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Administrator Guide
Last Updated: 2024-03-08
Steps: Set Up ACA Forms 1094-C and 1095-C

Steps: Set Up ACA Forms 1094-C and 1095-C

Set up Affordable Care Act reporting.
Workday enables you to comply with IRS 1094-C and 1095-C reporting requirements. You can:
  • Identify health care plans that:
    • Are self-insured or fully funded.
    • Provide Minimum Essential Coverage (MEC).
    • Provide Minimum Value Coverage (MVC).
  • Define employee populations with respect to 1094-C and 1095-C requirements.
  • Configure Form 1094-C options by company.
  • Create ACA Applicable Large Employer (ALE) groups.
  • Create 4980H safe harbor eligibility rules.
  • Configure 4980H safe harbors.
  • Generate and distribute completed Forms 1094-C and 1095-C.
  • Process ACA data for Single Legal Entity (SLE) companies.
Make sure that you understand your compliance requirements before setting up Forms 1094-C and 1095-C. Workday enables you to create Forms 1094-C and 1095-C, but doesn't assume responsibility for compliance.
  1. Access the
    Edit Benefit Plan
     task.
    For medical health coverage plans, in the
    US Affordable Care Act Options
     section, select:
    • The
      Funding Method
      .
    • The check box if the plan provides the
      ACA Minimum Value Coverage
      .
    • Whether the
      ACA Minimum Essential Coverage
       applies to the employee, the spouse, or dependents. You can also conditionally offer spousal coverage.
    Security:
    Set Up: Benefits
     domain in the Benefits functional area.
  2. (Optional) Access the
    Create Benefit Eligibility Rule
     task.
    Determine the employee qualifications for 4980H safe harbor. Create 1 or more ACA 4980H safe harbor eligibility rules if you're going to create a 4980H safe harbor configuration.
    Workday determines the worker population for ACA 1094-C and 1095-C processing based on their full-time status. When you create ACA 1095-C tuning eligibility rules, you can include or exclude that population.
    Security:
    Set Up: Benefits
     domain in the Benefits functional area.
  3. (Optional) Access the
    Create ACA 4980H Safe Harbor Configuration
     task.
    Match the 4980H safe harbor to selected employee populations with the 4980H eligibility rule that you created in the previous step. Indicate for which months these 4980H safe harbors apply to the eligible employee groups.
    Security:
    Affordable Care Act (ACA) Administration
     domain in the Benefits functional area.
  4. Access the
    Create ACA ALE Group
     task.
    An Applicable Large Employer (ALE) can be a single entity or a group of related entities. A single entity is a company with an Employer Identification Number or a Designated Government Entity. A group of related entities is a parent company and its subsidiaries. Each entity must file a Form 1094-C with the IRS. Each ALE group is associated with 1 calendar year and 1 or more companies for 1 or more specified months.
    Workday uses this data to populate Form 1094-C automatically.
    Use the
    Maintain ACA ALE Member Order
     task to sort ALE members from all ALE groups for transmission to the IRS.
    Security:
    Affordable Care Act (ACA) Administration
     domain in the Benefits functional area.
  5. Access the
    Calculate 1094-C Total and Full Time Employee Counts By Month
     task.
    For an SLE, Workday rolls up the counts to the main company.
    Security:
    Process: ACA Tax Filing 1094-C/1095-C (Run)
     domain in the Benefits functional area.
  6. Define 1094-C company configuration information.
  7. (Optional) Access the
    ACA 1094-C Form/Box Tester
     and
    ACA 1095-C Form/Box Tester
     reports.
    If you use ACA ALE Groups in Workday, the
    ACA 1094-C Form/Box Tester
     displays the sorted order of ALE members. You sort the order with the
    Maintain ACA ALE Member Order
     task.
    The tester displays the most updated data in Workday, not the data last created from running the
    Create ACA 1095-C/1094-C Data
     task. After you complete a data correction, access the
    Create ACA 1095-C/1094-C Data
     task to create completed forms.
    Security:
    • Affordable Care Act (ACA) Administration
       domain in the Benefits functional area.
    • Process: ACA Tax Filing 1094-C/1095-C (Reports)
       domain in the Benefits functional area.
  8. Access the
    Create ACA 1095-C/1094-C Data
     task.
