submission.

Support for ICHRA Codes

The IRS requires the reporting of Individual Coverage Health Reimbursement Arrangements (ICHRA’s) on Form 1095C.  This change to the form corresponds to the change to allow ICHRA’s to be treated as minimum essential coverage for ACA Employer Mandate purposes. 

These codes may be imported and will be included on reports and exports

The 1095-C released by the IRS includes new codes related to ICHRAs:

• Individual coverage health reimbursement arrangement (HRA) offered to you only with affordability determined by using employee’s primary residence location ZIP Code.
• Individual coverage HRA offered to you and dependent(s) (not spouse) with affordability determined by using the employee’s primary residence location ZIP Code.
• Individual coverage HRA offered to you, spouse and dependent(s) with affordability determined by using employee’s primary residence location ZIP Code. 
• Individual coverage HRA offered to you only using the employee’s primary employment site ZIP Code affordability safe harbor. 
• Individual coverage HRA offered to you and dependent(s) (not spouse) using the employee’s primary employment site ZIP Code affordability safe harbor. 
• Individual coverage HRA offered to you, spouse and dependent(s) using the employee’s primary employment site ZIP Code affordability safe harbor. 
• Individual coverage HRA that is NOT affordable offered to you; employee and spouse or dependent(s); or employee, spouse, and dependents. 
• Individual coverage HRA offered to an individual who was not a full-time employee.