Affordable Care Act Updates

This Costpoint release provides the following ACA - 1095-C updates:

• Code 1A will be assigned only to employees on Line 14 of form 1095-C if the Qualifying Offer Method checkbox is selected on the Create 1094-C and 1095-C Data screen.

• An employee’s employment history is used to determine the Line 14 and Line 16 codes on form 1095-C. Because some clients track employment using the Affirmative Action Effective Date is Hire Date and Effective Date is Term Date checkboxes on the Manage Employee Salary Information screen, we added the ability to use those checkboxes when determining an employee’s employment history.

• An employee will now be eligible to receive a form 1095-C if they were offered and elected coverage in the year prior to their hire date. If an employee’s hire date is in the following year but elected self-insured coverage for one or more months of the calendar year being analyzed, code 1G would be entered on Line 14.

• An employee will now be eligible to receive a form 1095-C if they were offered and elected coverage in the year following their termination date. If an employee was terminated in the prior year but elected self-insured coverage for one or more months of the calendar year, code 1G would be entered on Line 14.

• The priority order for the Form 1095-C Line 14 codes will be updated.

• Code 1E will take priority over code 1K.

1E. Minimum essential coverage providing minimum value offered to employee and at least minimum essential coverage offered to dependent(s) and spouse. Do not use code 1E if the coverage for the spouse was offered conditionally. Instead, use code 1K.

1K. Minimum essential coverage providing minimum value offered to employee; at least minimum essential coverage offered to dependents; and at least minimum essential coverage conditionally offered to spouse. (See Conditional offer of spousal coverage, earlier, for an additional description of conditional offers.)

• Code 1C and 1D will take priority over code 1K.

1C. Minimum essential coverage providing minimum value offered to employee and at least minimum essential coverage offered to dependent(s) (not spouse).

1D. Minimum essential coverage providing minimum value offered to employee and at least minimum essential coverage offered to spouse (not dependent(s)). Do not use code 1D if the coverage for the spouse was offered conditionally. Instead, use code 1J.

• The priority order for the Form 1095-C Line 16 codes will be updated. 2D must be done before 2B and after all other codes. According to the IRS instructions, if an employee is in an initial measurement period, enter code 2D (employee in a section 4980H(b) Limited Non-Assessment Period) for the month, and not 2B (employee not a full-time employee).

This release also applies minor alignment adjustments that are necessary to accommodate the 2022 ACA Form 1094-C and 1095-C.

 

Create 1094-C and 1095-C Data (HBP109XC)

The Create 1094-C and 1095-C Data screen provides the following new options:

Field

Description

Employment History Source

Select one of the two methods for tracking an employee’s employment history with the company. Manage Employee Information: This option will use the Employment History subtask on the Manage Employee Information screen to determine whether an employee was employed for a given month. If you use this method of tracking employment history, select this option. Manage Employee Salary Information: Though it is not a common setup, some employers use Affirmative Action's Effective Date is Hire Date and Effective Date is Term Date settings on the HR Information tab of the Manage Employee Salary Information screen to track employment history. If you use this method of tracking employment history, select this option.

2023 Federal Poverty Level

The 2023 poverty guideline for the 48 contiguous states and the District of Columbia is $14,580.

Note: This update requires patch dbc_800_11051.

2023 SUTA Wage Base

This Costpoint release adds tax table records effective January 1, 2023 on the Manage State Taxes screen for states where the unemployment-taxable wage base has been updated for tax year 2023.

Delaware

The unemployment-taxable wage base decreases from $14,500 to is $10,500.

Illinois

The unemployment-taxable wage base increases from $12,960 to $13,271.

Note: This update requires patch dbc_800_11051.

Guam 2023 Tax Table Updates

The tax tables of Guam were updated based on 2023 federal tax tables.

To support the state requirements, Costpoint adds updated records to the following screens:

• Manage State Standard Deductions

• Manage State Tax Tables

• Manage State Tax Withholding Adjustments

• Manage State Taxes

Attention: For more information, refer to https://www.irs.gov/forms-pubs/about-publication-15-t.

Note: This update requires patch dbc_800_11051.

Michigan 2023 Tax Table Updates

The value of a state allowance is to be $5,400, up from $5,000, and the state’s flat tax rate is unchanged at 4.25%, according to the 2023 Michigan Income Tax Withholding Guide (Form 446) posted in their official website.

To support the state requirements, Costpoint adds updated records to the following screens:

• Manage State Standard Deductions

• Manage State Tax Tables

• Manage State Tax Withholding Adjustments

• Manage State Taxes

Attention: For more information, refer to the 2023 Michigan Income Tax Withholding Guide.

Note: This update requires patch dbc_800_11051.

Virgin Islands 2023 Tax Table Updates

The tax tables of Virgin Islands were updated based on 2023 federal tax tables.

To support the state requirements, Costpoint adds updated records to the following screens:

• Manage State Standard Deductions

• Manage State Tax Tables

• Manage State Tax Withholding Adjustments

• Manage State Taxes

Attention: For more information, refer to https://www.irs.gov/forms-pubs/about-publication-15-t.

Note: This update requires patch dbc_800_11051.

Defect 1869157: When you created a form 1099-NEC self-mailer, the recipient's state abbreviation was incorrectly printed as 'XX' on Copy 2 and Copy B.

Defect 1847266: When you calculated revenue using formulas with fee, you obtained incorrect fee rates.

Defect 1854638: When you tried to add a General Labor Category (GLC) type to the Hours tab, you received the error message "Selected PLC is invalid in this project."

Defect 1863210: When you tried to calculate burdened cost for a new business budget, you encountered the error "This application does not exist: NB Burden Template Controls." 

Defect 1866124: When you modified a committed EAC by Excel upload, labor and nonlabor actuals were not retained.

Defect 1848156: You encountered an issue when you created an EAC with duplicate vendor records in Subcontractor Hours and Consultant Hours. Due to this, the EAC became unmodifiable.