Assign Health Care Coverage

Once you determine which IRS form you need, you can update your payroll records with health care coverage. You usually assign next year's coverage when you close the calendar year for payroll. Health care coverage options display on the Affordable Care Act tab of the employee's QTD & YTD Totals window.

Set Coverage Terms

You can set the form you use and add coverage terms (if applicable) for a group of employees. View our PDS LP and the ACA blog for a helpful video on this process.

Use this process if:
  • You're adding health care coverage for the first time.
  • You were using one form but now have to file using the other form.
  • You didn't update coverage when closing the calendar year.

Set Form 1095-B on Employee Records

CAUTION: This process alters data. We recommend backing up your data before proceeding.
  1. On the File menu, click System Processes > Affordable Care Act Setup.
  2. Select which year to process.
  3. Select Use Form 1095-B.
  4. Select the employees to assign this form option to.
  5. Select whether to overwrite the selected year's information.
    Tip: Select this if you've already set up employees for the selected year (by mistake or otherwise) and want to change those records.
  6. When you're ready to update the selected employees' records, click Begin Process.
  7. After the process is complete, make sure you add covered individuals to each employee's records.

Set Form 1095-C and Add Coverage Terms to Employee Records

  1. On the File menu, click System Processes > Affordable Care Act Setup.
  2. Select which year to process.
  3. Select Use Form 1095-C.
  4. Select whether you provide the same coverage for the year or different terms per month.
    • To provide the same coverage terms, in the All 12 Months field, select the Offer Code, enter the Lowest Cost Premium Amount if applicable, and select the Safe Harbor Code.
    • To provide different coverage terms, in each month field, select the Offer Code in the first drop-down list, enter the Lowest Cost Premium Amount if applicable, and select the Safe Harbor Code in the last drop-down list.
  5. Select a Plan Start Month indicating the month that the health plan begins.
    Note: If more than one plan year could apply (for instance, if the plan changes during the year), enter the earliest applicable month. If no health plan is offered, select 00.
  6. Select whether you provide self-insured coverage.
  7. Select the employees to assign these coverage options to.
  8. Select whether to overwrite the selected year's information.
    Tip: Select this if you've already set up employees for the selected year (by mistake or otherwise) and want to change those records.
  9. When you're ready to update the selected employees' records, click Begin Process.
  10. After the process is complete, make sure you add covered individuals to each employee's records.

Add Covered Individuals

After setting the form option and coverage terms, you need to update each employee record. You must add the employee and any other dependents, such as a spouse. View our PDS LP and the ACA blog for a helpful video on this process.
  1. On the Payroll tab, click Employees.
  2. Locate the appropriate record.
  3. In the navigation pane, click QTD & YTD Totals.
  4. On the Affordable Care Act tab, verify that the information is correct.
  5. In the Covered Individuals section, click Insert.
  6. When prompted, click Yes to add the employee's name, birth date, and SSN.
  7. Select either Whole Year or the months the employee is covered.
  8. For each dependent, click Insert. Enter the individual's name, birth date, and SSN.
  9. Select either Whole Year or the months the dependent is covered.
  10. At the top, click Save.