ADP Employee Benefits Administration 3

Question 1

Under the ACA employer mandate, what does ADP's ACA module track to determine if an applicable large employer (ALE) owes a shared responsibility payment?

Accepted Answer

Full-time equivalent employee counts and whether minimum essential coverage was offered

Answer

The number of employees enrolled in COBRA

Answer

Total W-2 earnings for all employees

Answer

Hours worked by part-time employees only

Question 2

What ADP functionality generates the Form 1094-C and 1095-C required for ACA employer reporting?

Accepted Answer

ADP SmartCompliance Health & Welfare module

Answer

ADP Tax Filing Center

Answer

ADP Benefits Enrollment Workflow

Answer

ADP Workers' Compensation module

Question 3

What is the look-back measurement method used to determine ACA full-time employee status in ADP?

Accepted Answer

A defined stability period based on hours worked during a prior measurement period

Answer

Hours worked in the current month only

Answer

Annual W-2 earnings threshold

Answer

An employee's self-reported full-time status

Question 4

If a new hire declines benefits during open enrollment in ADP, what action should the payroll specialist take?

Accepted Answer

Document the waiver and ensure no benefit deductions are set up for the employee

Answer

Enroll the employee in the default plan automatically

Answer

Leave the enrollment status blank until the next open enrollment

Answer

Set up minimum coverage deductions as required by law

Question 5

Which IRS form reports the cost of employer-sponsored health coverage for W-2 reporting purposes, and where is it listed?

Accepted Answer

The cost is reported in Box 12 of Form W-2 using code DD

Answer

Form 1095-B, Box 5

Answer

Form 1099-SA, Box 1

Answer

Form W-2, Box 14, with label 'Health'

Question 6

In ADP, what is a 'benefit plan year' and why is it important for payroll deduction scheduling?

Accepted Answer

The 12-month period during which elected benefits and corresponding payroll deductions are active

Answer

The fiscal year used for employer tax filing

Answer

The period between two open enrollment windows

Answer

The IRS tax year for benefit cost reporting