    Workday collects the 1095-C/1094-C data from which you can create employee 1095-C forms. You can run the data creation job as often as necessary. Each time the data creation job runs, Workday overwrites any data that has changed since the previous run.
    You can change the contact information on the 1094-C company configuration after you create the 1095-C data. If you select the
    Update 1094-C Data Only
     check box, Workday updates only the contact information when you recreate the 1095-C data. It doesn't update other 1095-C information, such as codes.
    After you create the 1094-C and 1095-C data, Workday provides the option to update the data using the
    Create ACA 1095-C/1094-C Data (Corrections)
     task. Select the
    Prevent 1095-C corrections for previously transmitted forms
     check box to update 1094-C data only. Workday generates corrections for untransmitted 1095-C forms when necessary, whether or not you select the check box.
    Use the
    View ACA 1095-C Form Data
     task to verify the data.
    Workday applies the sorted order of ALE members when you create or view the 1094-C form data.
    If the company is a Single Legal Entity (SLE), Workday creates only 1 1095-C form for each employee who worked in multiple companies within the SLE.
    Security:
    • Process: ACA Tax Filing 1094-C/1095-C (Run)
       domain in the Benefits functional area.
    • Process: ACA Tax Filing 1094-C/1095-C (Reports)
       domain in the Benefits functional area.
  9. Import data for dependents that don't exist in Workday, such as COBRA participants and retirees, as well as required data that Workday doesn't generate.
    Starting in Tax Year 2020, you need to populate these fields using the
    Import 1095-C Form Recipients Data
     EIB:
    • Employee's Age on January 1.
    • Line 14 Individual coverage Healthcare Reimbursement Accounts (ICHRA) codes.
    • Line 17.
    After you've imported the data to Workday, you can view it in Workday reports, create 1095-Cs, and send data to the IRS using the ACA Connectors.
  10. (Optional) Access the
    Publish Employee 1095-C Forms
     task.
    Release the forms to self-service employees for viewing and printing the PDF.
    Security:
    Process: ACA Tax Filing 1094-C/1095-C (Reports)
     domain in the Benefits functional area.
  11. (Optional) To make it easier for employees to find the option on mobile devices, add: the 1095-C Printing Election option. 
    You can display this option on:
    • The Benefits and Pay Hub with the
      Maintain Hubs
       task.
    • The Benefits worklet with the
      Configure Worklet
       task.
    The Benefits worklet isn’t available on Workday desktop.
    Security:
    Set Up: System
     domain in the System functional area.
  12. (Optional) Access the
    Maintain ACA 1095-C Sorting Setup
     task.
    Configure the sorting of fields and where Workday splits files.
    Security:
    Process: ACA Tax Filing 1094-C/1095-C
     domain in the Benefits functional area.
  13. Access the
    Create ACA 1095-C Forms
     task.
    Run this task only after employee and dependent data is up to date, and you're ready to send completed forms to the IRS. If you make changes to ACA data after creating 1095-C forms, data in Workday might no longer match the submitted forms.
    1. To send printed 1095-C forms to the IRS, select the
      Unmask Social Security Numbers
       check box. This option displays SSNs in the generated PDF.
    2. To include active employees who receive the electronic version, select the
      Include Workers Opted-Out of Paper Copy
       check box.
    Security:
    Process: ACA Tax Filing 1094-C/1095-C (Run)
     domain in the Benefits functional area.
  14. Send Form 1094-C and Form 1095-C data to the IRS.
Workday creates the 1094-C and 1095-C forms that you can then send to the IRS electronically. Workday creates separate 1095-C forms for each company that a worker has during the year.
Employees can select
Change 1095-C Printing Election
 on the Benefits and Pay Hub, or the Benefits worklet (on the mobile app only). They can select to receive their completed 1095-C form in both paper and electronic (PDF) or electronic copy only.
View your created forms and 1094-C and 1095-C form data. In addition, access these reports:
  • View 1094-C FTE and Total Count Details
    .
    You can view employee information from all related companies for an SLE.
  • View 1095-C Form Recipient Data
    .
Access the
Delete 1095-C Form Data
 task to delete selected 1095-C recipient data for a specified company and tax year. You can't delete previously transmitted 1095-C recipient data.
Some states in the US require that yo report to verify health coverage. Access the
1095-C Eligible Employees by State or Region
 report to view worker 1095-C data in a specific state or region.