Fundamental Payroll Certification Fundamental Payroll Year-End Processing and Reporting 3

Question 1

Which form is furnished to each full-time employee to report health coverage offers under the Affordable Care Act?

Accepted Answer

Form 1095-C

Answer

Form 1095-C (Employer-Provided Health Insurance Offer and Coverage) is provided to each full-time employee by an applicable large employer to document the health coverage that was offered.

Question 2

Under the ACA, how many full-time equivalent employees must an employer average to be classified as an Applicable Large Employer (ALE)?

Accepted Answer

50 or more

Answer

An employer is an Applicable Large Employer (ALE) if it employed an average of 50 or more full-time equivalent employees during the prior calendar year.

Question 3

What is the purpose of Form 1094-C in ACA year-end reporting?

Accepted Answer

To serve as a transmittal and employer-level summary of Forms 1095-C filed with the IRS

Answer

Form 1094-C is the transmittal form that accompanies 1095-C forms submitted to the IRS and provides employer-level ACA compliance summary data.

Question 4

What does Code DD in Box 12 of Form W-2 report?

Accepted Answer

The aggregate cost of employer-sponsored health coverage

Answer

Code DD in Box 12 reports the aggregate cost of employer-sponsored health coverage, including both the employer's and employee's share of premiums.

Question 5

What does Code W in Box 12 of Form W-2 report?

Accepted Answer

Employer and employee contributions to a Health Savings Account (HSA)

Answer

Code W in Box 12 reports employer contributions to an employee's HSA, including amounts contributed through payroll deduction on the employee's behalf.

Fundamental Payroll Certification Practice Test

Fundamental Payroll Certification Practice Test

Fundamental Payroll Certification Fundamental Payroll Year-End Processing and Reporting 3